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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


become a common thing especially in institutions where
instances, the influence of union bargaining extends far
union members only. Even workers who are not members
adjustment in wages and better working conditions.

most of us. The word has


labor unions exist. In most
beyond the employment of
of union are granted similar

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 employers
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. EMPLOYERS ASSOCIATION
Employers 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 selforganization 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 working
conditions 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 semiannual 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 a
ction. 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 Reyes
Dominador Gomez
Aurelio Tolentino
Hermenegildo Cruz
Lope K. Santos
And 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.

1920s

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, Quirinos 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 Principles

2. 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. Thats 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 nave, would believe the union leader and end the strike.
Reported by: Tolentino, Mary Claudine

3. Existence of Dishonest Labor Leaders


4. 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

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