PROF 7- Labor Relations

This is a property of
PRESIDENT RAMON MAGSAYSAY STATE UNIVERSITY
NOT FOR SALE

PROF 7 – Labor Relations

First Edition, 2015
 
Copyright. Republic Act 8293 Section 176 provides that “No copyright shall subsist in any work of
the Government of the Philippines. However, prior approval of the government agency or office
wherein the work is created shall be necessary for exploitation of such work for profit. Such agency or
office may, among other things, impose as a condition the payment of royalties.
 
Borrowed materials included in this module are owned by their respective copyright holders. Every
effort has been exerted to reach and seek permission to use these materials from their respective
copyright owners. The University and authors do not claim ownership over them.
 

Learning Module Development Team

Assigned Chapter/Lesson Title Author/s

(First Name, Middle Initial, Last
Name)

Chapter/Lesson: 1 - 12 Rosalie A. Aninzo, MBA

 
 
 
Course Overview
Introduction
(A comprehensive discussion of the course as to what to expect by the learners, including the
learning modules included in this course as well as the scope and coverage.)

Labor Relations and Negotiations is a three – unit course, the course uses cases, lectures and
simulations to develop negotiation skills in a variety of management situation, including
union management relations. Issues include pre-employment discussions, collective
bargaining arbitration, mediation, agency, renegotiating contracts and multi-party
discussions. (CMO No. 39 s 2006)

Labor relations professionals play an important role in representing stakeholders in ongoing

interactions between employers and union representatives. Students explore the role of
communications and media in representing employee/union philosophies and analyze how
these impact workplace issues. Through online research and critical thinking projects students
reflect on historical events and analyze how these have shaped current employee-
management relations.

Course General Objectives

(State the Key Learning Competencies. These are the refined course outcomes identified after
the recalibration of the curricula.)

At the end of the semester, 75% of the students have attained 80 % proficiency level, the
students in this course will examine the major foundation programs and skills that underline
the current practice of Labor Relations. The primary goals of labor-management relations
are to create a productive, engaged workforce and to eliminate the perception that organized
labor and management have a perpetually adversarial relationship. A number of industrial
relations objectives can help both labor unions and employers attain those goals.

Course Details:

 Course Code: PROF 7

 Course Title: Labor Relations
 No. of Units: 3
 Classification: Lecture-based
 Pre-requisite / Co-Requisite: None
 Semester and Academic Year: 2nd Semester, AY 2022-2023
 Schedule: Wednesday - 8:00am – 11:00am
 Name of Faculty: Rosalie A. Aninzo, MBA
 Contact Details
Email: [email protected]
Mobile Number: 0919-204-42-49
FB Account: Rosalie Almario Aninzo
 Consultation
Day: Friday
Time: 4:00 - 5:00PM
Learning Management System
(Provide the link for the Class created in Google Classroom. Likewise, share links of other
learning materials stored using Google Drive. If a commercial LMS will be made available
by the University, links shall be refreshed/updated and also be shared.

The University LMS will be used for asynchronous learning and assessment. The link and
class code for LMS will be provided at the start of class through the class official Facebook
Group.

 Edmodo
 Google Meet
 FB Messenger Chat Room
 University LMS

Assessment with Rubrics

(Discuss the assessment tools to be used along with the corresponding rubrics to learners.
Specify the major examinations such as Midterm and Final Examinations, their scope and
coverage as well as schedule.)

Students will be assessed in a regular basis thru quizzes, long/unit/chapter tests,

individual/group outputs using synchronous and/or asynchronous modalities or submission of
SLM exercises. Rubrics are also provided for evaluation of individual/group outputs.

Major examinations will be given as scheduled. The scope and coverage of the examination
will be based on the lessons/topics as plotted in the course syllabus.
 0323

Module Overview
Introduction
(A short discussion of the module as to what to expect by the learners, including topics
included in this particular learning module as well as the scope and coverage.)

This module aims to develop student’s awareness on labor relations: examines the

relationship between organized labor and management. labor law: looks at all of the laws that
govern the work place (but with an emphasis on the National Labor Relations Act and
amendments, which govern the formal relationship between labor and management)

  Table of Contents

Chapter/Lesson 1: Constitutional Framework of Labor

Chapter/Lesson 2: Start of Employer – Employee Relationship
Chapter/Lesson 3: The Labor Organization
Chapter/Lesson 4: The Human Elements in an Industrial Organization
Chapter/Lesson 5: Collective Bargaining
Chapter/Lesson 6: Wages
Chapter/Lesson 7: Hours of Work
Chapter/Lesson 8: Working Conditions
Chapter/Lesson 9: Incentives and Fringe Benefits
Chapter/Lesson 10: Employment and Security of Tenure
Chapter/Lesson 11: Strikes and Lockouts
Chapter/Lesson 12: Labor Relations
 
 Labor Relations
 
Chapter 1

Constitutional Framework of
Labor
Chapter 1

Constitutional Framework of Labor

 
Introduction
(Short lesson scope and coverage)

The Constitutional and statutory provisions protecting labor are derived from the "Police
Power" of the state-the right of the state to regulate labor relations for the general welfare and
to maintain industrial peace. It is also based on social justice to ensure protection of the
weaker social partner-labor.

