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HUMAN RESOURCE MANAGEMENT Dominguez MODULE 5: Functions of Labor Relations LABOR RELATIONS MANAGEMENT 1. Negoti...

HUMAN RESOURCE MANAGEMENT Dominguez MODULE 5: Functions of Labor Relations LABOR RELATIONS MANAGEMENT 1. Negotiating Collective Bargaining Theoretical Bases Agreements 1. Systems Theory: This approach views Labor Relations is responsible for negotiating organizations as complex systems composed of collective bargaining agreements (CBAs) with interconnected and interdependent parts, where unions or employee associations on behalf of changes in one part affect the entire system. In the organization. labor relations, this theory helps understand how changes in policies, practices, or work conditions 2. Resolving Labor Disputes impact the overall relationship between It handles labor disputes and grievances that management and labor. may arise between management and employees, such as issues related to wages, 2. Social Exchange Theory: This theory posits working conditions, or disciplinary actions. that individuals and groups in relationships weigh the costs and benefits of their interactions. In Types of Labor Disputes labor relations, it helps explain how employers 1. Individual Disputes and employees negotiate and maintain 2. Collective Disputes relationships based on mutual benefits, trust, and reciprocity. 3. Compliance with Labor Laws Labor Relations ensures that the organization is 3. Conflict Theory: Originating from sociology, in compliance with applicable labor laws and conflict theory examines how power imbalances regulations.This includes ensuring that the and inequalities lead to conflicts between organization is providing a safe and healthy work different social groups. In labor relations, it environment for employees, and that employees focuses on the inherent conflict between are receiving fair wages and benefits employers seeking to maximize profits and employees seeking to maximize wages and 4. Change Management working conditions. Labor Relations plays a critical role in managing organizational change, such as mergers, 4. Human Relations Theory: This theory acquisitions, or restructuring. emphasizes the importance of understanding human needs, motivations, and behaviors in the ADVANTAGES AND DISADVANTAGES OF workplace. It suggests that positive employee LABOR UNIONS relations, based on trust, respect, and effective communication, lead to higher productivity and What is Labor Union? job satisfaction. A labor union is an organization formed by workers in a specific industry or occupation to 5. Behavioral Science Approach: Drawing from protect their rights and advocate for better psychology and sociology, this approach working conditions, wages, and benefits. examines individual and group behavior within organizations. It informs labor relations by ADVANTAGES studying factors such as motivation, group Lower turn-over cost dynamics, leadership, and decision-making Employee Productivity processes. Product and Service Quality Workplace health and safety 6. Institutional Theory: This theory examines how institutions and organizational norms shape DISADVANTAGES behavior and interactions within organizations. In Limited opportunities for Non-Union labor relations, it considers the role of formal and workers informal rules, regulations, and norms in shaping Corruption employer-employee relationships and practices. Increased Labor cost 7. Legal-Economic Theory: This perspective focuses on the legal and economic factors influencing labor relations, including labor laws, regulations, market forces (supply and demand of labor), and economic conditions (inflation, unemployment rates).  HUMAN RESOURCE MANAGEMENT Dominguez Three Phases of Labor Relation Process Labor organizations are classified into two 1. Union Organizing - A labor union is a group FORMAL and INFORMAL SECTOR of worker representatives which manage the relations between unionized workers and Formal Sector Unions: These unions operate management. Once workers are made aware within the formal sector of the economy, which that a union can form to represent them, includes industries and enterprises that are workers must authorize the union to do so. registered, regulated, and recognized by the government 2. Collective bargaining - Refers to negotiations between elected union leaders Informal Sector Unions: Informal sector unions and management. They cover various aspects represent workers employed in the informal of worker contracts, from work days and hours economy, which consists of unregulated, to wages and benefits. A new contract is only non-registered, or partially regulated economic approved when both sides agree entirely with its activities contents Labor Code of the Philippines on Labor 3. Enforcement - This entails the daily Relations implementation of the labor agreement. This is accomplished mostly by addressing worker Labor Code of the Philippines complaints and other workforce management PRESIDENTIAL DECREE NO. 442 issues that require engagement between managers and labor union leaders. The Labor Code of the Philippines is the legal code governing employment Unionization in the Philippines practices and labor relations in the Philippines. Employer’s Organizations The Employers’ Confederation of the Philippines It also sets the rules for hiring and firing (ECOP), established in September 1975, unites of private employees; the conditions of employers and their organizations, safeguards work; employee benefits, and the and enhances employers’ interest in labour guidelines in the organization and management relations, including social and membership in labor unions. economic policy issues, and promotes industrial harmony, social justice and national economic 1. Book One: Pre-Employment growth. 