PA 328 Labor- Management
Relations
Chapter Five
COLLECTIVE
BARGAINING
LARA THEA LARA ENDAYA
REPORTER
Objectives
At the end of this chapter, the we will be able
to:
• Define collective bargaining;
• compare individual bargaining with collective
bargaining;
• name the strengths of collective bargaining;
• identify steps in collective bargaining
procedure;
• determine negotiation techniques and issues;
and
• explain petition for certification on election
PA 328 LABOR-MANAGEMENT RELATIONS
Collective bargaining is the process by which workers
collectively negotiate agreements with their employers. It
takes place where workers are collectively organized in a
trade union which negotiates on their behalf with a
management which recognizes the union's right to represent
their members.
PA 328 LABOR-MANAGEMENT RELATIONS
Views on Collective
Bargaining
Collective bargaining constitutes one of the core
tools for trade unions. The International Labor
Organization (ILO) defines it as voluntary
negotiations between employers or employers'
organizations and workers' organization, with a
view to the regulation of terms and conditions of
employment by collective agreements.
PA 328 LABOR-MANAGEMENT RELATIONS
Views on Collective
Bargaining
The object of collective bargaining is to include a
Collective Agreement. The agreement may deal
with pay, health care, pensions and other
benefits, hours, leave, job, health and safety
policies, ways to balance work and family and
more.
PA 328 LABOR-MANAGEMENT RELATIONS
Views on Collective
Bargaining
Collective bargaining refers to the process or
means of bargaining through dialogue between
the partners involved. The result thereby is not
necessarily an agreement. Collective bargaining
is used as a method to improve terms and
conditions of employment.
PA 328 LABOR-MANAGEMENT RELATIONS
Views on Collective
Bargaining
Trade unions and employers share power of rule
making in this process. Outcomes of the
collective bargaining process, as agreements are,
may provide for ensuring security for workers as
well as for industrial peace for employers. Thus,
collective bargaining can improve the industrial
relations climate.
PA 328 LABOR-MANAGEMENT RELATIONS
Views on Collective
Bargaining
This is also the base for a trusty relationship
between the social partners which are the trade
unions and workers representatives on the one
side and the employers and employers’
organizations on the other side. Because of the
sharing of decision power, collective bargaining
is also called "social partnership" if it concerns a
partnership between organized employers
institutions and organized labor institutions.
PA 328 LABOR-MANAGEMENT RELATIONS
Individual Bargaining Collective Bargaining
Individual bargaining is the process by which an The chief advantage of collective bargaining is
employer and an employee negotiate an that the manager will not take a great deal of
individual contract of employment, regulating time in deciding on what action to take on an
the terms and conditions of employment. The individual level. This means the employees
main advantage of individual bargaining is it is have greater influence in the final decision the
a single voice and thus there is no conflict in manager will take.
matters.
PA 328 LABOR-MANAGEMENT RELATIONS
Individual Bargaining Collective Bargaining
It expresses the views and opinions of one So there is a great chance of the employees
person and there is no compromising. The getting what they demand. In contrast, the
major disadvantage of individual bargaining is foremost disadvantage of collective bargaining
that the manager will not take a lot of notice of is that it is seen as depriving the individual
just one person's views or opinions and worker of their individual liberty and voice.
therefore nothing will happen. Thus, there is not
a lot of chance that individual bargaining will
have an influence on company decisions and
policies.
PA 328 LABOR-MANAGEMENT RELATIONS
Strength of Collective Bargaining
In the past collective bargaining was largely
confined to pay and hours work. Today,
collective bargaining covers a much broader
agenda, encompassing such things as
pensions, health and safety, equality of
opportunity, training and personal
development, and consultation on
participative arrangements. Collective
agreements usually stipulate procedures for
dealing with grievances and disciplinary
matters.
8
PA 328 LABOR-MANAGEMENT RELATIONS
Strength of Collective Bargaining
Collective bargaining has been around
since World War II and has developed
rapidly, some collective bargaining
agreements are registered with the
labor court and are binding by law,
however others are only mutually
accepted agreements the advantages
of collective bargaining include:
8
PA 328 LABOR-MANAGEMENT RELATIONS
Strength of Collective Bargaining
• Can lead to high-performance
workplace where labor and
management jointly engage in problem
solving, addressing issues on an equal
standing.
• Provides legally based bilateral
relationship.
• Management's rights are clearly spelled
out.
• Employers' and employees' rights
protected by binding collective
bargaining agreement.
• Multi-year contracts may provide
budgetary predictability on salary and
other compensation issues. 8
PA 328 LABOR-MANAGEMENT RELATIONS
Strength of Collective Bargaining
• Unions may become strong allies in
protecting higher education from the
effects of an economic slowdown.
• Promotes fairness and consistency in
employment policies and personnel
decisions within and across
institutions.
• Employees may choose whether they
want union representation.
• A strong labor management
partnership may enable the workforce
development needed for engaging the
technology revolution.
