Chapter I: The Problem and its Background

Background of the Study

“If you treat people right they will treat you right, ninety percent of the time”

-by: Franklin D. Roosevelt

Employer-employee relationship is very significant in the world of business, that’s why a company cannot

stand without laborer who will work for the elevation of the business. As what that researchers noticed that

this relationship will be broken if one of them will not comply on their responsibilities.

In the past decades the DLBT Co. was already having trouble when it comes to managing the company’s

employee that resulted to a strike and a battle with their own employees. Last December 26 ,2016 An

association of bus drivers has staged a strike at a terminal in EDSA-Tramo in Pasay City to protest the alleged

“inhumane wage policy” of the bus company, which caused a massive interruption that made the passenger

schedule got cancelled. The DLTB Labor Union-Alliance of Genuine Labor Organization (DLTBLU-AGLO) said

that the management of DLTB Bus Co. violates the rights of the employee. So the study was about labor issue

between the DLTB Company and their employee.

Statement of the Problem

The value of workers was recognized through entitlements and benefits which Philippines laws grants. In this

case of DLTB, the company didn’t value the rights of their employee well. DLTB didn’t give all suppose wage

and benefits of a work should have. The researchers seek for an answer for the following:

 What makes DLTB Co ethical?

 What is the violation of DLTB Co that makes them unethical?

 What are the labor rights of employee?

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Significance of the Study

This study will be significant endeavor in determining the different factors affecting the Employees rights when

it comes to labor. To further recognize the failure of the management of the company. It’s a fact that the most

employees of today are having unvalued rights because of the greediness of the company when it comes to

income. This will also help to lessen the number of employees that are having difficulties in defending their

rights given by finding out what the factors are and by understanding its effects to the employees. The

researchers will be able to recommend possible solutions to this problem.

Moreover, this study will be beneficial to the Following:

 The Employees- they will be able to know the possible way or solution in defending their labor rights

 The Future Employees- this study will help the incoming Employees to identify the factors that may

affect their work values when it comes to work.

 The Future Researchers- this study will serves as their resources in collecting and formulating data if
the topic of the future researchers is related to this study.

Scope and Limitation of the Study

The study focuses on the issue of labor rights of the DLTB Corporation. It tackles the factors behind the issue of

labor wage salary of the employees handled by the DLTB Co. The main focus of the study is the employees

which is the victims of unjust treatment of the management of the company. This will help the researchers to

gather important information that can make the research making quite effective.

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 REVIEW OF RELATED LITERATURE

Local Literature

 According to law.cornell.edu the goal of labor laws is to equalize the bargaining power between employers

and employees. The laws primarily deal with the relationship between employers and unions. Labor laws grant

employees the right to unionize and allow employers and employees to engage in certain activities so as to

have their demands fulfilled.

 From Rules Implementing wage order No.NCR-20, under section 3 of Rule II New Minimum wage rate in the

National capital Region have increase for 491 pesos.

 Under section 2 it state that the wage increase prescribed herein shall apply to all minimum wage earners in

the private sector within the region, regardless of their position, designation or status and irrespective of the

method by which the wages are paid.

 In section 4 Basis of Minimum Wage Rate, the minimum wage rates prescribed under this order shall be the

normal working hours which shall not exceed eight (8) hours of the work day if exceed it is entitle to overtime

which must be paid in minimum wage plus additional of at least 25%.

 Art. 86. Night shift differential state that every employee shall be paid a night shift differential of not less than

ten percent (10%) of his regular wage for each hour of work performed between ten o’clock in the evening and

six o’clock in the morning.

 Art. 113. Wage deduction. No employer, in his own behalf or in behalf of any person, shall make any deduction

from the wages of his employees, except: 1. In cases where the worker is insured with his consent by the

employer, and the deduction is to recompense the employer for the amount paid by him as premium on the

insurance; 2. For union dues, in cases where the right of the worker or his union to check-off has been

recognized by the employer or authorized in writing by the individual worker concerned; and 3. In cases where

the employer is authorized by law or regulations issued by the Secretary of Labor and Employment

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 Art. 103. Time of payment. Wages shall be paid at least once every two (2) weeks or twice a month at intervals

not exceeding sixteen (16) days. If on account of force majeure or circumstances beyond the employer’s

control, payment of wages on or within the time herein provided cannot be made, the employer shall pay the

wages immediately after such force majeure or circumstances have ceased. No employer shall make payment

with less frequency than once a month.

