Labor-Management Relations: Rights, Responsibilities and Remedies

OutlineEe-Er Relations: Nature and TestFramework of Relationship: Goals and rightsEmployees types and tenureManagement rightsEmployees statutory rightsEmployees collective rightsDue process in employee discipline/terminationRemedies: Administration of Labor JusticeSocial Dialogue

Ee-Er RelationsNatureVoluntary, employer and employee without force or compulsion agree:that employee shall, in exchange for wages, render work or services to the employer.that employer shall, in exchange for services/work rendered, pay the employee his/her wages in accordance with law.Agreement in writing or oral, expressed or implied.

selection and engagement of the employee payment of wagespower of dismissalthe power to control the employees conduct

Test determining Ee-Er relations

1.3Types of Employees

PrerogativesFrom the Notes of USEC Josephus B. JimenezEMPLOYER-EMPLOYEE RELATIONS: Framework of Rights and Obligations

The employee has Individualand Collective RightsThe Employer has ManagementPrerogativesBased on The ConstitutionLabor CodeContract of EmploymentBalancing these Rights is the Big Challenge

Management Prerogatives

Scope of Mgt. PrerogativesTwo aspects:

Operational Aspect which means the freedom of the employer to direct the operations of its business as it sees fit.

2.Personnel Aspect which means the freedom to prescribe policies and rules regarding personnel actions.

Department of Labor & Employment The exercise of management prerogatives must be: 1. Not contrary to law, public policy, public morals 2. Limited as provided in the employment contract, CBA, employment policy/practice 3. Limited as to the general principles of fair play and justice (exercised humanely, in good faith; and if a penalty, it must be just and commensurate with the offense committed by the employee)Limitations of Management Prerogatives

Managements Obligations/Responsibilities

Department of Labor & Employment Managements Obligations/Responsibilities 1.The policies should not be contrary to law, public order and public policies and are not enforced with grave abuse of discretion. 2.Pay workers according to the minimum wage law or contract. In case of contract, it should not be below the minimum set by law.3.Observe labor standards laws & social legislations.4. Provide workers with just and humane (safe and healthful) conditions of work.

Department of Labor & Employment Managements Obligations/Responsibilities 5.Inform workers of the company personnel policies and disciplinary measures then enforce in case of violation provided due process is accorded. 6.Re-assignment or transfer should not result in diminution of benefits, loss of seniority rights or unfair labor practice or should not constitute union busting. 7.Termination on authorized or just causes only after complying with notice/procedural due process. 8. Establish a productivity incentive program.

Rights & Obligations of Employees

Employees statutory rightsNORMAL HOURS WORKMEAL & REST PERIODSOVERTIME PAYNIGHT SHIFT DIFFERENTIALMINIMUM WAGE (RAs 6727, 8188, 9178)HOLIDAY PAY (12 DAYS)WEEKLY REST PERIODSSERVICE INCENTIVE LEAVE13TH MONTH PAYSocial Welfare BenefitsSocial Security (SSS), plus E.C.Medicare (PhilHealth)Pag-IBIG (HDMF)

MATERNITY & PATERNITY LEAVESSTANDARDS ON EMPLOYMENT OF WOMEN & MINORS RA 7877 Anti Sexual HarassmentRA 9262 VAWC (10 days leave)RA 9231 Child LaborRA 9710 Magna Carta of Women (2mos. leave for gynecological surgery)RA 10151 Allowing night workLactation Station/Break (RA 10028)SERVICE CHARGESRA 8972 (7 days solo parent leave)RETIREMENT PAY

Employees statutory rightsHEALTHY AND SAFE WORKPLACEADEQUATE AILES/PASSAGEWAYSGOOD HOUSEKEEPINGEMERGENCY EXITSMATERIALS STORAGE AND HANDLINGADEQUATE LIGHTINGNOISE POLLUTION CONTROLRADIATION EXPOSURE CONTROL

PROPER VENTILLATIONAIRBORNE CONTAMINANT CONTROLPPEFIRE PROTECTING EQUIPMENT/FACILITYMACHINE GUARDINGPROPER OFFICE SPACINGEMERGENCY MEDICINESHEALTH PERSONNELMEDICAL FACILITIES (200 & ABOVE)