8
PA 328 LABOR-MANAGEMENT RELATIONS
Duty to Bargain Collectively
An affirmative duty to bargain collectively
and, with it, an obligation to carry out that
duty in "good faith" devolved upon labor
organizations.
PA 328 LABOR-MANAGEMENT RELATIONS
The Process of Collective
Bargaining
MANAGEMENT
UNION CLAIM
PROPOSAL
NEGOTIATIONS
3RD PARTY
REFERRAL
COLLECTIVE
AGREEMENT
PA 328 LABOR-MANAGEMENT RELATIONS
Procedure
The Labor Code prescribes the procedure to
be observed in collective bargaining, as
follows:
1. When a party desires to negotiate an
agreement, it shall serve a written notice
upon the other with a statement of its
proposals. The other party shall make a reply
thereto not later than ten (10) days from
receipt of such notice.
2. Should differences arise on the basis of
such notice and reply, either party may
request for a conference which shall begin no
later than ten (10) days from the date of
request.
PA 328 LABOR-MANAGEMENT RELATIONS
Procedure
3. If the dispute is not settled, the Bureau of
Labor Relations shall intervene upon request
of either or both parties or at its own
initiative and it shall be the duty of the
parties to participate fully and promptly in
the conciliation meetings the Bureau may
call.
4. During the conciliation proceedings in the
Bureau, the parties are prohibited from doing
any act which may disrupt or impede the
early settlement of the disputes.
5. The Bureau shall exert all efforts to settle
disputes amicably and encourage the parties
to submit their case to a voluntary arbitrator.
PA 328 LABOR-MANAGEMENT RELATIONS
By nature and purpose, a collective
bargaining agreement should provide for
pertinent terms and conditions of
employment. Where the agreement does not
touch substantially on the rates of pay,
wages, hours of employment, but merely
establishes a grievance procedure for some
employees, it is incomplete is no bar to
certification election.
PA 328 LABOR-MANAGEMENT RELATIONS
The Civil Code also subjects collective
bargaining agreements to a condition when it
provides that the relations between capital
and labor are not merely contractual. They
are so impressed with public interest that
labor contracts must yield to the public good.
Therefore, such contracts are subject to
special laws on labor unions, collective
bargaining, strikes and lockouts.
PA 328 LABOR-MANAGEMENT RELATIONS
This means that collective bargaining
agreements, which are labor contracts, are
subject to labor laws. Hence, an agreement
which provides terms and conditions of
employment below minimum standards
established by law, or any other matter
contrary to the Labor Code, would render the
agreement null and void as volatile of the
law.
PA 328 LABOR-MANAGEMENT RELATIONS
In the example given, the "sweetheart"
character of the CBA stipulations would
render it nugatory. This is also a ground for
cancellation of the registration of the union
concerned. Other content requirements are
also prescribed by the Labor Code. Thus, it
provides that " the parties to a collective
bargaining agreement shall include therein
provisions that will ensure the mutual
observance of its terms and conditions. They
shall establish machinery for the adjustment
and resolution of grievances arising from the
interpretation or implementation of their
Collective Bargaining Agreement and those
arising from the interpretation or
enforcement of company personnel policies.
PA 328 LABOR-MANAGEMENT RELATIONS
All grievances submitted to the grievance
machinery which are not settled within seven
calendar days from the date of its submission
shall automatically be referred to voluntary
arbitration prescribed in the Collective
Bargaining Agreement. For this purpose,
parties to a Collective Bargaining Agreement
shall name and designate in advance a
voluntary arbitrator or panel of voluntary
arbitrators or include in the agreement a
procedure for the selection of such voluntary
arbitrator or panel.
PA 328 LABOR-MANAGEMENT RELATIONS
By the same token, a CBA which does not
provide for grievance machinery or designate
a voluntary arbitrator or panel of arbitrators,
or a procedure for selecting one, is
substantively defective and will not actuate
the Contract Bar Rule. According to the
Supreme Court, the grievance procedure is a
part of the continuous process of collective
bargaining. It is intended to promote, as it
were, a friendly dialogue between labor and
management as a means of maintaining
industrial peace.
PA 328 LABOR-MANAGEMENT RELATIONS
Negotiation Techniques and
Issues
In simplest terms, negotiation is a discussion Negotiations typically take place because the
between two or more disputants who are trying parties wish to create something new that
to work out a solution to their problem. This neither could do on his or her own, or to resolve
interpersonal or inter-group process can occur a problem or dispute between them.
at a personal level, as well as at a corporate or
international (diplomatic) level.
PA 328 LABOR-MANAGEMENT RELATIONS
Negotiation Techniques and
Issues
The parties acknowledge that there is some When parties negotiate, they usually expect
conflict of interest between them and think they give and take. While they have interlocking
can use some form of influence to get a better goals that they cannot accomplish
deal, rather than simply taking what the other independently, they usually do not want or
side will voluntarily, give them. They prefer to need exactly the same thing. This
search for agreement rather than fight openly, interdependence can be either win-lose or win-
give in or break off contact. win in nature, and the type of negotiation that
is appropriate will vary accordingly.
