Compilation of Case Analysis: Inter Union Disputes Disproportionate Penalty of Employee Dismissal Masters and Janitors

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Compilation of

CASE
ANALYSIS
MN405
Inter Union Disputes
Disproportionate Penalty of Employee Dismissal
Masters and Janitors

Submitted to: Submitted by:

Professor Michael Pechardo De Meryll Leah S. Calonge

HRDM IV – 3N

CASE ANALYSIS # 1
PART 1
I.TITLE OF THE CASE
Inter Union Dispute

(UNION AAA VS. UNION BBB)

II.OBJECTIVES

General Objective
- To be able to know the importance of having a Legitimate Labor Union in the

Company.

Specific Objectives

- To know if the registration of CBA entered into and executed between

FASTFOOD COMPANY and UNION BBB cancellable.

- To know if there is a secret connivance between FASTFOOD COMPANY and

UNION AAA.

- To know if there can be Deregistration of Agreement.

- To know when they will get their benefits.

- To know if there are violations on rules and legal requirements.

III.BACKGROUND OF THE CASE

UNION AAA and UNION BBB filed a Certificate of Election which is under the

management of a much known FASTFOOD COMPANY. The election was conducted

and with 517 final votes, UNION BBB won. Dismayed UNION AAA, they filed for a

petition for another election, whereas, they won by garnering 712 votes. March 17, 2008
Mediator Arbiter issued order certifying UNION AAA as Exclusive Bargaining

Representative of the FASTFOOD COMPANY. UNION BBB appealed the order to

Office of the Secretary. But it was denied on July 8 of the same year. UNION BBB filed

a motion for reconsideration, but the Office of the Secretary then denied the motion.

Unsatisfied UNION BBB filed a motion for reconsideration and is still pending resolution

before the appellate court. July 10 of the same year, Director issued an order cancelling

the Certificate of Registration of UNION AAA. They appealed and filed for a motion for

reconsideration. UNION BBB filed a petition for certiorari before Court of Appeals.

Meanwhile, pending disposition of the representation and cancellation cases, the

FASTFOOD COMPANY, received a separate demand from UNION AAA and UNION

BBB for the commencement of the Bargaining Negotiation. Along with and subsequent

to these demands were notices of strike and preventive mediation cases separately filed

by both UNIONS with National Conciliation and Mediation Board. Thus, on May 26,

2008 Acting Secretary issued a Certification Order certifying the Labor Dispute to NLRC

for compulsory arbitration. On May 27, 2009, 6 th Division of NLRC rendered a decision

ordering the FASTFOOD COMPANY to commence Collective bargaining Negotiations

with incumbent Bargaining Agent, UNION BBB, subject to ratification of the resulting

CBA by the majority covered rank and file employees. UNION AAA filed a motion for

reconsideration from May 27 decision. January 28, 2010, 6 th Division of NLRC issued a

resolution denying motion for reconsideration and affirming May 27, 2009. Wherefore,

premises considered, the decision dated May 27, 2009 is hereby affirmed with
modification deleting the portion ordering FASTFOOD COMPANY to commence

Collective Bargaining Negotiation with UNION BBB.

Prior to the Resolution, FASTFOOD COMPANY and UNION BBB had already

entered into and executed a Collective Bargaining Agreement on December 11, 2009.

UNION BBB through its President filed application for registration of CBA. Said CBA

was registered with Department of Labor and Employment.

IV.SWOT (STRENGTHS, WEAKNESSES, OPPORTUNITIES, THREATS)

STRENGTHS WEAKNESSES OPPORTUNITIES THREATS


1.Strong Poor Good Promotion and Consumers

Management Communication Advertisements over are more

Administration adversaries health

conscious
2.Presence of Poor Labor Good Customer Rise of

skilled workers Relations Satisfaction over other fast

adversaries food chains


3.Stable and Unaffordable Continuous Possible

Sufficient Funds prices Improvement/Innovatio cessation

n of Product with the due to

used of latest increasing

technology economic

factors

(i.e., tax,
exchange

rate)
4.Abundant Unattractive Possibility of Good Consumers

Resources establishment Return of Investment preferred

design (old Quantity

ones) over

Quality
5.Quality Products Poor Preferable by most Possible

Negotiation customers problems

Process by

unwanted

actions by

unions.

