philippine unionism

1 In partial completion of IR 207.2 LABOR STANDARDS, JUSTICE and EQUITY Dean Jonathan P. Sale, LlB, DPA Submitted by Alfredo V. Primicias III [email protected] 0925-5259824

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A Study on Unionism

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mailto:[email protected]


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TABLE OF CONTENTS TABLE OF CONTENTS .................................................................................................................................. 2

I. INTRODUCTION ................................................................................................................................... 3

EARLY WRITINGS ..................................................................................................................................... 4

II. REVIEW OF LITERATURE ...................................................................................................................... 5

Art. 3. DECLARATION OF BASIC POLICY .................................................................................................. 5

Art. 243. COVERAGE AND EMPLOYEES’ RIGHT TO SELF- ORGANIZATION .............................................. 5

TRADE UNIONISM IN THE PHILIPPINES ................................................................................................... 7

III. POLICY PROPOSAL ........................................................................................................................... 9

GLOBALIZATION- INTO PARADIGM SHIFT ............................................................................................. 10

BIBLIOGRAPHY .......................................................................................................................................... 11



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I. INTRODUCTION Bingay (2007, 65) illustrated that trade unions should not be like the extinct dinosaurs, he

admonished union leaders to listen to two sides: (1) the workers, and (2) the changing economic

environment.

This very idea that unions are no longer relevant has been resonated for several occasions.

Aganon, Serrano et al (2009, 1) stressed that the changing economic environment, which is

globalization, has reformed the landscape where unions have previously the dominion in

protecting the rights of the workers. More so that Sale (2002, 18) has defined globalization as

the unregulated flow of goods, capital, services and technology, and associated this as the fuel

that has made rules, regulations, systems and processes in labor relations both simple and

flexible.

Similarly, Dejillas (1994, 2) expounded on the significance of trade unions’ impact on economic

growth and political stability of a nation. He related that many developing countries have trade

unions that are bastions of power and are used by government leaders for political victory. As

how it was witnessed with Peron of Argentina, to gain independence he used his political power

over the labor unions. In Indonesia, trade unions took part in the revolution against the Dutch

from 1945 to 1949.

It is therefore disappointing to recognize that unions are turning to be weak and on the verge of

obsolescence. Below are tables that show how trade unions have performed in the Philippines:

Table 1: Number of registered unions, workers, association and members (Source: Bureau of Labor and Employment Statistics)

Indicators 2005 2006 2007 2008 2009 2010

Unions Registered 492 371 260 279 384 335

Membership 45,032 31,777 24,079 22,248 34,283 30,078

Ave. membership 92 89 86 80 89 90

Newly registered workers assoc.

1,924 1,603 1,649 2,345 3,689 2,821

Membership of newly reg. assoc.

74,168 68,301 58,076 89,368 159,216 116,708

Ave. membership per newly reg. assoc.

39 43 35 38 43 41

Table 2: Number of CBAs and covered workers (Source: Bureau of Labor and Employment Statistics)

Indicators 2005 2006 2007 2008 2009 2010

CBAs registered 459 536 318 307 453 540

Workers covered by new CBAs

89,925 60,790 44,375 55,290 74,924 87,445

Ave. # workers covered per new CBA

181 113 140 180 165 162



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As to explain the tables, Aganon (2007) contributed that working conditions by union members

were not successfully improved despite of the fact that unions have managed to sign collective

bargaining contracts with various employers. Aganon’s review of 214 CBAs covering 14

industry sub sectors showed deterioration in the working conditions of members in the

bargaining unit.

EARLY WRITINGS In 1754, through Jean Jacques Rousseau (Discourse on the Origin and Foundation of the

Inequality of Mankind), the parody of man’s quest for equality has already been manifested as

so he writes: “From the moment it appeared an advantage for one man to possess the quantity of

provisions requisite for two, all equality vanished; property started up; labor became necessary;

and boundless forests became smiling fields, which it was found necessary to water with human

sweat, and in which slavery and misery were seen to sprout out and grow with the fruits of the

earth.”

