BY:

EMILY A. SUMALINOG

MPA Student

EMPLOYEE/LABOR MANAGEMENT RELATIONS

Note:

Before we proceed the discussion lets defined first what is Labor Relations, employee and employer.

Labor Relations – is the relationship between management and labor, especially with respect to the maintenance of

agreements, collective bargaining, etc.

Employer – is a person or institution that hires employees or workers. Employers offer wages or a salary to the workers in exchange for the worker’s work or labor.

Employee – is an individual who was hired by an employer to do a specific job.

Note: The employee is hired by the employer after an application and interview process results in his or her selection as an employee.

COLLECTIVE BARGAININGAND

LABOR RELATIONS

WHAT IS COLLECTIVE BARGAINING?Collective is the relationship between employer and employee are equal;

Collective bargaining is a process by which the representatives of the organization meet and attempt to work out a contract with the employee’s representative – the union.

Collective bargaining occurs when representatives of a labour union meet with the management representatives to determine employees’ wages and benefits, to create or revise rules, and to resolve dispute or violations of the labour contract;

Bargaining is the process of debating, discussing, and threatening in order to bring about favourable agreement of those represented.

Note: this means Collective bargaining is a process of negotiation between employers and a group of employees aimed at reaching agreements to regulate working conditions. The interests of the employees are commonly presented by representatives of a trade union to which the employees belong.

WHAT IS UNION?

A union is an organized group of workers who collectively use their strength to have a voice in their workplace. Through a union, workers have a right to impact wages, work hours, benefits, workplace health and safety, job training and other work-related issues.

Note: Workers have the right to join a union. Having support from the union to ensure fairness and respect in the workplace is one of the key reasons workers organize.

The union may negotiate with a single employer or may negotiate with a group of businesses, depending on the country, to reach an industry wide agreement.

COLLECTIVE BARGAINING TO HR

Labour relations is closely tied to HR planning since the labour contract generally stipulates policies and procedures related to promotions, transfers, job security, and lay-offs;

The are of HR where the knowledge of collective bargaining is probably most critical in compensation and benefits, since almost all aspects of wages and benefits are subjects to negotiation.

Note: this means the HR is the one who supervise labor relations support staff and serve as the management representative in labor negotiation, bargaining, or interpretive meetings.

THE LABOR CONTRACT

A labour contract is a formal agreement between a union and management that specifies the conditions of employment and the union-management relationship over a mutually agreed upon period of time (typically 1 year or 3 years)

The labour contract specifies what the two parties have agreed upon regarding issues such as wages, benefits and working conditions.

The process involved in reaching this agreement is a complex and difficult job requiring willingness from both sides to reconcile their differences and compromise their interest.

ISSUES IN COLLECTIVE BARGAINING

The major issues discussed in collective bargaining fall under the following four categories:

Wage related issues – these include such topics as how basic wage rates are determined, cost of living adjustments, wage differentials, overtime rates, wage adjustments and wage systems applied.

Supplementary economic benefits – these include issues such as pension plans, paid vacations, paid holidays, health insurance plans, dismissal pay, reporting pay, and supplementary unemployment benefits.

Institutional issues – these consist of the rights and duties of employers, employees, and unions, including union security(union membership as a condition of employment), check-off procedures (when the employers collects dues by deduction from employees' pay-checks) employee stock ownership plans, and quality of work-life programs.

Administrative issues – these include such issues as seniority, employee discipline and discharge procedures, employee health and safety, technological changes, work rules, job security, and training.

TYPES OF COLLECTIVE BARGAINING• Under it, the economic issues like wages, salaries and

bonus are discussed. In distributive bargaining, one party’s gain is another party’s loss.

• Note: distributive bargaining is tends to be more competitive

Distributive bargaining

• This involves negotiation of an issue on which both the parties may gain, or at least neither party loses.

• Note: integrative bargaining tends to be more cooperative than distributive bargaining

Integrative bargaining

• This involves shaping and reshaping some attitudes like trust or distrust, friendliness or hostility between labor and management.

• Note: their aim is to maintain smooth and harmonious industrial relations and it creates trust and cooperation among the parties.

