Outcomes of Collective Bargaining in the Philippine Manufacturing Industry

By Atty. Juris Bernadette M. Tomboc

This article was reduced from the author’s thesis submitted in partial fulfillment of the requirements of the MSIRM program of DLSU-Manila, a shorter version of which has been earlier circulated by the CBERD as a Working Paper (Series 2004-3). The author is immensely grateful to her thesis adviser, Dr. Divina M. Edralin, for her guidance in the preparation of this study.

Abstract
The quantity, kind and quality of provisions in collective bargaining agreements by companies in the Philippine manufacturing industry are influenced by several factors. While industry labor productivity or performance is an overall significant factor, company size also plays a key role. Larger establishments have more flexibility in negotiating benefits to their employees than smaller establishments. Outcomes of collective bargaining are likewise significantly correlated to union registration, type of ownership, and company location. With limited resources available, the study shows that CBAs tend to reflect those provisions that are more necessary or useful to workers and their unions depending on their particular situation. Further, while correlation between, for instance, the size of a company and the amount, kind and quality of benefits administered to employees may be expected, the study indicates that the same may hold true whether or not a company is unionized.

The study also revealed that majority (76.13 percent) of the CBAs with provisions concerning labor standards stipulated on just the minimum legal requirements, while twelve and one-half percent stipulated below the minimum requirements.

Qualitative factors that also influenced the outcomes of negotiations include the character of the union and the personality, attitude, aptitude, qualification, and preparation of the company and union negotiating panels. Likewise, government agencies play a key role in the resolution of disputes that arise during the conduct of negotiations.

1. Introduction
The history of the Philippine labor union movement is a chronology of struggle for the Filipino working people’s emancipation, for recognition of their human, democratic, workers’ and trade union rights, and for the improvement of their working and living conditions. (Edralin 2003).

The total number of registered labor organizations grew at an average rate of 9.58 percent per year from 1997 to 2002. The biggest growth (19.54 percent) in the number of new labor organizations was recorded in year 2002. The number of existing collective bargaining agreements (CBAs) however declined at an average of negative 13.06 percent during the same period. CBA coverage likewise declined from year 1998 (49.5 percent) to year 2002 (19.65 percent) (BLR-DOLE 2003).

More than 50 percent of the total number of registered unions are federated (either as locals or chapters of a federation or independently registered but affiliated with another labor organization during the same period (BLR-DOLE 2003).

Collective bargaining coverage is strongest among blue-collar workers, less among white-collar employees, and weakest among professional, technical and managerial personnel. Further, collective bargaining is more strongly entrenched among larger than smaller establishments (Windmuller 1987).

The sectors with the highest proportion of employees covered by collective agreements are manufacturing, transport, communications and utilities. There are also sizeable differences within the manufacturing sector according to industry. (Windmuller 1987)

Labor productivity registered slow growth (an average of 1.72 percent per year in constant prices/9.40 percent in current prices) across all industries from 1997 to 2001 (BLES-DOLE 2003). The manufacturing industry exhibited slower growth in labor productivity as compared to all other industries from 1996 to 2001 (BLES-DOLE 2003).

Among the manufacturing sub-industry classifications, the manufacture of fabricated metal products, machinery and equipment/other manufacturing industries and the textile, wearing apparel and leather industries exhibited higher than average growth performance. The food, beverages and tobacco industry and basic metal industries, on the other hand, exhibited positive average growth rates in labor productivity (in constant prices).

However, industries involving manufacture of non-metallic mineral products except products of petroleum and coal, manufacture of wood and wood products, including furniture and fixtures, manufacture of chemicals and chemical, petroleum, coal, rubber and plastic products, and manufacture of paper and paper products, printing and publishing exhibited negative growth rates in labor productivity in constant prices during the same period (BLES-DOLE 2003).

This study aims to determine whether there are significant correlations between union and company characteristics and the outcomes of collective bargaining negotiations in Philippine manufacturing companies and determine whether there are significant differences between manufacturing sub-industry classifications with respect to outcomes of collective bargaining negotiations. This study will also analyze and describe the quality of economic and political provisions in collective bargaining agreements (CBAs) of manufacturing companies and present a collective bargaining case analysis of Dole Philippines, Inc.
ILO Convention No. 154 (1981) concerning the Promotion of Collective Bargaining defines collective bargaining in its Article II as follows:

“For the purpose of this Convention, the term “collective bargaining” extends to all negotiations which take place between an employer, a group of employers or one or more employers’ organizations, on the one hand, and one or more workers’ organizations, on the other for: (a) determining working conditions and terms of employment; and/or (b) regulating relations between employers and workers; and/or (c) regulating relations between employers or their organizations and a worker’s organization or workers’ organizations.”

Byars and Rue (1991) defines collective bargaining 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 involves the presentation of proposals and counter-proposals, demands, and counter-demands wherein each party tries to obtain the terms and conditions that are most favorable to it. It also involves close communication between the union and the management during the effectivity of the written contract in order to avoid disputes in its interpretation and implementation (Edralin 2003).

2. Theoretical/conceptual framework
A. Hypotheses This study will test the following hypotheses:

First null hypothesis (Ho)
There are no significant correlations between union and company characteristics and the outcomes of collective bargaining negotiations in the Philippine manufacturing industry.

Alternative hypothesis (Ha)
There are significant correlations between union and company characteristics and the outcomes of collective bargaining negotiations in the Philippine manufacturing industry.

Second null hypothesis (Ho)
There are no significant differences in the outcomes of collective bargaining negotiations between the different sub-industry classifications in the Philippine manufacturing industry.

Alternative hypothesis (Ha)
There are significant differences in the outcomes of collective bargaining negotiations between the different sub-industry classifications in the Philippine manufacturing industry.

B. Assumptions
The analysis with respect to the first null and alternative hypothesis was based the following statistical assumptions: that independent variables can be correlated to the outcome of dependent variables, that no important variables were omitted, that linear relationship between independent and dependent variables are additive, and that a random error term absorbs the effects of measurement error and influences of variables not included in the regression equation.

While the analysis with respect to the second null and alternative hypothesis was based on the following statistical assumptions: that the CBAs are random samples from normally distributed populations, that the number of economic and political provisions in the CBAs in the samples have equal or nearly equal variances and that the CBAs in the different sub-industry classifications are independent of each other.

C. Operational definitions
The following were the independent variables used in the study:

Union affiliation
Refers to the union’s membership, connection or association with another labor organization or federation of labor unions. Unions are classified either as federated, which includes both locals and chapters of federations or independent unions affiliated with another labor organization, or non-federated.

