Maintaining Labor-Maintaining Labor-Management Management

RelationsRelations

Historical noteHistorical note

From 1565 to 1898 the Philippines From 1565 to 1898 the Philippines was a Spanish colony. Following the was a Spanish colony. Following the Spanish American War of 1898 the Spanish American War of 1898 the Philippines became a colony of the Philippines became a colony of the USA, which established democratic USA, which established democratic institutions with limited powers under institutions with limited powers under an American governor with US an American governor with US military forces establishing a major military forces establishing a major base.base.

In 1934 the US administration withdrew In 1934 the US administration withdrew and the Philippines became a free and the Philippines became a free ‘Commonwealth’, self governing over ‘Commonwealth’, self governing over internal matters, but subject still to internal matters, but subject still to American ‘protection’ and military American ‘protection’ and military presence. Following the Japanese invasion presence. Following the Japanese invasion in 1941–42, the Philippines became a in 1941–42, the Philippines became a republic under Japanese ‘protection’. After republic under Japanese ‘protection’. After the return of the Americans in 1944–45 and the return of the Americans in 1944–45 and the defeat of the Japanese, the USA the defeat of the Japanese, the USA granted full independence to the granted full independence to the Philippines on 4 July 1946.Philippines on 4 July 1946.

Historical Backgrounds of Historical Backgrounds of Labor MovementsLabor Movements In the last half century of Spanish In the last half century of Spanish

colonization, the beginning of the colonization, the beginning of the labor movement was made possible labor movement was made possible by the birth of guilds (by the birth of guilds (gremiosgremios) ) organized around specific work organized around specific work environments and trades - from environments and trades - from carpenters and shipyard workers, to carpenters and shipyard workers, to workers in tobacco factories and workers in tobacco factories and printing houses.printing houses.

ContinuationContinuation

These constituted the settings for These constituted the settings for new awakenings as a working class, new awakenings as a working class, the formation of a new the formation of a new consciousness, an exposure to new consciousness, an exposure to new ideas, and an attempt to experiment ideas, and an attempt to experiment at new types of organized activities. at new types of organized activities. These initial steps were given further These initial steps were given further impetus in the new colonial system impetus in the new colonial system set up under the United States.set up under the United States.

ContinuationContinuation

The most important workers' organization The most important workers' organization before the Japanese occupation was before the Japanese occupation was established in 1913, the established in 1913, the Congreso Obrero Congreso Obrero de Filipinasde Filipinas, or the COF (Workers' , or the COF (Workers' Congress of the Philippines), led by Congress of the Philippines), led by Hermenegildo Cruz and Crisanto Hermenegildo Cruz and Crisanto Evangelista, took advantage of the Evangelista, took advantage of the relatively more democratic space provided relatively more democratic space provided by the US and by the 1935 Commonwealth by the US and by the 1935 Commonwealth Government of President Manuel Quezon. Government of President Manuel Quezon.

Status of Early Philippine Status of Early Philippine LaborLabor

1901- Isabelo delos Reyes formed the “Union 1901- Isabelo delos Reyes formed the “Union de Litografos e Impressores de Filipinas”. de Litografos e Impressores de Filipinas”. He is thus acknowledged as the “ Father of He is thus acknowledged as the “ Father of Philippine Trade Unionism.”Philippine Trade Unionism.”

1960’s- due to the oppression and excesses 1960’s- due to the oppression and excesses of landowners, farm laborers were of landowners, farm laborers were burdened with debt and were compelled to burdened with debt and were compelled to till the land of their masters.till the land of their masters.

Aug. 8,1963- “Agricultural Land Reform Code, Aug. 8,1963- “Agricultural Land Reform Code, there was a slight improvement on the there was a slight improvement on the living conditions of the tenants. living conditions of the tenants.

Laws affecting the relationship Laws affecting the relationship between labor and employer:between labor and employer: a. Act No. 1847-June 19, 1908, a. Act No. 1847-June 19, 1908,

Employers Liability Act. This law Employers Liability Act. This law provides for compensation of provides for compensation of employees who were injured or killed employees who were injured or killed while working.while working.

b. Act No. 2549- Declaring the b. Act No. 2549- Declaring the unlawful the act of employer, unlawful the act of employer, compelling worker to purchase compelling worker to purchase merchandise from them and paying merchandise from them and paying their wages in the form of tokenstheir wages in the form of tokens

Continuation..Continuation..

c. Act No. 3071- March 16, c. Act No. 3071- March 16, 1923, regulating the 1923, regulating the employment of women and employment of women and children in shops and factories.children in shops and factories.

d. Act No. 4123- Aug. 26, 1935 d. Act No. 4123- Aug. 26, 1935 establishing an eight hour work establishing an eight hour work day. day.

