Maintaining Labor-

Management
Relations
Historical note

 From 1565 to 1898 the Philippines

was a Spanish colony. Following the
Spanish American War of 1898 the
Philippines became a colony of the
USA, which established democratic
institutions with limited powers under
an American governor with US
military forces establishing a major
base.
 In 1934 the US administration withdrew
and the Philippines became a free
‘Commonwealth’, self governing over
internal matters, but subject still to
American ‘protection’ and military
presence. Following the Japanese invasion
in 1941–42, the Philippines became a
republic under Japanese ‘protection’. After
the return of the Americans in 1944–45 and
the defeat of the Japanese, the USA
granted full independence to the
Philippines on 4 July 1946.
Historical Backgrounds of
Labor Movements
 In the last half century of Spanish
colonization, the beginning of the
labor movement was made possible
by the birth of guilds (gremios)
organized around specific work
environments and trades - from
carpenters and shipyard workers, to
workers in tobacco factories and
printing houses.
Continuation

 These constituted the settings for

new awakenings as a working class,
the formation of a new
consciousness, an exposure to new
ideas, and an attempt to experiment
at new types of organized activities.
These initial steps were given further
impetus in the new colonial system
set up under the United States.
Continuation
 The most important workers' organization
before the Japanese occupation was
established in 1913, the Congreso Obrero
de Filipinas, or the COF (Workers'
Congress of the Philippines), led by
Hermenegildo Cruz and Crisanto
Evangelista, took advantage of the
relatively more democratic space provided
by the US and by the 1935 Commonwealth
Government of President Manuel Quezon.
Status of Early Philippine
Labor
1901- Isabelo delos Reyes formed the “Union
de Litografos e Impressores de Filipinas”.
He is thus acknowledged as the “ Father of
Philippine Trade Unionism.”
1960’s- due to the oppression and excesses
of landowners, farm laborers were
burdened with debt and were compelled to
till the land of their masters.
Aug. 8,1963- “Agricultural Land Reform Code,
there was a slight improvement on the
living conditions of the tenants.
Laws affecting the relationship
between labor and employer:
 a. Act No. 1847-June 19, 1908,
Employers Liability Act. This law
provides for compensation of
employees who were injured or killed
while working.
 b. Act No. 2549- Declaring the
unlawful the act of employer,
compelling worker to purchase
merchandise from them and paying
their wages in the form of tokens
Continuation..

 c. Act No. 3071- March 16,

1923, regulating the
employment of women and
children in shops and factories.
 d. Act No. 4123- Aug. 26, 1935
establishing an eight hour work
day.
 In 1965, another concept of labor unity was
introduced with the formation of the Philippine Labor
Center (PLC) by Democrito Mendoza. This concept
of one federation- one industry was patterned after
the US system. The PLC started with 7 federations
in the transportation, mining, communications and
other industries. This concept, however, did not
gain much ground. Trade unions during the
collective bargaining era were characterized as
fragmented and dominated by the lawyers or
charismatic leaders. These factors contributed to a
generally weak trade union movement in general
and real gains for the working class were not
effectively achieved.
Philippine Labor Code

Philippine labor laws, known in the Philippines

as the Labor Code of the Philippines, were
created to protect workers from exploitation
and wrongful terminations. These labor
laws are also meant to encourage fair
hiring practices. Philippine labor laws seek
to create a fair working environment which
can then benefit both employers and
employees.
History

 The Labor Code of the Philippines

was established in 1974 on Labor
Day by then current president
Ferdinand Marcos. The Labor Code
of the Philippines was created during
a nine-year period of martial law as
declared by Marcos in response to
growing political unrest.
 Also known as Presidential
Decree 442, several articles of
the code have been amended
since it was instated; the first
several amendments were
created in 1980. It took effect six
months after its creation.
 The Code is composed of seven (7) books
containing three hundred and two (302) articles. It is
divided into two subject areas: Labor Standards
and Labor Relations. Labor Standards is that area
of Labor law that prescribes the minimum terms and
conditions of employment which the employer is
required to grant to its employees. Labor Relations,
on the other hand, regulates the relations between
employers and workers. The provisions
on Labor Standards are found in Books I, II, III, IV,
and VI, while provisions on Labor Relations are
found in Book V.
The Basic Rights of Workers