Industry classification
Refers to the classification of a manufacturing industry sub-category, namely: manufacture of food, beverages and tobacco; textile, wearing apparel and leather industries; manufacture of wood and wood products, including furniture and fixtures; manufacture of paper and paper products, printing and publishing; manufacture of chemicals and chemical, petroleum, coal, rubber and plastic products; manufacture of non-metallic mineral products, except products of petroleum and coal; basic metal industries; and manufacture of fabricated metal products, machinery and equipment/other manufacturing industries (BLES-DOLE 2003).

Ownership
Describes a company with respect to whether or not its shares of stock are listed and traded in the local stock exchanges.

Company size
Describes a company’s scale of operations as indicated by the total number of its workers or employees.

Micro
Refers to those employing not more than ninety-nine (99) workers or employees.

Small
Refers to those employing at least 100 but not more than 199 workers or employees.

Medium
Refers to those employing at least 200 but not more than 400 workers or employees.

Large
Refers to those employing more than 400 workers or employees (DTI 2003).

Location
Describes a company as to whether it is located within the National Capital Region (NCR) or outside of the NCR.

D. Conceptual framework
Windmuller (1987) defines collective bargaining decision-making process between parties representing employer and employee interests. Its overriding purpose is to negotiated and apply an agreed set of rules to govern the employment relationship, as well as to define the relationship between the parties in the process. Collective bargaining can thus be described as a dynamic and complex process of encounter between management and the union (Edralin 1991).

Using the input-output model of Kast and Rosenweig (1974), the collective bargaining process is the input, while the collective bargaining agreement containing stipulations on the economic and political issues negotiated is the output. The factors of success and the problems encountered are the conversion variables. It is assumed that the input-output process is affected by both the internal, represented by the union and company characteristics, as well as the external environment, which includes the country’s general economic and political situation (Edralin 1991).

E. Operational framework
The study focused on six independent variables composed of union and company characteristics that are assumed to have an influence on the outcome of collective bargaining negotiations. These are union affiliation, sub-industry classification, ownership, company size, and location. The outcomes of collective bargaining negotiations, consisting of economic and political provisions, are the dependent variables.

F. Research methodology
i. Research design
The study is a combination of the following research designs: descriptive, correlational and comparative. The descriptive design was used to explain the outcome of collective bargaining negotiations. Salary and wage provisions and leave benefits in the different CBAs are described in terms of their frequency and quality, while health and safety, post-employment, and other economic benefits, as well as the various political provisions are described in terms of their frequency. The descriptive research design was also used in discussing the success factors of and the problems and issues encountered during negotiation by Dole Philippines, Inc. (Please refer to the case analysis.)

The correlational research design was applied with the use of Pearson’s product-moment correlation to address the study’s research problem. The said statistical measurement was used to determine whether there were significant correlation/s between union and company characteristics (union registration, type of ownership, company size and location) and the outcome of CBA negotiations based on the quantity of economic and political provisions in the different CBAs. The statistical test was applied to each CBA provision as well as to the total number of provisions under each category (salary and wage provisions, health and safety benefit provisions, leave benefit provisions, post-employment benefit provisions, and other benefit provisions, and political provisions).

Finally, the comparative design was applied with the use of the one-way analysis of variances (ANOVA) to determine whether there are significant differences in the outcome of collective bargaining negotiations in terms of the total number of provisions (per category of provision and per CBA) between sub-industry classifications.

ii. Sampling plan
The sample consists of ninety-six CBAs out of the total of 692 CBAs by manufacturing companies as of November 2002 (BLR-DOLE 2003). The sample is more than the required size of eighty-four to meet a ninety-five percent degree of desired reliability (with a fifty percent proportion and a one percent error based on the formula recommended by the Philippine Social Survey Council) (Edralin 2000).

The convenience sampling method was adopted considering the availability and usefulness of CBAs to the study. At the same time, sampling was purposive in nature in order to secure representative samples of the smaller sub-industry classifications. Since sampling was not strictly random, the results and discussions may be merely descriptive and representative of the CBAs included in the study and not of the entire manufacturing industry. The ninety-six CBAs are representative of forty-eight percent (51,584 of 108,443 employees) of all employees in the manufacturing industry covered by CBAs as of November 2002.

A total of one hundred seventeen different CBA provisions across six general categories of economic and political provisions or issues in each CBA have been analyzed and discussed in this study in relation to the various union and company characteristics.

iii. Method of Data Collection
Primary sources
The CBAs submitted to the Bureau of Labor Relations (BLR) of the Department of Labor and Employment (DOLE)) and in effect as of November 2002 constituted the primary data source of this study.

Secondary sources
Books and other published materials on collective bargaining, industrial relations, human resource management and research and statistical methods, and statistics published by government agencies constituted the secondary data source of this study.

iv. Method of data analysis
The collected data were analyzed with the use of the SPSS (Statistical Package for Social Sciences) program. Percentage, mean, and simple ranking were utilized for the descriptive portion of the research. As mentioned earlier, the Pearson’s product-moment correlation was used in testing for correlation between the independent and dependent variables where independent variables can be linearly characterized while ANOVA was used in testing significance between independent variables which cannot be linearly characterized (sub-industry classifications). However, the manufacture of non-metallic mineral products, except products of petroleum and coal, and manufacture of paper and paper products, printing and publishing sub-industry classifications, were excluded from the ANOVA testing considering that their small sample sizes may significantly affect the statistical results.

v. Profile of unions and manufacturing companies included in the study
Forty-six percent of the CBAs (44 CBAs) included in the study were negotiated by independent unions while fifty-four percent (52 CBAs) were negotiated by locals or chapters of federations or independent unions that are affiliated with another labor organization.

With respect to sub-industry classification, twenty six percent of the CBAs in the study belong to the manufacture of fabricated metal products, machinery and equipment and/or other manufacturing industries, twenty-five percent belong to the manufacture of food, beverages, and tobacco industries, and nineteen percent belong to the textile, wearing apparel and leather industries, nine percent belong to the manufacture of wood and wood products, including furniture and fixtures, industries, seven percent belong to the basic metal industries, another seven percent belong to the manufacture of chemicals, and chemical, petroleum, coal, rubber, and plastic products.

The manufacture of paper and paper products, printing and publishing industries and the manufacture of non-metallic mineral products, except products of petroleum and coal, industries are also represented in the study with three CBAs each. Seventeen percent of the CBAs belong to companies whose shares of stock are publicly listed and traded while eighty-three percent belong to companies that are privately owned.

