248-hrm module 5 cba

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HUMAN RESOURCES

MANAGEMENTProfessor : Ms. Ellen P. Garcia

Human Resources Management



MODULE 5

COLLECTING BARGAINING AGREEMENTand

LABOR RELATIONS




DEFINITION OF COLLECTING BARGAININGAGREEMENT (CBA)


• is a negotiated contract between a legitimate labor organization and theemployer concerning wages, hours or work and all other terms and conditionsof employment in a bargaining unit, including mandatory provisions forgrievance and arbitration machinery.

• Usually CBA is a 1 to 3 years contract period.

• Also called labor agreement, union agreement, or union contract



MAIN OBJECTIVE OF CBA


• To encourage a truly democratic method of regulating the relationsbetween the employers and employees by means of agreements freelyentered into through collective bargaining, no court or administrativeagency or official shall have the power to set or fix wages, rates of pay,hours of work or other terms and conditions of employment, except asotherwise provided under this Code. (As amended by Section 3,Republic Act No. 6715, March 21, 1989).



IMPLICATIONS OF CBA

1. Job evaluation is a management tool and prerogative to set salary ratesbased on job values and is not subject to negotiations.

2. C.B.A.s normally contain provisions that management agrees toundertake a Job Evaluation program.

3. CBA increases are not governed by the salary structure. Some

companies grant merit increase on top of CBA increases.4. Job Classification or list of jobs within each Job Grade may be

incorporated in the CBA so that employees know their career path.

5. Since CBA increases are given across-the-board, it is not performancebased and is not motivational.

6. It would be good to brief union officers about Job Evaluation so thatmisunderstandings could be avoided.




DEFINITION OF LABOR MANAGEMENTRELATIONS (LMR)


• The term “labor relations” refers, in a broad sense, to therelationships between the employees on one hand and managementon the other. This also covers the relationship between managementand labor unions in unionized companies.



IMPORTANCE OF LMR


• The administration and application of personnel policies andprograms adopted by management.

• The administration of collective bargaining contracts with the union.

• The solution of day-to-day problems that arise in connection with

labor and social legislation and government rules relative toemployee-employer relations.



BACKGROUND OF PRESENT LABOR-MANAGEMENTRELATIONS


1. Then old concept o general indifference and passiveness in labormanagement relations, expressed in the laissez faire philosophy hasgiven way to the idea that the government should assume the role ofguardian over the interests of labor.

2. The second concept born of modern industrialization is that theemployer has a social and moral responsibility to ameliorate the lotof his employees.

3. The third is the idea of social justice.

4. The fourth concept is the modern idea that the government shouldactively intervene in labor disputes because such disputes are costlyboth to the disputants and the public, and may even cripple thecountry‟s economy.



IRRITANTS TO WORKERS


1. The desire of employers to operate as economically as possible intheir efforts to make profits, while neglecting the welfare of workers.

2. Modern business management practices of overloading the payrollwith high-salaried executives, technicians, and consultants, whilescrimping on workers‟ wages.

3. Management‟s indifference and arbitrariness in dealing withworkers.

4. Management‟s resentment of the undue protection by the

government of employees and unions through pieces of legislation.5. The shift of workers‟ loyalty from management to union.



IRRITANTS TO WORKERS


6. The reduction in management‟s right to discipline or even just o deal with

employees, once they become union members.

7. Inter-union and intra-union rivalries which make labor relations uncertainand create difficulties for management.

8. Acts of harassment by the union by way of killing all kinds of complaints and

grievances with the grievance machinery.

9. Abuses of some employees because of their belief that they enjoy theprotection of the law and that the government will always be on heir side.



DEPARTMENT OF LABOR AND EMPLOYMENT:ITS FUNCTIONS


• Promotion of employment and manpower development and utilization.

• Protection of workers‟ welfare.

• Promotion and maintenance of industrial peace based on social justice.