Attitudinal restructuring bargaining

• It generally aims to resolving internal conflicts. This is a type of maneuvering to achieve consensus with the workers and management.. Even within the union, there may be differences between groups.

• Note: their aim is to achieve consensus among the conflicting groups.

Intra-organizational

bargaining

CHARACTERISTICS OF COLLECTIVE BARGAININGIt is a group process, wherein one group, representing the employers, and the other, representing the employees, sit together to negotiate terms of employment.

Negotiations form an important aspect of the process of collective bargaining i.e., there is considerable scope for discussion, compromise or mutual give and take in collective bargaining.

Collective bargaining is a formalized process by which employers and independent trade unions negotiate terms and conditions of employment and the ways in which certain employment-related issues are to be regulated at national, organizational and workplace levels.

Collective bargaining is a process in the sense that it consists of a number of steps. It begins with the presentation of the charter of demands and ends with reaching an agreement, which would serve as the basic law governing labor management relations over a period of time in an enterprise. Moreover, it is flexible process and not fixed or static. Mutual trust and understanding serve as the by products of harmonious relations between the two parties.

It a bipartite process. This means there are always two parties involved in the process of collective bargaining. The negotiations generally take place between the employees and the management. It is a form of participation.

Collective bargaining is a complementary process i.e. each party needs something that the other party has; labor can increase productivity and management can pay better for their efforts.

Collective bargaining tends to improve the relations between workers and the union on the one hand and the employer on the other.

Collective Bargaining is continuous process. It enables industrial democracy to be effective. It uses cooperation and consensus for settling disputes rather than conflict and confrontation.

Collective bargaining takes into account day to day changes, policies, potentialities, capacities and interests.

It is a political activity frequently undertaken by professional negotiators.

THE COLLECTIVE BARGAINING PROCESS

Prepare

Discuss

Propose

Bargain

Settlement

The collective bargaining process comprises of five core steps: :

Prepare: This phase involves composition of a negotiation team. The negotiation team should consist of representatives of both the parties with adequate knowledge and skills for negotiation. In this phase both the employer's representatives and the union examine their own situation in order to develop the issues that they believe will be most important. The first thing to be done is to determine whether there is actually any reason to negotiate at all. A correct understanding of the main issues to be covered and intimate knowledge of operations, working conditions, production norms and other relevant conditions is required.

Discuss: Here, the parties decide the ground rules that will guide the negotiations. A process well begun is half done and this is no less true in case of collective bargaining. An environment of mutual trust and understanding is also created so that the collective bargaining agreement would be reached.

Propose: This phase involves the initial opening statements and the possible options that exist to resolve them. In a word, this phase could be described as 'brainstorming'. The exchange of messages takes place and opinion of both the parties is sought.

Bargain: negotiations are easy if a problem solving attitude is adopted. This stage comprises the time when 'what ifs' and 'supposals' are set forth and the drafting of agreements take place

Settlement: Once the parties are through with the bargaining process, a consensual agreement is reached upon wherein both the parties agree to a common decision regarding the problem or the issue. This stage is described as consisting of effective joint implementation of the agreement through shared visions, strategic planning and negotiated change.

FUNCTIONS1. Collective bargaining as a process of social change

2. Collective bargaining as a peace treaty

3. Collective bargaining as an industrial jurisprudence

Note:

bargaining enhances the status of the working class in the society. Wage earners have enhanced their social and economic position in relation to other groups. Employers have also retained high power and dignity through collective bargaining.

Collective bargaining serves as a peace treat between the employers and employees, however the settlement between the two parties is a compromise.

Collective bargaining creates a system of “Industrial Jurisprudence” It is a method of introducing civil rights into industry. It establishes rules which define and restrict the traditional authority exercised by employers over their employees placing part of the authority under joint control of union and management.

PUBLIC SECTOR LABOR MANAGEMENT COUNCIL OF THE

CIVIL SERVICE COMMISSION

WHAT IS PSLMC?

Public Sector Labor Management Council (PSLMC) is mandated to promulgate necessary rules and regulations to govern the exercise of the right to self-organization of government employees. It is composed of the heads of the Civil Service Commission, Department of labor and Employment, Department of finance and Department of Justice and the DBM with elected worker’s representatives sitting as observers.