Thirty-two percent of the CBAs belong to companies classified as large. Fifteen percent each belong to companies classified as medium and small. Thirty-nine percent belong to companies classified as micro. With respect to location, thirty-nine percent of the CBAs belong to companies that are located within the National Capital Region (NCR) thus sixty-one percent belong to companies that are located outside the NCR.

3. Results and discussion
A. Economic issues
The major economic issues are classified into: salaries and wages, which includes provisions concerning across-the-board wage increases and premium payment for time worked like overtime and night differential; job and wage scales, which includes the number of job levels, base rate of lowest level, and wage gaps; health and safety benefits, including provisions on medical and dental clinics, emergency medical material or medicine, annual general check-up, group life and accident insurance, and hospitalization; leaves, including bereavement leave, birthday leave, emergency leave, maternity and paternity leaves, sick leaves, vacation leaves, and special leaves; post-employment benefits such as retirement, separation and disability pay; and other benefits, including both those which are monetary and non-monetary in character.

i. Salaries and wages
Across-the-board increases
Ninety-three percent stipulated on across-the-board increases per year, usually for a period of two to three years, either on a daily (79 percent) or monthly (15 percent) basis, or both.

Among those CBAs that stipulated on across-the-board increases in daily wage, the lowest increase was Php1.00 which occurred in the food manufacturing, wood, and paper sub-industry classifications and negotiated by small and micro-sized privately owned companies. Federated unions negotiated two of the CBAs. The highest increase in daily wage was P70.00 while the average increase was P13.98.

Among those CBAs that stipulated on across-the-board increases in monthly wage, the lowest increase was P200.00 which occurred in the textile and wearing apparel sub-industry classification and negotiated by an independent union with a medium-sized privately owned company, while the largest increase was P2,000.00-P2,100.00. The average monthly wage increase was P1,034.58.

With respect to CBAs that stipulated increases as a percentage of the employees’ existing salary, the lowest increase was 4.5 percent occurring in the food manufacturing sub-industry classification and negotiated by an independent union with a large publicly owned company. The highest increase was fifteen percent, while the average increase was 8.94 percent.

Premiums
Premium pay differentials are payments for services rendered for night duty, holiday, overtime, rest day, and combinations of the foregoing.

Night differential
Seventy-five percent of the CBAs included in the study contained provisions on night duty differential pay. The lowest premium was ten percent of basic pay (equivalent to the minimum required by law), the highest, 41.25 percent, while the average was 16.20 percent. Majority stipulated on just the minimum legal requirement.

Most of the bigger companies stipulated above the minimum while most of the smaller companies stipulated on just the minimum. CBAs of all sub-industries, except, basic metal industries, contained stipulations that are above the ten percent requirement. However, CBAs negotiated by companies in the manufacture of fabricated metal products, machinery and equipment/other manufacturing industries and manufacture of food, beverages and tobacco sub-industry classifications stipulated relatively more often above the minimum than the rest. Most of the CBAs negotiated by companies in the textile, wearing apparel and leather sub-industry stipulated on just the minimum requirement.

Regular holiday pay differential
Seventy-one percent of the CBAs contained stipulations on differential pay for work on a regular holiday. The lowest premium was 25 percent (below the minimum legal requirement of 100 percent), the highest was 125 percent, while the average was 101.47 percent. Majority stipulated on just the minimum legal requirement.

Six percent of those with provisions on payment of regular holiday pay differential stipulated below the minimum legal requirement. Both federated and independent unions negotiated the CBAs with large and medium-sized publicly- and privately owned companies in the manufacture of fabricated metal products/other manufacturing, manufacture of food, beverages and tobacco and in textile, wearing apparel and leather sub-industries.

Regular holiday that falls on a rest day pay differential
Only twenty percent of the CBAs stipulated on differential pay for work on a regular holiday that falls on a rest day. The lowest premium was 60 percent (below the 100 percent minimum legal requirement), the highest premium was 300 percent, while the average was 165.21 percent. Eleven percent stipulated below the minimum legal requirement, while forty-two percent stipulated on just the minimum.

Companies in the fabricated metal products/other manufacturing, manufacture of food, beverages and tobacco, and clothing and textile and leather sub-industries stipulated above the minimum requirement, while medium-sized companies in the clothing textile and leather industries and manufacture of fabricated metal/other manufacturing sub-industries stipulated below the minimum.

Special holiday pay differential
Seventy-one percent of the CBAs stipulated on special holiday differential pay. The lowest premium was 30 percent (equivalent to the minimum legal requirement), the highest was 130 percent, while the average was 41.44 percent. Majority of stipulated on just the minimum requirement.

Smaller companies stipulated relatively more often on just the minimum legal requirement while bigger companies stipulated relatively more often above the minimum. Companies in the clothing, textile and leather and manufacture of wood and wood products sub-industries stipulated relatively more often on just the minimum legal requirement than the rest.

Special holiday that falls on a rest day pay differential
Only eighteen percent of the CBAs stipulated on differential pay for special holiday that falls on a rest day. The lowest premium was 50 percent (equivalent to the minimum legal requirement), the highest was 199 percent, while the average was 72.29 percent. Majority stipulated on just the minimum requirement.

Rest day pay differential
Sixty-six percent of the CBAs stipulated on differential pay for work on a rest day. The lowest premium was thirty percent (equivalent to the minimum legal requirement), the highest was 100 percent, while the average was 39.08 percent. Majority stipulated on just the minimum requirement.

Smaller companies stipulated relatively more often on just the minimum requirement while bigger companies stipulated relatively more often above the minimum. Companies in the textile, wearing apparel and leather and manufacture of wood and wood products, including furniture and fixtures sub-industries stipulated relatively more often on just the minimum than the rest.

Overtime on ordinary day pay differential
Eighty-five percent of the CBAs stipulated on differential pay for overtime work on an ordinary day. The lowest premium was 25 percent (equivalent to the minimum legal requirement), the highest was 50 percent, while the average was 29.25 percent. Majority stipulated on just the minimum requirement.

Smaller companies stipulated relatively more often on just the minimum requirement while bigger companies stipulated relatively more often above the minimum. Companies in the clothing, textile and leather industries, manufacture of wood and wood products, manufacture of food, beverages and tobacco, manufacture of chemicals and chemical products, and basic metal sub-industries stipulated more often on just the minimum requirement than the rest.