Department of Labor & Employment Employees Collective Rights Self-organization (association or union)Collective bargaining/negotiationEngage in peaceful concerted activities in accordance with lawParticipate in policy and decision-making processes affecting rights and benefits as may be provided by lawRight to

Department of Labor & Employment Employees Collective RightsFree access to the Courts and quasi-judicial bodies and speedy disposition of their casesLabor education thru seminars, dialogues and information, education and communication materialsRight to

Department of Labor & Employment Employees Obligations/ Responsibilities1.To work in exchange of compensation under managerial control2.Follow company rules and policies.3. Observe proper care in the use of facilities, avoid wastages and contribute to productivity (e.g., waste of time, ideas, materials and supplies, machinery and equipment, manpower, waste due to accidents, waste due to non-cooperation and defective workmanship causing breakage or spoilage).

Department of Labor & Employment Employees Obligations/ Responsibilities 4.For union members & officers, follow the provisions of CBL and the Law (Art. 241 and 242, Labor Code) 5. For unions, duty to negotiate in good faith (Art. 250 to 253-A). 6.To follow the procedure provided for by law on strikes and lockouts and submit to the intervention of DOLE if necessary. 7.To observe good faith and recommend reasonable and sensible solutions to issues submitted before the Labor-Management Committee.

Security of Tenure,Termination &Procedural Due Process

Department of Labor & Employment 1.Security of Tenure

Department of Labor & Employment Aspects of due process2.Termination of Employment

Department of Labor & Employment

SUBSTANTIVE = Cause/Grounds

PROCEDURAL = Process/ Opportunity to be heard

2. Termination of Employment

Department of Labor & Employment 2. Termination of EmploymentSources of Grounds for Termination Law (Arts.282-284, LCP) Contract (CBA, Employment Contract) Company Rules & Regulations

Department of Labor & Employment JUST CAUSE vs. AUTHORIZED CAUSE

JUST CAUSE refers to a wrongdoing committed by the employer or employee on the basis of which the aggrieved party may terminate the employer-employee relationship.

AUTHORIZED CAUSE refers to a cause brought about by changing economic or business conditions of the employer.2.Termination of Employment

Department of Labor & Employment Just Causes of TerminationSerious Misconduct

Gross and Habitual Neglect of Duty

Fraud or Willful Breach of Trust; Loss of Confidence

Commission of a Crime or Offense by Employee

Other Analogous Cases

2.Termination of Employment

Department of Labor & Employment Decision and Penalty3.Procedural Due Process

Department of Labor & Employment Effects of Termination: Legal

JUST CAUSEWith due process Without due process With just causeDismissal legal Dismissal legal, but employee entitled toNOMINAL DAMAGES (tempered)(Agabon v. NLRC) Without just cause Dismissal illegal, employee entitled to:1. Separation pay in lieu of reinstatement2. Backwages3. Damages and attorneys fees if in bad faith Dismissal illegal, employee entitled to:1. Reinstatement2. Separation pay in lieu of reinstatement3. Backwages4. Damages and attorneys fees if in bad faith

Department of Labor & Employment Effects of Termination: Legal

AUTHORIZED CAUSEWith Notice Without Notice Authorized cause Dismissal legal, employee entitled to: SEPARATION PAY Dismissal legal, but employee entitled to:1. SEPARATION PAY2. NOMINAL DAMAGES (stiffer) (JAKA Food Processing Corp. v. Pacot, et al., G.R. No. 151378, 28 March 2005- closure due to business losses)

Department of Labor & Employment Effects of Termination: Legal

AUTHORIZED CAUSEWith Notice Without Notice Not authorized cause Dismissal illegal, employee entitled to:1. Reinstatement 2. Separation pay in lieu of reinstatement3. Backwages4.Damages & attorneys fees if in bad faith Dismissal illegal, employee entitled to:1. Reinstatement2. Separation pay in lieu of reinstatement3. Backwages4. Damages &attorneys fees if in bad faith

Administration of Labor Justice: RemediesCompulsory arbitrationPlant-level dispute settlement mechanismsAlternative dispute resolution

Compulsory Arbitrationis by JurisdictionHearing officerDOLE Regional DirectorMed-Arbiter/BLR DirectorElection OfficerConciliator and MediatorVoluntary Arbitrator/Panel of VALabor ArbiterNLRCSOLEPresidentCourtsDepartment of Labor & Employment

The ADR and the Labor Dispute Settlement MechanismsADR ConceptsPlant-Level Dispute Settlement Mechanisms

Department of Labor & Employment Three sequential principles in handling labor disputes:Prevention is better than resolution.

