Problem Areas in Labor Organization Administration: A Study On Union Leadership and Accountability

ILS Discussion Paper Series 2012
Problem Areas in Labor Organization

Administration
A Study on Union Leadership and
Accountability
Benjamin M. Dalumpines III

Working Paper Series 2012
For Discussion Purposes Only
PROBLEM AREAS IN LABOR ORGANIZATION

ADMINISTRATION
A STUDY ON UNION LEADERSHIP
AND ACCOUNTABILITY
Benjamin M. Dalumpines III
The views expressed in this paper are those of the authors and do not reflect the opinion of the
Institute for Labor Studies and the Department of Labor and Employment.
Problem Areas in Labor Organization Administration
A Study on Union Leadership and Accountability
Abstract
The right to freedom of association is a right guaranteed not only by the municipal
laws of the Philippines, like the 1987 Constitution and the Labor Code, but also by
international conventions like ILO Convention 87. Anchored on the exercise of this right,
workers in the country have, over the years, formed and joined labor unions. These labor
unions exist for the purpose of “collective bargaining, mutual aid, cooperation, protection
and other lawful purposes”1. In other words, individual workers, by forming or joining labor
organizations, submit to the collective wisdom of the organization.
This formation of labor organizations will lead to the creation of rights, interests and
obligations between the union, represented by its officers, and the individual members. In
order to have harmony in the organization, there must be a convergence of these rights,
interests and obligations. It can be presumed that a “convergent” relationship between the
union and the members would mean that the organization is likely to be more accountable.
But when, during the interplay of rights, interests, and obligations, the union and the
members do not meet, an issue on accountability would then arise.
This study took a closer look at the manners and methods in which the union
leadership manages the affairs of the union, centering more on the issues of accountability,
transparency inadequacies and effectiveness. It attempted to identify problem areas and
good practices in labor organization administration, which may be a basis for future policies
on labor relations, and aims to strengthen the regulatory capacity of the Department in
ensuring that pseudo labor organization are eliminated.
1
DO 40-03
Problem Areas in Labor Organization Administration
A Study on Union Leadership and Accountability
Background
The right to freedom of association is an essential component in any industrial
relations system in a democratic society. Through this right, workers are able to organize
and form unions or associations, and consequently, enable them to bargain for better terms
and conditions of employment. This right also provides workers a vehicle to air and resolve
grievances, and thus, plays a vital role in resolving industrial disputes and maintaining
industrial peace.
In a great way, however, unions are only as good as the union leadership itself.
During the collective bargaining process, it is the set of officers of the trade union that
negotiate with the management. In times of disputes, union leaders play a pivotal role in
steering the grievance machinery and de-escalating the tension. The leaders act as
intermediaries, bridging the relations between the workers they represent and the
management. Union leaders also manage both the internal affairs of the organization, which
include financial matters, activities, projects, regular meetings and its external affairs which
include participation in labor education programs and tripartite consultations organized by
the government.
It is therefore important that union leaders are effective in carrying out the mandate
entrenched in their positions as representatives of the workers. This however, may not be
the case in some organizations, where “internal weaknesses” such as “disunity and
fragmentation, internal dissension, corruption and administrative and financial inadequacies”
take place. There are also cases of “pseudo labor organizations” – fly-by-night, corrupt,
profit-oriented and company controlled – which do not promote and protect the interests of
labor. 2
This study took a closer look at the manners and methods in which the union
leadership manages the affairs of the union, centering more on the issues of accountability,
transparency inadequacies and effectiveness. It attempted to identify problem areas and
good practices in labor organization administration, which may be a basis for future policies
on labor relations, and aims to strengthen the regulatory capacity of the Department in
ensuring that pseudo labor organization are eliminated.
BATU Research and Documentation Center. Leadership and Adminstration in Labor Organzations.
2
1990
Methodology
In the course of the study, available literature on labor organization administration

and union accountability were reviewed. The review was the basis in developing the
materials for key informant interviews and focus group discussions. Survey were also made,
targeting workers who are members of independent and affiliated unions.
The gathered information became the basis in writing case studies, highlighting
accountability and transparency issues, if any, and good practices, of the union leadership.
The case studies were material in analyzing and dissecting the issues, and essential in
presenting policy recommendations.
A draft of the paper shall be presented in the ILS Strategic Conversations for further
comments and suggestions.
The Policy Basis of the Right to Self-Organization
ILO C87. The roots of the Right to Self-Organization of workers in the country can be
traced as far back as the ratification by the Philippines of ILO Convention 87 or the Freedom
of Association Convention in December 1953. This Convention is considered one of the core
conventions (fundamental principles) of the International Labour Organization (ILO).
The Labor Code. The 1974 Labor Code of the Philippines, and its implementing rules
and regulations, also guarantees the right to self-organization of workers. Book V of the
Code (and DO 40-03) laid down different provisions governing the formation of labor
organizations, including the rights and obligations of workers and the union.
The 1987 Philippine Constitution. The Right to Self-Organization is also a