Foreign Literature

 Labor rights are a very broad issue; however, it can be boiled down to the protection and respect of human life

in the workplace and the right to work itself. Some components of labor rights are the rights to job safety,

collective bargaining, and equal pay for equal work. Labour rights vary by country; however the International

Labour Organization (ILO) provides universal standards and guidelines. The ILO, a part of the UN, aims to

provide guidance and standards for labour practices around the world. ( tigweb.org)

 The federal overtime provisions are contained in the Fair Labor Standards Act (FLSA). Unless exempt,

employees covered by the Act must receive overtime pay for hours worked over 40 in a workweek at a rate

not less than time and one-half their regular rates of pay. There is no limit in the Act on the number of hour’s

employees aged 16 and older may work in any workweek. The Act does not require overtime pay for work on

Saturdays, Sundays, holidays, or regular days of rest, unless overtime is worked on such days.

 The Act applies on a workweek basis. An employee's workweek is a fixed and regularly recurring period of 168

hours seven consecutive 24-hour periods. It need not coincide with the calendar week, but may begin on any

day and at any hour of the day. Different workweeks may be established for different employees or groups of

employees. Averaging of hours over two or more weeks is not permitted. Normally, overtime pay earned in a

particular workweek must be paid on the regular pay day for the pay period in which the wages were earned.

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On the issue of DLTBCo, the management does not grant the 13th month pay, night differential, overtime pay

and the right wage in which employee were paid 337 pesos a day but according to NCR’s minimum wage, it

must be 491 pesos. Drivers and conductors must receive their salary on time.

Ethical Framework

Pluralism

Pluralists differ from unitarists in that they start from a set of assumptions and values that workplace conflict is

inevitable. Typical of those holding this perception is the view that business organizations are complex social

constructions made up of different interest groups. Management and employees constitute two such groups,

who, because of the very nature of the factory system, are seen as invariably subscribing to different values

and objectives. From this frame of reference it is also assumed that there will be different sources of authority

within an organization, and that the potential for conflict between them will always exist over the organization

of work tasks and the allocation of rewards (Abbott, 2006)

Labor process theory

There is a wide range of ‘radical’ theories informed by a Marxist frame of reference. Some draw more

prominently on economic assumptions pertaining to capitalist modes of economic organization being

inherently exploitative and prone to conflict. Others draw more on sociological assumptions pertaining to the

existence of class-based value systems that serve to legitimize the dominant position of capitalist interests.

Braverman’s (1974) labor process theory is a widely referred to example of the former. In the manner of Marx,

this particular theory argues that the primary role of management is to convert raw materials into products

through the use of labor and machinery; that the only way management is able to do this is through the

establishment of structures of power and control that convert the capacity of employees to perform work (i.e.,

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labor power) into actual work effort (i.e., labor); and that it is only through this conversion that profitable

production and capital accumulation can take place. (Abbott, 2006)

Postmodernist theories

Postmodernist theories sit uneasily under any frame of reference and range over all manner of social

phenomena beyond the world of work. Indeed those of the more extreme variety generally abhor

categorizations of any type, offering critiques of theories and explanations that try to interpret the world in

terms of a singular ‘rationale’ or a ‘systemized’ set of understandings – which, incidentally, embraces almost

all of the theories we have so far mentioned. Theories of this type argue that there are many rationales, in fact

as many as there are people, who each attach all manner of ‘meanings’ to their day-to-day lives and

experiences in ways that make it impossible to generalize or systemize social phenomena with any degree of

precision. This is because people construct the ‘truth’ and ‘reality’ of the world around them through language

(or ‘discourse’, to use their terminology), which itself reflects widely varying assumptions, values and ideas.

Postmodernist theories of the more moderate variety similarly argue that our assumptions and values about

truth and reality are problematic, but tend to believe that certain rationalities can be corralled and thus

analyzed. In so doing they acknowledge the (possible) existence of certain types of system or systems.

(Abbott, 2006)

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Definition of terms

Definition of the terms

1. Defraudation- taking by fraud

2. Inhumane- lacking and reflecting lack of pity or compassion.

3. Endeavor- a purposeful or industrious undertaking (especially one that requires effort or boldness)

4. Labor rights- are group of legal rights and claimed human rights having to do with labor relations between

workers and their employee.

5. Bargaining power- is the relative ability of parties in a situation to exert influence over each other.

6. Collective Bargaining- negotiation of wages and other conditions of employment by an organized body of

employees.

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7. Minimum wage-the lowest wage permitted by law or by a special agreement (such as one with a labor

union).

8. Employer- includes any person acting directly or indirectly in the interest of an employer in relation to

an employee and shall include the government and all its branches, subdivisions and instrumentalities,

all government-owned or controlled corporations and institutions, as well as non-profit private

institutions, or organizations.

9. Employee- includes any individual employed by an employer.

10. Unlawful- not conforming to, permitted by, or recognized by law or rules.

11. Labor Union- an organized association of workers, often in a trade or profession, formed to protect and

further their rights and interests

Chapter II: Methodology

2.1 Method of Research

The researchers used qualitative method because it was the most appropriate method to gather information

that is useful and helpful in knowing the problem that the DLTB have between the drivers and conductors.