1. right to organize
2. to conduct collective bargaining or
negotiation with management
- a process whereby management and the
union discuss and decide terms and
conditions of employment which will govern
the conduct of their relationships within the
duration of agreement.
3. to engage in peaceful concerted activities,
including strike in accordance with law
4. to enjoy security of tenure
5. to work under humane
conditions
6. to receive a living wage
7. to participate in policy and
decision-making processes
affecting their rights and benefits
as may be provided by law.
 Security of Tenure
Every employee shall be assured
security of tenure. No employee can
be dismissed from work except for a
just or authorized cause, and only
after due process
Just Cause refers to any wrongdoing
committed by an employee including:
1. serious misconduct
2. willful disobedience of employers' lawful
orders connected with work
3. gross and habitual neglect of duty
4. fraud or willful breach of trust
5. commission of crime or offense against the
employer, employer's family member/s or
representative
6. other analogous cases
Authorized Cause refers to an economic
circumstance not due to the employee's
fault, including:
1. the introduction of labor-saving devices
2. redundancy
3. retrenchment to prevent losses
4. closure or cessation of business
Labor Dispute

Art. 212 : Any controversy or matter

concerning terms and conditions of
employment or the association or
representation of persons in
negotiating, fixing, maintaining,
changing or arranging terms and
conditions of employment.
UNION ORGANIZATION

 A union is organized primarily to

enable workers to bargain
collectively with the employer on
such issues as employment
conditions and status of its
members.
Union Objectives

 Economic objective. These

objectives are the means by
which workers can satisfy their
primary and secondary needs
through higher wages, shorter
hours of work and various
employee benefits..
 Political Objectives. The means by
which the union can promote its
power and prestige through(1)
lobbying activities designed to
secure the passage of favorable
legislation and opposing unfavorable
proposed laws. (2) support and
campaign for candidates for political
offices who are friendly to labor.
Registering Union

 When a union is organized, it

must be registered with the
nearest regional office of the
DOLE so that it can acquire
legal personality and be entitled
to the rights and privileges
granted by law to legitimate
labor organizations.
What are the requirements for
registration of a labor organization?
A. Registration Fee
B. Names of its officers, addresses, principal address
of the organization, minutes of meetings and list of
workers who participated in meetings.
C. Names of all its members comprising at least 20%
of all its EE”s in the bargaining unit.
D. Copies of annual financial reports if union has been
in existence for more than 1 year.
E. Copies of constitution and by-laws.
Federations of Unions

 A federations of unions is an
organization of affiliated local
unions duly registered with
DOLE as provided for in the
Labor Code..
Local Union

 Is one formed by employees in a

particular company, plant or
geographical area. It is affiliated
with a federation of unions and
registered with DOLE. .
A local chapter becomes a legitimate labor
organization only upon submission of:
A. Charter certificate within 30 days from its
issuance by the labor federation or national
union.
B. Constitution and by-laws, statement on set
of officers, and books of accounts which
are certified under oath by secretary or
treasurer, and attended to by its president
What are the additional
requirements for federations or
national unions?
 A. Proof of affiliation of at least 10 local
chapters.
Each of which must be a duly recognized
collective bargaining agent in the
establishment or industry in which it
operates.
 B. Names and addresses of the companies
where the locals or the chapters operate
and list of all the members in each
company involved.
Union Rationale

 When is a labor organization

wholesome?
A labor organization is
wholesome if it serves its
legitimate purpose of promoting
the interests of labor without
unnecessary labor disputes.