Specific Objectives

At the end of the lesson, the students should be able to:

 
- Discuss the right to organization of employees;
- Define collective bargaining;
- Describe security of nature;
- Explain Humane working conditions;
- Examine participative management;
- Discuss the right to strike;
- Illustrate just share and reasonable returns;
- Explain comprehensive agrarian reform program;
- Describe subsistence fishermen.

Duration
(Specify the number of hours allotted for this chapter/lesson.)
 
Chapter 1: Constitutional Framework of Labor = 3 hours
(2 hours discussion; 1 hour
assessment)

 
  
Lesson Proper
(A comprehensive discussion of the topic; include illustrations, graphs, pictures, tables, etc.)

INTRODUCTION: Constitutional Framework of Labor

Article III – Section 8. The right of the people, including those employed in the public and
private sectors, to form unions, associations, or societies or purposes not contrary to law shall
not be abridged. (Bill of Rights – 1987 Philippine Constitution)

Article XIII – Section 3. The state shall afford d’ full protection to labor, local and overseas,
organized and unorganized, and promote full employment and equality of employment
opportunities for all.

It shall guarantee the rights of all workers to self-organization, collective bargaining and
negotiation, and peaceful concerted activities, including the right to strike in accordance with
law. They shall be entitled to security of tenure, humane conditions of work, and a living
wage. They shall participate in policy and decision-making processes affecting their rights
and benefits as may be provided by law.

The State shall promote the principle of shared responsibility between workers and employers
and the preferential use of voluntary modes in settling disputes, including conciliation, and
shall enforce their mutual compliance therewith to foster industrial peace.

The State shall regulate the relations between workers and employers, recognizing the right
of labor to its just share in the fruits of production and the right of enterprise to reasonable
returns to investments, and to expansion and growth. (Labor – 1987 Philippine Constitution)

The constitution of the land makes certain that the rights of workers or employees are
protected against any abuse.

The Right to Self-Organization

Self – Organization – is a process where some types of overall order or coordination occurs
from the local relations among the components of an originally chaotic system.

Right to Self – Organization – is the entitlement of workers and employees to form join or
assist unions, organizations or associations for reasons of collective bargaining and
negotiation as well as for common assistance and protection. It also means the privilege to
employ peaceful combined activities or to join in policy and decision – making processes
concerning their rights and benefits.

Employees under the Civil Service including those in the government owned and controlled
corporations with original charter may also form their own organizational, however, they
cannot bargain collectively for employment terms and conditions that are already fixed by
law.
Employees of Cooperatives who are also members of the cooperatives they work for cannot
self-organize because of being co-owners of the cooperative.
The Collective Bargaining

Collective Bargaining – is a process of negotiation between employers and a group of

employees (The Union) with the primary goal of achieving a collective bargaining agreement
to regulate working conditions.

Typically, the agreement governs employment relationship including but not limited to
wages, hours, promotions, benefits, and other employment terms as well as procedures for
handling grievances arising under it. The interest and concerns of the employees are generally
presented by representatives of a trade union where the employees belong.

Collective bargaining permits workers and employers to arrive at a voluntary agreement on

an extensive sort of topics. Yet, it is restricted to some point by existing laws of the country.

Security of Tenure of an Employee

Security of Tenure – is a political science term which describes a constitutional or legal
guarantee that an employee cannot be removed from work apart from exceptional and
specified circumstances.

It is treated as a constitutional right and civil right in the Philippines. Having no property, a
person’s job is the only way to make a living and social justice orders that the employee must
be safeguarded from any subjective and unfair withdrawal of his job.
Security of tenure provides protection, by guaranteeing that an employee cannot be wronged
for existing his powers, functions and duties.

The standard form of security of tenure offered to employees is typically that they can only
be removed from work by either of two methods:
1. Dismissal from work subsequent to impeachment (a formal charge equivalent to a
criminal law indictment) by parliament, using weighted majorities (usually a two-
thirds majority);
2. Dismissal by courts for capacity (mental, physical or psychological problems make
them no longer for the predictable future be able to perform in workplace).

The Philippine Constitution provides guarantee of security of tenure which means that an
employee can only be removed from the service for just cause provided by law and just
following due process is accorded the employee. The two components of this lawful
provision are:
a) The legality of the steps taken for the dismissal; and
b) The legality in the approach of dismissal.
The illegal steps taken for dismissal comprise dismissal without just cause. On the other
hand, illegality in the approach of dismissal means discharge without due process. If an
employee is fired without just cause, he has the right for reinstatement and collect back wages
up to the time of his actual reinstatement that is if the contract of employment is not for a
definite period. Or he is entitled to the payment of his salaries equivalent to the unexpired
fraction of the employment contract that is if the contract is for the definite period. If the
employee was dismissed for a just cause but did not undergo due process, the employee has
the right to the payment of an indemnity.
Humane Working Conditions
As a human being every employee has the right to just and favorable conditions of work.