LABOR RELATIONS


• Declaration of Basic Policy• Construction in favor of Labor• Rules and Regulations• Applicability



RIGHTS OF LABOR


1. Right to protection by state2. Right to full employment3. Right to equal work opportunities regardless of sex, race, and creed4. Right to self organization5. Right to collective bargaining and negotiations6. Right to security of tenure7. Right to just and humane conditions of work8. Right to peaceful, concerted activities including strikes

9. Right to participate in policy and decision making processes affecting theirrights and benefits10.Right to compulsory arbitration as maybe provided by law11.Right to certain hours of work and weekly rest periods12.Right to overtime and premium pay13.Right to living wage14.Right to emergency, medical, and dental treatment15.Right to protection under safety and health standards16. Right to employee‟s compensation in case of injury or illness in line of duty 17.Right to social security and medical care



LABOR ORGANIZATIONS


1. Union Objectives2. Work of Unions3. Registering Unions4. Federation of Unions5. Local Union6. Independent Union7. Union Officers8. Union Membership9. Union in Government Agencies



UNION SECURITY


• A union security clause is a provision in a union contract requiring employees, as acondition of employment, to maintain union membership or pay union dues or requiringan employer to check off dues from employees' wages.

• Various type of Union Security Agreement

a) Closed shop —The employer agrees to hire only union members. An employeewho resigns from the union must be fired.

b) Union shop —The employer may hire anyone regardless of their unionmembership status, but the employee must join the union within a set time period(such as 30 days). An employee who resigns from the union must be fired.

c) Agency shop —The employer may hire anyone regardless of their unionmembership status, and the employee need not join the union. However, all non-union employees must pay a fee (known as the "agency fee") to the union tocover the costs of collective bargaining (and, in some countries, other fees aswell). An employee who resigns from the union may not be fired but must pay theagency fee.



UNION SECURITY


• Various type of Union Security Agreement

d) Maintenance of membership - states that workers who were union members when thecontract was signed must remain union members throughout the term of the contract.Further, under this type of security clause, members must pay dues during the term of thecollective bargaining agreement. Only about 4 percent of all collective bargainingagreements are estimated to have maintenance of membership clauses today

e) Dues check off —A contract between the employer and union where the employer agrees to

collect the dues, fees, assessments, and other dues from union members and/or non-members directly from each worker's paycheck and transmit those funds to the union on aregular basis.




1. Who should attend negotiations• This involves composition of a negotiation team. The negotiation team should consist of

representatives of both the parties with adequate knowledge and skills for negotiation.

2. Planning for negotiation

a) Prepare : 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 firstthing 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 ofoperations, working conditions, production norms and other relevant conditions is required.

b) Discuss: the parties decide the ground rules that will guide the negotiations. A process wellbegun is half done and this is no less true in case of collective bargaining. An environmentof mutual trust and understanding is also created so that the collective bargainingagreement would be reached.

c) Propose: This phase involves the initial opening statements and the possible options thatexist to resolve them. In a word, this phase could be described as „brainstorming‟. Theexchange of messages takes place and opinion of both the parties is sought.

COLLECTIVE BARGAINING PROCESS




d) Bargain : negotiations are easy if a problem solving attitude is adopted. This stagecomprises the time when „what ifs‟ and „supposals‟ are set forth and the drafting of

agreements take place.

e) Settlement: Once the parties are through with the bargaining process, a consensualagreement is reached upon wherein both the parties agree to a common decision regardingthe problem or the issue. This stage is described as consisting of effective jointimplementation of the agreement through shared visions, strategic planning and negotiatedchange.

3. Registration of collective bargaining agreement• The parties of CBA shall submit to the appropriate Regional office two (2) copies of

agreement within 30 days of execution

4. Terms of collective bargaining agreement

5. Check-off : union dues

6. Labor Education and Research• It shall be the duty of every legitimate labor organization to implement labor education

program for its members on their rights and obligations as unionist and as employee.

COLLECTIVE BARGAINING PROCESS



STRIKES AND LOCKOUTS (PD 442)


DEFINITION : (PD 442, as amended)

a) STRIKE

• Any temporary stoppage of work by the concerted action of employees as a result of anindustrial dispute.