V.FINDINGS & CONCLUSION

Unions are organized for the welfare and security of its members and of the

employees as a whole. Although there no specific law that prohibits having two unions
in a company, it is still a major concern of what union will be the Legitimate Labor Union

among the two.

1) As a management strategy, the situation involved a secret alliance wherein

Management secretly supported Union AAA and contested the registration of

Union BBB, so that, they can control the Union along with its members and its

actions. Wherein, the Management violated the right of labor union to self

organize, as to interfering and initiating the candidacy of Union AAA.

2) There is Lack of Communication between the two Unions. For the reason that

they did not tried to settle the inter-union disputes by themselves but instead,

they already proceed to court proper with the expectation of a non-bias decision.

As a result, business faced work interruptions that affect not only the

management but employees as well.

CONCLUSION

On researcher’s point of view, as the law provides, that Management should not

support any Labor Union for it will come up with bias actions and decisions. And with

this inter- union dispute case, unions should have taken alternative actions that

could have given them more benefits without interrupting their work relationship and

the business work itself. Union leaders should also set themselves as role models to

their members when it comes to negotiating. They might have come up with

alternative decision such as conducting another election, practicing clear and honest

process of voting. To secure that employee’s rights are always considered,


protected and well taken cared of, the company should have a sole and legitimate

Labor Organization to represent them.

PART 2

VI.ALTERNATIVE COURSES OF ACTION

A) COURSES OF ACTION (5)

By Due Process (through Court)

ADVANTAGES DISADVANTAGES
Participation of Experts Business operation will be

interrupted
Final Decision would be good result Very costly
There would be legal process Stained relationship between

Union and Management


Attendance of involved parties are Decision is not guaranteed for

assured through court hearings company’s welfare


Enlightenment to laws that covered Underground settlements might

Unions and Management happen

By Mediation (Personal Reconciliation)

ADVANTAGES DISADVANTAGES
Comfortable personal conversation No assurance of proper settlement
Less cost Cooperation is not assured
Less interruption in Business There might be rules/laws violated

Operations
Informal Set up Mediator or reconciliatory might not
handle it well
Less self tension Underground settlements might

happen

By conducting another election

ADVANTAGES DISADVANTAGES
Participation of the majority of the Very costly (process)

employees
New set of result No assurance of clean election
Employees as well as the Management No assurance of complete

are more conscious participation of employees


Special election rules may be Interruption of business operations

implemented to avoid cheating or

unnecessary actions
To have final union representative Final result may cause another

problem

By retaining both unions

ADVANTAGES DISADVANTAGES
Less cost Very costly (union demands)
No Business Interruption Unions want to be solely rather

than paired up with another union


No self tension Secret tension between two unions
Greater welfare for the employees Higher possibilities of unwanted

actions by unions
Stronger employee-employer Management can be overpowered

relationship by the unions


By choosing its own Union (Management)

ADVANTAGES DISADVANTAGES
Representative have good relationship Less employee welfare

with the Management


Less cost Possibilities of unfair labor

practices
Management can control the Union Employees might file mass

resignation due to unfair treatment


Less conflicts Higher possibilities of unwanted

action from employees themselves


Management can deduct benefits Management might face bad

without union’s violent reactions feedbacks & reputation pertaining

to unfair treatment of their

employees
CASE ANALYSIS #2

PART 1

I.TITLE OF THE CASE

Disproportionate Penalty on Employee Dismissal

II.OBJECTIVES

General Objective

- To determine the importance of right to due process in employee dismissal.

Specific Objectives

- To know if the company performed the correct process of employee

dismissal.

- To know the right of the employee that was dismissed.

- To know if there are violations made on part of the Management and the

Employee.

- To know the just causes of employee dismissal.

- To know if the benefits of an employee who suffered an illegal dismissal from

work.
III.BACKGROUND OF THE CASE

Juan started working in a glass factory (DMLSC) on October 1, 1990. In a span

of 12 years he rose from the ranks, occupying the position of supervisor then Marketing

Officer II at the Company’s Fabricated Glass Division Marketing (FGDM) starting

January 12, 2002. As a Marketing Officer II, the bulk of Juan’s functions related to sales

which required him to perform his duties away from the principal place of business of

DMLSC. He handled the accounts of several car manufacturers and dealers. Sometime

in 2002, Juan was offered a chance to train and qualify for the position of Assistant

Manager but he declined and waived the opportunity to the one next in line since he

was content with his position as marketing officer. In July 2004, Juan’s problems with

the company surfaced. The Manager of the Company’s Fabricated Glass Division

Marketing and the Assistant Vice President of the manpower Technical Service asked

him to resign and accept a separation package, failing which he will be terminated for

loss of confidence. The company claimed that this offer was to give him an opportunity

for a graceful exit due to the series of irresponsible and inefficient acts. Juan on the

other said it was because of his union activities.

