THE FIVE (5) PRINCIPLES OF TRADE UNIONISM

Trade unions all over the world adhere to five (5) principles of unionism which is already embedded in the policies, structure and programs of TUCP

Solidarity. Workers must confront and assert their rights collectively. A single worker is weak and voiceless. He has no bargaining power alone and finds himself at the mercy of the employer.
Freedom. Unions must remain independent from the control of management, political parties and government. It must continuously assert and protect the interest of workers

Democracy. Unionism is a collective undertaking hence, participative democracy must be manifested in all areas of organizational motions. Members should be consulted in all the actions and decisions to be undertaken by the union.
Unity. Worker’s unity is a source of power which shields workers from the advantage of employers as to resources and influence in society.
Responsibility. Workers are accountable not only to their sectors but to society itself. Responsible unionism means tempered and sober use of workers’ rights, including the indispensable right to strike.


THE RELATIONSHIP BETWEEN LABOR AND CAPITAL

• The relationship between labor and capital have evolved from the early days where Workers were considered as properties of employers that can be sold when they are no longer useful
• To being considered an expense and input in production
• To becoming a partner of capital where labor contribute his/her skills, strength, education, knowledge, etc. to production and receives a corresponding share of the profit for such contribution
• Under a globalized environment, this concept of partnership between labor and capital sprouted and is being promoted especially among enlightened employers, government and unions.
• This is also used by unions to justify demands for increase in benefits embodied in their CBA proposals.

UNDERSTANDING THE LEGAL FRAMEWORK OF THE INDUSTRIAL RELATIONS SYSTEM

• In most countries where the rule of the law is observed, there is a distinct and orderly hierarchy of laws that govern the life of every citizen of that country. This hierarchy has implications on the way a company formulate and implement rules in the workplace; thus, the need for union officers and members to understand this.
• The same is true in the Philippines.

THE HIERARCHY OF LAWS

• There are two principles that arise out of the recognition of this hierarchy that has implications on the relationship between labor and capital.: The first principle is that no law passed shall violate the Constitution where it was sourced. The Constitution is the fundamental law of the land and spells out the basic rights of individuals and the policies of the state. These policies have to be transformed into laws and rules and regulations before they can be implemented with the exception of the Bill of Rights.
• The second principle is that no special law, rule, agreement or practice can violate a higher right. Thus, an agreement between two (2) persons or parties such as a Collective Bargaining Agreement or a Memorandum of Agreement can not violate standards prescribed by the law.

• Source: alevars@yahoo.com

FUNCTIONS OF A LABOR UNION

Labor organizations have different functions. Most unions, however, only cover the hard core functions of collective bargaining and internal union administration.  This could be attributed to the fact that unions in the Philippines vary according to the type of orientation and values adopted by the trade union organization.

THE FIVE (5) FUNCTIONS OF A TRADE UNION ORGANIZATION
*internal union administration
*collective bargaining
*relationship with national and international labor organizations
*legislative, political and community activities
*education and welfare activities

1.  INTERNAL UNION ADMINISTRATION
Embraces the legislative, executive-administrative and  the judicial functions. 
The Legislative function is exercised by the general membership and its governing body known as the         Board of Directors.  There are questions and issues on union activities which only the general membership can decide on, like questions of major policy affecting all members.
The Executive-Administrative functions involves the execution and implementation of union policies as well as the administration of the day-to-day union affairs.
The Judicial function pertains to the discipline of members and is exercised by the investigative committee or Loyalty Board with the general membership as the court of the last resort.

2.  COLLECTIVE BARGAINING
 Includes the preparation, negotiation process, signing, ratification and enforcement of a collective bargaining agreement between the union and the company summarizing terms and conditions of employment covering the workers represented.  Enforcement of the agreement includes the grievance procedure in the CBA, voluntary and compulsory arbitration including use of concerted activity in accordance with the law.

3.  RELATIONSHIP WITH NATIONAL AND INTERNATIONAL CENTERS
 covers activities related to strengthening relationship with federations, trade union centers and global unions.  This would also include supporting programs designed to strengthen the workers’ movement nationally and internationally.
4.  LEGISLATIVE, POLITICAL AND COMMUNITY ACTIVITIES
    Includes activities to further specific interests and support broad programs such as supporting legislations that would be advantageous to labor,  voting for political candidates supportive to labor and undertaking community activities designed to help workers living in the community.