Qualitative methods were time consuming to conduct but the information that will be collected is richer and

has a deeper insight. This was a descriptive study that will provide further knowledge in understanding the

research.

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Subjects of Research

The researcher have interviewed five respondents only, the three respondent didn’t give their profile

information for the sake of their security, only Mr. Tony Ben Catimbang, a 44 year old conductor of DLTB Co

and Mr. Emmanuel Klashuma, a 40 year old driver of DLTB co. They were working for almost 6 years in the

company and they were both officer of AGLO who’s involved in the strike in Pasay Last December.

Research Instrument

The researcher used an open ended type of question where they find it as an easy way for finding the

information that they want to have. Since they need depth information regarding to the issue it will take time

because the interview will be one by one, by which the researcher will ask the interviewee personally.

Data Gathering Procedure

The researchers used surveys to actually gather responses from subjects through a written medium. Not only
it saves the researcher’s time, it also makes the volunteers to really give in to the questions, decide what to
write before speaking and break the barrier of shyness.

Chapter III- Discussion

Result of the Study

The strike happened last December 26, 2016, was legal, there was an agreement paper coming from

Department of Labor and Employment saying that “The union shall voluntarily lift the strike effective

immediately, all striking employees, except those terminal priors to issuance of Certification Order of the

Secretary dated 28 December 2016 shall return to work “status quo ante;” which states that DOLE allowed

them to fight for their rights.

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In the recent event the employees or the AGLO filed a case about the scenario that they were experiencing.

The case that was filed before the strike was about a petition of money amounting of P 300,000.00. The case

that the AGLO filed won and has been approved by the NLRC. The AGLO waited for the money to be given to

them but they received nothing.

The drivers and conductors were the only employees of DLTB Co that was affected by the unjust treatment of

management. The drivers and conductors suffered for almost 5 years but they held a strike because they

cannot take DLTB Co for violating their rights. Mr. Klashuma stated that DLTB Co management changed their

Manila rate wage into Provincial rate wage. From the start of their work they are receiving P404 and became

P337, which is not fair because they must receive a minimum wage of P491. Because of the decreasing of their

wage, the standard bracket of their benefits like SSS and Phil Health also decreases.

Other than the issue for the right wages, Mr.Catimbang added that they were not receiving 13th month pay but

the others had. Yet, it only costs around ₱4000 up to ₱6000 which is not right. Overtime pay and night

differential pay were also not given to them.

According to the other respondent, the management of DLTB Co were deducting dues that was not present in

their pay slip, where the management will tell to drivers and conductors that they have deducted dues from

their wage as a contribution for the relatives of their co-drivers and co-conductor who passed away or got

accident.

The two respondents stated that the management accused the drivers and conductors who was

involved in the strike as the primary suspects for the burning of the 5 buses at Lemery, Batangas but, the

drivers and conductors denied the accusation because according to Mr. Klashuman it was intentionally made

by the company to ruin the image of the people who was involved in the strike.

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 The employees who are part of the strike made a statement that leaved a mark in the researchers

mind. He stated that the battle will not end if the management won’t treat their employees today and also the

future employees of the employees. “This fight is not just for us, it’s for the other employees that have been

experiencing this kind of scenario and also for the future employees that has the possibility of experiencing

this kind of problem”

Chapter IV – Results
Summary of Findings
Out of more than 50 people involved in the strike, there were only five respondents who respond to

the researcher’s invitation for interview. In which the three respondents didn’t give their name, only Mr. Tony

Ben Catimbang, a 44 year old conductor and Mr. Emmanuel Klashuman, a 40 year old driver of DLBT Co., who

provided information. They are both employee of the company for almost 6 years. The respondents

disseminated the factors that the DLBT lacks when it comes to giving the right benefits and labor payment of

an employee. First is the salary, the respondent said that the salary that they were receiving form the DLBT Co.

is very far from the right salary of a minimum wage earner in manila which is 491. They are receiving 337 pesos

which was a provincial rate.

The respondent also said that the 13th month pay that they are receiving is not enough from their

computed 13th month pay. They are receiving a payment of 4000-6000 pesos for their 13th month pay that is

very far from their computed salary. In addition, the benefits like the SSS and Phil Health in particular are also

not enough because of the effect of decreasing the salary. The respondent said that they have been

experiencing this kind of scenario for 5 years which is not acceptable.

They already filed a case against the company in the NLRC and it won. They supposed to receive

300,000 pesos after winning the case and until now they haven’t received the money from the DLBT. That is

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one of the reasons that made the employees got triggered because everything that happens in the company’s

management is not proper and ethical anymore

Conclusion

The DLTB bus co. basically deals with some Ethical issues on how much should their bus drivers and conductors

must earn. This paper discusses the standard wage that a regular employee should receive and the benefits

that should be given to the drivers and the conductors.