Overtime on regular holiday pay differential
Fifty-seven percent of the CBAs stipulated on differential pay for work in excess of eight hours on a regular holiday. The lowest premium was 69 percent (below the 160 percent minimum legal requirement), the highest was 275 percent, while the average was 168.73 percent. Five percent of those with provisions stipulated below the legal requirement, while seventy-one percent stipulated on just the minimum.

Stipulations below the minimum requirement were found in the manufacture of food, beverages and tobacco, manufacture of fabricated metal products, machinery and equipment/other manufacturing industries. Companies in the manufacture of food, beverages and tobacco, clothing, textile and leather industries, manufacture of wood and wood products, and manufacture of chemical and chemical products sub-industries stipulated relatively more often on just the minimum requirement than the rest.

Overtime on regular holiday that falls on a rest day pay differential
Fourteen percent of the CBAs stipulated on differential pay for work in excess of eight hours on regular holiday that falls on a rest day. The lowest premium was 69 percent (below the 238 percent minimum legal requirement), the highest was 315 percent, while the average was 223.46 percent. Majority stipulated on just the minimum requirement. Only one CBA (in the manufacture of fabricated metal products, machinery and equipment/other manufacturing) stipulated below the minimum requirement.

Overtime on special holiday pay differential
Forty-six percent of the CBAs stipulated on differential pay for work in excess of eight hours on a special holiday. The lowest premium was an additional 45 percent (below the 69 percent minimum legal requirement), the highest was 220 percent, while the average was 79.46 percent. Majority stipulated on just the minimum requirement while two CBAs (in the textile, wearing apparel and leather and manufacture of fabricated metal products/other manufacturing industries) stipulated below the minimum requirement.

Overtime on special holiday that falls on a rest day pay differential
Ten percent of the CBAs stipulated on differential pay for work in excess of eight hours on a special holiday or rest day. The lowest premium was 95 percent (equivalent to the minimum requirement of law), the highest was 180 percent, while the average was 118.70 percent. One-half of those with stipulations provided for just the minimum requirement.

Overtime on a rest day pay differential
Forty-five percent of the CBAs stipulated on differential pay for work in excess of eight hours on a rest day. The lowest premium was 45 percent (below the 69 percent minimum legal requirement), the highest was 110 percent, while the average was 75.67 percent. Majority stipulated on just the minimum legal requirement. Only one CBA (in the clothing, textile and leather industry) stipulated below the minimum requirement.

Sixth shift (Saturday) pay differential
Three percent of the CBAs stipulated on differential pay for sixth shift (Saturday) work. The premium pay was 25 percent for the first eight hours of work, plus 50 percent thereof for work in excess of eight hours.

Summary of differential pay provisions
Seventy-two percent (69 CBAs) contained stipulations that were just equivalent to the minimum legal requirement. The said CBAs were found across all the different manufacturing industry classifications and did not discriminate with respect to company size and ownership and union affiliation. Further, there were thirteen instances found in seven CBAs wherein the salary and wage stipulation was below the minimum requirement. Four of the said CBAs were found in the manufacture of fabricated metal products/other manufacturing industry. On the other hand, there were twelve CBAs wherein all differential pay provisions that were above the minimum legal requirements. The remaining CBAs did not stipulate on pay differentials.

CBAs negotiated by independent unions contained significantly more salary and wage provisions than those negotiated by federated unions. They also contained more provisions on premium pay for work done on regular holidays, including work in excess of eight hours, work done in excess of eight hours on special holidays, and on rest days. On the other hand, CBAs negotiated by privately owned companies contained significantly more rest day differential pay provisions, including work done in excess of eight hours on a rest day.

No significant correlation was found between the incidence of salary and wage differential pay provisions and company location. Further, no significant difference was found with respect to the incidence of salary and wage differential pay provisions between the different industry classifications.

ii. Health and safety benefits
The most commonly negotiated health and safety benefits were: hospitalization (67 percent), medical/dental clinic/free medical consultation and family planning (60 percent), emergency medical material or medicine and support for accidents and annual general check-up (40 percent), and group life and accident insurance (36 percent). Other health and safety provisions found in the CBAs in the manufacturing industry were safety equipment (19 percent), health incentive (14 percent), and medicine allowance (11 percent).

The incidence of medical/dental clinic and free medical consultation, health incentive, group life and accident insurance, and hospitalization provisions were found to have a direct correlation to company size. However, family planning provisions were found to have a negative correlation to company size; larger companies stipulated less often on family planning benefits than smaller companies. Likewise, the total number of health and safety benefits was also found to have a direct correlation to company size.

The CBAs negotiated by federated unions contained more individual hospitalization benefits and safety equipment provisions than CBAs by independent unions. CBAs negotiated by publicly traded companies contained more group life and accident insurance benefit provisions than CBAs by privately owned companies.

CBAs negotiated by privately owned companies contained significantly more safety equipment provisions than CBAs by publicly listed companies. Further, CBAs negotiated by companies located within the NCR contained significantly more provisions on emergency medical support for accidents, while CBAs of companies located outside the NCR contained significantly more hospitalization insurance benefit provisions.

With respect to differences between the manufacturing industries, companies in the manufacture of fabricated metal products, machinery and equipment/other manufacturing, textile, wearing apparel and leather, and basic metal industries stipulated significantly more often on health and safety benefit provisions than companies in the wood and wood products including furniture and fixtures industry. The outcomes are consistent with their relative labor productivities or performances.

iii. Leave benefits
The most frequently cited leave provisions were vacation (included in 95 percent of the CBAs), sick (in 92 percent), paternity (in 67 percent), bereavement (in 57 percent), maternity (in 52 percent), and emergency/calamity (in 48 percent).

The shortest vacation leave was five days, while the longest was forty-two days found in the fabricated metal products, machinery and equipment industry and negotiated by a federated union.

With regard to sick leave, the shortest was three days, while the longest was thirty days found in four CBAs in the manufacture of food, beverages and tobacco industries three of which were negotiated by publicly owned companies. With regard to TB/cancer/heart ailment leave, the longest was one hundred twenty days followed by thirty days, found in the fabricated metal/other manufacturing and manufacture of food, beverages and tobacco industries.

With regard to paternity leave, the shortest was three days (below the seven days legal requirement), while the longest was twenty days (total of paternity, emergency and bereavement leaves) found in the manufacture of food, beverages and tobacco industry. With regard to bereavement and emergency/calamity leave benefit provisions, the shortest was one day, while the longest, as mentioned earlier in this paragraph, was to twenty days.