If prevention is impossible, the parties themselves should resolve the dispute.

If the parties cannot solve their dispute, third party intervention with involvement of the disputing parties should be utilized.From the Notes of NCMB OIC Rey Ubaldoc

Department of Labor & Employment Dispute ResolutionAVOIDANCEADJUDICATIONFACILITATIONPARTNERINGNEGOTIATIONJOINT-PROBLEM SOLVINGGRIEVANCE HANDLINGEARLY NEUTRAL EVALUATIONCONCILIATIONMEDIATIONVOLUNTARY ARBITRATIONAlternative Dispute Resolutions

Generally refers to any process or procedure used to resolve a dispute or controversy, other than by adjudication or litigation.Alternative Dispute Resolution

A voluntary mode of dispute settlement

Promotes shared responsibility between workers and employers

Promotes workers participation in the decision and policy-making processes affecting their rights, duties and welfareAlternative Dispute Resolution

Cooperative & Non-Adversarial MechanismsWorkplace Cooperation and PartnershipFacilitationPartneringConsensus-Building ProcessesWorkplace Cooperation

=Siguion Reyna Montecillo & Ongsiako

Cooperative & Non-Adversarial MechanismsWorkplace Dispute Settlement MechanismJoint-Problem SolvingGrievance HandlingNegotiationCollective Bargaining=Siguion Reyna Montecillo & Ongsiako

Joint Problem-SolvingIs an interactive process involving two or more parties who seek to reach agreement over problems which exist between them by identifying the causes of their differences, generating alternative solutions to their differences and jointly agreeing viable solutions to their differences.

Interest-Based Problem Solvinga problem solving process conducted in a principled way that creates effective solutions while improving the relationship.

an alternative style of negotiating and/or problem-solving.

Mandated Workplace Mechanism for ADRLabor Management Committee/CouncilGrievance MachineryCommittee on Decorum and InvestigationHealth and Safety CommitteeFamily Welfare CommitteeDepartment of Labor & Employment

ADR Conciliation and MediationSingle Entry Approach (SEnA)Request for assistance by either parties30 day period to settleVenue (in any DOLE and attached agencies)Coverage and limitationsReferral to proper venue in case of non-settlementDepartment of Labor & Employment

Social Dialogue (Tripartism)Venue for workers and employers advance their respective interest in an equal footing with government participating as the third party balancing their interests.NTIPCs, National ITCs, Regional TIPCs/ITCs and sub-committees, Local ITCsDepartment of Labor & Employment

Sound Employment Relations+=

**From jurisprudenceThe most important of these tests as laid down by the Supreme Court, is the control test. Whoever exercises it or it may be found to exist, is the employer regardless of whether the first 3 tests is exercised by other employer or individual.**Emphasis: the law is meant to strike a balance between the interests of capital and labor. It does not favor one over the other.

