Employee/labor management relations

1. BY:
EMILY A. SUMALINOG
MPA Student
EMPLOYEE/LABOR MANAGEMENT
RELATIONS

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

3. 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.

4. COLLECTIVE BARGAINING
AND
LABOR RELATIONS

5. 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.

6. 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.

7. 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.

8. 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.

9. 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.

10. 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

11. CHARACTERISTICS OF COLLECTIVE BARGAINING
It 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.

12. THE COLLECTIVE BARGAINING PROCESS
Prepare
Discuss
Propose
Bargain
Settlement

13. 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.

14. FUNCTIONS
1. 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.

15. PUBLIC SECTOR LABOR MANAGEMENT
COUNCIL OF THE
CIVIL SERVICE COMMISSION

16. 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.

17. EMPLOYEE UNION REPRESENTATIVES
National Government Agencies
Local Government Units
Government owned or controlled
corporations
State Universities and Colleges

18. 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.

19. 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.

20. 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.

21. 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.

22. LABOR-MANAGEMENT
COOPERATION

23. 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.

24. 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

25. 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.

26. 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

27. 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

28. 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

29. 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.

30. 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

31. 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

32. 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.

33. 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

34. 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.

35. 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

36. LEGAL ISSUES IN EMPLOYEES
RELATIONS

37. 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.

38. 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.

39. 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.

40. 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.

41. THANK YOU 