Practically all the CBAs with maternity leave benefit provisions merely stipulated on the minimum legal requirement (60 days in case of normal delivery and 78 days in case of delivery by caesarian section). One CBA stipulated on sixty-one days in case of normal delivery and eighty-one days in case of delivery by caesarian section found the manufacture of fabricated metal products, machinery and equipment/other manufacturing industry.

Birthday leave benefit provisions were found eighteen CBAs and were mostly negotiated by federated unions. With regard to leave without pay provisions found in seven CBAs the shortest was thirty days; the longest was one hundred eighty days, while the average was 144 days. The provisions were found in the manufacture of food, beverages and tobacco and the fabricated metal products/other manufacturing industries.

Wedding leave benefit provisions were found in six CBAs in fabricated metal products/other manufacturing industry negotiated mostly by large companies and by independent unions.

Seminar leave benefit provisions were found in five CBAs, four in the manufacture of fabricated metal products/other manufacturing industry and one in the manufacture of food, beverages and tobacco industry. The shortest was thirty days while the longest was one hundred eighty days and negotiated mostly by large companies and by independent unions.

Considering the other kinds of leaves that were included in practically all of the CBAs, only three CBAs stipulated on a service incentive leave. The shortest was three days (below the five days minimum legal requirement), while the longest was eight days.

The following leave benefit provisions were found to have direct correlations to company size: bereavement, maternity, paternity, and study/special leave. Further, CBAs by larger companies stipulated more often on normal/compulsory retirement, early retirement and death benefits.

CBAs negotiated by federated unions, on the other hand, contained significantly more emergency/calamity leave benefit provisions than those negotiated by independent unions. CBAs negotiated by independent unions, however, stipulated significantly more often on study/special leave benefits than federated unions.

No significant correlation was found between leave benefit provisions and company ownership, as well as location.

With regard to differences between the industry classifications, companies in the manufacture of fabricated metal products, machinery and equipment/other manufacturing industry contained significantly more leave benefit provisions than companies in the manufacture of chemicals and chemical, petroleum, coal, rubber and plastic products sub-industry. The outcome is consistent with their relative labor productivities or performances.

iv. Post-employment benefits
Post-employment benefit provisions include retirement, separation due to retrenchment/redundancy, permanent disability, and death benefits. Fifty-six percent of the CBAs stipulated on normal/compulsory retirement, while a smaller number (twenty-three percent) stipulated on early retirement.

There were many different retirement schemes indicated in the CBAs. Most CBAs however adopted the minimum legal requirement that is a minimum of one-half month salary for every year of service. Retirement benefits higher than what the law provides were usually awarded for longevity. In one CBA, for example, retirement after thirty to thirty-five years of service was rewarded with a retirement benefit of 225 percent to 250 percent of the employee’s monthly salary/year.

Twenty-six percent of the CBAs stipulated on redundancy, twenty-five percent on retrenchment, and thirteen percent on non-specified types of separation. Payments were mostly just equivalent to the minimum legal requirement. Stipulations above the legal requirement, for example, payment of two months per year of service were also found in cases where the employee’s length of service is more than sixteen years.

Thirty-one percent of the CBAs stipulated on death benefits, while thirty percent stipulated on total/permanent disability benefits. There were also many different compensation schemes indicated in the CBAs. However, the benefit usually ranged from fifty to one hundred percent of the employee’s salary per year.

The following post-employment benefit provisions were found to have direct correlations to company size: normal/compulsory retirement, early retirement and death benefits. CBAs negotiated by federated unions stipulated more often on non-specified severance/separation benefits than independent unions. CBAs negotiated by privately owned companies stipulated on significantly more post-employment benefits than publicly owned companies. Further, CBAs negotiated by companies located within the NCR stipulated significantly more often on resignation benefits than companies located outside the NCR.

No significant difference was found between the different industry classifications with regard to the total number of their CBA post-employment benefit provisions.

v. Other benefits
The CBAs contained stipulations on a wide array of other monetary and non-monetary benefits not required by law, except for the 13th month pay. Sixty-one percent of the CBAs stipulated on burial/financial assistance for a deceased employee, fifty-eight percent on a uniform allowance, forty-nine percent on burial assistance in case of death of a family member, forty-one percent on a signing bonus, thirty-nine percent on a Christmas/year-end bonus, twenty-eight percent on a company summer outing, twenty-five percent on training and development of employees and sports/recreational activities, twenty-four percent on service awards/longevity pay, twenty-two percent on a Christmas party, twenty percent on a rice subsidy, and thirteen percent on free meals and likewise on perfect attendance incentives.

The following other benefit provisions were found to have direct correlations to company size: burial assistance for a deceased employee, service awards/longevity pay, burial assistance for a deceased family member, educational benefits, and calamity assistance.

CBAs negotiated by publicly traded companies stipulated more often on the following: service award/longevity pay, signing bonus, rice subsidy, mid-year bonus, free meals, educational benefits, and housing allowance, while CBAs by privately owned companies stipulated significantly more often on just the 13th month pay.

CBAs negotiated by companies located outside the NCR stipulated more often on rice subsidy, mid-year bonus, and free meals, while companies located within the NCR stipulated more often on burial assistance and the 13th month pay. No significant correlation was found between other benefit provisions and union registration.

With regard to the differences between the industry classifications, companies in the manufacture of fabricated metal products, machinery and equipment/other manufacturing industries industry stipulated significantly more often on other benefit provisions than companies in the manufacture of food, beverages and tobacco and manufacture of chemicals and chemical, petroleum, coal, rubber and plastic products industries. The outcomes are consistent with their relative labor productivities or performances.

B. Political issues
The study examined the following political issues: union recognition/scope and coverage, union security, union rights and privileges, job security/security of tenure, employee discipline, promotions and transfers, hours of work, grievance machinery, labor-management relationship, including provisions on the establishment of a labor-management committee and strikes/lockouts, and issues concerning the implementation of the CBA.

Union recognition/scope and coverage
Ninety-seven percent of the CBAs stipulated on the recognition of the union as the sole and exclusive bargaining agent representing the employees belonging to the bargaining unit, including clauses enumerating included and excluded positions.

Union security
Ninety-nine percent of the CBAs stipulated on union security to preserve and protect the union’s existence and strength as an organization by ensuring continued membership by employees. Two percent of the CBAs stipulated on closed shop requiring union membership prior to hiring, forty-nine percent stipulated on union shop requiring union membership upon hiring, while twenty-two percent stipulated on modified union shop excluding from the requirement employees hired before the adoption of the CBA. Forty-eight percent stipulated on maintenance of membership in good standing during the validity of the CBA.