Note:

This means PSLMC is to ensure the fundamental rights of workers in the public, and also to promote public sector unionism leading to better, more democratic and accountable public services. The PSLMC was constituted under EO No. 180 on June 1, 1987 It was mandated to implement and administer the provisions and to promulgate the necessary rules and regulations to implement it.

EMPLOYEE UNION REPRESENTATIVES

National Government Agencies

Local Government Units

Government owned or controlled corporations

State Universities and Colleges

THE COUNCIL HAS ORIGINAL AND EXCLUSIVE OVER THE FOLLOWING CASES/ISSUES:

• Negotiation disputes which arise when there is a need to resolve issues in collective negotiations or when there is a deadlock resulting therefrom

• Disputes arising from grievances or questions resulting from the interpretation of the provisions of the collective negotiations agreements.

• Disputes arising from unfair labor practices

• Committed by employer/management and/or employees organization /union; and

• Determination of whether a mass action amounts to a strike

• And shall assume jurisdiction over these cases provided the following requisites are present.

• There is a disputes

• It remains unsolved;

• All available remedies under existing laws, rules, and procedures have been exhausted

• Either or both parties had referred the dispute before the council;

• The Personnel Relations Office has certified that the disputed remains unresolved or irreconcilable.

PUBLIC SECTOR UNIONS: POTENT FORCE OF TRANSPARENCY AND ACCOUNTABILITY IN THE

GOVERNMENT

Governance – is defined as the sound exercise of political, economic and administrative authority to manage a country’s resources for development. It involves the institutionalization of a system through which citizens, institutions, organizations and groups in the society articulate their interests, exercise their rights and mediate their interests in pursuit of their collective good.

Accountability – relates to making public officials answerable to the citizenry for the actions and decisions of management, and ensuring that in the performance of their functions, their actions are responsive to and faithfully safeguard the welfare and interests of the people.

Transparency – refer to the availability and accessibility of information to the public, and clarity of government rules and regulations. It ensures swift access to accurate and timely information about government policies, programs and activities.

Unions have emerged as effective vanguards of public trust and as watchdogs against abuses. They have become strong advocates of adherence to Section 1, Article XI of the Philippine Constitution which reads:

“ Public office is a public trust. Public officers and employees must at all times be accountable to the people, serve them with utmost responsibility, integrity, loyalty and efficiency. Act with patriotism and justice, and leads modest lives”

Note: this relates to making public officials answerable to the citizenry for the actions and decisions of management, and ensuring that in the performance of their functions, their actions are responsive to and faithfully safeguard the welfare and interest of the people.

INTER-AGENCY ANTI GRAFT AND CORRUPTION COUNCIL

• Civil Service Commission

• Presidential Anti-Graft Commission

• Commission on Audit

• National Bureau of Investigation

• The Ombudsman

• The Sandiganbayan

• Department of Justice

Note: In this inter agency task force provides for the needed institutional cooperation among the various agencies especially in fast-tracking the resolution of big cases. The council also mandated to revise the country’s anti-graft and corruption legislations and strategies in order to amend loopholes.

LABOR-MANAGEMENT COOPERATION

WHAT IS LABOR-MANAGEMENT COOPERATION?Labor-management cooperation is a state of relations where labor and management work hand-in-hand to accomplish certain goals using mutually acceptable means.

It is the outcome of a continuing process of enhancing mutual trust and respect through:

• information sharing

• discussion

• consultation

• negotiations

as schemes of workers' participation in decision making process on matters not covered by collective bargaining agreements.

Note:

In today's economy, where businesses must compete globally and governments are expected to do more with less, the most important business relationship that exists is the relationship between the employer and the employee. The labor-management relationship impacts directly on profitability, productivity, job security, and quality of life.

WHY IS THERE A NEED FOR LABOR AND MANAGEMENT TO COOPERATE?

Note: Primary, because labor and management are social partners sharing a common interest in the success and growth of the enterprise and the economy Specifically,

• to promote workers' participation in decision-making processes

• to create a labor relations climate conducive to productivity improvement

• to improve the quality of working life

• to achieve and sustain economic growth

WHAT ARE THE MECHANISMS TO PROMOTE LABOR - MANAGEMENT COOPERATION?

