CHAPTER 10

THE LABOR MOVEMENT

A back ground on the early Philippine labor movement
Philippine trade unionism did not begin to take healthy
roots and development until 1901.
Isabelo Delos Reyes ( Union De Litosgrafos Impresores De
Filipinas) father of Philippine trade unionism.
3 CATEGORIES OF EMPLOYEES
1. Managerial employees - distinction between
managerial employees and supervisory employees has
the power to decide
2. Supervisory employees - has the power to recommend
3. Bank and file employees - distinction between labor
organization and a workers association .
labor organization - for collective bargaining purposes
Workers association - mutual aid and protection of its
members
DEFINITION OF TERMS
a. Labor relation - regulates the relation between
employees and workers .
b. Labor standards - prescribes the minimum terms and
condition of employment which the employer is
required.
c. Labor organization - any onion or association of the
employers which exist in whole.
d. Legitimate labor organization – duly registered with the
department of labor and employment (DOLE).
e. Nation union or federation – alliance of a group of
union in one industry in any area, region, or country.
f. Exclusive bargaining representative – duly recognized
or certified as the sole and exclusive
g. Collective bargaining - decision-making process where
management and the union set the terms and
condition of employment and the rules and procedures
in the employee- employer relationship.
h. Collective bargaining agreement – end result of
collective bargaining refers to the negotiated contract
between a legitimate labor organization and the
employer concerning wages, hours of work, and all other
terms and conditions of employment in bargaining unit,
including mandatory provisions for grievances and
arbitration machineries.
i. Labor disputes - questions or controversies regarding terms
and condition of employment.
j. Arbitration - the final stage in the dispute resolution
process.
k. Strike – temporary stoppage of work by the concerted action
of employees.
l. Lackout – temporary refusal of any employer to fumish work .
m. Labor arbiter – hearing officer of the Nation Labor
Relation Commission (NLRC) and his decision is
appealable to NLRC.
n. Union security agreement – contractual agreement, usually
part of a collective bargaining agreement.
TYPES OF LABOR DISPUTES
• Rights disputes – involves alleged violation of a right
recognized by law, collective bargaining, agreement
(CBA), Contacts, or company policies.
• Interest Disputes - Economic/Bargaining dispute where
the issues involved are not manded by law and could
be negotiated.
• Lab or Standard Disputes – Include non
payment/under payment of wages and wage-related
benefits an violations of health and safety standard.
• Labor Relation Disputes –Involves employee discipline,
unfair labor practices, deadlocks, strikes, etc.
• Welfare & Social Legislation Disputes – refers to claims
arising from the failure of the employer to comply with
the social and welfare obligation under the law.
 NATIONAL POLICIES ON LABOR
DISPUTE SETTLEMENT

1. 1987 Constitution – Sec. 3, Article XIII

2. Labor code, as amended by Republic Act

6715 Article 211
 Early Policies Adopted by the Government of
Selling Labor disputes

A. Common wealth period (1936-1953)

B. Industrial Peace Act Period (1953-1972)
C. Martial Law Period (1972-1986)
D. Post Martial Law Period (1986-present)

Different Modes of Setting Labor Disputes

1. Negotiation
a) Parties control the process
b) Parties engaged in verbal Interaction
c) Decision is made by the two conflicting parties
d) Outcome is whatever the parties agree to
e) Applied to the non unionized or unorganized
group of workers in the private and government
sectors
2. Collective bargaining
a. Decision making process between union and
management
b. Aims to set the terms and conditions
c. Aims to ensure that the agreement is enforced
through the grievance.
3. Grievance machinery
a. Internal rules of procedures intended to resolve all
issues arising from the implementation and
interpretation.
4. Mediation
a. Similar to conciliation although the mediator is
expected to put forward settlement proposal
b. Parties fully participate in deciding issues and in
creating, evaluating, and solving the conflict to
come up with a win-win solution.
When is mediation useful?
a. Parties want to revolve the conflict
b. Able to verbalize the cause of their distress
c. Need to continue or maintain a relationship
d. Have issues that are complicated by strong emotions
e. Feel uncomfortable contrasting the other
f. Able to live up to their promises

