Group 4- Labor

Chapter 10 Labor Movements

Written Reports

Submitted by: Group IV- BS BE 3-3

Submitted to: Prof. Jasmin Jocson

Table of Contents

Topic

Labor Movements

What are Unions for

How Unions Seek to Raise Wages

Employer Policy in Labor Relations

Phases in Union- Management Relationship

Labor Gains

Bad Features of Philippine Labor

LABOR MOVEMENTS

Collective bargaining is no longer a new word to most of us. The word has become a common thing especially in institutions where labor unions exist. In most instances, the influence of union bargaining extends far beyond the employment of union members only. Even workers who are not members of union are granted similar adjustment in wages and better working conditions.

Corollary to the development of unionism, labor attained gradual respect and dignity. This was not always the case. In the early times, primitive people relegated work and labor to slaves captured in wars. In medieval Europe, idleness of the aristocrats was considered noble; city workers, peasants, and small traders were often regarded with contempt. However, when the guilds appeared, they gained respect for the professional and skilled crafts which their members represent. In the modern times, the dignity of labor for the masses, non-professional, and unskilled labor has been developed through the efforts of the labor movements.

When we talk of labor movement, we are referring here to a continuing association of workers for the purpose of improving the status and the welfare of workers. A movement is an organized effort to achieve a common goal. Thus, unionism or organized labor constitutes such a movement.

When does collective bargaining happen?

It happens when the employees of a company are all members of a union.

TERMS TO REMEMBER:

1. COLLECTIVE BARGAINING

Collective bargaining is the effort of both employees and the employer’s group to negotiate and ultimately agree upon the terms of employment.

2. UNIONS

Unions are long-term permanent associations of employees formed and maintained for the specific purpose of securing concession from employers.

3. COLLECTIVE AGREEMENTS

Collective agreements are the labor contracts or agreements negotiated in collective bargaining.

4. EMPLOYER’S ASSOCIATION

Employer’s association are organizations of employers formed for the purpose of dealing with unions most commonly for negotiating working relationships with employees.

5. THE BARGAINING UNIT

The bargaining unit is the particular groups of jobs covered by a collective agreement. It might include all jobs and employees of a certain corporation.

6. NEGOTIATIONS

It is the phase of collective bargaining in which the parties try to arrive at an agreement that will guide their relationship for a specified period of time.

7. BARGAINING AGENTS

These are the unions that represent employees in each bargaining unit.

8. CONTRACT ADMINISTRATION

It is the day-to-day application and interpretation of collected agreements.

Reported by: Alfon, Sharalyn

What are Unions for:

Unions: long- term or permanent associations of employees formed and maintained for the specific purpose of securing concession from employers. They are also responsible for the implementation of whatever agreements agreed upon by both employees and employers. -it is an organization of workers formed to protect the rights and interests of its members.

The workers' right to self- organization is deeply respected by the constitution. More specifically, Article 224 of the Labor Code specifies that all persons employed in commercial, industrial and agricultural enterprises, including religious, charitable, medical or educational institutions operating for profit, shall have the right to self- organization and to form, join, or assist labor organizations for purposes of collective bargaining. Ambulant, intermittent and intolerant workers, self- employed people may form labor organizations for the purpose of enhancing and defending their interests and for their mutual aid and protection. The right to organize is one of the few tenets that is accepted implicitly by all unionists everywhere. However, the union's right to exist is usually challenged by employers at the outset, and conflict over this issue may continue or some time until finally the union is accepted and becomes a permanent feature of the industry. *according to Art. 224 of the labor code all persons employed in any institutions operating for profit have the right to create labor organizations or labor unions for purposes of collective bargaining. And also to protect their rights as an employee and for the enhancement of their interests. Laborers created this so they will be able to voice out what they think are right and just for them. It is a law created to compensate the services they have rendered and their of good jobs and the number of people trying to get into these jobs exceeding the number of protection and concern about the stability of their life.

Secondly, union activities involve the control of job opportunities. With the shortage vacancies available, memberships in a union can mean getting and maintaining that job or being left out in the streets.

Theoretically, through an appraisal of workers' efficiency, the employer would select the best man for the job. Through this system, the employer can promote or demote, hire or discharge on the basis of the workers relative efficiency. However, for many workers, this implies great insecurity of job tenure, a threat that their jobs can be taken over by others whom employers might consider better for particular jobs. Most workers think that the length of service, age, membership, or non- membership in the union should also be considered. Faced with an assumed scarcity of jobs, and faced with insistent demand of workers for security of tenure, the distribution of available work is too vital to be left to the sole discretion of the employer. Thus, steps are taken by the union to control this.