1) Direct participation mechanisms through small group activities like quality control circles or productivity improvement circles

2) Indirect participation mechanisms through joint consultative bodies like labor-management councils or committees

3) Combination of direct and indirect participation mechanisms like joint bodies and small group activities

Note: so, their mechanism to promote labor management cooperation is to increase productivity.

WHAT FACTORS ARE NECESSARY FOR THE SUCCESS OF LABOR MANAGEMENT COOPERATION?

Attitudes

• sincerity - mutual support

• mutual trust - openness

• commitment - teamwork

• mutual respect - objectivity

Appropriate skills

• leadership - facilitation

• communication - team building

• problem-solving - planning

Suitable structure

• addresses identified needs and concerns

• can be formal, informal or both

• assures adequate representation of labor and management

• ensures attainment of decisions through consensus

• provides feedback mechanism at all levels of the organization

WHAT ARE USUALLY COVERED BY LABOR-MANAGEMENT COOPERATION PROGRAMS?

Note: Sharing of information, discussions, consultations and negotiations on matters outside the collective bargaining agreement which may cover, among others, areas of management decisions like:

• personnel policies

• production plans

• business expansion programs

• productivity improvement programs

• productivity gain-sharing programs

• job security

• improvement of quality of worklife

• occupational health and safety programs

• introduction of new technology and machinery

• retrenchment programs

• business mergers or closure

• workers' welfare and livelihood programs

• sports, recreation and social activities

WHAT BENEFITS CAN WORKERS DERIVE FROM LABOR-MANAGEMENT COOPERATION PROGRAMS?

• Opportunity to participate in policy and decision-making process

• A channel of communication to top management

• Means to make inputs in solving operational problems and management plans affecting workers in the workplace

• Avenues for employees to air complaints that cannot be appropriately addressed in the grievance procedure

• Opportunity to demonstrate that the union is a responsible organization with a constructive role to play beyond the traditional contract negotiations and grievance settlement

• Opportunity for self-improvement and on-the- job leadership training

WHAT BENEFITS CAN MANAGEMENT DERIVE FROM LABOR-MANAGEMENT COOPERATION PROGRAMS?

• A forum to share information about business conditions, quality problems, product development and other matters that demonstrate the role of employees in the success of the enterprise.

• An opportunity for advanced discussions of operational problems and plans, particularly those affecting employee work schedules, overtime, lay-offs, transfers etc.

• A means to relate with the union without being bogged down in labor relations issues.

• Opportunity to demonstrate responsiveness to constructive suggestions and valid complaints of employees in improving the workplace.

• Means to tap the large reservoir of know-how and creativeness of employees.

• A channel of communication with employees.

• Enhancement of human factor in organizational effectiveness.

STEPS IN THE FORMULATION OF LABOR-MANAGEMENT COOPERATION PROGRAMS

1) Orientation on labor-management cooperation

2) Recognition of common objectives and problems and the need to cooperate and agree on mutually acceptable solution

3) Determination of appropriate organizational structure

4) Adoption of operating guidelines to govern the cooperation program

5) Setting-up of the operating structure

6) Training of persons involved in the cooperation program

7) Identification and prioritization of problems

8) Formulation and development of plans and projects

9) Implementation of plans and projects

10) Monitoring and evaluation of projects

GUIDELINES IN SETTING UP APPROPRIATE ORGANIZATIONAL STRUCTURE

Note: Under R.A. 6715, the operating mechanism f labor-management cooperation program in organized establishments is called Labor-Management Council. In unorganized establishment, the mechanism is called Labor-Management Committees.

To ensure the orderly operations of the Council or the Committee, it is desirable that the parties agree on basic guidelines or principles which may include:

• The objectives of the committee/council

• Coverage of committee's/council's activities

• Structure and size of the committee/council

• Time, place, duration and frequency of meeting

• Procedure for the timing and exchange of agenda

• Recording, maintenance and dissemination of minutes of meetings

• Other matters the parties may wish to include

ORGANIZATION AND STRUCTURE OF A LABOR-MANAGEMENT COUNCIL OR COMMITTEE

Note: While there are no set rules, 'a typical committee/ council has the following organizational features:

• Composed of an adequate number of representatives from labor and management.