constitutionally-enshrined right of workers. Several sections of the 1987 Philippine
Constitution underscore this right, which are: Article III, Section 8 (Bill of Rights); Article II,
Section 18 (State Policy); Article XIII, Section 3 (Labor).
RA 9481. In 2007, Congress passed Republic Act 9481, a law which strengthens the
right to self-organization of workers. It amended certain provisions of the Labor Code by
removing certain rigidities in the registration of labor organizations, as well as the removal
of certain grounds for cancellation of labor organizations.
Rights of Union Members
Article 241 of the Labor Code enumerated several rights and conditions of
membership in a labor organization. These rights can be categorized into four, namely:
Political right; Right over the funds of the union; Right to information; Right to decision-
making process.
Political Right. This pertains to the right to vote and be voted upon in the election of
officers of the union.
Right over the funds of the union. This pertains to the right not to be assessed
excessive union fees, as well as the right to be apprised on the financial transactions of the
union.
Right to information. This pertains to the right to be apprised about the constitution
and by-laws of the union, the collective bargaining agreement and labor laws.
Right to decision-making process. This pertains to the right to participate and decide
on major policy questions affecting the union.3
Rights of Legitimate Labor Organization
Article 242 of the Labor Code laid-down several rights of legitimate labor
organizations. This right includes the right to act as representative of its members for the
purpose of collective bargaining. Legitimate labor organizations also have the right to be
certified as the exclusive representative of all the employees in a bargaining unit.
The Policy Framework
Over the years, there is an evident paradigm shift in the policy direction of the
Philippine Government regarding the exercise of the workers of their right to self-
organization – from a regulatory approach during the Marcos era, the period when the Labor
Code was enacted, to a more liberal approach in the present time. The passage of Republic
Act 9481 is a testament to the current policy framework of the Philippine Government,
where rigidities in union registration have been taken away and certain regulatory powers of
the Department of Labor and Employment have been removed. The Philippine Labor and
Employment Plan 2011 – 2016 also lends substance to this present framework of the
Government when it enunciated as one of the commitments the further liberalization of the
Labor Code as regards the exercise of the right to freedom of association by the workers.
The following diagram illustrates the policy framework of the Philippine Government:
3 th
Azucena C.A.The Labor Code With Comments and Cases.7 Edition.2012
Analytical Framework
Against the backdrop of a more liberal policy framework, an effective union –

member relationship is characterized by a convergence of the rights, interests and
obligations of the labor organization and the union leadership:
The more these rights, interest and obligations converge, the less likely it is to have
issues on accountability, transparency inadequacies and effectiveness within the
organization. If there is a divergence, these issues would certainly surface.
Respondent Profile
Seventy-nine workers were surveyed in eight companies for this study. The following
pie charts illustrate the profile – region, industry, company and gender distribution – of the
workers surveyed:
Summary of Survey Findings
The survey questionnaire was structured in such a way that the surveyed worker
shall rate the union leadership in terms of: a) Quality of the CBA; b) Maintenance of
Industrial Peace; c) Ensuring the Rights of Union Members; d) Labor-Management
Cooperation; and e) Participation in Tripartite Activities.
The following table shows the summary of the ratings of the 79 workers surveyed:
A. On Quality of the CBA Rating

1. Economic Provisions of the CBA 3.85
2. Non-economic Provisions of the CBA 4.06
3. Effectiveness in uplifting the lives of workers 3.51
4. Gender-related provisions 4.14
B. On Maintaining Industrial Peace
1. Effectiveness of the Grievance Machinery 3.59
2. Effectiveness of the Leadership in resolving disputes 3.68
C. On Rights of Union Members
1. Regularity in the conduct of elections 3.77
2. Transparency over the funds of the union 3.15
3. Effectiveness in the process of determining union fees 3.58
4. Openness in allowing member participation in union policy 3.54
formulation
5. Effectiveness in educating union members on union policies/ 3.57
company policies
6. Frequency of consultations to the members (CBAs, company 3.48
policies)
D. On Labor-Management Cooperation
1. Harmony of Labor-Management relationship 4
2. Frequency of joint union-management activities 3.85
3. Helpfulness of the these joint union-management activities 4
E. Tripartite Activities
1. Willingness of the officers to join activities organized by the 3.75
government (through ITCs, TIPC, forum)
Case Reports
Among the firms surveyed for this study, five case reports were prepared to highlight
the practices of different labor organizations. These case reports are material in the analysis
part of this study.
Case Report 1 – Union A4
Union Profile. Union A is an independent labor organization organized in an