At least ninety-five percent of the CBAs stipulated on the suspension or dismissal of employees upon demand by the union particularly in case the worker performs an act inimical to union interests. Some of the grounds on which the union may demand for suspension or dismissal are: resignation from the union, violation of the union’s constitution and by-laws, non-payment of union dues, fees, and other assessments, and disloyalty or joining another labor union. Only five percent of the CBAs stipulated on management’s provision to the union of a list of employees, with dates of hiring, positions and salaries.

Union rights/privileges
Ninety-six percent of the CBAs stipulated on check-off of union dues and agency fees. Eighty-five percent stipulated on union leave. The shortest leave was three days while the longest was one thousand days. Majority of the contracts stipulated on provision of an office to the union and/or a bulletin board (sixty-three percent) and on financial support by management to union socials and gatherings (fifty-three percent).

Forty-one percent of the CBAs stipulated on union-company communication involving provision to the union of information concerning company personnel policies and the union’s participation in disciplinary actions involving employees, thirty-two percent on the company’s responsibility to print and disseminate the CBA to all concerned employees, thirty percent on free access by union officers to company premises in the performance of their duties, twenty-three percent on contribution by the company to labor day affairs; fourteen percent on financial support to employees’ education or welfare, and three percent to contribution by the company to a union or employees’ cooperative.

Security of tenure
Ninety-seven percent of the CBAs contained an enumeration and definition of the various types of employment generally classified as follows: temporary, seasonal, casual, probationary, contract or project, regular, and apprentice or trainee.

Seventy-seven percent of the CBAs stipulated on security of tenure covering job security and the observance of due process in employment termination. Seventy-five percent stipulated on seniority, including its definition, the reckoning date in determining seniority and classification of seniority, for example, by section, department or company-wide.

Fifty-seven percent of the CBAs stipulated on rules concerning lay-off and rehiring generally following the “last in-first out” rule in termination or the “last out-first in“ rule in rehiring. Thirty percent stipulated on requirements prior to transfer of employees generally including prior advice and/or consultation with the employee together with a union representative, if the employee so desires.

Fourteen percent of the CBAs stipulated against labor contracting or engaging the services of a labor contractor or agency to supply workers to perform activities or functions pertaining to regular positions. Ten percent stipulated on prior negotiation to maintain employment in case of sale, lease, transfer, merger, etc.

Nine percent of the CBAs stipulated on the provision of written appointments to hired employees to include their job titles, job description, duties and responsibilities, salaries, and other terms and conditions of employment within a certain period from hiring. One percent stipulated on the maintenance sections and departments.

Employee discipline
Seventeen percent of the CBAs stipulated on prescription of offenses and grievances, while three percent stipulated on prescription of penalties and their effects on promotion and transfer.

Promotion and transfer
Twenty-nine percent stipulated concerning criteria for promotions and transfers, fourteen percent on procedures to be followed in promotions and transfers, while thirteen percent stipulated on requiring promotions from within or priority in the filling up of vacant and new positions. Ten percent stipulated on the hiring of a qualified family member or relative of a retired, deceased or disabled employee.

Hours of work
Seventy-three percent of the CBAs stipulated on regular working hours, fifty-one percent on day-off, sixteen percent on provisions concerning change of shift or work schedule, two percent on provisions concerning working students. Thirty-six percent stipulated on other provisions such as time-in and coffee or meal breaks.

One CBA stipulated on a regular working day consisting of nine hours (in excess of the legal requirement that regular working hours should not exceed eight hours a day). Although the law guarantees the maximum number of hours of work in a day, CBA stipulations to this effect promote employees’ welfare by ensuring that they will have sufficient time for rest and recreation as well as for union activities.

Grievance machinery
Practically all of the CBAs (ninety-eight percent) stipulated on grievance machinery procedures as required by law. The grievance procedure usually involves four levels: department, human resource or personnel department, general manager or top management, and arbitration. The stipulations generally contained the number of days allowed for settlement of the dispute at each level and the persons who may participate. Ninety-six percent stipulated on appeal prescription, sixty-five percent on time-off with pay for attendance by union officers and members in meetings, conferences or hearings, while sixty-one percent included and enumeration of principles involved in dispute resolution.

Labor-management relationship
Ninety percent of the CBAs contained a “no strike, no lock-out” clause which prohibits the declaration of a strike or lockout during the effectivity of the CBA. Forty-six percent provided for the establishment of a labor-management council (LMC), including its composition and conduct of meetings. LMCs were constituted for purposes of discussing matters involving productivity, grievances, labor-management relations as well as of enabling employees to participate in policy and decision-making affecting their rights, benefits and welfare.

Provisions concerning the CBA
Ninety-four percent of the CBAs included a provision on the effectivity and duration of the CBA. Further, sixty-six percent stipulated on the automatic extension of the CBA upon expiration. Forty-four percent included a “validity, saving or separability” clause intended to preserve remaining valid provisions should any provision of the CBA be rendered as invalid.

The following political provisions that were found to be directly correlated to company size: union leave, seniority, written appointments, criteria for promotion and transfer, promotion and transfer procedures, employment of next of kin, day-off, and automatic extension of CBA. Company size was however found have a negative correlation to prohibitions against labor contracting. In other words, CBAs negotiated by larger companies contained significantly less stipulations against labor contracting than smaller companies.

CBAs negotiated by federated unions contained significantly more stipulations than independent unions on the following political provisions: contribution by the company to union affairs on labor day, procedures on lay-off and rehiring, protection in case of sale, lease, transfer or merger, prescription of offenses, and procedures on promotions and transfers. On the other hand, CBAs negotiated by independent unions contained significantly more stipulations on the following political provisions: regular working hours, procedures in changes of shift schedules, and time-off with pay for attendance at union matters, including grievance conferences.

CBAs negotiated by publicly traded companies contained more stipulations than privately owned companies on the following political provisions: union office and bulletin board, company responsibility for printing of the CBA, promotions from within and priority in the filling-up of vacant and new positions, time-off with pay for attendance at union matters, labor-management committee, and separability clause.

CBAs negotiated by companies located outside the NCR contained significantly more stipulations than companies located within the NCR on the following political provisions: union leave, company responsibility for printing of the CBA, time-off with pay for attendance at union matters, and labor-management committee. On the other hand, CBAs by companies located within the NCR contained significantly more stipulations on employee loan, welfare and/or educational fund.