*Emphasis: the law is meant to strike a balance between the interests of capital and labor. It does not favor one over the other. ************DISPUTE RESOLUTION INVOLVES A VARIETY OF TECHNIQUES THAT CAN BE PLACED ON A CONTINUUM FROM LEAST INVASIVE FOR THE PARTIES TO THE MOST INVASIVE. FOR THE LEAST INVASIVE, THE PARTIES ARE ABLE TO CONTAIN THE MOST CONTROL OF THE SITUATION. BY CONTRAST, THE MOST INVASIVE PROVIDE PARTIES THE LEAST CONTROL.THE LEAST INVASIVE IS AVOIDANCE. THIS PHILOSOPHY IS TO IGNORE THE PROBLEM IN HOPES THAT IT WILL GO AWAY. THE PROBLEM WITH THIS APPROACH IS THAT IF YOU IGNORE THE PROBLEM IT MAY ERUPT INTO EXTREME ATTEMPTS OF RESOLUTION LIKE A WALK-OUT OR EVEN VIOLENCE.THE MOST INVASIVE IS ADJUDICATION. THIS APPROACH TURNS CONTROL OF THE FINAL DECISION OVER TO A THIRD PARTY LIKE AN ARBITRATOR, OR JUDGE. BETWEEN AVOIDANCE AND ADJUDICATION ARE OTHER PROCESSES THAT OFFER WAYS TO RESOLVE THE DISPUTE --- THESE ARE THE SO-CALLED ALTERNATIVE DISPUTE RESOLUTION SYSTEMS (ADRs) *Cooperative & Non-Adversarial Mechanisms is founded on:1987 Constitution and RA 6715 There was a shift of thrust from compulsory to voluntary arbitration in line with the principle of shared responsibility between workers and employers and the preferential use of voluntary modes of settling disputes.Art. 211Participation of workers in decision and policy-making processes affecting their rights, duties and welfareArt. 255Upholds the rights of workers to participate in policy and decision-making processes of the establishmentArt. 277 (g)DOLE is mandated to promote and develop LMC programs at appropriate levelsWorkplace Cooperation & PartnershipFacilitation Is the management of process that allow for discussion and the free exchange of ideas. Simply stated, facilitation is managing interchanges between parties so that all parties hear and understand each other.PartneringA cooperative process for preventing disputes. Parties meet to talk about conducing a project successfully. The process includes an effort to foresee possible disputes that might arise and to agree on methods to resolve any disputes.Relationship by Objective Is a consensus building process designed to assist parties with a damaged relationship, review their relationship and agree objectives and action plans to restore the relationship.Workplace Cooperation next slideNegotiation Is the process of conferring, discussing, or bargaining in order to reach agreement on a contact or another subject of common concern to the parties.Collective Bargaining is the process through which representatives of employees and management have an opportunity to exchange promises about their future relationship.2 Aspects of Collective Bargaining Contract Negotiations (Promise Making)Contract Administration (Promise Checking)Joint Problem Solving Is an interactive process involving two or more parties who seek to reach agreement over problems which exist between them by identifying the causes of their differences, generating alternative solutions to their differences and jointly agreeing viable solutions to their differencesGrievance Handling *Cooperative & Non-Adversarial Mechanisms is founded on:1987 Constitution and RA 6715 There was a shift of thrust from compulsory to voluntary arbitration in line with the principle of shared responsibility between workers and employers and the preferential use of voluntary modes of settling disputes.Art. 211Participation of workers in decision and policy-making processes affecting their rights, duties and welfareArt. 255Upholds the rights of workers to participate in policy and decision-making processes of the establishmentArt. 277 (g)DOLE is mandated to promote and develop LMC programs at appropriate levelsWorkplace Cooperation & PartnershipFacilitation Is the management of process that allow for discussion and the free exchange of ideas. Simply stated, facilitation is managing interchanges between parties so that all parties hear and understand each other.PartneringA cooperative process for preventing disputes. Parties meet to talk about conducing a project successfully. The process includes an effort to foresee possible disputes that might arise and to agree on methods to resolve any disputes.Relationship by Objective Is a consensus building process designed to assist parties with a damaged relationship, review their relationship and agree objectives and action plans to restore the relationship.Workplace Cooperation next slideNegotiation Is the process of conferring, discussing, or bargaining in order to reach agreement on a contact or another subject of common concern to the parties.Collective Bargaining is the process through which representatives of employees and management have an opportunity to exchange promises about their future relationship.2 Aspects of Collective Bargaining Contract Negotiations (Promise Making)Contract Administration (Promise Checking)Joint Problem Solving Is an interactive process involving two or more parties who seek to reach agreement over problems which exist between them by identifying the causes of their differences, generating alternative solutions to their differences and jointly agreeing viable solutions to their differencesGrievance Handling **The efficient production of goods and services depends on an extent on the existence of harmonious industrial relations climate. Efficiency and quality depend on a motivated workforce, for which a sound industrial relations climate is necessary. Productivity, a key consideration of profitability, the ability of enterprises to grant better terms and conditions of employment and for economic and social development needs a sound labor relations base.