PA 328 LABOR-MANAGEMENT RELATIONS
Negotiation Techniques and
Issues
The disputants will either attempt to force the Mutual adjustment is one of the key causes of
other side to comply with their demands, to the changes that occur during a negotiation.
modify the opposing position and move toward Both parties know that they can influence the
compromise, or to invent a solution that meets other's outcomes and that the other side can
the objectives of all sides. The nature of their influence theirs. The effective negotiator
interdependence will have a major impact on attempts to understand how people will adjust
the nature of their relationship, the way and readjust their positions during negotiations,
negotiations are conducted, and the outcomes based on what the other party does and is
of these negotiations. expected to do.
PA 328 LABOR-MANAGEMENT RELATIONS
Negotiation Techniques and
Issues
The parties have to exchange information and If one party makes several proposals that are
make an effort to influence each other. As rejected, and the other party makes no
negotiations evolve, each side proposes alternate proposal, the first party may break off
changes to the other party's position and negotiations. Parties typically will not want to
makes changes to its own. This process of give- concede too much if they do no sense that
and-take and making concessions is necessary those with whom they are negotiating are
if a settlement is to be reached. willing to compromise.
PA 328 LABOR-MANAGEMENT RELATIONS
Negotiation Techniques and
Issues
The parties must work toward a solution that Collective bargaining is a voluntary process and
takes into account each person's requirements must be carried out freely and in good faith. It
and hopefully optimizes the outcomes for both. can extend to all terms and conditions of work
As they try to find their way toward agreement, and employment and may regulate the
the parties focus on interests, issues, and relations between employers and workers as
positions, and use cooperative and/or well as between the organizations of employers
competitive processes to come to an and workers. It is for the parties engaged in
agreement. collective bargaining to decide what will be
covered by their negotiations.
PA 328 LABOR-MANAGEMENT RELATIONS
Negotiation Techniques and
Issues
Some of the subjects of collective bargaining However, strict limitations on the subject
identified by the ILO's Committee on Freedom matter of negotiations may be possible in the
of Association include: wages, benefits and case of economic stabilization policies imposed
allowances, working time, annual leave, by a government for example on wage rates. In
selection criteria in case of redundancy, the this case, the restriction should be imposed as
coverage of collective agreement, and granting an exceptional measure and only to the extent
of trade union facilities. that it is necessary.
PA 328 LABOR-MANAGEMENT RELATIONS
Petition for Certification on Election
(PCE)
Certification election is a process of
determining through secret ballot the
sole and exclusive bargaining agent
(SEBA) of all the employees in an
appropriate bargaining unit for the
purpose of collective bargaining. The
union that garners majority of the valid
votes cast in a valid certification election
shall be certified as the SEBA.
PA 328 LABOR-MANAGEMENT RELATIONS
Among the important requirements are the
following:
1. A statement indicating any of the following
• That the bargaining unit is unorganized or
that there is no registered CBA covering the
employees in the bargaining unit;
• If there exists a duly registered CBA, that the
petition is filed within the sixty-day freedom
period of such agreement;
• If another union had been previously
recognized voluntarily or certified in a valid
certification, consent or run-off election, that
the petition is filed outside the one-year
period from entry of voluntary recognition or
conduct of certification or run-off election and
no appeal is pending thereon.
8
PA 328 LABOR-MANAGEMENT RELATIONS
Among the important requirements are the
following:
2. In an organized establishment, the signature of
at least twenty five (25%) percent of all
employees in the appropriate bargaining unit
shall be attached to the petition at the time of its
filing
8
PA 328 LABOR-MANAGEMENT RELATIONS
The petition will be raffled to the Med-Arbiter for
preliminary conference to determine, among
others, the bargaining unit to be represented, the
contending unions, and the possibility of consent
election.
The PCE will be endorsed to an election officer for
the conduct of pre-election conference wherein
the date, time and place of election will be
identified; the list of challenged and eligible
voters will be made, as well as the number and
location of polling places.
8
PA 328 LABOR-MANAGEMENT RELATIONS
Certification election in organized establishments
requires that:
A. a petition questioning the majority status of the
incumbent bargaining agent is filed before the
DOLE within the 60-day freedom period;
B. such petition is verified; and
C. the petition is supported by the written consent
of at least twenty five percent (25%) of all
employees in the bargaining unit.
8
PA 328 LABOR-MANAGEMENT RELATIONS
Certification election in unorganized
establishments shall "automatically be conducted
upon the filing of a petition for certification
election by an independent union or a federation
in behalf of the chartered local or the
local/chapter itself.
8
PA 328 LABOR-MANAGEMENT RELATIONS
REFERENCE
Labor-Management Relations and Negotiations
Prof. Angelita Ong-Serrano
THANK YOU FOR LISTENING!
“Where free unions and collective bargaining are forbidden, freedom is
lost.”
Ronald Reagan