In 1965, another concept of labor unity was In 1965, another concept of labor unity was introduced with the formation of the Philippine Labor introduced with the formation of the Philippine Labor Center (PLC) by Democrito Mendoza. This concept Center (PLC) by Democrito Mendoza. This concept of one federation- one industry was patterned after of one federation- one industry was patterned after the US system. The PLC started with 7 federations the US system. The PLC started with 7 federations in the transportation, mining, communications and in the transportation, mining, communications and other industries. This concept, however, did not other industries. This concept, however, did not gain much ground. Trade unions during the gain much ground. Trade unions during the collective bargaining era were characterized as collective bargaining era were characterized as fragmented and dominated by the lawyers or fragmented and dominated by the lawyers or charismatic leaders. These factors contributed to a charismatic leaders. These factors contributed to a generally weak trade union movement in general generally weak trade union movement in general and real gains for the working class were not and real gains for the working class were not effectively achieved.effectively achieved.

Philippine Labor CodePhilippine Labor Code

Philippine labor laws, known in the Philippines Philippine labor laws, known in the Philippines as the Labor Code of the Philippines, were as the Labor Code of the Philippines, were created to protect workers from exploitation created to protect workers from exploitation and wrongful terminations. These labor and wrongful terminations. These labor laws are also meant to encourage fair laws are also meant to encourage fair hiring practices. Philippine labor laws seek hiring practices. Philippine labor laws seek to create a fair working environment which to create a fair working environment which can then benefit both employers and can then benefit both employers and employees.employees.

HistoryHistory

The Labor Code of the Philippines The Labor Code of the Philippines was established in 1974 on Labor was established in 1974 on Labor Day by then current president Day by then current president Ferdinand Marcos. The Labor Code Ferdinand Marcos. The Labor Code of the Philippines was created during of the Philippines was created during a nine-year period of martial law as a nine-year period of martial law as declared by Marcos in response to declared by Marcos in response to growing political unrest. growing political unrest.

Also known as Presidential Also known as Presidential Decree 442, several articles of Decree 442, several articles of the code have been amended the code have been amended since it was instated; the first since it was instated; the first several amendments were several amendments were created in 1980. It took effect six created in 1980. It took effect six months after its creation. months after its creation.

The The CodeCode is composed of seven (7) books  is composed of seven (7) books containing three hundred and two (302) articles. It is containing three hundred and two (302) articles. It is divided into two subject areas: divided into two subject areas: LaborLabor Standards  Standards and and LaborLabor Relations.  Relations. LaborLabor Standards is that area  Standards is that area of of LaborLabor law that prescribes the minimum terms and  law that prescribes the minimum terms and conditions of employment which the employer is conditions of employment which the employer is required to grant to its employees. required to grant to its employees. LaborLabor Relations,  Relations, on the other hand, regulates the relations between on the other hand, regulates the relations between employers and workers. The provisions employers and workers. The provisions on on LaborLabor Standards are found in Books I, II, III, IV,  Standards are found in Books I, II, III, IV, and VI, while provisions on and VI, while provisions on LaborLabor Relations are  Relations are found in Book V.found in Book V.

The Basic Rights of WorkersThe Basic Rights of Workers

1. right to organize1. right to organize

2. to conduct collective bargaining or 2. to conduct collective bargaining or negotiation with managementnegotiation with management

- a process whereby management and the - a process whereby management and the union discuss and decide terms and union discuss and decide terms and conditions of employment which will govern conditions of employment which will govern the conduct of their relationships within the the conduct of their relationships within the duration of agreement.duration of agreement.

3. to engage in peaceful concerted activities,3. to engage in peaceful concerted activities,

including strike in accordance with lawincluding strike in accordance with law

4. to enjoy security of tenure4. to enjoy security of tenure

5. to work under humane 5. to work under humane conditionsconditions

6. to receive a living wage6. to receive a living wage

7. to participate in policy and 7. to participate in policy and decision-making processes decision-making processes affecting their rights and benefits affecting their rights and benefits as may be provided by law.as may be provided by law.

Security of TenureSecurity of Tenure

Every employee shall be assured Every employee shall be assured security of tenure. No employee can security of tenure. No employee can be dismissed from work except for a be dismissed from work except for a just or authorized cause, and only just or authorized cause, and only after due processafter due process

Just Cause refers to any wrongdoing Just Cause refers to any wrongdoing committed by an employee including:committed by an employee including:

1. serious misconduct1. serious misconduct

2. willful disobedience of employers' lawful 2. willful disobedience of employers' lawful orders connected with workorders connected with work

3. gross and habitual neglect of duty3. gross and habitual neglect of duty

4. fraud or willful breach of trust4. fraud or willful breach of trust

5. commission of crime or offense against the 5. commission of crime or offense against the employer, employer's family member/s or employer, employer's family member/s or representativerepresentative