automotive parts manufacturing company in Region IV-A. The union has 132 male members
and 25 female members. It is the recognized collective bargaining agent and has an existing
CBA which will expire on 31 December 2012.
On the Quality of the CBA. In general, the CBA negotiated is relatively better than
the previous CBA crafted in terms of the economic benefits, which includes higher leave
benefits, financial assistance, rice allowance, educational loan, transportation allowance,
profit-sharing agreement, medical and dental benefits and a better 13th month pay scheme.
4
Based on the Interview with the Vice-President and Secretary of the Union
The change may be attributed to the new and more proactive human resource team of the
company. As such, some disputable company policies also became topics during the CBA
negotiations.
When asked on whether the CBA provisions are effective in uplifting the lives of
workers, the union officers felt that the benefits are still insufficient in meeting the projected
daily cost of living in the region. The union, however, was able to negotiate for some
gender-related provisions which are better than what are specified in certain social
legislations.
On Maintaining Industrial Peace. The officers of the union declared that they have
never been involved in any internal, intra or inter-union dispute. The union, however, filed a
notice of strike in 2009 because of bargaining deadlock, which was eventually assumed by
the DOLE Secretary.
On the Political Rights of the Members. Election of officers of the union is conducted
every 5 years and the procedure provided for in the constitution and by-laws is strictly
followed. Currently, the union has 7 male officers which include the president, and 3 female
officers.
On the Right over the Funds of the Union. Members of Union A are being assessed
Php160.00 as monthly dues. The funds collected are normally used in defraying the cost of
union activities like the Labor Day celebration and labor education programs. The funds are
also used in paying attorney’s fees whenever legal counsel is sought by the organization.
According to the officers, the members of the union are being apprised of all the
financial transactions of the labor organization through the quarterly general membership
meetings. In these meetings, detailed reports of the transactions are posted and the
members are given the opportunity to inspect said reports.
Right to Participate in Policy and Decision-making. If there are major policy questions
affecting the entire membership of the organization, the general sentiment of the members
are obtained during general membership meetings. A board resolution is then passed by the
officers reflecting the decision of the members.
Right to Information. When asked on whether the members are aware of the
contents, including the amendments, of the constitution and by-laws of the organization, the
officers responded that the union conducts orientation to the employees of the company,
which is part of the regular labor-education activities being carried-out. Some of the topics
of these labor-education activities include unionism and CBA tactics.
As regards CBA process, consultations with the members are regularly conducted by
the officers during the entire negotiations phase.
On Reportorial Requirements. When asked on whether the union is compliant with

the Labor Code provision requiring legitimate labor organizations to submit annually certain
reportorial requirements, the union officers answered in the affirmative. The officers
furthered that one of the reports being submitted is the financial statement of the
organization.
The union officers also disclosed that they are not in favor of the law abolishing the
power of DOLE-BLR to administratively cancel union registration for noncompliance of the
reportorial requirements. According to them, there must really be a provision in our labor
laws that compels unions to religiously comply with these requirements.
On Labor-Management Cooperation. The officers of the union described its

relationship with the management as harmonious, owing to the fact that they have been
involved in several collaborative activities like feeding program, family day and other CSR
programs of the company.
On Internal Processes. In order not to stir any distrust within the labor organization,
the union leadership strictly follows the constitution and by-laws of the organization and the
CBA when it comes to procurement using union funds, disciplinary actions and the grievance
process.
On Making Unions More Accountable. The union officers are of the view that an
accountable labor organization should have a set of union leaders who fully understand the
issues and interests of their members. The leadership must be open to social dialogue
processes and transparent in all of its dealings. The leadership must also ensure that its
members are educated about their rights.
Survey Results. Eight union members of Union A were surveyed and the following
results were generated:

5. Economic Provisions of the CBA 3.5
6. Non-economic Provisions of the CBA 3.5
7. Effectiveness in uplifting the lives of workers 3.3
8. Gender-related provisions 4
3. Effectiveness of the Grievance Machinery 4
4. Effectiveness of the Leadership in resolving disputes 3.6
7. Regularity in the conduct of elections 4.1
8. Transparency over the funds of the union 2.5
9. Effectiveness in the process of determining union fees 3.8
10. Openness in allowing member participation in union policy 4.3
formulation
11. Effectiveness in educating union members on union policies/ company 4.3
policies
12. Frequency of consultations to the members (CBAs, company policies) 4.1
4. Harmony of Labor-Management relationship 3.8
5. Frequency of joint union-management activities 4.5
6. Helpfulness of the these joint union-management activities 4
2. Willingness of the officers to join activities organized by the 3.6
Case Report 2 – Union B5
Union Profile. Union B is an independent labor organization in Region VII organized