*based on our status quo, there is increasing number of demand for job while the job vacancies are scarce or limited. Labor unions were created to maintain and maximize every job position as possible. But some laborers find it unfair because there is a chance of demotion. Labor unions’ role when it comes to control of job opportunities is to maintain the position and allocate their member/employee to the job that they are most efficient and productive. The main goal of the unions is to control, maintain and maximize every position or job. Thirdly, the union plays a very important role particularly with regard to improvement of wages, job tenure, hours of work, and other terms of employment. Output per capita has been rising through the years and thus, continuing improvement in wages and working conditions has been taken for granted. In addition, the impact of inflation has brought increasing pressures to bring adjustments to wages and other working conditions. *labor unions are created to protect employee's rights especially when it comes to their wages. Due to the continuous rise of inflation laborers tend to demand for additional wage. They make sure that they get the right amount or compensation they deserve depending to the service they rendered. Since output per capita has been increasing the laborers are pressuring their employers for adjustment to wages.

Reported by: Lanto, Danica & Mendoza, Yoree

How Unions Seek to Raise Wages

The following are the ways the unions use to seek wage raises:

1. Reduce the Supply of Labor- In general unions can restrict the supply of labor in two ways: slow down the

growth of the labor force and promoting policies that make it hard for workers to enter a certain field.

The following are examples of how unions reduce the supply of labor: Refusal to admit new members Admission of non-union members that already have jobs High initiation fee Long Apprenticeships

Below is the graphical illustration of the scenario:

*Shifting the supply of Labor to the left would decrease the equilibrium quantity and increase equilibrium wages.

2. Shifting of the Demand Curve- Unions strive to increase wages by making any policy that expands the

demand for labor. To increase the demand for labor, unions: Increase the demand for products manufactured by the members (e.g.

discouraging imports). Restrict the entry of one class of worker in favor of another (e. g. was

seeking tariff protection, thereby increasing the demand for domestic workers.)

Increase the price of products manufactured by the workers (e.g. help maintain high monopoly prices with some of the profits going into their wages.)

The graph of the setup is shown below:

*By shifting the demand curve to the right, equilibrium quantity and wage increases.

3. Raising Standard Wage rates- Lastly, unions seek higher wages by raising the standard wage rates, therefor

having a benchmark were wages can only be equal or above minimum wage level.

Reported by: Roxas, Judy Anne

EMPLOYER POLICY IN LABOR RELATIONS

Employers' reaction to collective bargaining express a variety of attitudes that are largely shaped by the employer's theories of management and his image of the manager's part ior role in business. The most common policies as outlined by H.G. Heneman are as follows:

1. Protection of profits - Many employers see their primary function as that of trying to make the business as profitable as possible. They may feel that their own security depends largely in their continued success as measured by profits. They oppose unions if they conclude that unions threaten profits by demanding too much for employees. On the other hand, in some situations employers welcome an industry-wide union that standardizes wage rates, forcing competitors to pay uniform wages and thus protecting their competitive position.

2. Protection of management rights and prerogatives - The manager may regard himself as the guardian and trustee of employer rights to manage. Employers frequently emphasize their responsibilty as decision-makers and express concern if unions interfere in this function.

They may see a union's demand to share in the determination of workingconditions as an invasion of the area of rights and privileges associated with the ownership and property, of which they are the protector and defender

Reported by: Bautista, Faye Nikka

3. Retaining employee Loyalty

 Employee Loyalty is the extent to which the personnel are faithful to the organization, having feelings of bonding, inclusion, care, responsibility and devotion towards it. It can also be described as the extent to which there there is a general willingness among employees to make an investment or personal sacrifice for the good of the organization.

Ways to Increasing Employee Loyalty

"Improving employee engagement directly impacts measurable business outcomes such as revenues and profits," said Kyle LaMalfa, Allegiance best practices and loyalty expert. "Employees who are committed to success, emotionally attached, and socially involved with a company are more productive at work, take less sick days and are less likely to leave. In short, engaged employees are the best employees."

First, Measure Employee Engagement – Start measuring employees' passion about work and the work environment by issuing a survey with a few questions about job satisfaction. Surveys using a scale of agreement (a Likert Scale) provide a quantitative measurement that can be combined with open-ended comments to identify opportunities to make employees happy.