When Juan refused to resign, he was not given work and another employee was

assigned to take over his post and function. One morning a news clipping was placed

on his desk regarding a job similar to his job available in Middle East. Juan thus asked

his lawyer to write DMLSC on August 22, 2004 warning the latter that he will file a legal

action if they did not rectify its malicious and illegal acts. In reaction to this letter,
DMLSC transferred Juan to another position and replied that it had finally decided to

initiate disciplinary action against him in view of his irresponsibility in sending lawyer’s

letter which pre-empted management prerogative. Then in a letter dated September 27,

2004, DMLSC directed Juan to explain within 48 hours why he should not be terminated

for loss of trust and confidence due to his irresponsible acts on several occasions

particularly his: AWOL for 6 days in 2002; killing time at the customer’s place and not

attending regular morning meetings at the FGD office. September 30, 2004, Juan

replied, denying the charges one by one and giving his explanations. But instead of

setting a hearing and an investigation, DMLSC terminated his services on October 2,

2004 for loss of trust and confidence. DMLSC said that Juan’s explanation was

unsatisfactory.

IV.SWOT (STRENGTHS, WEAKNESSES, OPPORTUNITIES, THREATS)

STRENGTHS WEAKNESSES OPPORTUNITIES THREATS


1.Strong Management Unlawful actions Good Promotion and Entrants of

Administration Advertisements over other

adversaries Fabricated

Glass

Companies
2.Presence of skilled Poor Labor Good Customer Negative

workers Relations Satisfaction over response from

adversaries consumers
3.Good quality Unfair treatment Continuous Possible
products to employees Improvement/Innovatio cessation due

n of Product with the to increasing

used of latest economic

technology factors (i.e.,

tax, exchange

rate)
4. Good promotion Unattainable Possibility of Good Negative

and Advertisements product prices Return of Investment publicity

brought about

by unfair

employee

treatment
5.Strong Business Poor Possible partnerships Consumers

Partnerships Negotiation with other businesses preferred

Process mass

transportation

than having

their own car.

V.FINDINGS & CONCLUSION

This case where the penalty of dismissal of an employee has considered by the

court as too harsh, especially when the ground is as subjective as Loss of trust and

confidence. The company did not perform the correct process of dismissing Juan, in the
first place, when the employee denies the charges against him, a hearing is necessary

to thresh out any doubt. And even if all the charges set in the September 27 letter of

DMLSC are true, they are not such nature which merits the penalty of dismissal given

Juan’s service for 14 years. Dismissal is unduly harsh and disproportionate to the

charges. Due to its far reaching implications, dismissal of an employee must only be for

the most serious causes. Loss of trust and confidence, as a just cause for a dismissal

was never intended to provide employer’s with full power for terminating employees.

The loss must be based not on ordinary breach but on willful breach and must rest on

substantial grounds and not on the employer’s suspicions; otherwise the employee

would at the mercy of the employer.

CONCLUSION

On researcher’s point of view, the Law stated that an employer may terminate an

employment for any the reasons of serious misconduct or willful disobedience, gross &

habitual negligence of duties, fraud or willful breach of trust and commission of a crime

or offense. The failure of DMLSC to give Juan, who denied the charges against him, the

benefit of a hearing and an investigation before his termination constitutes an

infringement of his constitutional right to due process. There must be an actual breach

of duty committed by the employee which must be established with substantial

evidence. Juan’s dismissal is therefore illegal and he must be paid full back wages and

separation pay of one month salary for every year of service since reinstatement is no

longer feasible due to strained relations.