in a banking institution. The union has 220 members. It is the recognized collective
bargaining agent and has an existing CBA which will expire on April 2016. The union was
5
Based on the Interview with the President of the Union
formerly affiliated with a national federation for ten years, but decided to disaffiliate
thereafter.
On the Quality of the CBA. Negotiations in the company became somewhat peculiar,
because the management has to deal with several unions in several locations at the same
time. Although there are many unions in this banking institution, which is one of the
country’s largest banks, negotiations were simultaneous nationwide, especially as regards
the economic items of the CBA. As a result, the economic provisions of the CBA became a
rubber stamp of what were negotiated in NCR, which was presumed to have the highest
(better) proposals given the higher cost of living in the region.
As a banking institution, the economic provisions of the CBA, including its gender-
related benefits, are a lot better than the CBAs in other industries. The Union President
believes that the CBA is effective in uplifting the lives of its members.
On Maintaining Industrial Peace. For the past ten years, the union has never been
involved in any internal, intra or inter-union dispute. The grievance machinery of the firm is
also effective in handling issues like employee transfers and pay (overtime) disputes.
On the Political Rights of the Members. Election of union officers is conducted every
5 years as provided for in the by-laws of the organization. However, the incumbent
president has been in his position for the second-term because of the reluctance of the
other members to be part of the union leadership. Currently, the union has 10 male officers
which include the president and 3 female officers.
On the Right over the Fund of the Union. Members of Union B are being assessed
Php60.00 as monthly dues. The funds collected are normally utilized during general
membership meetings of the organization. The union funds are also used to provide
bereavement assistance to its members.
Although organized in the banking industry, Union B is unable to furnish a full and
detailed report of all its financial transactions to its members.
affecting the entire membership of the organization, the general sentiment of the members
are obtained during general membership meetings. A board resolution is then passed by the
officers reflecting the decision of the members.
Right to Information. The union president of Union B is uncertain whether all of the
members are aware of the contents of the constitution and by-laws of the union. However,
if there are major policy questions, the union leadership consults its members through the
general membership meetings which are regularly conducted. Even during the CBA
negotiations, the union leaders called a general membership meeting twice to apprise its
members of the status of the negotiations. The union officers are also active in taking part
in labor-education activities spearheaded by the NCMB, and the knowledge gained are
thereafter reechoed to its members.

reportorial requirements, the union officers answered in the negative.
The union president also stated that they are in favor of the law abolishing the
power of DOLE-BLR to administratively cancel union registration for noncompliance of the
reportorial requirements. He further mentioned that the right to self-organization of the
workers should be respected, and there must be minimal government intervention in the
exercise of this right.
On Labor-Management Cooperation. Labor-Management relation in the company

where Union B operates was adversarial in the 1980s, when the union was still affiliated
with a national federation. However, the recent times shows a harmony in the relationship
of the union to the management, with the former actively participating in the CSR activities
of the latter.
On Internal Processes. Questions relating to the internal processes of the union –

union funds administration, disciplinary actions – are resolved during the general
membership meetings.
On Making Unions More Accountable. In order to have a more accountable labor

organization, the union president intimated that labor education is a key factor. Union
officers and members must be educated regarding their rights and obligations. An
accountable union, he further stated, must have an open communication with the
management, and cooperates with the labor-management collaborative activities initiated by
the management.
Survey Results. Seventeen members of Union B were surveyed and the following
results were generated:

Economic Provisions of the CBA 3.72
Non-economic Provisions of the CBA 3.76
Effectiveness in uplifting the lives of workers 3.41
Gender-related provisions 3.76
Effectiveness of the Grievance Machinery 3.64
Effectiveness of the Leadership in resolving disputes 3.71
Regularity in the conduct of elections 3.71
Transparency over the funds of the union 2.59
Effectiveness in the process of determining union fees 3.12
Openness in allowing member participation in union policy 3.3
formulation
Effectiveness in educating union members on union policies/ company 2.8
policies
Frequency of consultations to the members (CBAs, company policies) 3.1
Harmony of Labor-Management relationship 4.12
Frequency of joint union-management activities 3.59
Helpfulness of the these joint union-management activities 3.71
Willingness of the officers to join activities organized by the 3.3
It is apparent in the survey results that the members rated the union leadership in
terms of transparency over the funds of the union and in educating union members.
Case Report 3 – Union C6
Union Profile. Union C is an independent labor organization in Region VII organized