Another sentiment that evokes lucidity on how Labor, Law and the State should co-exist was

declared by Pope Leo XIII (1891): “The richer population has many ways of protecting

themselves…those who are badly off have no resources… and must chiefly rely upon the

assistance of the State. And it is for this reason that wage-earners… among the weak and

necessitous, should especially cared for and protected by the commonwealth…”

Finally, Azucena (2007) has described this condition as Two Masters especially when referring

to Chief Justice Fernan’s (1989) opus: “Equality of right exists between the employer and the

employee. The right of a laborer to sell his labor… is in its essence, the same as the right of an

employer to purchase labor… If the employer can compel the employee to work against the

latter’s will, this is servitude. If the employee can compel the employer to give him work against

the employer’s will, this is oppression.”

I sincerely believe that my course in SOLAIR has truly triggered an evolution on how I see,

think and feel about my role as a practitioner of human resources management. Whereas,

previously, I have just been motivated by personal gain especially on the prestige of a UP

diploma, but now I understand boldly and accept whole heartedly that my devoted task is to be

one of the stronger voices to address inequality and unfair labor practices in the company I work

for. And, my disdain for labor unions must come to an end.

Crouch (1982, 45) was instrumental in this enlightenment when he asked his readers whether it is

rational for workers to combine together in unions at all. He pointed out that it is purely a “legal

fiction” to even believe that there would exist an equal partnership between employer and

employee. Crouch even used the term “combination” in reference to the power of workers

bonding together and form labor unions. He called this as a rational strategy for workers because

it extended the chance of reducing, though never of overcoming, this inequality. If workers



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stand together instead of alone they can fulfill to improve working conditions. They would

alternatively develop an organization that will look after their interests which will then limit the

employer’s propensity to provide lesser than legal.

II. REVIEW OF LITERATURE The ultimate foundation of this paper is found on Articles 3 and 243 of the Labor Code:

Art. 3. DECLARATION OF BASIC POLICY1 The State shall afford protection to labor, promote full employment, ensure equal work

opportunities regardless of sex, race or creed, and regulate the relations between workers and

employers. The State shall assure the rights of workers to self- organization, collective

bargaining, security of tenure, and just and humane conditions of work.

Art. 243. COVERAGE AND EMPLOYEES’ RIGHT TO SELF- ORGANIZATION2 All persons employed in commercial, industrial and agricultural enterprises and in religious,

charitable, medical or educational institutions whether operating for profit or not, shall have the

right to self- organization and to form, join, or assist labor organizations of their own choosing

for purposes of collective bargaining. Ambulant, intermittent and itinerant workers, self-

employed people, rural workers and those without any definite employers may form labor

organizations for their mutual aid and protection.

Both articles have provided the legal ascendancy to make any worker free to self- organize, but

why is this so difficult to achieve?

Historically, as recounted by Binghay (2007) labor unions demonstrate its organized strength as

a response to the effects of industrialization. The balance of power is more to the advantage of

the capitalists or owners of businesses. At the end of the 18th

century up to the beginning of the

19th

century, countries in Western Europe and the United States have started to form trade unions

as a reaction to the change that capitalism has brought to the fields. The teachings of Karl Marx,

Friedrich Engels, John Dunlop, Sydney and Beatrice Webbs on trade unions, regardless how

diverse each school of thought is, have educated early union leaders on the economic, political

and social theories that formed part of how we know what industrial relations is today. Flippo

(1984) mentioned that trade unions are organized by workers to “promote, protect and improve

through collective action the social, economic and political interests of its members.” Moreover,

Hoxie (1986) agreed by stressing that labor unions must protect and pursue the economic

interests of its members. These economic interests are wages, hours of work, security of

employment among others. Other findings would relate that government leaders of many

emerging industrializing countries see unions and economic development as antithetical, as

1 Page 25, Azucena (2013). The Labor Code, Vol. 1, 8th Edition. Philippines: Rex Bookstore. 2 Ibid. Page 241.



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unions retard economic development by diverting resources from capital formation, interfering

with efficiency and disrupting production (Cartter and Marshall 1972, 24). Finally, as asserted

by Binghay (2007) the bottom line is that the interests of any trade union are confined to

economic and conditions at work.