PART 2

VI.ALTERNATIVE COURSES OF ACTION

A) COURSES OF ACTION (5)

By Reinstatement in Service

ADVANTAGES DISADVANTAGES
Less interruption in Business Strained relations

operations
Less negative publicity Same situation might happen

again
Possible good relationship might be Other employees might do the

gain again same thing


Less cost Negative publicity on company and

its employees
Continuous income and profit Business partners and consumers

might switch to competitors

By Referrals to other company partners

ADVANTAGES DISADVANTAGES
Less negative publicity Business partners might not agree
Less cost Dismissed employee might not

agree
Dismissed employee is already job Business partner’s management
secured might treat the employee unfairly.
Dismissed employee is somewhat Negative publicity on Business

familiar to his new work environment partner’s company


New employer has employee’s Business partner’s company cost

performance background will increase

By Performing the Due process (Court hearing)

ADVANTAGES DISADVANTAGES
Participation of Experts Interruption in business

operations
Final Decision would be good result Very costly
There would be legal process Stained relationship between

Union and Management


Attendance of involved parties are Decision is not guaranteed for

assured through court hearings company’s welfare


Enlightenment to laws that covered Underground settlements might

Employees and Management happen

By giving necessary Benefits (such as Separation Package)

ADVANTAGES DISADVANTAGES
It is provided by the Law Very costly (additional demands)
It will lessen the tension between the 2 Stained relationship between the

parties Employee and Management


Less negative publicity Benefits might not be completely

given
Dismissed employee could use the There might be rules/laws violated

separation pay when looking for pertaining to giving of Benefits


another job
Unions can’t react violently, knowing There is no proper due process

that Mgt. act according to the welfare of

the employee

By giving Capital alone to start on his own

ADVANTAGES DISADVANTAGES
Less negative publicity Very costly (additional

demands)
Less interruption in business There is no proper due process
Management is lessen with Other employees might do the

inefficient employee same action to get the same

treatment
Dismissed employee generates its Stained relationship between

own income the Employee and

Management
Lessen tension between the 2 Management might retain

parties unfair treatment on employees


CASE ANALYSIS #3

PART 1

I.TITLE OF THE CASE

MASTERS and JANITORS

II.OBJECTIVES

General Objective

- To determine the importance of the rights of every employee regardless of

ranks.

Specific Objectives

- To know if the company violates any law provided for an employee.

- To know if there is an unfair treatment to he employees.

- To know the benefits they must receive from this situation.

- To know if there is a right process to layoff employees.

- To know if the just causes for Layoff.

III.BACKGROUND OF THE CASE


Sisa Santos was staring into the cold, dark and unforgiving eyes of destitution.

She is one of the 15 janitors who were laid off from their jobs at a luxury complex of

condominiums and hotels that house some of the wealthiest and popular tenants in the

country. DMLSC Asset Management owns the buildings. The layoffs were ordered by a

maintenance contractor ABC Industries. The janitors were let go a few months ago and

given the current job market, they have not been able to do much since hen but suffer

with anxiety. Ms. Santos is 40 ears old and has two sons. She had enough money then

to pa April’s rent but not for May’s she has no savings and school is about to start back

then but she has no idea how she will pay for those expenses because she had no able

to find another job. What’s different about these layoffs is that the janitors did not go

quietly. They have been vigorously protesting their employers’ treatment – the way the

rich people who employed them for the minimum wage found it easy to dump them on

the scrap with the rest of Filipino’s unemployed millions. The janitors have marched and

fasted outside the buildings the once cleaned. And Ms. Santos and another laid off

janitor, Ms. Castro brought he said incident to their Union which represents them, to

bring their plight to the attention of Mr. XYZ, the President of the Management.

Mr. XYZ has made a fabulous living while Ms. Santos and her former co-workers

are being scorched by the flames of unemployment. Ms. Santos and Ms. Castro tried to

talk to Mr. XYZ, hey wanted o to ask if there was any chance that they and at least

some of their co-workers could be rehired. Numbers of supporters where with them

when they showed up in front of the building. The guards asked if they had an

appointment, they knew very well that an appointment was impossibility; Ms. Santos
and Ms. Castro were janitors. They were told to go away. When the company was

asked why the janitors have been fired and if the company was open to negotiations

that could result to rehiring them, the response was cold. ABC Industries released a

statement stating that discussions have been held with union officials regarding the

workers. The company would not say if any could be rehired or why they were fired in

the first place.