Humane Working conditions – are the focus of salaried work and employment relationships.

In the Philippines, humane working conditions envelop an extensive sort of topics and issues
like hours of work, rest periods, work schedules, compensation, social security, employment
status in addition to the physical environment and mental demands that are present in the
workplace. For most big organizations define humane working conditions means: a harmless,
healthy and dirt-free environment with, fittingly lit work stations, clean drinking water,
sufficient restrooms, fire exits and vital fire safety equipment, emergency aid kits and contact
to emergency response including environmental, fire and medical.

Companies may cause, contribute or be openly associated to the following human rights
impacts:
1. Employment of workers with no protection of a labor contract
2. Payment of wages under living wage standard
3. Unpaid or too much use of overtime
4. Prohibiting contracted or temporary laborers from benefits or grievance mechanisms.
5. Failure to contribute to register workers in social security payments systems

Participative Management
Participative Management is strongly linked with the notion of industrial democracy.

Participative Management – means including employees in the process of decision making.

It is initiated on the idea that an employee should be given an opportunity to participate in the
decision-making process of the management when the employees invest his time and secures
his destiny to the workplace. Further, the employee must be afforded a chance to articulate
his views and appropriate value ought to be given to them by the management while framing
policies.

The following are the importance of participative management in an organization:

1. Employees see themselves with the work, which directs to better performance.
2. Employees experience motivation because they are involved in management.
3. This leads to self-worth, job satisfaction and collaboration of employees with
management.
4. It reduces conflicts and stress, resulting in more commitment to goals and better
acceptance to change.
5. It results in improved communication as people jointly talks about work problems.

Here are some of the fundamentals for successful participation by employees:

1. Strong Trade Unions – having strong trade unions with creative and enlightened
leadership is essential for participation to do well.
2. Positive Attitude of Management – the attitude of management must be progressive
and democratic. Suitable value should be provided to employee’s views and
propositions.
 3. Comprehensive understanding of objectives – employers and employees as well
should have obvious understanding of objectives of the participation.
4. Education and Training of Workers – employees and their representatives ought to
have satisfactory technical, financial and managerial knowledge.
5. Voluntary Participation Advantageous – participative management must be
voluntary and not obligatory. Employee’s voluntary participation largely controls the
success of participative management.

The Right to Strike

The right to strike being constitutional right and civil rights is recognized here in the country.

The Right to Strike – is a potential weapon of employees against possible abuse of

employers.

Our Philippine laws though does not favor strike (and also lockout) because of its alarming
and destructive effects on social order and public interest.
Here are key five reasons why there is a need for the right to strike:
1. Striking is a last resort but sometimes the only tool for workers to protect themselves.
2. To avoid being at the complete mercy of the workers.
3. To give more of a balance between worker and employer power.
4. Without, more and more governments will ban industrial action and punish people
who dare to strike.
5. Most strikes are over pay and better working conditions. Without the threat of strike
action, corporations will be able to make bigger profits, while working conditions get
worse.

Just and Reasonable Return

Both employees and employers’ rights are recognized under the Constitution to regulate and
balance the relations between the two. A just share to the fruits one one’s labor is a right
guaranteed to all workers. This is the rationale behind minimum wage that must be adequate
to maintain the health of the employee, to make possible a decent life for the employee and
his family to provide for illnesses and other emergencies that may happen in the future time.
On the other hand, the right of the employer to reasonable return on his investment is a
connotation that the country has commitment to promote free enterprise. It is certainly
appropriate to reward employers who are risk-takers their profits coming from businesses.

Comprehensive Agrarian Reform Program

The Comprehensive Agrarian Reform Program is the existing law under which land reform is
carried out. Each farmer is provided a “certification of land ownership award” or CLOA for
their new property. Under the law, a landowner can only retain 5 hectares, in spite of the size
of the hacienda. Conflict can happen between former landowner and “beneficiaries” and
between opposing farmer’s groups that have different claims.

The legal basis for CARP is the Republic Act No. 6657 known also as Comprehensive
Agrarian Reform Law (CARL) signed by President Corazon C. Aquino on June 10, 1988. It
is an act which aims to encourage social justice and industrialization, offering the means for
its implementation, and for other purposes.

Subsistence Fishermen
The Philippine government shall safeguard the rights of subsistence fishermen, particularly of
local communities, to the privileged use of the shared marine and fishing resources, both
inland and offshore. The government shall as well defend, increase, and preserve such
resources. The protection shall broaden to offshore fishing grounds of subsistence fishermen
in opposition to foreign disturbance. Fish workers shall obtain a reasonable share from their
labor in the use of marine and fishing resources.

Prof7//raa/030723//

References/Additional Resources/Readings

Prof. Angelita Ong Camilar-Serrano (2015). Labor Relations Management and Negotiations.
Unlimited Books Library Services & Publishing, Inc.