We now move to identifying what trade unions are, Dejillas (1994) have enumerated five basic

forms:

1. Revolutionary movement guided by Marxist theories. This type of trade union behaves

according to the prevalent social structure. Main proponents are Karl Marx, Friedrich

Engels, Voltaire Lenin, Lozovsky, Hyman and Banks. Their main point is that the means

of production and the wage- earner are locked in irreconcilable struggle (Lozovsky

1935). The Communist Manifesto argued that because of this character of collisions

between 2 classes, the workers have no other recourse but to begin to form combinations

(trade unions) against the bourgeoisie. Because of this, trade unions oppose and

dismantle exploitative relations of production so that the workers can obtain contractual

conditions that will break the shackles of slavery. (Lozovsky 1935, 16).

2. Economic institutions with business or welfare outlook, according to Webbs (1897, 4)

this is the type of trade unionism laid by considering economic forces as the primary

concern. Unions focus their action on establishing some degree of order in employment

relationships, and on protecting the wage earners from the negative effects of industrial

competition. Central role of unions is to determine wage rates, wage structures and

unemployment levels.

3. Moral or ethical institutions as pursued by Christian social reformers. In the 19th

century

Europe’s trail on moral and ethical values (as interpreted by Christian social movements,

the Protestant socialists, and the Methodist social reformers) resulted to an aggressive

exposition of a paramount belief that there should be brotherhood of men whose moral

obligation is to show concern for the less fortunate, hence an adoptive behaviour of trade

unions (Perlman 1958, 46- 65). These groups encouraged the formation of producer-

cooperative movements and supported unions demanding more equitable distribution of

wealth. Webbs (1897) attributed the genesis of their rule- making theory to ethical and

moral goals of unions. While, Dunlop (1968) stressed the value of ethics and morals in

molding union behaviour. Finally, Flanders (1970) remarked that social justice became

part of the accepted norms and cultural values of unions.

4. Democratic and political organizations involved in democratic process and power

struggles. Poole (1981, 47) said that democratic and political trade unionism is attributed

to the British school of thought based upon a focus on job regulation, a commitment to

the voluntary reform of industrial relations and an association with the manifold varieties

of pluralism. Adams (1891- 92, 32- 50) wrote that unions were heavily influenced by

structural changes brought about by the emergence of capitalism; the primary aspiration



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of trade unionists was to establish a set of rights relevant to the new society and emerging

social relationships. Ross (1948, 12) argued that a trade union is a political institution

operating in an economic environment but the internal decision- making process could

only be understood in political terms. The political variables are union leadership, union

rivalry and the ability of employers to resist union action. Flanders (1970, 41) directed

the objectives and activities of unions to winning and safeguarding workers’ rights in the

work place, industry and society through industrial and political struggle.

5. Psychological or defensive reaction to early conditions of industrialism. Perlman (1949)

attributed the dominant factors of trade- union characteristics such as resistance power of

capitalism, role of the intellectuals and the degree of maturity of trade unions.

TRADE UNIONISM IN THE PHILIPPINES Dejillas (1994) narrated that the Philippines, like any other countries, was totally devastated

during the World War II. After the war, the government (President Manuel Roxas from 1946-

1948; President Elpidio Quirino from 1948- 1953) tried to restore the economy to at least prewar

levels by using the strategy called as import- substitution industrialization. From 1950- 1960

(President Ramon Magsaysay from 1953- 1957; Carlos Garcia from 1957- 1961) the Philippine

economy registered the highest per capita GDP growth rate among SEA nations (Oshima, 1983;

Wurfel, 1959). Unfortunately, the import- substitution industrialization strategy failed mainly

due to three reasons (Sicat, 1972; ILO, 1974; Amjad, 1981):

1. Inability to eliminate the country’s labor surplus since the policy was biased toward

capital- intensive undertakings;

2. Failure to expand industrial growth because the strategy relied on domestic market whose

income base was very low; and,

3. Failure to reduce the country’s dependence on imports since some industries were highly

dependent on imported raw materials.

And through all those years, trade unionism has always been the voice of the voiceless

particularly fighting for political, economic and social issues like foreign debt, US Bases,

insurgency, militarization, imperialism, feudalism and capitalism. Meanwhile, although some

unions still espouse traditional forms of collective bargaining, tripartism and arbitration, others

have become confrontational and combative in their protest actions and pressure tactics.