No significant difference was found between the different manufacturing industries with regard to the total number of political provisions found in their CBAs.

C. Discussion
There is a need for the government to monitor strict compliance with minimum labor standards and/or implement additional measures for their enforcement as the study found several instances in which CBA stipulations did not meet minimum legal requirements.

To summarize, eleven CBAs in the study (12.5 percent of the 88 CBAs containing stipulations concerning labor standards) contained stipulations that did not meet labor standards set by the law. Seven CBAs stipulated on pay differentials that were below the minimum legal requirements. Three other CBAs stipulated on leave benefits that did not meet the minimum requirements. In addition, one CBA was found to stipulate on regular working hours that are in excess of the maximum allowed by law.

Companies explain some of the instances of non-compliance with minimum labor standards as being due to a trade-off between the standard and another benefit, for example, workers are required to log-in nine hours of regular work on weekdays in exchange for not having to report for work on Saturdays. However, it must be noted that minimum labor standards are non-negotiable being intended to safeguard employees’ welfare. Further, work in excess of eight hours being overtime work is entitled to premium pay while Saturday work is only entitled to regular pay.

Seventy-six percent stipulated on benefits that were just equivalent to minimum legal requirements. Considering the many instances wherein minimum labor standards have been disregarded, CBA stipulations on minimum labor standards at least serve as a guarantee that minimum legal requirements will be met.

The CBAs stipulated on other benefits, such as company outings, uniform, and other health and safety benefits, although they are not required by law. This implies that CBA negotiation tends to substitute group benefits, which are cheaper, for wage and salary increments beyond the minimum requirement.

Overall, a significant correlation was found between company size and the total number of economic and political stipulations in CBAs in the study implying that bigger companies stipulated on more benefits than smaller companies. The study found that independent unions negotiated more salary and wage provisions than federated unions. The study also found that privately owned companies approved more post-employment benefits than publicly owned companies.

Further, companies in the textile, wearing apparel and leather industry stipulated on significantly more benefits than companies in the manufacture of chemicals and chemical, petroleum, coal, rubber and plastic products industry. Companies in the manufacture of fabricated metal products, machinery and equipment/other manufacturing industry stipulated on significantly more benefits than companies in the manufacture of chemicals and chemical, petroleum, coal, rubber and plastic products industry. The outcomes are consistent with their relative labor productivities or performances.

The study indicates that the kind and number of CBA provisions in companies in the study were influenced by union registration, company size and ownership, as well as location. For example, CBAs negotiated by federated unions stipulated more often on company contribution to union affairs on labor day than independent unions. Further, CBAs negotiated by companies located within the NCR stipulated more often on burial assistance in case of death of a family member than companies located outside the NCR.

Overall, however, the type and number of provisions contained in the CBAs were significantly determined by the capacity of the companies involved in the negotiation. Bigger companies appeared to have more flexibility in negotiating CBA benefits than smaller companies.

With regard to differences between industry classifications with respect to the total number of CBA stipulations, the outcomes show that overall differences between industries are consistent with the industries’ relative labor productivities or performances.

4. Case analysis: Dole Philippines, Inc.
Dole Philippines, Inc. Pineapple Division is located in Polomolok, Tupi, and South Cotabato and classified under food, beverages and tobacco manufacturing. It is one of the largest manufacturing companies in the Philippines with four thousand three hundred sixty-one employees covered by its CBA. Its CBA has a term of five years, from February 11, 2001 to February 10, 2006. However, the parties have agreed to renegotiate wages and other economic provisions within three months prior to the end of the third year or on February 11, 2004. The collective bargaining agent at the time of this writing is the Asosasyon sa mga Mamumuo sa Dole Alang sa Kalinaw Demokratikong Nasod-National Federation of Labor Unions-Kilusang Mayo Uno (AMADO KADENA-NAFLU-KMU), succeeding the Pawis ng Makabayang Obrero-National Federation of Labor (PAMAO-NFL) in the certification election conducted in February 2001.

The following were the company’s signatories to the CBA: the vice-president and managing director, vice-president for human resources, manager for employee/labor relations, legal department manager, manager for recruitment and compensation, financial planning manager, fruit receiving manager, preparation & cook room manager, manager for benefits & HRIS administration, cultivation manager, and the legal officer.

The following were the members of the union negotiating panel: the national president, secretary-general, regional coordinator, district coordinator, local president, vice-president for internal affairs, vice-president for external affairs, secretary, treasurer, auditor, eleven members of the union’s board of directors, eight union members, and the legal counsel.

The following were the problems and issues that the company encountered during negotiations (based on interviews with the Labor Relations Manager, Mr. Robert Buranday, and his technical assistant, Mr. Boy Limpag):

Power struggle between unions
The three unions representing three different groups of employees in the company tried to outdo each other in terms of CBA benefits. They spread rumors to intrigue members of their rival unions in order to hinder their officers from generating their consensus and thus block ratification of the negotiated CBA.

Hostility during negotiations
The Amado-Kadena NAFLU-KMU group won over the incumbent NFL-affiliated union in the certification election among hourly workers in February 2001. The new collective bargaining agent threatened to stage strike in a deadlock in negotiations in June 2001. Timely intervention by the National Conciliation and Mediation Board (NCMB) successfully averted the strike.

The following were the factors that contributed to the company’s success in negotiations:

Knowledge, skill and experience of the different members of the negotiating panel
Members of the management panel are managers of the different operating departments and thus familiar with issues and their implication on their operations.

Familiarity with CBA issues
The management panel conducted meetings to discuss the issues to be tackled prior to each negotiation.

Maintaining a friendly atmosphere during negotiations
Negotiations were conducted in a friendly atmosphere where issues were openly presented and discussed. Attempts to destroy the credibility of the opposing panel were disallowed in order to avoid animosity. Claims were supported by statistics.

Friendly interactions outside the negotiating table
Friendly interactions by panel members outside of the negotiating table also helped build and atmosphere of trust between the parties. It minimized confrontational attitudes at the negotiating table.

Company size
The size of their company influenced on the quality of the outcome of collective bargaining since bigger companies generally have more flexibility in negotiating benefits than smaller companies. However, they qualified that skill by the negotiating panel had more impact on the final outcome of negotiations than company size.

Timely government intervention
Timely government intervention was an important factor in averting hostility during negotiation. In their case, the government has always intervened soon after either the company or the union has declared a deadlock in negotiation taking into consideration their size and the possible wide-ranging impact of a strike or lockout.

