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Case Assignments: 1. 2. 3. 4. 5. University of Pangasinan vs. NLRC, 218 SCRA 85 UST Faculty Union vs.

Bitonio, 318 SCRA 185 Victoriano vs. Elizalde Rope Workers, 59 SCRA 54 NATU-Republic Planters vs. Torres 239 SCRA 546 San Miguel Corporation Supervisors and Exempt Employees Union vs. Laguesma, 277 SCRA 370 6. Pepsi-Cola Products Philippines Inc. vs. Secretary of Labor, 312 SCRA 104 7. Philips Industrial Development Inc. vs. NLRC, 210 SCRA 339 8. Alhambra Cigar and Cigarette Manufacturing Company et. al. vs. Alhambra Employees Association (PAFLU) 107 Phil. 23 9. Association of Court Appeals Employees vs. Ferrer-Calleja . 203 SCRA 596 10.Davao City Water District vs. Civil Service Commission, 201 SCRA 593 11. Executive Order 180

Existence of Employer-Employee Relationship is essential for the determination of whether or not one may exercise right of self-organization for purposes of collective bargaining. -It is a condition sine qua non for a bargaining unit that it be composed of employees, failing which affects the legality of the union itself and means the ineligibility of union members to present a petition for certification election, so as to vote therein. (La Suerte Cigar and Cigarette Factory vs. Director of Bureau of Labor Relations, 123 SCRA 679) Who may unionize for purposes of collective bargaining negotiations? General Rule: Any employee may be eligible to join and be a member of a labor union, beginning on his first day of service whether employed for a definite period or not. Exceptions: 1. Managerial employees (Art. 245 of the Labor Code) one who is vested with the power orprerogative to lay down an execute managementpolicies and/or to hire, transfer, suspend, lay-off,recall, discharge, assign or discipline employees. Note that the management policies must pertain exclusively to labor relations. Supervisor one, who, in the interest of the employer, effectively recommends managerial actions. Power to recommend must be both: a. Effective, and b. Requires the Use of Independent Judgment

2. Confidential employees are those who assist or act in a confidential capacity to those persons who formulate, determine, and effectuate management policies in the field of labor relations. 3. Government Employees including Government-owned and controlled corporations with original charters 4. Employees who are members of a cooperative 5. Employees of International Organizations or Specialized Agencies which are registered with the United Nations and which enjoy diplomatic immunity 6. Aliens without valid working permits or aliens with valid working permits but are nationals of a country which do not grant Filipinos to exercise the right to self-organization and to join or assist labor organizations Appropriate Bargaining Unit Fundamental factors in determining the appropriate collective bargaining unit are: 1. The will of the employees (Globe Doctrine) 2. The affinity and unity of the employees interest such as substantial similarity of work and duties or similarity of compensation and working conditions (Substantial Mutual Interest Rule) 3. Prior collective bargaining history and 4. Similarity of employment status

Collective Bargaining Process and Its Outcome

Good labor relations.... Cannot be brought about by legislation.... I believe that enlightened management working together, can accomplish far more by peaceful bargaining than is possible though legislation. (Harry Truman) Unions are formed by the workers to promote, protect, and improve, through collective action, the social, economic, and political interests of its members. The Constitution and By-laws of one of the most active national trade unions in the Philippines, which is called the National Union of Workers in the Hotel, Restaurant and Allied Industries, stipulates that its four main objectives are to: (1) unite and organize all workers into one union; (2) promote job security and defend workers rights to selforganization, collective bargaining, and concerted action; (3) secure better terms and conditions of work; and (4) promote and advance the interests and general welfare of workers. These objectives are very similar to those cited in the economic, political and social theories on the formation of unions. Even the Philippine Labor Code (1998) defines a labor organization as any union or association of employees which exists in whole or in part for the purpose of collective bargaining or of dealing with employers concerning terms and conditions of employment. Collective bargaining is a long, complex, and emotionalrational process, the outcome of which depends on the balance of

