It refers to the supply and demand for

labor, in which employees provide the

supply and employers the demand. It is
a major component of any economy,
and is intricately tied in with markets for
capital, goods and services.
 Government
Department of Labor and Employment
(DOLE)
Bureau of Labor and Employment
Statistics (BLES)
Technical Education and Skills
Development Authority (TESDA)
Philippine Overseas Employment
Agency (POEA)
 DOLE Secretary SILVESTRE BELLO III
TESDA Executive Director-General
GUILING A. MAMONDIONG
POEA Undersecretary/Officer-in-charge
BERNARD P. OLALIA
 It is a measure of economic growth within a
country. Labor productivity measures the
amount of goods and services produced
by one hour of labor; specifically, labor
productivity measures the amount of real
gross domestic product (GDP) produced by
an hour of labor. Growth in labor
productivity depends on three main factors:
investment and saving in physical capital,
new technology, and human capital.
 Labor productivity is directly linked to improved
standards of living in the form of higher consumption.
As an economy's labor productivity grows, it
produces more goods and services for the same
amount of relative work. This increase in output
makes it possible to consume more of the goods and
services for an increasingly reasonable price.

Growth in labor productivity is directly attributable to

fluctuations in physical capital, new technology and
human capital. If labor productivity is growing, it can
be traced back to growth in one of these three
areas. Physical capital is the amount of money that
people have in savings and investments. New
technologies are technological advancements, such
as robots or assembly lines. Human capital represents
the increase in education and specialization of the
workforce. Measuring labor productivity allows an
economy to understand these underlying trends.
 These include their entitlement to wages
and benefits, hours of work, (hours of
work, rest periods, and work schedules)
to remuneration, as well as the physical
conditions and mental demands that
exist in the workplace; overtime
arrangements and overtime
compensation, and leave for illness,
maternity, vacation or holiday, that at a
minimum comply with national law.
 Output growth and employment
Labor productivity
Underemployment, overseas
employment
Youth unemployment, job and skill
mismatch, educated unemployed
Balance between workers welfare and
employment generation
 PRE-EMPLOYMENT POLICIES
Minimum employable age (18 yrs.
old)
Overseas employment
REGULATION ON CONDITIONS OF
EMPLOYMENT
Minimum wage rate (PhP 426.00 per
day)
Regular work hours and rest periods
(8 hours a day)
 Rest days
Nightshift differential and overtime
Household helpers
POST-EMPLOYMENT
Termination by employer
- serious misconduct or
disobedience to the employer
- neglect of duties or commission
of a crime by the employee
Retirement
 Poor workforce productivity
Interpersonal conflicts among
employees
Difficulty adjusting to change
Disagreements on job duties
Competition for departmental resources
Poor processes
Unclear accountability
Poor systems for compensation and
review
 It is an administrative unit within a firm in
which pricing and allocation of labor is
governed by a set of administrative rules
and procedures. The remainder of jobs
within the ILM is filled by the promotion or
transfer of workers who have already
gained entry.
 It increases the proportion of training
costs borne by the employer, as
opposed to by the trainee and it
increases the absolute level of such
costs. Companies are ever more seeking
individuals with specific talents that can
be an asset to their organization. Firms
that require specifically trained
individuals look for a stable labor force.
 Many firms are willing to train internal employees
for other positions. Since they find no use in
workers with experience from other places, they
prefer to promote young workers and train them
on-the-job. Firms want to maintain the investment
afterwards; therefore they offer the employees
job security and structured promotions. Due to
the importance of on the job training, the
promotion is often given by seniority. Also, this
way of promotion encourages on the job
training, since the eldest worker is not afraid that
the young one replaces him. Employers benefit
from this more stable relationship because they
reduce the cost of training.
 It is an organization intended to represent the collective
interests of workers in negotiations with employers over
wages, hours, benefits and working conditions. Labor
unions are often industry-specific and tend to be more
common in manufacturing, mining, construction,
transportation and the public sector.

Labor unions protect the rights of workers in specific

industries. A union works like a democracy in that it holds
elections for its members that seek to appoint officers who
are charged with the duty of making decisions for union
participants. A union is structured as a locally-based group
of employees who obtain a charter from a national
organization. Dues are paid by the employees to the
national union, and in return, the labor union acts as an
advocate on the employees behalf.
 The power of labor unions rests in their two main
tools of influence: restricting labor supply and
increasing labor demand. Some economists
compare them to cartels. Through collective
bargaining, unions negotiate the wages that
employers will pay. Unions ask for a higher wage
than the equilibrium wage (found at the intersect
of the labor supply and labor demand curves),
but this can lower the hours demanded by
employers. Since a higher wage rate equates to
less work per dollar, unions often face problems
when negotiating higher wages and instead will
often focus on increasing the demand for labor.
 Push for minimum wage increases. Minimum wage increases
the labor costs for employers using low-skilled workers. This
decreases the gap between the wage rate of low-skilled and
high-skilled workers; high-skilled workers are more likely to be
represented by a union.
Increase the marginal productivity of its workers. This is often
done through training.
Support restrictions on imported goods through quotas and
tariffs. This increases demand for domestic production and,
therefore, domestic labor.
Lobbying for stricter immigration rules. This limits growth in the
labor supply, especially of low-skilled workers from abroad.
Similar to the effect of increases in the minimum wage, a
limitation in the supply of low-skilled workers pushes up their
wages. This makes high-skilled laborers more attractive.
 When unions want to increase union member wages
or request other concessions from employers, they
can do so through collective bargaining. Collective
bargaining is a process in which workers (through a
union) and employers meet to discuss the
employment environment. Unions will present their
argument for a particular issue, and employers must
decide whether to concede to the workers'
demands or to present counterarguments. The term
"bargaining" may be misleading, as it brings to mind
two people haggling at a flea market. In reality, the
goal of the union in collective bargaining is to
improve the status of the worker while still keeping the
employer in business. The bargaining relationship is
continuous, rather than just a one-time affair.
 If unions are unable to negotiate or are not
satisfied with the outcomes of collective
bargaining, they may initiate a work stoppage or
strike. Threatening a strike can be as
advantageous as actually striking, provided that
the possibility of a strike is deemed feasible by
employers. The effectiveness of an actual strike
depends on whether the work stoppage can force
employers to concede to demands.

Unions have undoubtedly left their mark on the

economy, and continue to be significant forces
that shape the business and political environments.
They exist in a wide variety of industries, from heavy
manufacturing to the government, and assist
workers in obtaining better wages and working
conditions.