6. other analogous cases6. other analogous cases

Authorized Cause refers to an economic Authorized Cause refers to an economic circumstance not due to the employee's circumstance not due to the employee's fault, including:fault, including:

1. the introduction of labor-saving devices1. the introduction of labor-saving devices

2. redundancy2. redundancy

3. retrenchment to prevent losses3. retrenchment to prevent losses

4. closure or cessation of business4. closure or cessation of business

Labor DisputeLabor Dispute

Art. 212 : Any controversy or matter Art. 212 : Any controversy or matter concerning terms and conditions of concerning terms and conditions of employment or the association or employment or the association or representation of persons in representation of persons in negotiating, fixing, maintaining, negotiating, fixing, maintaining, changing or arranging terms and changing or arranging terms and conditions of employment.conditions of employment.

UNION ORGANIZATIONUNION ORGANIZATION

A union is organized primarily to A union is organized primarily to enable workers to bargain enable workers to bargain collectively with the employer on collectively with the employer on such issues as employment such issues as employment conditions and status of its conditions and status of its members.members.

Union ObjectivesUnion Objectives

Economic objective. These Economic objective. These objectives are the means by objectives are the means by which workers can satisfy their which workers can satisfy their primary and secondary needs primary and secondary needs through higher wages, shorter through higher wages, shorter hours of work and various hours of work and various employee benefits..employee benefits..

Political Objectives. The means by Political Objectives. The means by which the union can promote its which the union can promote its power and prestige through(1) power and prestige through(1) lobbying activities designed to lobbying activities designed to secure the passage of favorable secure the passage of favorable legislation and opposing unfavorable legislation and opposing unfavorable proposed laws. (2) support and proposed laws. (2) support and campaign for candidates for political campaign for candidates for political offices who are friendly to labor.offices who are friendly to labor.

Registering UnionRegistering Union

When a union is organized, it When a union is organized, it must be registered with the must be registered with the nearest regional office of the nearest regional office of the DOLE so that it can acquire DOLE so that it can acquire legal personality and be entitled legal personality and be entitled to the rights and privileges to the rights and privileges granted by law to legitimate granted by law to legitimate labor organizations.labor organizations.

What are the requirements for What are the requirements for registration of a labor organization?registration of a labor organization?

A. Registration FeeA. Registration Fee

B. Names of its officers, addresses, principal address B. Names of its officers, addresses, principal address of the organization, minutes of meetings and list of of the organization, minutes of meetings and list of workers who participated in meetings.workers who participated in meetings.

C. Names of all its members comprising at least 20% C. Names of all its members comprising at least 20% of all its EE”s in the bargaining unit.of all its EE”s in the bargaining unit.

D. Copies of annual financial reports if union has been D. Copies of annual financial reports if union has been in existence for more than 1 year.in existence for more than 1 year.

E. Copies of constitution and by-laws.E. Copies of constitution and by-laws.

Federations of UnionsFederations of Unions

A federations of unions is an A federations of unions is an organization of affiliated local organization of affiliated local unions duly registered with unions duly registered with DOLE as provided for in the DOLE as provided for in the Labor Code..Labor Code..

Local UnionLocal Union

Is one formed by employees in a Is one formed by employees in a particular company, plant or particular company, plant or geographical area. It is affiliated geographical area. It is affiliated with a federation of unions and with a federation of unions and registered with DOLE. .registered with DOLE. .

A local chapter becomes a legitimate labor A local chapter becomes a legitimate labor organization only upon submission of:organization only upon submission of:

A. Charter certificate within 30 days from its A. Charter certificate within 30 days from its issuance by the labor federation or national issuance by the labor federation or national union.union.

B. Constitution and by-laws, statement on set B. Constitution and by-laws, statement on set of officers, and books of accounts which of officers, and books of accounts which are certified under oath by secretary or are certified under oath by secretary or treasurer, and attended to by its presidenttreasurer, and attended to by its president

What are the additional What are the additional requirements for federations or requirements for federations or national unions?national unions? A. Proof of affiliation of at least 10 local A. Proof of affiliation of at least 10 local

chapters.chapters.

Each of which must be a duly recognized Each of which must be a duly recognized collective bargaining agent in the collective bargaining agent in the establishment or industry in which it establishment or industry in which it operates.operates.

B. Names and addresses of the companies B. Names and addresses of the companies where the locals or the chapters operate where the locals or the chapters operate and list of all the members in each and list of all the members in each company involved.company involved.

Union RationaleUnion Rationale

When is a labor organization When is a labor organization wholesome?wholesome?

A labor organization is A labor organization is wholesome if it serves its wholesome if it serves its legitimate purpose of promoting legitimate purpose of promoting the interests of labor without the interests of labor without unnecessary labor disputes.unnecessary labor disputes.