Chapter 9 Labor Management Relations

EMPLOYEE/LABOR MANAGEMENT
RELATIONS
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.
WHAT IS LABOR DISPUTE?
A labor dispute is a difficulty caused by impaired relations

between employees and management as a result of
dissatisfaction, irritation, complaints, grievance and
misunderstanding between employee and his or her
employer with regard to an employment-related situation.
WHEN DOES LABOR DISPUTE OCCUR?
 A misinterpretation of what is due to or expected by either labor or

management.
 Labor is made up of human beings who must be treated fairly by
the management.
 The satisfaction of human needs and wants is essential for every
employees to attained harmonious relationship
Irritants to Workers and Employers
Certain management attitudes, policies, and practices irritate workers.

Some of these are listed below:
 The desire of employers to operate as economically as possible in
their efforts to make profits, while neglecting the welfare of the
workers.
 Modern business management practices of overloading the payroll
with high salary executives, technician and consultants, while
scrimping on worker’s wages.
 Management’s indifference and arbitrariness in dealing with
workers.
 Management’s resentment of the undue protection by the
government of employees and unions through pieces of legislation.
Irritants to Workers and Employers
Certain practices or acts of labor, on the other hand, are sources of

irritants to employers:
 The shift of workers’ loyalty from management to union.
 The reduction in management’s right to discipline or even just to
deal with employees, once they become union members.
 Acts of harassment by the union by way of filling all kinds of
complaints and grievances with the grievance machinery.
 Abuses of some employees because of their belief that they enjoy
the protection of the law and that the government will always be on
their side.
Department of Labor and Employment
- is an executive department of the Philippine Government

mandated to formulate policies and implement programs and
services in the field of labor and employment .
- The responsibilities of DOLE cover three major areas:
1. Promotion of employment and manpower development
and utilization
2. Protection of worker’s welfare
3. Promotion and maintenance of industrial peace based on
social justice
LABOR CODE
o The labor code of the Philippines is the legal code governing

employment practices and labor relations in the Philippines.
o It was enacted on Labor day, May 1, 1974 by the late president
Ferdinand Marcos.
COLLECTIVE BARGAINING
AND
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.
REGISTERING UNIONS
o When union is organized, it must be registered with the

nearest regional office of the DOLE so that it can acquire
legal personality and be entitled to the rights and
privileges granted by law to legitimate labor
organizations.
o The registration of the labor union may be revoked or
cancelled if it violates DOLE requirements and rules and
regulations.
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.
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.
END

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Chapter 9 Labor Management Relations

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EMPLOYEE/LABOR MANAGEMENT

A labor dispute is a difficulty caused by impaired relations

 A misinterpretation of what is due to or expected by either labor or

Certain management attitudes, policies, and practices irritate workers.

Certain practices or acts of labor, on the other hand, are sources of

- is an executive department of the Philippine Government

o The labor code of the Philippines is the legal code governing

A union is an organized group of workers who

o When union is organized, it must be registered with the

A labour contract is a formal agreement between a union and

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