Given the information going through intensive analyzations, the researcher concluded that DLTB Co. is

ethically liable for violating the labor rights code which makes it Unethical Management.

Recommendation

 DLTB co. should be giving what are the right and just Wages, Bonuses and Benefits.

 Drivers and Conductor must also be paid in their overtime and nightshift differential.

 The company should indicate the deductions in the pay slip of the Drivers and Conductors.

 The Drivers and Conductors should receive their Salaries on time. (They should be paid at least every

two (2) weeks or once a month.

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 TABLE OF CONTENTS

Chapter I: The Problem and its Background

Background of the Study
Statement of the Problem………………………………………………………………………………………………1

Significance of the Study

Scope and Limitations of the Study…………………………………………………................................2

Review of Related Literature……………………………………………………………………………………………3

Ethical Framework…………………………………………………………………………………………………………..5

Definition of terms…………………………………………………………………………………………………………..7

Chapter II: Methodology

Method of Research ..………………………………………………………………………………………………………8

Subjects of Research
Research Instrument
Data Gathering Procedure
Chapter III- Discussion
Result of the Study…………………………………………………………………………………………………….…….9

Chapter IV – Results
Summary of Findings……………………………………………………………………………………………………….11

Conclusion
Recommendation …………………………………………………………………………………..……………………….12

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 BIBLIOGRAPHY

Arnell Ozaeta, Doris Bigornia, Ron Lopez. “5 DLTB buses torched in Batangas.”
http://news.abs-cbn.com/news/12/30/16/5-dltb-buses-torched-in-batangas. 30 December 2016

Budd, John and Bhave, Devasheesh. VALUES, IDEOLOGIES, AND FRAMES OF REFERENCE IN EMPLOYMENT
RELATIONS. http://jbudd.csom.umn.edu/RESEARCH/buddbhave.pdf. Minnesota MN, 2006

Department of Labor and Employment. Labor Code of the Philippines 2017

http://bwc.dole.gov.ph/images/Downloads/LaborCodeofthePhilippines2017.pdf .
Philippines Manila, 2017.

Department of Labor and Employment. “Wage Order No. NCR – 20”

http://www.nwpc.dole.gov.ph/pages/ncr/Download/reg%20ncr%20-%20wo%2020.pdf.
27 May 2017

Ilo.org. “International Labour Organization”

http://www.ilo.org/global/lang--en/index.htm. 01 March 2018

John Ted Cordero. “Protesting employees allegedly set fire to 5 DLTB buses.”
http://www.gmanetwork.com/news/news/regions/594200/protesting-employees-allegedly-set-fire-to-5-
dltb-buses/story/. 30 December 2016

Law.cornell.edu. “National Labor Relations Act”

https://www.law.cornell.edu/wex/national_labor_relations_act_nlra. 03 March 2018

Letmaring. “Back to work at DLTB: Union lifts strike after inking agreement”
https://www.dole.gov.ph/news/view/3360. 10 January 2017

Martin Sadongdong. “Bus workers on strike to press for fair wages, benefits.”
https://news.mb.com.ph/2016/12/29/bus-workers-on-strike-to-press-for-fair-wages-benefits/. 29
December 2016

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Appendix

Name:(optional): Date:

Age: Sex:

1. How much is your salary per day?

2. It is ethical to raise your labor rights against the company even it is for the sake of your job?

3. How much should be your suppose wage?

4. Are you involved in the strike?

5. Did the strike happen legally?

6. What are the benefits that should be given to you?

7. Is it true that the driver and conductor is the suspect for the burning of bus in Lemery?

8. Why did you choose to stay rather than to find a job which will value the rights of employee?

15
 Colegio De San Lorenzo

Fight
For the

Right
DLTBLU-AGLO

Perez, Christopher Kenneth P.

Namata, Angela D.
Students of Bachelor in Science of Business and Arts
Makasiar, Alan Lancelot
March 15, 2018

16
 Acknowledgement

Preparing a report of any subject or any topic is a challenging work. Being students,
we accepted it with challenge, opportunity and a great will to finish and overcome
the task. It gives us immense pleasure and satisfaction in submitting this report
about employee rights. We believe that this will not only be beneficial for us but
also for anyone that will read this. This includes: current employees, employer,
students and future employees.

We owe a deep gratitude to Mr. Alan Lancelot Makasiar, professor of Business

Ethics for his constant encouragement, guidance and supervision for every step of
our work. This would not be possible without his observation and directions in the
course of completion.

We extend our sincere thanks to our family, friends and especially those that
participated in our research. For security purposes, they chose to keep their names
a secret. But their knowledge, participation and the information provided to us will
forever be in our debt.

We are personally obliged and highly grateful to all those who guided us properly.

Perez, Christopher Kenneth P.

Namata, Angela D.
Students of Bachelor of Science in Business Administration
Colegio De San Lorenzo

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