Benefits of mediation
a. Time saving
b. Costs in fraction of 10% of litigation
c. Private confidential
d. Restores relationship
e. Improves understanding of underlying issues
f. Does not close does to other options
g. Proven to be more successful in the Philippines.
5. Conciliation
a. Occurs when a conciliation mediator intervenes in a
negotiation
b. Conciliator cannot decide upon the dispute
c. Only reconcile the dispute by facilitating
d. Given the chance to state their demands and position
with the aim of reading a viable agreement.
Role of Conciliator – Mediator
- has the principle function to assist in the settlement of
labor.
6. Arbitration
a) Process where a third party, the arbitrator, decides
upon the agreement
b) A quasi – judicial process
c) Represent the final stage in the dispute resolution
process.
2 kinds of arbitration
a. Voluntary arbitration – agree to submit themselves
to arbitration.
b. Compulsory arbitration – are compelled or ordered
to submit themselves to arbitration in case there is
deadlock during collective bargaining.
Authority of an arbitration
a. Investigate and hear the case upon notice of the
parties.
b. Render an award (decision) based
c. Set and conduct hearing
d. Conduct fact-finding and other modes of discovery
e. Conduct reopening of hearing
f. Modify any provision of existing agreement
Unionism of the Philippines
Unions contributions and effects
1. To the employee
a. Improvement of working rules, protection from the
employer, and increase in job security.
b. Grievance product negotiated by the union assures an
employee full and just consideration of his/her
complaint.
c. Better terms and conditions
2. To the employer
a. Lost the power to set wages without prior discussion with
the union
b. Limited power to terminate or discipline employees
c. Union may provide management with the useful
information about the status of employee morale
d. Cooperation in the grievance procedure can prevent
minor complaints from growing into major issues.
4 labor organizations in the Philippines
1. The trade union congress of the Philippines (TUCP)
2. The partido ng mang gagawa (PM)
3. The alliance of progressive labor (APL)
4. The buklaran ng mangagawang Pilipino (BMP)
Who may join unions?
Commercial, industrial, and agricultural enterprises, including
religious, charitable, medical, or educational institutions
operating for profit.
Exempted from this provision
1. Security guards and other personnel employed for the
protection and security of the person, properties
2. Managerial employees
3. Employees of religious, charitable, medical, and educational
institution not operating for profit provided the latter do not have
existing collective agreement or recognized unions at the time of
the effectivity of the code nor have voluntary varied their
exemption.
 Forms of Union Security

 Closed Shop – the employer agrees to hire only

union members.
 Union Shop – the employer may any one
regardless of unions membership status, but the
employee wants to retain his/her job in the
organizations
 Agency Shop – the employer may hire anyone
regardless of their union membership status, and
the employee need not join the union,
membership is voluntary.

 Dues Check Off – A contract between the

employer and union where the employer agrees
to collect the dues, tees, assessments, and other
monies from union members and/or noon
members directly from each workers pay check
and transmit those funds to the union on a reular
basis.
 Content of the Contract Agreement

1. Recognition and Union Security

2. Management Rights
3. Grievance Procedures
4. Arbitration of Grievance
5. Disciplining Procedure
6. Compensation and Benefits Provision
7. Hours of Work
8. Lay off Procedures
9. Health and Safety Provision
10. Employee Security and Seniority Provision
11. Contract Expiration Date
Bargaining impasses / deadlock
1. Strikes – employees refuse to work to make greater conditions
2. Injunctions – employer obtaining a court order or retraining
order to prevent the workers from engaging in strikes.
3. Lack out – employers refuse to furnish work to their workers by
gathering non union members to substitute for the plants
continuous operation.
4. Picketing – a unions calls a strike it usually establishes pick-up
lines to advise the strike and discourage the employer.
5. Third party intervention – both parties have to agree to use any
of the third party interventions.
a. Mediation and conciliation
b. Fact- finding
c. Arbitration
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