• It is considered as the most effective weapon in protecting the rights of the employees toimprove the terms and conditions of their employment. However, to be valid, a strike must bepursued within legal bounds. One of the procedural requisites that Article 263 of the Labor

Code and its Implementing Rules prescribe is the filing of a valid notice of strike with the NCMB. Imposed for the purpose of encouraging the voluntary settlement of disputes, this requirement has been held to be mandatory, the lack of which shall render a strike illegal.

b. LOCKOUT

• The temporary refusal of an employer to furnish work to his employees as a result of anindustrial or labor dispute.

• It comprises shutdowns, mass retrenchment and dismissals. It may be total (one month orless), temporary (one month to six months) or permanent (more than six months).





1. Legal requirements for strikes and lockouts • A strike or lockout may be declared in cases of bargaining deadlocks and unfair

labor practices.• Violations of CBA, except flagrant and /or malicious refusal to comply with its

economic provision shall not be considered unfair labor practice and shall not bestrikeable

• No strike or lockout may be declared on grounds involving inter-union or intra-union disputes or on issue brought to voluntary or compulsory arbitration.

2. Causes of strikes and lockouts a) Dissatisfaction with company policyb) Salary and incentive problemsc) Increment not up to the markd) Wrongful discharge or dismissal of workmene) Withdrawal of any concession or privilege

f) Hours of work and rest intervalsg) Leaves with wages and holidaysh) Bonus, profit sharing, Provident fund and gratuityi) Retrenchment of workmen and closure of establishment

j) Dispute connected with minimum wages





3. Prohibition against aliens (PD 442, Section 269, 272)• All aliens, natural or juridical, as well as foreign organizations are strictly

prohibited from engaging directly or indirectly in all forms of trade union activitieswithout prejudice to normal contacts between Philippine labor unions andrecognized international labor centers: Provided, however, That aliens workingin the country with valid permits issued by the Department of Labor andEmployment, may exercise the right to self-organization and join or assist labor

organizations of their own choosing for purposes of collective bargaining:Provided, further, That said aliens are nationals of a country which grants thesame or similar rights to Filipino workers. (As amended by Section 29, RepublicAct No. 6715, March 21, 1989)



KINDS OF STRIKES (PD 442)


1. Unfair labor practice strike : means any unfair labor practice as expressly defined

by the Code. (Art. 248)

2. Economic Strike: Under this type of strike, labors stop their work to enforce theireconomic demands such as wages and bonus. In these kinds of strikes, workers askfor increase in wages, allowances like traveling allowance, house rent allowance,dearness allowance, bonus and other facilities such as increase in privilege leave andcasual leave.

3. Sit down Strike: In this case, workers do not absent themselves from their place ofwork when they are on strike. They keep control over production facilities. But do notwork. Such a strike is also known as 'pen down' or 'tool down' strike. Workers show upto their place of employment, but they refuse to work. They also refuse to leave, whichmakes it very difficult for employer to defy the union and take the workers' places.

4. Slow Down Strike: Employees remain on their jobs under this type of strike. They donot stop work, but restrict the rate of output in an organized manner. They adopt go-slow tactics to put pressure on the employers.



KINDS OF STRIKES (PD 442)


5. Sympathetic Strike: When workers of one unit or industry go on strike in sympathywith workers of another unit or industry who are already on strike, it is called a

sympathetic strike. The members of other unions involve themselves in a strike tosupport or express their sympathy with the members of unions who are on strike inother undertakings. The workers of sugar industry may go on strike in sympathy withtheir fellow workers of the textile industry who may already be on strike.

6. Wild cat strikes: These strikes are conducted by workers or employees without theauthority and consent of unions.

7. Jurisdictional strike a strike that is called against an employer as a result of adispute with another union as to the right to perform particular work

8. Illegal Strike : Not recognized by law. Can be a cause for termanition



PICKETING


1. Inform employees in picketed firm about the strike, to persuadethem to join he strike, or prevent them from entering or going towork.

2. Inform job applicants about the existence of a dispute with theestablishment and refrain from accepting employment there.

3. Persuade the picketed employer to grant the demand of union.4. Inform the public about he existence of a labor dispute in order to

win their sympathy and persuade them to refrain from patronizingthe establishment or from transacting business with it while thestrike is on.




END OF PRESENTATION. . .

THANK YOU

248-hrm module 5 cba

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