2. Book Two: Human Resources Development Program Worker’s Organizations 3. Book Three: Conditions Of Employment Some 600 national trade unions, industrial 4. Book Four: Health, Safety, and Social federations and plants level unions from private Welfare Benefits and public sectors are registered in the 5. Book Five: Labor Relations Philippines, although they represent less than 10 6. Book Six: Post-Employment per cent of the 38.8 million-strong workforce. 7. Book Seven: Transitory and Final Provisions Types of Unions in the Philippines TITLE 1, CHAPTER 1, ARTICLE 211. Public Sector Union Declaration of Policy Public sector unions are organizations made up It is the policy of the State: of employees who work for the government. To promote and emphasize the primacy These unions are formed so that the employees of free collective bargaining and can work together to negotiate better working negotiations, including voluntary conditions, wages, and benefits with their arbitration, mediation, and conciliation, employers, which in this case is the as modes of settling labor or industrial government. disputes; To promote free trade unionism as an Private Sector Union instrument for the enhancement of Private sector union is a group or organization of democracy and the promotion of social employees who work for private companies or justice and development; businesses. These unions are formed to help To foster the free and voluntary employees negotiate together with their organization of a strong and united labor employers for better working conditions, wages, movement; benefits, and other important matters To promote the enlightenment of workers concerning their rights and obligations as union members and as employees;  HUMAN RESOURCE MANAGEMENT Dominguez To provide an adequate administrative addresses broader labor and management machinery for the expeditious settlement concerns for an entire sector or public service of labor or industrial disputes; and may be established by labor laws or To ensure a stable but dynamic and just collective bargaining agreements. industrial peace; and To ensure the participation of workers in Labor Management Committee is a small team decision and policy-making processes in a workplace that deals with specific issues affecting their rights, duties, and welfare. between workers and management. It includes To encourage a truly democratic method representatives from both sides and focuses on of regulating the relations between the tasks like solving problems, implementing employers and employees by means of policies, or making the workplace better. Its agreements freely entered into through structure and goals can change based on what collective bargaining, no court or the organization needs administrative agency or official shall have the power to set or fix wages, rates To ensure orderly operations, the Council or of pay, hours of work or other terms and Committee should agree on guidelines conditions of employment, except as including: otherwise provided under this Code. (As 1. Objectives amended by Section 3, Republic Act No. 2. Coverage of activities 6715, March 21, 1989) 3. Structure and size 4. Meeting schedule (time, place, duration, LMC: An Alternative to Labor Organizations frequency) 5. Procedure for the timing and exchange Labor-Management Cooperation (LMC) is a of agenda state of relations where labor and management 6. Recording and dissemination of meeting work hand-in-hand to accomplish certain goals minutes using mutually acceptable means. It is the 7. Other relevant matters outcome of a continuing process of enhancing mutual trust and respect through: ORGANIZATIONS WON OUTSTANDING LMC 1. Information Del Monte Philippines Incorporated (DMPI) - 2. Sharing Mindanao LMC won the 2023 Outstanding Labor 3. Discussion Management Cooperation for Industrial Peace 4. Consultation Award in the Philippines. The award was 5. Negotiation presented at the 13th National Convention on Labor Management Cooperation. FACTORS NECESSARY FOR THE SUCCESS OF LABOR MANAGEMENT COOPERATION Hedcor, Inc. received recognition as the regional Attitudes: Sincerity, mutual support, trust, winner in the 2015 Search for Outstanding Labor openness, commitment, and teamwork. Management Cooperation (LMC) for Industrial Skills: Leaders need facilitation, communication, Peace by the Regional Screening Committee of team building, problem-solving, and planning the National Coalition and Mediation skills. Board-Cordillera Administrative Region. Structure: Should address needs, be formal or informal, ensure representation of labor and management, decide by consensus, and provide feedback at all levels. Mutual Respect: Both sides should maintain mutual respect and objectivity. GUIDELINES IN SETTING UP APPROPRIATE ORGANIZATIONAL STRUCTURE Under R.A. 6715, in organized establishments, the operating mechanism for labor management cooperation programs is termed as the Labor-Management Council. In unorganized establishments, it is referred to as the LaborManagement Committee. A Labor Management Council is a formal body with representatives from both labor and management. They meet regularly to discuss and resolve workplace issues. This council often