in a restaurant services industry. The union has 102 members (71 males;31 females). The
company has been operating since July 1996, and the union was formed since 1998. It is
the recognized collective bargaining agent and has an existing CBA which will expire in
2013.
On the Quality of the CBA. The economic items of the CBA forged by the
management and the union provided for benefits that are, as the union president stated,
“beyond” the Labor Code. Some of the benefits include sick, vacation and emergency leaves,
accident insurance, health fund, and salary increase, among others. During the negotiations,
however, the union leadership was unable to obtain and utilize the annual audited financial
statement of the company.
On Maintaining Industrial Peace. Since 1998, the time when the organization was
formed, the union has never been involved in any labor dispute.
On the Political Rights of the Members. Election of union officers in the organization
is conducted through secret balloting. However, there was an instance when a vacancy
occurred in one of the positions, and the leadership resorted to the appointment a new
officer to replace the old one.
Currently, Union C has 12 male officers and 3 female officers.
On the Right over the Funds of the Union. Members of Union C are being assessed
Php100.00 every month as union dues. Of the total amount collected, 50% goes back to the
individual employee once he resigns. Union funds are spent to defray the cost of the
programs and activities of the union, including burial assistance to members who suffer
death of an immediate family member. Union officers are also compensated Php800.00
every month using the funds of the organization.
During the first two years of Union C, the financial transactions of the organization
were never documented. Because of this, an atmosphere of mistrust to the leadership of the
union resulted. Allegedly, the first set of officers misused more than Php300,000.00 of union
funds.
To ensure transparency over the funds of the union, the subsequent officers made
sure that yearly financial statements are posted and presented during the general
membership meetings of the organization.
Right to Participate in Policy and Decision-making. Major questions on union policies

are resolved by the union during general membership meetings. Sometimes, certain policies
crafted by the officers are just announced during these meetings, and when no negative
feedbacks are elicited, these policies are then adopted.
Right to Information. In order to apprise union members of their rights, the union
officers tapped a certain federation to conduct labor education. The union officers also
joined some of the labor education programs of DOLE, and the knowledge gained are
reechoed to the union members.
6
Based on the Interview with 5 officers of the union including its President
On Reportorial Requirements. Union C is compliant in the submission of the
reportorial requirements to the Regional Office of DOLE. They have also registered the CBA
to the Department.
The union officers declared that they are against the law abolishing the power of
DOLE-BLR to administratively cancel union registration for noncompliance of the reportorial
requirements. He stressed that RA 9481 must be amended in order to retain the power of
the Department to discipline erring labor organizations. Meanwhile, he cited that DOLE must
come up with labor education programs on unionization for both officers and members of
labor organizations.
On Labor-Management Cooperation. In general, labor-management relation in the

company is smooth and harmonious, with some minor problems in certain departments. The
union and management also had some collaborative activities which improved the “bonding”
and “camaraderie” of the parties.
On Internal Processes. On the administration of union funds, the union leadership

makes sure that before funds are released, it follows the process of approval stipulated in
the union’s by-laws. As regards disciplinary actions and grievance process, committees have
been created to expedite the resolutions of the issues.
On Making Unions More Accountable. In order to have a more accountable labor

organization, the union officers underscored the importance of labor education, especially on
the topic of unionism. They stressed that a more informed members is less prone to abuses
by the union leadership. They also highlighted the need for DOLE to facilitate these labor
education activities.
Survey Results. Ten members of Union C were surveyed and the following results
were generated:

formulation
policies
Willingness of the officers to join activities organized by the 5
Case Report 4 – Union D7
]
Union Profile. Union D is an independent labor organization in Region VII organized
in a furniture manufacturing company. The union has been in existence since 1998.
Currently, it has around 180 members – 110 males and 70 females. The union was able to
negotiate a CBA with the management in 2010, and the same will expire in 2015.
On the Quality of the CBA. The CBA negotiations process in the company in 2010
became very smooth, as it only took 15 minutes for both the management and union
representatives to thresh out issues in the bargaining table. The union was able to bargain
for better leave benefits (15 sick leaves, 15 vacation leaves, birthday and emergency leaves)
and yearly increases in their wage among others.
The union president believes that the CBA somehow helps uplift the lives of the
members, as it grants benefits that are relatively higher than those granted to other workers
in the same industry.
On Maintaining Industrial Peace. Since the formation of the union, it has never been
involved in any union dispute (internal, intra or inter) nor strike. It also has a working
grievance machinery which handles minor cases in the firm.
On the Political Rights of the Members. The current union president, who happens to
be a supervisor (and should not have been elected as union officer of the rank-and-file
union) has been an officer for 17 years. Elections are conducted through secret balloting
every 5 years during the general assembly of the organization. The union follows, as how
the president terms it, a “parliamentary type” electoral process where the top 15 names
casted shall fill the 15 different officer positions.
Presently, Union D has 12 male union officers and 3 female officers.
On the Right over the Funds of the Union. A measly amount – Php10.00 – is being
charged by the union as union dues to each worker. The amount collected is utilized to
defray the cost of seminars and workshops organized by the union. Union dues are also
used to fund the loan (lending) facility of the union.
Each year, during the general assembly, the union reports to the members all the
financial transactions of the organization. The dividends (interests from loans) are also
distributed.
Union officers are paid Php1200 per year as honorarium.
affecting the entire membership of the organization, consultations are usually made by the
union officers to its members. Point persons are normally designated per department so as
to provide a mechanism for members to air their views.
Right to Information. The union president disclosed that union members, especially
the new ones, are informed of the existence of the CBA and the constitution and by-laws of
the union during employment orientations done by the human resource personnel of the
company. Union members are further informed of their rights through the labor education
seminars organized by DOLE and the union.
7
Based on the Interview with the President and Secretary of the Union
reportorial requirements, the union officers answered in the affirmative. The union officers
also stressed that the regulatory power (administrative cancellation) of the DOLE-BLR must
be retained for non-compliance of the reportorial requirements.
On Labor-Management Cooperation. The speed on how the CBA was agreed upon is
an indicator of the harmonious relationship between the labor and management in the firm.
The union also actively participates in many management-initiated activities like family days
and regular masses.
On Tripartite Activities. Both the management and union in the company are active
members of the TIPC. The labor organization is also a member of the Association of
Industrial Peace Advocates.
On Making Unions More Accountable. According to the union officers, an accountable

union is an organization that advocates for more protection for the workers. This can
primarily be done by communicating and cooperating with the management, rather than
resorting to adversarial concerted actions.
To eliminate pseudo labor organizations, the officers stressed that the government
must step and must at least have a regulatory power over the unions.
Survey Results. Six members of Union B were surveyed and the following results
were generated:

formulation
policies
Helpfulness of the these joint union-management activities 5
Case Report 5 – Union E8
8
Based on the Interview with the President, Former President, Treasurer and Associate Officer of the Union.
Union Profile. Union E is an affiliated union of non-teaching personnel in one of the
largest schools in Region XI. The union has been affiliated with a national federation since
1970s. It has 85 members – 28 males and 57 females. The union was able to negotiate a
negotiate a CBA in June 2009, which will expire 5 years thereafter.
On the Quality of the CBA. Compared to the CBA of other organized schools, the CBA
of Union E is way more generous in terms of its economic benefits. The leave benefits and
social protection provisions of the agreement, like the maternity benefits, are also a lot
better. Through the CBA, a day care center was also instituted for the young children of the
employees. The CBA also clearly outlined the grievance process in the grievance machinery,
which translated to an effective GM process.
During the CBA negotiations, the union was furnished by the employer with an SGV
audited financial statement.
On Maintaining Industrial Peace. Since the start of the organization in the 70s, the
union has had a history of involvement in labor disputes. In 1997, after following the
process stipulated in the Labor Code, a full-blown strike for two weeks occurred. Another
strike happened in 2004 when the union president was dismissed. It was resolved through
the intervention of the local government unit.
On the Political Rights of the Members. Election of union officers in Union E is

conducted every 5 years during the general membership meeting through viva voce. Prior to
the assumption of office of the incumbent union officers (led by a female president), the
union has been headed by a male president for 4 terms. Currently, the union leadership is
composed of 8 male and 7 female officers.
On the Right over the Fund of the Union. One percent of the monthly salary of every
member goes to the union funds. Of the total amount collected, 50% goes to the federation.
During general membership meetings, the financial transactions of the union are reported to
the members. The union is also able to know the details of the transactions of the federation
during the yearly national convention.
Right to Participate in Policy and Decision-making. Major questions on union policies

are resolved by the union during general membership meetings. The sentiment of the
members are obtained through a viva voce voting .
Right to Information. As part of the services of the national federation, labor-

education seminars on basic labor laws, grievance handling and leadership, among others,
are provided to the members.
On Reportorial Requirements. Union E annually complies with the submission of the