Identify What Employees Like – By gathering compliments in addition to concerns, your company can find out if its engagement efforts make a meaningful, lasting contribution to employees.

Help Employees See the Big Picture – Employees want to feel that they are contributing and making a difference. Help your employees to see the big picture and how they contribute to a functioning whole. This will also empower employees to make decisions.

Use Training to Increase Confidence – Managers who cut training budgets to save costs do not understand how service delivery and morale can suffer as a result. Employees need training to do their job confidently and to facilitate career advancement within the company.

Establish Mentoring Programs – Train and encourage seasoned employees to be mentors. A mentoring program can facilitate dynamic skill growth through an organization and foster a sense of community.

Promote Team Building – Encourage team building activities among employee groups to create trust and acceptance. Strong, loyal teams provide one level of acceptance, and teamwork between departments provides another.

Build a Supportive Environment – Often, dissatisfaction with wages and benefits masks problems that relate back to acceptance by a team or manager. Employees may need help with coping skills, problem-solving skills, tactics for handling difficult situations, or expressing their personal feelings.

Don't Be Afraid to Tell the Truth – Respect your employees through degrees of transparency. Communicate how your business is really doing on a quarterly or semi-annual basis. Give your employees information to understand shifts in corporate policy due to the economic or competitive environment.

Retrain or Get Rid of Bad Managers – One bad manager can pollute multiple layers of an organization. Poor managers bring down employee morale, which spills over into the engagement level of customers.

Recognize Employee Contributions – Recognition from a supervisor of at least two ranks above an employee makes a meaningful, engaging difference in employee morale.

Use Technology to Manage Employee Engagement – Technology is available to help you go beyond a single annual survey or an email link on the company Intranet. Enterprise Feedback Management systems can be used to centralize surveys and employee feedback and track both qualitative and quantitative information. Third-party systems provide for employee anonymity, which encourages open and honest employee feedback.

4. COOPERATION FOR MUTUAL ADVANTAGE

Cooperation - An act or instance of working or acting together for a common purposeor benefit; joint action. More or less active assistance from a person, organization, etc.:

Willingness to cooperate or and indicate cooperation. In Economics the combination of persons for purposes of production,purchase, or distribution for their joint benefit of the producers' cooperation; consumers' cooperation.

Cooperation with Mutual Advantage

Employees have welcomed unions and the help of union officials in management.

Many managers assure that unions offers a mean of satisfying needs not rapidly attainable in any other way

The most common attitude is one that accepts unions, negotiates agreements, and maintains effective working relationship with unions but fears their further inroads into what the employers regard as area reserve for and essential to managerial decision making.

Reported by: Salangsang, Christine Joy

Phases in Union- Management Relationship

There are several phases in union development. But it is difficult to maintain the relationship between the unions and management over a long period of time.

Phase 1. Resistance to unions. The managers are looking for the ability of not being affected by the unions. The employers are not recognizing unions and the leaders. They have several techniques to stop or prevent the formation of unions in their firms. The employers may refuse to hire union members and discharge any union members in their firm. The employee have to sign papers stating not to join any unions otherwise they would be dismiss.

Phase 2. The employer realizes that they cannot eliminate unions. For the economic prosperity, government pressure, a vigilant labor union association unions are cannot be eliminate. So the employers realizes that they should live with the labor unions and lessen its influence even they don't like to.

Phase 3. Collaboration or Acceptance. Since the unions are recognized, the employers have to accept the unions and collaborate with them. They are having collective the process of negotiation between employers and a group of employees aimed at reaching agreements to regulate working conditions. The interests of the employees are commonly presented by representatives of a trade union to which the employees belong. The collective agreements reached by these negotiations usually set out wage scales, working hours, training, health and safety, overtime, grievance mechanisms, and rights to participate in workplace or company affairs. The employers may be critical of certain but they have to collaborate with the unions and its leaders.

Phase 4. Union- management cooperation. At this period the employer and the employees which are members of the unions are having a friendly relationship with one another. And this is an advantage for the both sides. If they are having a good relationship, they can work as one for the better production and services. These give a welfare for the employers and for the union members.

Reported by: Gabriel, Erica May

THE GROWTH OF LABOR UNIONS

Teodoro Agoncillo (filipino nationalist)

- As he observed and recorded, the growth of labor unions in the Philippines is essentially an upshot of the American occupation.

- Labor union were unknown during the Spanish period, for aside from limited industrial and commercial opportunities.

- The colonial government did not encourage any movement that would tend to undermine the spanish view of peace and order.