The following were the strategies adopted by the company during negotiations:

Research on the background of the national federation
Management representatives studied the CBAs that have been concluded by the collective bargaining agent’s national federation to determine what benefits it usually negotiated for were.

Research on CBAs of other similarly-situated manufacturing companies
Management representatives studied CBAs by similarly situated manufacturing companies, e.g., Del Monte Philippines, Inc., in order to determine what benefits have been negotiated on by the other companies.

Preparation of a business report
Management prepared a report on issues confronting the business (e.g., glut in pineapple production by individual farmers in Thailand), which may adversely affect the profitability of the company’s Philippine operations for the purpose of challenging the highly optimistic business forecast that they expect from the union.

Preparation of projected financial statements
Management prepared projected financial statements the contents of which were known only among the members of the company’s negotiating panel for the purpose of determining the ceiling of what the company can offer. Management also prepared counteroffers to the offers that they expected the union to make.

Meeting by members of both the company and union negotiation panels among themselves prior to each negotiation meeting
When negotiation meetings were scheduled in the afternoon, the company and union negotiating panels held closed-door meetings among themselves in the morning of the same day when the negotiation meeting will be held.

Starting from a low/high bargaining position
Management expected the union to start from a very high bargaining position, for example, through a proposal for a thirty percent annual wage increase. On the other hand, management will start from a low bargaining position, for example, a counter-proposal for a three percent annual wage increase. Both parties however expect that they will arrive at an agreement that is somewhere in between, for example, the final negotiated annual wage increase was ten percent.

Review of the final draft of the CBA before signing
Although the company was responsible for taking down the minutes of negotiations, the union secretary also took down minutes of the meetings. The final draft of the CBA was compared against the minutes before they were signed to check if all the provisions that were agreed upon are included.

The following were the results of their negotiations: renewal of the annual wage increase of ten percent per year, conversion of the company’s founding day from a non-paid to a paid special holiday, increase in signing bonus to thirteen thousand five hundred pesos with retroactivity feature to include all claims for pay differentials, addition of a one-time lump sum payment of one thousand five hundred pesos as water and electric bill subsidy, increase in meal allowance in case of overtime work to twelve pesos for overtime of at least two hours and to twenty-seven pesos for overtime of at least three hours, addition of rice allowance of three hundred ninety pesos per month, inclusion of additional pick-up points or locations for the free transportation service to industrial employees, increase in the family education assistance grant to one thousand five hundred pesos a year, increase in company-provided group life insurance coverage to two hundred thousand pesos per employee, increase in confinement assistance in case of hospitalization of employees’ dependents to fifty thousand pesos per illness per year, establishment of a joint committee to review performance of the existing health and medical organization carrier, increase in the transportation assistance allowance in case of employees’ hospitalization to the highest round-trip plane economy fare or cash equivalent for a trip to Manila and Cebu and two thousand pesos for a trip to Davao, increase in the number of members in the working group to twelve and increase in the frequency of meetings to once a month, increase in the number of days of union leave to one thousand days a year, grant of regular time to the local union president for purposes of attending to union and company activities on a full-time basis, assistance in the establishment of a union office from funds to be raised through joint efforts to sell a subdivision lot owned by the company, plus an additional fifty thousand pesos from the company, replacement of the health bonus with a bottom line bonus equivalent to a maximum of six weeks basic pay or a pro-rata equivalent thereof, depending on the attainment of goals set by the committee, and reduction in the company’s contribution to the union’s education and research endowment fund from eight hundred fifty thousand to eight hundred thousand pesos.

Apart from the annual wage increase, all the items negotiated in the new CBA concerned other benefits. Night shift and premium pay differentials for work on legal holidays and work in excess of eight hours as well as leave benefits, post-employment benefits, and other pre-existing benefits to individual employees were no longer adjusted since they were already all above the industry average.

5. Summary and conclusion
Significant correlations were found between union and company characteristics, namely, union registration, type of ownership, company size and location, and the outcomes of collective bargaining negotiations consisting of salary and wage provisions, health and safety, leave, post-employment, and other economic benefits, and political provisions.

The study found that the quantity as well as the quality of negotiated CBA benefits in the Philippine manufacturing industry is influenced by several factors including company size. Larger companies have more flexibility in negotiating benefits than smaller companies. CBA provisions also varied depending on union registration ownership, and company location. With limited economic resources available, CBA provisions tended to include benefits that were more necessary or useful to workers and unions depending on their particular circumstances.

Significant differences were found between industry classifications with respect to the outcomes of collective bargaining negotiations with respect to the mean number of their CBA provisions, which are not inconsistent with their relative labor performances and productivities.

Minimum legal requirements were not met in more that ten percent of the CBAs in the study. Moreover, approximate seventy-percent of the CBAs stipulated only on just the minimum legal requirement with respect to provisions concerning labor standards.

Considering that only a fraction of the total number of workers are unionized, and, further, that not all unionized workers are covered by CBAs, these findings indicate that only a small fraction of workers have benefited from their right to collective bargaining. Further, it would seem that the objective of the provision of minimum labor standards, that is, to ensure decent working conditions of employees have also not been fully met.

The study also indicated that generally employers still wield more power at the bargaining table than unions and workers. This may be due in large part to the high unemployment rate. It may also be due to the inherently legalistic nature of collective bargaining and restrictions on workers’ rights to organize and bargain collectively. Other factors include lack of sincerity by management in negotiation and lack of skills by union negotiators. Moreover, the study also found that the government, particularly the NCMB, plays a key role in the timely resolution of disputes arising from negotiations.

6. Recommendations
Further research should be conducted on collective bargaining since it is useful in generating and disseminating information that for the protection of labor and the promotion of social justice. An empowered labor force can contribute much to a company’s performance, profitability, expansion, and growth, as well as to national development (Edralin 2003).

Companies and employer organizations should promote respect for the workers’ rights to organize and to bargain collectively and must observe at least the minimum legal requirements. Research, preparation of projected financial statements and planning the composition of the negotiating panel prepare them for negotiations.

Unions and federations should aim to develop their members’ negotiation skills. They must also ensure that CBA stipulations meet at least minimum labor standards. Non-governmental agencies may assist through the conduct of researches and seminars. They must promote and monitor compliance with minimum labor standards.

Government agencies must strictly enforcce compliance with minimum labor standards and clear perceived obstacles in the exercise by workers of their right to organize and to bargain collectively.

References

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