power between the union and management and their bargaining stances. It is defined as a process that involves the negotiation, drafting, administration, and interpretation of a written agreement between an employer and a union for a specific period of time. This process therefore involves proposals and counterproposals, demands and counter-demands wherein each party tries to obtain for itself the best or most favorable terms and conditions. It also involves constant communication between the union and the management during the effectivity of the written contract in order to avoid disputes in the interpretation and implementation of its provisions. By the same token, is explained that collective bargaining, which is basically a wage-setting and dispute settlement system, is the centerpiece of the industrial relations in the Philippines. It is a procedure whose end result is the making of collective agreements between employer and accredited representatives of employees concerning political and economic issues of employment. It requires both parties to deal with each other with open and fair minds, and to sincerely endeavor to overcome obstacles existing between them to the end that industrial relations may be successful, peaceful, and beneficial to both parties. However, collective bargaining does not end with the execution of an agreement. It is a continuous process and involves a continuing legal duty. As indicated, the end result of the collective bargaining process is a contract which is called the Collective Bargaining Agreement or simply CBA. The CBA stipulates the joint understanding of the union and management concerning wages, hours of work, and all other terms and conditions of employment within the bargaining unit, including mandatory provisions for grievance and arbitration machinery.

Collective Bargaining Process

Principles Used: The collective bargaining process in the surveyed unionized establishments was based on four (4) principles which were not forms of begging that appealed to the goodwill of the employer. These principles were: (1) Recognition of opposing interests between labor and management -The managements interest is to get the most from the workers, at the lowest possible cost, in order to maximize profit. This means offering low wages and poor working conditions. In contrast to the employers aim to reduce production cost to a minimum level, workers are interested in getting the best possible conditions for their work: good wages, safe and healthful workplace, an acceptable length of the working day, and other fringe benefits which would allow them to live decently (2) Settlement of the clash of interest by means of a compromise between the workers demands and employers offerA compromise requires good faith and a flexiblegive and take attitude on both sides. Both parties present their demands not as rigidly as a choice between all-or nothing, but with the willingness to concede, if necessary. (3) Non-violence - The use of strike/ lockout and other forms of threat or harassment to get ones demands or offers accepted in the initial stages of the negotiations is not deemed to be advantageous to both parties. Such restraint prevented an early deadlock, and allowed the parties to exhaustively tackle all issues involved. Peaceful alternative means are utilized by both parties to arrive at an agreement.

(4) Bargaining autonomy- The shaping of working conditions through the conclusion of collective bargaining agreements is solely the responsibility of unions and employers. Government only gets into the picture in cases of deadlock, usually involving economic issues, particularly on wage. Aside from these four principles, it also added the following basic tenets of the collective bargaining process, to which the 90 unionized firms adhered : 1. Negotiation of relevant issues in good faith by both management and the union. 2. Incorporation of the parties agreements into a written contract, which is the CBA. 3. Administration of the daily working relationships according to the terms and conditions of employment specified in the contract. 4. Resolution of disputes in the interpretation of the terms of the contract through established procedures, like the grievance machinery

Stages: The collective bargaining process of the sample companies involves three major stages. These are: (1)Pre-negotiation -This involved the unions collection and analysis of data which enabled it to outline its demands, come up with bases/justifications for the demands, prioritize the demands,

and write the CBA proposal and present such proposal within 60 days prior to the expiration of the existing contract. Both parties, particularly the union, found the need to conduct extensive research related to the needs of workers, the economy, the financial condition of the company, and other relevant data to prepare and justify its proposals. On the other hand, management reviewed thoroughly the unions demands to be able to give its counter proposals, particularly on those that have major financial implications and those impinging on management prerogatives.

(2)Actual Negotiation -This included stating the initial offer; further research to justify demands and counter-offers; deadlock on issues; and final agreement. This stage also necessitated the use of strategies the contract and tactics by the respective panels designed to improve their chances of securing provisions in more beneficial to their respective sides. (3)Implementation of CBA -This was after both parties had signed the contract, and the union members had ratified the same. Thus, the CBA had taken effect. At this stage the union and management found it necessary to have the same interpretation of the provisions of the CBA to avoid disputes. The effectivity of the contracts covered a variety of time periods, between one year and five years, the most common is three years.

The actual CBA political and economic provisions are focused primarily on wages, benefits, and other terms and

conditions of employment in the bargaining unit, including mandatory provisions for grievance. The number of economic issues negotiated by the union are significantly different according to the type of industry. The unions in the non-manufacturing sector were able to get more than the manufacturing industry. On the other hand, number of political issues bargained by the federated unions are significantly different from the independent unions. They are able to get more than the unions which are independent. These provision are related to union leave, union security, and union assistance. Lastly, both management and union have the same perception on the factors that will contribute to the success of the collective bargaining process. The foremost of which is trust between parties.

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