February 02, 1902

- However, mainly owing to the American influence and to the free access of the filipinos to books and periodicals.

Led by: Isabelo Delos ReyesDominador GomezAurelio TolentinoHermenegildo CruzLope K. SantosAnd others

They founded the first labor union in the Philippines, the “Union Obrera Democratica de Filipinas” (Democratic Labor Union of the Philippines). With “La Redencion de Obrero” as its official organ.The union voiced social demands and nationalistic feeling of the worker, for the labor unions of the period were the projection of the nationalistic era of the revolution.

Writers, who found in literature an ideal medium for communicating their nationalistic and socialistic tendencies, wrote essay, poems, and novels depicting the social conditions, the aspiration of the masses, and what they believed to be the ideal state.

“Banaag at Sikat (Lope K. Santos)

- Most influential works, the book influnced the workers in fighting for economic, social, and political reforms. As a result, more and more labor unions sprouted.

May 01,1913

Presented a united front when they held the first labor congress on the occasion of the celebration of the first labor day in the Philippines.

1920’s

Communist and socialist influence speeded through some labor unions, particularly those of Manila and Central Luzon. Confronted with new and radical techniques, the conservative leaders like Antonio D. Paguia and Ruperto S. Cristobal opposed the communist-inspired tactics of Crisanto Evangelista, Jacinto Manahan, Antonio D. Ora, Arturo Soriano,and others, and seceded from the Collective Labor Movement. They founded their own, the National Federation of Labor and the Confederated Workers’ alliance.

1939

Secretary of Labor, Jose Avelino formed the national on labor, both the communist and conservative faction continued up to the outbreak of the war, when all labor unions were declared illegal by the Japanese conquerors.

After the WAR

The labor movement became dynamic, particularly because of the war experiences of the masses and of the influence of the American soldiers who were members of powerful labor unions in the United States.

The most popular and powerful was the Committee ( later changed to Congress) of Labor Organizations (CLO), founded and dominated by progressive labor leaders. Laborers in all sectors of the economy were organized and strikes were used frequently to boost wages.

At first headed by Cipriano Cid, a lawyer and former staff member of the “Manila Daily Bulletin”, the union became aggressive under the leadership of Amado V. Hernandez, former councilor of Manila, former editor of the daily “MABUHAY”, and an eminent writer and poet in Tagalog.

With the labor front in turmoil owing to the uncompromising stand of the CLO and with Central Luzon up in arms against the government, Quirino’s administration, taking advantage of the suspension of the writ of habeas corpus, bore down on militant labor union, particularly the CLO, and “invited” its leader to Camp Murphy for investigation.

Hernandez was detained for six months before charge were preferred against him. He was charged with the crime of “rebellion” complexed with murder and arson, and sentenced to life imprisonment. Upon appeal to the supreme court, Hernandez was acquitted.

Philippine labor unions seem formidable in terms of numbers and bargaining strength. Up to the end of 1966, there were no less than 2,000 unions scattered all over the country with a strength of some 750,000 members distributed in all industries.

Reported by: Saria, Don

Labor Gains

It is the gains in the labor from creating the Bureau of Labor (Fepartment of Labor and Employment) and the reactment of legislations in providing the prosecition of userers, theprotection of domestic help, the payment of compensation to workers injured in line of duty and the protection of women and children working in factories.

There were a lot of legislation in safeguarding the rights of labor, but the most

significant in these legislations is the Republic Act No. 875, popularly known as the Magna Carta of Labor.

Magna Carta Labor

o This law encourages laborers freely to form unions and recognizes the rights of

labor to bargain collectively and to declare strikes.

o Under the Magna Carta of Labor, a union could be guilty of unfair labor practices

if it intimidates or prevents laborers from joining collectively uunions of their own choice.

o There are still other legislation in labor, these are the Social Security Act of 1954,

The Minimum Wage Law and The Anti-Scab Law.

The Social Security Act of1954

Under this Act, a social security fund is set up to be administered by the Social Security Commission. The fund consists of contributions from employers and laborers.

2.5% of the salaries is to be contributed by the laborers and 3.5% by the employers.

From these funds taken and collected, it made to be an allowance for the sick and the unemployed members of the Social Security System and the retirement and disability accruing to the laborers.

The Minimum Wage Law

Sets the floor on minumum wage.

The Anti-Scab Law

This law was passed in 1963.

It aims to protect the workers right to strike and to picket. the prosecution of usurers, the protection of domestic help, the payment of compensation to workers injured in line of duty and the protection of women and children working in factories.