• Labor representatives shall be elected by at least the majority of the workers in the establishment.

• Management is represented by top level officials, the personnel or industrial relations manager, the production manager and other officers including supervisors.

• There are two co-chairmen -- one from each side who serve concurrently or on a rotating basis. A secretary is also appointed.

• A third party facilitator acceptable to tabor and management may assist the committee particularly in the early stages of its operation

• Sub-committees may be formed to consider specific concerns at the shop-floor level.

THE PROBLEM-SOLVING PROCESS Note: To ensure the non-adversarial character of the labor-management committee, issues should be addressed using the problem-solving process involving the following steps:

• Define the problem

• Get all the facts

• Find the cause of the problem

• Propose solutions

• Evaluation proposed solutions

• Select the best solution

• Implement the corrective action

• Evaluate the corrective action undertaken

THE ROLE OF THIRD PARTIES

Note: Parties to a labor-management cooperative effort may require the services of a third party facilitator. At their invitation, a facilitator can assist in a variety of ways particularly in the initial stages, to wit:

• Help enhance mutual trust between labor and management

• Assist the parties in identifying common interests, problems and opportunities

• Facilitate the first few and often difficult meetings of a new labor-management committee

• Provide objectivity and encouragement to the committee

• Guide the committee in problem-solving techniques

• Provide technical assistance to the committee

• Assist the parties obtain technical assistance from other agencies and institutions.

SERVICES ON LABOR-MANAGEMENT COOPERATION Promotional Activities

• Development, production and dissemination of IEC materials (NCMB Briefing Paper, Primer on Plant-Level LMC Program, posters/ stickers, jingles, sound slides/video)

• Conduct of

• symposia, seminar-workshop, conference

• discussion groups/networking

Technical Assistance

• Conduct of orientation seminar on LMC

• Conduct of "LMC FACILITATORS' TRAINING" - Interpersonal Relationship/Group Dynamic Skills

• Communication Skills

• Needs Identification and Analysis

• Problem-solving Skills

• Value Formation

• Setting up of labor-management cooperation mechanisms

• Publication and Research "LMC AT WORK'

• Action researches/studies

LEGAL ISSUES IN EMPLOYEES RELATIONS

LEGAL ISSUES

Employee relations issues stem from various aspects of employment and labor law. Legal issues such as workplace harassment, discrimination and equal opportunity are among the employee relations issues employers must face. Employers are obligated to investigate harassment and discrimination allegations in the workplace and provide a possible remedy to the situation. Employers also must reasonably accommodate workers who require modification of job duties because of disability or pregnancy.

Note: An employee relation involves all aspects of an employee's relationship with an employer. Human resources personnel, managers and supervisors maintain this relationship by implementing employee policies that establish rules regarding performance, conduct, conflict of interest and discipline. Managing employee relations issues help employer’s correct inappropriate behavior, as well as promote a structured and productive workplace.

CONFLICT MANAGEMENT

Conflicts often arise in the workplace between co-workers, as well as between employees and managers. When disputes arise, managers must implement specific procedures for resolution while maintaining optimal working relationships. These procedures allow employees to voice their concerns and have the issues resolved internally. Conflict management also helps employers document the circumstances surrounding a particular incident and how the matter was resolved. This will assist employers if a similar situation arises.

ATTENDANCE

A strong attendance record and adherence to their schedule is the responsibility of all employees and essential to the employer's bottom line. If an employee is tardy, misses work or does not adhere to his schedule, it affects his co-workers and supervisors. Employers regulate attendance through defined attendance policies. An attendance policy defines absence and tardiness and outlines the consequences for unexcused time away from work.

DISCIPLINARY ACTION

When an employee engages in undesirable behavior, employers must act to correct that behavior. Disciplinary action is designed to prevent or improve poor performance or deal with inappropriate behavior. Employers typically implement discipline gradually based on the type and frequency of a policy violation. For example, a manager may give a worker a verbal warning for coming in late without a valid excuse. The next time the worker has an unexcused tardiness, the manager may give the worker a written warning. After the next instance, the employer might issue a final written warning before terminating the employee. The employer, through this procedure, documents the policy violation and discourages the employee from engaging in similar behavior again.

THANK YOU