Labor Relations

Labor or Industrial relations- pertains to a set of processes and procedures utilized by the union and employer to attain their respective goals. Union concerns are usually focused on: 1. Wage Setting 2. Freedom of association principles 3. Job security 4. Better terms and conditions of work 5. Dispute settlement

Labor Relations
Management concerns1. Higher Profits 2. Market expansion 3. Higher productivity 4. Development of New Products and Services 5. Customer Satisfaction Approaches to resolve differences 1. Conflict or uncompromising attitude 2. Armed truce attitude

Labor Relations
3. Power Bargaining as an alternative 4. Accommodation 5. Cooperation 6. Collusion- looked upon as generating too much harmony.

3 Major Actors in the Labor relations 1. Employer-their organizations 2. Workers- their unions/labor organizations

Labor Relations
3. Government- in its role as regulator or arbiter

Workers (Union) Goals Interest Needs Strategies

Process 1. Collective Bargaining 2. Dispute Settlement 3. Separation 4. Participation in decision making

Employer (Management) Goals Interests Philosophy strategies

Unionism
Union- is a voluntary organization of workers whose aim is to fight for and protect workers, their terms and conditions of employment, and their rights as well a democratize power in the workplace. Aspects of workers interest 1. Economic Democracy-workers secure for themselves their rightful share of the fruits of their labor.

Unionism
Political Democracy-Unions are formed to allow workers to participate in decision-making on matters affecting them. Self-esteem and recognition-workers form unions to help each other gain the respect that is not usually given to the workers. Types of unions 1. Independent Union-any labor organization operating at the enterprise level whose legal personality is derived through an independent action for registration prescribed by law(Art. 234)-Rule II

Unionism
2. National union federation-means any labor organization with at least 10 local chapters or affiliates, each of which must be duly certified or recognized collective bargaining agent. 3. Industry Union- a legitimate labor organization operating in an identified industry organized for collective bargaining and duly registered with the DOLE. Ex. National union of workers in Hotels and related industries.

Collective Bargaining
-Extends to all negotiations that take place between an employer, a group of employers or one or more employers organization and one or more workers organizations for: a) Determining working conditions and terms of employment; and/or b) Regulating relations between employers or their organizations and workers organization.

Collective Bargaining
c) Regulating relations between employers or their organizations and a workers organization . The process includes:1. Proposals and counter proposals 2. Demands and counter demands 3. Constant communication between the union and management

Collective Bargaining
Theories of Collective Bargaining 1. Economic theory- secure higher wages and better terms and conditions of work. 2. Social theory- to eradicate or lessen their job alienation due to work automation or computerization. 3. Political Theory- unions aim to gain influence upon legislation, informal or formal government interventions. 4. Dualistic theory- unions can pursue their economic and political thrusts at the same time at the firm level .

Collective Bargaining
Theories
Economic

Goals of Unions

CBA Provisions

Theories

Goals of Unions

CBA Provisions
Across the-board increase, bonuses allowances Hours of work, leaves health care benefits , promotions Union security, grievance machinery, security of tenure, labor management committee Across-the-board increase Union security

Secure higher wages, better terms and conditions of work, improve living standards Eradicate work alienation and gain respect and recognition Secure unity and strength of workers, democratize power

Social

Political

Dualism

Perform both economic and political thrusts simultaneously

Collective Bargaining
Approaches and Types of Collective Bargaining 1. Traditional, distributive Bargaining-involves the distribution of wages and benefits 2. Integrative or interest-based Bargaining-they both (union/management) recognize the need to make concession to secure a mutually beneficial compromise. 3. Concession Bargaining- occurs when something of importance is given back to management ex. wage cuts.

Collective Bargaining
Principles of Collective Bargaining 1. Duty to Bargain collectively 2. Disclosure of information 3. Recognition of opposing interests between labor and management 4. Settlement of the clash of interests by means of compromise 5. Nonviolence 6. Bargaining autonomy- Gov. intervention should be kept at a minimum

Collective Bargaining
7. Incorporation of agreements in a written contract 8. Resolution of disputes- a machinery for grievances shall be established

Grievance and Arbitration

Grievance- a complaint of an employee or group of employees involving wages, conditions of employment, interpretation of the CBA

Look after employees concerns Improve work relations Verify employee grievance

Purposes of Grievance Machinery

Purpose of grievance machinery Smooth flow of communication Settle disputes/differences properly Study complaints an evaluation policies

Typical Grievance Procedure in a Unionized firm

Arbitrator
Mgt. Rep. CEO/Gen. Mgr.

Union Pres.

HRD Head

Written Grievance

Grievance Committee Shop Steward

Immediate Supervisor

Verbal Presentation

Aggrieved Employee

Arbitration
Arbitration- parties submit the case to an impartial third party for resolution. Optionsa) Voluntary arbitration- A commonly agreed upon accredited voluntary arbitrator is chosen to decide on the case. b) Compulsory arbitration-Filing the case at the DOLE for final decision.

Arbitration
Factors used to evaluate the fairness of management actions: 1. Nature of the offense 2. Due Process 3. Grievants past record/length of service 4. Knowledge of rules, warnings, lax of enforcement of rules 5. Discriminatory treatment