IV.SWOT (STRENGTHS, WEAKNESSES, OPPORTUNITIES, THREATS)

STRENGTHS WEAKNESSES OPPORTUNITIES THREATS


1.Strong Management Poor Good Promotion Terrorism

Administration Communication and

Advertisements

over adversaries
2.Presence of skilled Poor Labor Strong Tourism Rise of other

workers Relations Rate fast food chains


3.Good Advertising Unaffordable Holiday Seasons Possible

/Promotion skills prices cessation due

to increasing

economic

factors (i.e., tax,

exchange rate)
4.High Quality of Catering services Possibility of Good Poor Tourism

Service to limited class of Return of Rate

people Investment
5.High Quality of Unfair treatment Poor Quality of Negative

Facilities to employees existing publicity

competitors

V.FINDINGS & CONCLUSION

The case involved Layoff, which is the suspension of the employment

relationship initiated by the employer through no fault of the employee. It is resorted to

by Management as a temporary measure during periods of business recession,

industrial depression or seasonal fluctuations.

1. The company did not consider the situation of the employees who are laid off.

Being unemployed nowadays especially if you are raising your own family is

tough. All things being equal, the usual procedure in case of layoff is for the less

senior employee to be laid off first, in the case of janitors, they were the one’s

affected by this decision. Laid off employees in this case, didn’t received an

enough amount that could help them for survival within the period of their

employment suspension, that is why as a result they protested the unfair

treatment they have been experienced.

2. The company didn’t explained thoroughly and clearly to the employees the status

of their employment at that time, it seems like they leave the employees hanging

nowhere. They also gave a cold treatment when asked about being open to

negotiations that could result in rehiring expressing a sign of no concern at all. A


lay off lasting more than six months is deemed in law as termination, which is

subjected to granting of separation pay for the affected employees.

CONCLUSION

On researcher’s point of view, the company should have communicated and

informed the employees involved about the matter. They should have explained the

employment status of their employees whether their employment was just

suspended or subject for termination. The must also stated the factors behind the

reason of lay off resulting to termination such as seniority and work performance.

Every effort should be exerted o place a satisfactory employee elsewhere in the

company. Sometimes, instead of lay offs, the company ma institute a rotation of

workers. In case of rotation, it is the usual practice to give sufficient advance notice

to employees. Most collective bargaining agreements provide rules and procedures

governing lay offs that protects and concerned on rights and welfare of the

employees.
PART 2

VI.ALTERNATIVE COURSES OF ACTION

A) COURSES OF ACTION (5)

By Due Process (through Court)

ADVANTAGES DISADVANTAGES
Participation of Experts Business operation will be

interrupted
Final Decision would be good Very costly

result
There would be legal process Stained relationship between

Employees and Management


Attendance of involved parties Decision is not guaranteed for

are assured through court company’s welfare

hearings
Enlightenment to laws that Underground settlements might

covered Unions and Management happen

By Rotation of workers

ADVANTAGES DISADVANTAGES
No negative publicity Management costs are not lessen
Good employee-employer Performed jobs are duplicated (2

relationship persons performed 1 task)


Quality service and work Not enough knowledge on job

about to perform
Strong workforce Strong union
Continuous income and profit Negative effect on Management’s
generating service

By rehiring of Employees

ADVANTAGES DISADVANTAGES
Less negative publicity Management’s costs are not

lessen
Regaining employee-employer Strained relations

relationship
Employees are job secured Situations might occurred again
Strong workforce Unions are more observable on

Management
Continuous income and profit Negative effect on management’s

generating service

By giving the necessary benefits (such as Separation pay)

ADVANTAGES DISADVANTAGES
Less negative publicity Very costly (additional demands)
Provided by law Strained relations
Employees can use it when Underground settlement might

looking for another job happened


Less tension between involved Benefit package might not be

parties complete
Unions will not oppose knowing Employees might protest

that Mgt. abided the law continuously

By setting a meeting with union officials


ADVANTAGES DISADVANTAGES
Clarifications on employees rights Business operations will be

interrupted
Possibility of good decision (such Very costly

as rehiring)
Less negative publicity Tensions might occur
Good employee-employer Good decision is not guaranteed

relationship
Stronger labor relations Participation are not assured

Compilation of
CASE
ANALYSIS
MN405
Tons of Workload
Company’s Performance Appraisal
Double Benefits

Submitted to: Submitted by:

Professor Michael Pechardo Ian Carlo M. Cueto

HRDM IV – 3N

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