reportorial requirements to the Regional Office of DOLE. Although an action has been
previously filed against the union in the Regional Office for noncompliance on the
submission of reportorial requirements, the former union president stated that “everything is
already cleared”.
According to some of the officers, the passage of the law abolishing the power of
DOLE to administratively cancel union registration for noncompliance of the reportorial
requirements may result to abuses by some organizations. They opined that the DOLE must
still have a means to monitor the affairs of the union.
On Labor-Management Cooperation. The union and the management have been
engaging in several collaborative activities like entrepreneurship seminars and tree-planting.
These activities help maintain a harmonious relationship in between labor and management
in the firm.
On Tripartite Activities. Both the union and management are active members of the
Education Industrial Peace Council (EITC) in Region XI. The union is also a recipient of the
WODP and WINAP.
On Internal Processes. When it comes to union spending, a strict process is being

followed by the union before funds are released. If there are projects – relief program,
raffles, etc. – proponents are required to prepare and present a feasibility study to the
Board, and thereafter presented to the members during the general assembly.
As regards disciplinary actions against erring members, the union is unable to

faithfully follow the procedures in the by-laws of the organization. Instead of going through
the procedures outlined in the by-laws, union officers tend to resolve the problems by
talking directly to the employee.
On Making Unions More Accountable. In order to have more accountable labor

organizations, the union officers emphasized the importance of labor education, so as to
make not just the officers, but the members as well, more aware of their rights. DOLE, they
furthered, must continue espousing labor education programs.
In dealing with the management, union leaders must also learn the art of effective
communication. The approach of the union must not be adversarial. In the bargaining
process, union representatives must exercise good faith bargaining.
To ensure transparency and eliminate pseudo labor organizations, the union officers
hinted that DOLE must still retain certain regulatory powers to ensure that members of labor
organizations are provided safety nets.
Survey Results. Ten members of Union C were surveyed and the following results
were generated:

formulation
policies
Analysis
The survey results and the cases show that there are really problem areas in labor
union administration, and it most cases, there is not much difference between affiliated and
independent ones. Foremost in these problems is the issue on transparency over the funds
of the union. In the survey results, this item rated a meager 3.15, the lowest in the survey
items. This means that there is mistrust from the ranks of the member-workers on how the
union leadership handled matters regarding the financial transactions of the union. Although
the union officers claimed that reporting of these transactions are done during general
membership meetings, as shown in the case reports, workers may have found the reporting
insufficient to erase suspicions on how the funds were handled. In one of the case reports
(Case Report 3), the incumbent officers even admitted that the first set of officers of the
union may have misappropriated a huge chunk of the union funds. In another case, the
union officers were unable to furnish their members of a detailed report of the union
spending.
When the union officers were asked, however, on whether they are in favor of the
law abolishing the power of DOLE-BLR to administratively cancel the registration of unions
that fail to submit reportorial requirements, including the financial statements, majority
replied in the negative. Most of the officers interviewed expressed the need to retain the
regulatory powers of the Department.
Two other items which garnered low overall rating in the survey are: “openness of
the union in allowing member participation in union policy formulation”, which got 3.54; and
“frequency of consultations to the members”, which got 3.48. This is contrary to what the
officers claimed in the interviews where, accordingly, consultations are frequently conducted
on important questions affecting the labor organization.
In the interviews with the union officers, it was also revealed that there were
irregularities in the conduct of elections (and on voting on certain policy questions) in some
unions. While most, if not all, unions practice secret balloting in voting for a new set of
officers or in deciding policy questions, there were instances of viva voce voting in one of
the respondent unions. Some union officers were also appointed instead of being voted for.
Another item which did not fare high in the survey is the union’s effectiveness in
educating union members (right to information) on company and union policies, including
the CBA and the constitution and by-laws. In one of the cases, the union president even
admitted that he is uncertain on whether all of the members are aware of the contents of
the constitution and by-laws. Furthermore, many seminars on unionism and other labor
education activities are participated mostly by union officers alone, and sometimes, the
learning are just kept only within the circle of the officers.
In the survey, the items on labor-management cooperation and quality of the CBA
rated relatively higher compared to the rest of the items. Even in the interviews with the
officers, it was disclosed that most unions have already veered away from the adversarial
approach in dealing with the management, and has been closely working with the
management on issues affecting the organization, including CBA negotiations.
Recommendations
Based on the foregoing case reports, survey results and analysis, the following are
the policy recommendations of the researcher:
1. There may be a need to revisit RA 9481 and explore means to strengthen DOLE’s
regulatory power especially regarding Transparency over the funds of the union. This should
be done without undermining the current policy framework of the Department which is less
intervention on the exercise of the right to self-organization by the workers.
2. In relation to the preceding recommendation, the Department, through the BLR or