Trade unionism during the 1940s was governed by Commonwealth Act (CA) 1033 which

imposed the system of compulsory arbitration, and CA 2134 which required all labor unions to

register with the Department of Labor or be declared illegal. Then in 1953 the Magna Carta of

Labor through Republic Act 8755 emphasized the primacy of collective bargaining, grievance

3 http://www.chanrobles.com/Commonwealth%20Act%20No.%20103,%20October%2029,%201936.pdf 4 http://www.lgu.ph/listings/commonwealth-act-no-213-2/ 5 http://www.lawcenter.ph/law-library/laws/republic-acts/republic-act-no-875-june-17-1953-an-act-to-promote-industrial-peace-and-for-other-purposes/


http://www.chanrobles.com/Commonwealth%20Act%20No.%20103,%20October%2029,%201936.pdf

http://www.lgu.ph/listings/commonwealth-act-no-213-2/

http://www.lawcenter.ph/law-library/laws/republic-acts/republic-act-no-875-june-17-1953-an-act-to-promote-industrial-peace-and-for-other-purposes/

http://www.lawcenter.ph/law-library/laws/republic-acts/republic-act-no-875-june-17-1953-an-act-to-promote-industrial-peace-and-for-other-purposes/


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handling and voluntary arbitration in resolving labor- management disputes and promoting

workers’ interests. Proclamation 1081, which placed the country under martial law, allowed the

armed forces to detain individuals for insurrection and rebellion.

Significantly, on May 1, 1974 the Labor Code of the Philippines (Presidential Decree 4426)

required all labor federations to organize local unions only within a specific industry. The law

empowered the Labor Department not to issue registration certificates to new labor federations

found engaged in activities outside the industry they intended to represent (Art284). The law

specifically prohibited security guards (Art291) and managerial employees (Art292) from joining

and forming unions and banned unions from accepting individuals belonging to subversive

organizations or engaging in subversive activities (Art288-e). The exclusion of these workers

went against the spirit of the Constitutional provision that gave all workers the right to self-

organization.

6 http://www.cfo.gov.ph/pdf/PD%20No.%20442.pdf


http://www.cfo.gov.ph/pdf/PD%20No.%20442.pdf


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III. POLICY PROPOSAL Protection of a union member acquired from his membership happens after the successful

negotiation and signing of the collective bargaining agreement (CBA). Ballot (1992) described

CBA as a long, complex and emotional- rational process where the outcome depends on the

balance of power between the union and management and their bargaining stances. Furthermore,

Byars and Rue (1991) defined this as a process that involves negotiation, drafting, administration

and interpretation of an agreement between an employer and a union. There would be numerous

discussions, meetings, drafts and reports and other logistical and administrative tasks performed

in order to ensure that the written contract would not meet major disputes in interpretation during

implementation. In other words, Baldoz (1995) clearly put CBA as the centerpiece of industrial

relations thereby responsibility and accountability of its finer print is a continuous legal duty of

all stakeholders.

Figure 1 below illustrates a diagram of the Collective Bargaining Process7:

Kast and Rosenweig’s (1974) model on input- output where the entire CBA process is the entry

point through which the entire process starts is the framework to be used. Eventually, the results

would be the dynamic interaction of the different mechanisms that is essential to arrive at the

7 Page 3, Edralin, D. (1999). Collective Bargaining Process.

UNION SITUATION

Federated or not

Number of years in operation

Number of Members

Relationship with Management

COMPANY SITUATION

Financial situation

Type of Industry

Type of Owners

Relationship with union

ECONOMIC

SITUATION

POLITICAL

SITUATION

CONVERSION INPUT

CBA Process

OUTPUT CBA



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final product which is the signing of the CBA that embodies the economic, political and social

benefits negotiated.