There were a lot of legislation in safeguarding the rights of labor, but the most significant in these legislations is the Republic Act No. 875, popularly known as the Magna Carta of Labor.

Magna Carta Labor

This law encourages laborers freely to form unions and recognizes the rights of labor to bargain collectively and to declare strikes.

Under the Magna Carta of Labor, a union could be guilty of unfair labor practices if it intimidates or prevents laborers from joining collectively uunions of their own choice.

There are still other legislation in labor, these are the Social Security Act of 1954, The Minimum Wage Law and The Anti-Scab Law.

The Social Security Act of1954

Under this Act, a social security fund is set up to be administered by the Social Security Commission. The fund consists of contributions from employers and laborers.

2.5% of the salaries is to be contributed by the laborers and 3.5% by the employers.

From these funds taken and collected, it made to be an allowance for the sick and the unemployed members of the Social Security System and the retirement and disability accruing to the laborers.

The Minimum Wage Law

Sets the floor on minumum wage.

The Anti-Scab Law

This law was passed in 1963.

It aims to protect the workers right to strike and to picket.

The Termination Day Law and The Blue Sunday Law. These two legislations are considered to be important in labor gains.

The Termination Day Law

This law provides that neither employer nor employee, in case there is no contract regarding the definite period of employment in agricultural, industrial or commercial establishments shall terminate the service without due notice of at least 30 days prior to its termination.

The Blue Sunday Law

This law gives a semblance of leisure to the laborers, for it prohibits work on Sundays, Holy Thursday, Good Friday, Christmas Day and New Year's Day.

Reported by: PITEL, ARIANNE JOY*

Bad Features of Philippine Labor

On paper, it would seem that labor is united, therefore, strong. Actually, however, labor is divided against itself owing mainly to:

1. Differences in Principles2. Personal ambitions of some leaders

Mergers of unions have failed in the past because of the insistence of some labor leaders on certain degree of autonomy from the parent organization, a demand that was not taken seriously by those in power. On the other hand, labor leaders seldom agree personally and in principles, with one another. They have their own principles to stand up for. That’s the reason why they build up ‘rivalries’ instead of unity.

Some in the government thought of ways to prevent these ‘rivalries’. They made a mother organization called Kalipunan ng Manggagawang Pilipino or KMP. But there are other unions who pulled-back from that organization because of their different principles so up until now our labor is still divided.

Some unions have leaders who are doing wrong. They are called misleaders. These misleaders use their members for their own benefit, for their personal ambitions.

For example, the union leader would gather all of his members for a meeting. The leader would then persuade his/her members that the management is functioning wrong so they should held a strike. For instance, the leader would persuade his/her members that their wages are low so they would hold a strike for the purpose of higher wages. As days go by, the leader would negotiate with the management. The management, being afraid that their employees would be gone, will present the union leader a ‘gift’, cash specifically. Of course, the union leader would accept the ‘gift’ then he would persuade his/her members to end the strike for they would lose their jobs and the members, being naïve, would believe the union leader and end the strike.

Reported by: Tolentino, Mary Claudine

3. Existence of Dishonest Labor Leaders4. Workers Lack of Civic Sense

There is an existing practice wherein labor leaders mislead his members about the supposed wages given to them. The labor leader hires the workers at four pesos per day. But in reality management gives them six – or seven pesos per day. If he hires 100 laborers in the payroll, he earns a cool Php 200 per day at two pesos per laborer while

Php 300 per day at three pesos per laborer. No wonder that some labor leaders with relatively small salaries as heads of their labor unions live like princes.

Another bad feature of Philippine labor is the workers lack of civic sense. Having been brought up under the tradition of close family relations, the laborer thinks only of his family and forgets the larger issue of the class where he belongs. A striking union fails because scabs act as strike-breakers and they do not do so because they think in terms of their families and not of the working class. He thinks of the here and now, of the present predicament of his family and not of its future, and ignores the fact that in acting, thus, he helps in actively perpetuating his unenviable condition. Also because of the close personal relations that characterize the workers as Filipinos, he does not, in general, vote for his class’ candidate for elective positions. In 1959, a trade union leader ran for Manila vice mayor in the elections of the said year and lost to a novice. It showed the Filipino workers’ misplaced individualism and sense of personal loyalty. He votes for any candidate, no matter how reactionary, who has patted him on the back and who has given a few pesos. The candidate for his own class, is therefore ignored and suffers an ignoble defeat.

Reported by: De Luna, Carl Angel