Regional Offices, may also explore exercising the power to suspend, expel and penalize non-
compliant (reportorial requirements) union officers. Although RA 9841 removed from the
ambit of powers of the Department the administrative cancellation of registration of
noncompliant unions, the power to suspend, expel or penalize were retained.
3. With the presumption that a more learned worker is less prone to abuses by labor
organizations, there may be a need for the Department to conduct more inclusive labor
education activities and monitor the labor education programs of labor organizations .The
surveys and interviews indicate that recipients of labor education programs of the
Department and other entities are joined mostly by union officers alone, and there may
have been a gap in reechoing the learning to the union members.
4. The Department may also attempt to recognize/award good practices of the

union. In relation to this, further study on “union social responsibility” may also be explored.
Conclusion
It is important to reiterate that the Philippines recognizes the right to freedom of

association of the people. Because of this right, people have the option to join or not join
organizations. In the workplace, workers may form or join labor organizations. What
happens is that the individual worker submits to the collective will of the organization. When
this happens, certain rights and obligations between the workers and the union are created.
As earlier pointed out, there must be a convergence of these rights and obligations in order
to have an effective union-member relationship.
What then will happen if there is clashing of the rights and obligations?
Divergence of the rights and obligations of the union may result to a lot of
transparency and accountability issues. This in turn will have an ill-effect on how the labor
organization works. Consequently, the aim of “mutual aid and protection” may not be fully
achieved.
Prudence would therefore dictate that the government, in a less intrusive way – as
this is an exercise of a constitutionally protected right – must mediate. The policy
recommendations of this study specify certain steps that may be taken by the Department
so as to protect the rights of the workers, both as an individual and as a member of a labor
organization.
References
Azucena C.A.The Labor Code With Comments and Cases.7th Edition.2012
BATU Research and Documentation Center. Leadership and Adminstration in Labor

Organzations. 1990
ILO website. <www.ilo.org>
The Labor Code of the Philippines (PD 442)
The Philippine Labor and Employment Plan (LEP) 2011 – 2016
The 1987 Philippine Constitution
Republic Act 9481

Problem Areas in Labor Organization Administration: A Study On Union Leadership and Accountability

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ILS Discussion Paper Series 2012

Problem Areas in Labor Organization

Benjamin M. Dalumpines III

For Discussion Purposes Only

PROBLEM AREAS IN LABOR ORGANIZATION

Benjamin M. Dalumpines III

In the course of the study, available literature on labor organization administration

The Policy Basis of the Right to Self-Organization

The 1987 Philippine Constitution. The Right to Self-Organization is also a

Rights of Union Members

Rights of Legitimate Labor Organization

The Policy Framework

Against the backdrop of a more liberal policy framework, an effective union –

A. On Quality of the CBA Rating

Case Report 1 – Union A4

Union Profile. Union A is an independent labor organization organized in an

On Reportorial Requirements. When asked on whether the union is compliant with

On Labor-Management Cooperation. The officers of the union described its

A. On Quality of the CBA Rating

Case Report 2 – Union B5

Union Profile. Union B is an independent labor organization in Region VII organized

On Reportorial Requirements. When asked on whether the union is compliant with

On Labor-Management Cooperation. Labor-Management relation in the company

On Internal Processes. Questions relating to the internal processes of the union –

On Making Unions More Accountable. In order to have a more accountable labor

A. On Quality of the CBA Rating

Union Profile. Union C is an independent labor organization in Region VII organized

Currently, Union C has 12 male officers and 3 female officers.

Right to Participate in Policy and Decision-making. Major questions on union policies

On Labor-Management Cooperation. In general, labor-management relation in the

On Internal Processes. On the administration of union funds, the union leadership

On Making Unions More Accountable. In order to have a more accountable labor

A. On Quality of the CBA Rating

Union officers are paid Php1200 per year as honorarium.

On Making Unions More Accountable. According to the union officers, an accountable

A. On Quality of the CBA Rating

Case Report 5 – Union E8

On the Political Rights of the Members. Election of union officers in Union E is

Right to Participate in Policy and Decision-making. Major questions on union policies

Right to Information. As part of the services of the national federation, labor-

On Reportorial Requirements. Union E annually complies with the submission of the

On Internal Processes. When it comes to union spending, a strict process is being

As regards disciplinary actions against erring members, the union is unable to

On Making Unions More Accountable. In order to have more accountable labor

A. On Quality of the CBA Rating

2. In relation to the preceding recommendation, the Department, through the BLR or

4. The Department may also attempt to recognize/award good practices of the

It is important to reiterate that the Philippines recognizes the right to freedom of

Azucena C.A.The Labor Code With Comments and Cases.7th Edition.2012

BATU Research and Documentation Center. Leadership and Adminstration in Labor

ILO website. <www.ilo.org>

The Labor Code of the Philippines (PD 442)

The Philippine Labor and Employment Plan (LEP) 2011 – 2016

The 1987 Philippine Constitution

Republic Act 9481

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