GLOBALIZATION- INTO PARADIGM SHIFT Undeniably, business environment is totally different from what it used to be during the time of

our parents. Technology has ushered numerous mechanical innovations that no longer require

workers on the production floor. The world has never seen tremendous change as how the world

has become today. Unification is one of the concerns of the trade union movement in the

Philippines. Primary is the dwindling mass base for organized labor (Bitonio 2000) as shifts in

modes of employment become more apparent with globalization. Globalization comes flexibility

of labor relations, and legal issues arising from this trend have to be faced since there are

contradictions even in the classification of workers (Macaraya, 1999). The emergence of new

forms of labor organizations aside from trade unions such as the increasing role of NGOs and

cooperatives is also a trend to consider among these changes. Lastly, globalization has brought

about heavy pressure on local industries to become more competitive. Competition has disposed

enterprises to adopt greater flexibility—functional or numerical—in terms of labor utilization.

There are, on the functional side, broadening of job designs, mobility across tasks, enlarging the

scope of individual skills and extensive training and retraining programs (Binghay, 2001).

Numerical flexibility entails practices such as labor subcontracting, changing working hours and

hiring of casual, part- time, temporary and contract workers.



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BIBLIOGRAPHY

Aganon, M., Serrano, M., Certeza, R. (2009). Union Revitalization and Social Movement

Unionism in the Philippines (A Handbook). Philippines: Friedrich- Ebert Stiftung.

Anonuevo, C. (2005). Collective Bargaining in the Philippine Public Sector. Philippines:

Friedrich- Ebert Stiftung.

Binghay, V. (2007). Trade Unions Today. Philippines: VCB Research & Publications.

Ballot, M. (1996). Labor Management Relations in a Changing Environment. New York:

John Wiley & Sons, Inc.

Byars, L and Rue, L. (1994). Human Resource Management. (4th

ed.) Illinois: Irwin.

Crouch, C. (1982). Trade Unions: The Logic of Collective Action. Great Britain: William

Collins Sons & Co. Ltd., Glasgow.

Dejillas, L. (1994). Trade Union Behaviour in the Philippines 1946- 1990. Philippines:

Ateneo de Manila University Press.

Edralin, D. (1999). Collective Bargaining Process. Philippines: CHED Center of Development

in Business and Management Education

Estey, M. (1981). The Unions—Structure, Development and Management, 3rd Edition.

USA: The Wharton School, University of Pennsylvania.

Flippo, E. (1984). Personnel Management, 6th

Ed. New York: McGraw- Hill Book Co.

Hoxie, R. (1986). The Economic Programs of Trade Unions. WEJ McMarthy. Pp 35-46.

Kast, F. and Rosenweig, J. (1974). Organization and Management. (2nd

ed.) New York:

McGraw Hill Book company.

Lipset, S. Meltz, N. (2004). The Paradox of American Unionism. USA: Cornell University.

Herman, E., Kuhn A., Seeber, R. (1987). Collective Bargaining & Labor Relations, 2nd

Edition. New Jersey, USA: Prentice- Hall, Inc.

Torres- Yu, R. (2003). Welgang Bayan- Empowering Labor Unions Against Poverty and

Repression. Philippines: University of the Philippines Press.

Sale, J. (2012). Labor Market Governance in the Philippines: Wages, Unions, CBAs, Small

Enterprises, and Employment. Philippine Journal of Labor and Industrial Relations.



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Sibal, J. (2004). A Century of the Philippine Labor Movement. Australian Society for the

Study of Labour History

MERALCO’s True Source of Power

http://pmap.org.ph/content/pmap-awards/meralcos-true-source-of-power/

http://eatworkandblog.blogspot.com/2012/09/pmap-meralco-wins-employer-of-year-award.html

MERALCO Named Top Employer

http://www.philstar.com/business/2012/11/26/873659/meralco-named-top-employer

MERALCO Signs New CBA with Supervisory Employees

http://www.meralco.com.ph/pdf/newsandupdates/2013/NW00513.pdf


http://pmap.org.ph/content/pmap-awards/meralcos-true-source-of-power/

http://eatworkandblog.blogspot.com/2012/09/pmap-meralco-wins-employer-of-year-award.html

http://www.philstar.com/business/2012/11/26/873659/meralco-named-top-employer

http://www.meralco.com.ph/pdf/newsandupdates/2013/NW00513.pdf

philippine unionism

Economy & Finance

labor standards

equity dean jonathan

partial completion of

trade unionism

labor relations

political power

changing economic environment

economic growth