5.  EDUCATION AND WELFARE ACTIVITIES
 Are activities beyond the representative functions of unions in the company and is related more to the workers well-being and development.  This extra functions means a variety of activities including mutual aid benefits, setting up of cooperatives, health care for members, etc.

These varied functions puts the union into a constantly mobile state from meeting with members, holding a grievance meeting with management, collecting union dues, sends delegates to conferences with government units, passes resolutions in favor or against a particular legislation or national issues and campaign to members to vote for candidates who are considered “friends of labor.” Source: alevars@yahoo.com

THE FUNDAMENTAL RIGHTS OF WORKER

RIGHTS OF WORKERS UNDER THE LAW (Source:  Bureau of Working Conditions, DOLE)

*Premium pay for work within 8 hours on a
    1 - Special or rest day: plus 30% of basic daily rate (bdr)
    2 - Rest day falling on a special day:   plus 50% of bdr
    3 - Rest day falling on a regular holiday:  plus     30% of the     200% of bdr

     *Nightshift differential pay- plus 10% of the basic/regular rate for work between 10PM  to 6AM
  
    *Service Incentive Leave - 5 days with pay per year of service

    *Service Charges
     1 - 85% for distribution to rank and file employees
     2 - 15% for losses, breakages, or distribution to managerial
     employees applicable only in establishments collecting
     service charges)

5.  PAYMENT OF WAGES

6. EMPLOYMENT OF WOMEN

7. EMPLOYMENT OF YOUNG WORKERS
8.  SAFE AND HEALTHFUL CONDITIONS OF WORK AND WELFARE SERVICES
9.  SELF-ORGANIZATION AND COLLECTIVE BARGAINING
10.  LABOR EDUCATION THRU SEMINARS, DIALOGUES AND INFORMATION, EDUCATION AND COMMUNICATIONS MATERIAL
11.   PEACEFUL CONCERTED ACTIVITIES IN ACCORDANCE WITH LAW
12.  PARTICIPATION IN POLICY AND DECISION-MAKING PROCESSES AFFECTING THEIR RIGHTS AND BENEFITS

Workers have a right to participate in policy and decision-making processes in matters directly affecting them
They have a right to take part in tripartite activities with government and employer’s organizations
Through their organizations, workers are entitled to representation in tripartite decision-making functions as defined by law, including fixing of wages and resolution of labor disputes.


12.  PARTICIPATION IN POLICY AND DECISION-MAKING PROCESSES AFFECTING THEIR RIGHTS AND BENEFITS

Workers have a right to participate in policy and decision-making processes in matters directly affecting them
They have a right to take part in tripartite activities with government and employer’s organizations
Through their organizations, workers are entitled to representation in tripartite decision-making functions as defined by law, including fixing of wages and resolution of labor disputes.
13.  FREE ACCESS TO THE COURTS AND QUASI-JUDICIAL BODIES AND SPEEDY DISPOSITION OF THEIR CASES
14.  ECC BENEFITS FOR WORK-RELATED CONTINGENCIES
                                                   Medical benefits for sickness/injuries
                                                   Disability benefits
                                                   Rehabilitation benefits
                                                   Death and funeral benefits
                                                   Pension benefits
15.  SSS BENEFITS
                               Maternity
                               Sickness
                               Disability
                               Retirement
                               Death and Funeral
                               Pension



 
WHY WORKERS JOIN UNIONS  

Workers are motivated to join unions for several reasons. These reasons could be classified into three (3) major areas:  economic, psychological and social reasons.
Economic because they want to improve their standard of living.

Psychological because as human beings, the worker has “personality needs for freedom of action, self-expression, and creativity” and a union of his choice provides him “an outlet to channel constructive and emotional expression to this complaints and problems without fear of retaliation.” 
Social because “as member workers acquire the bonds of group relationships and community life through which they are able to do things that individually they cannot.Source :alevars@yahoo.com

THE PHILOSOPHY OF TRADE UNIONS

THE PHILOSOPHY OF TRADE UNIONS:  

 

SOCIAL JUSTICE
The philosophy of trade unions is to distribute the profits from production to the biggest number of people.  This philosophy is what the Philippine Constitution calls social justice.  Social justice is necessary in an economic set-up dominated by capitalism which is the case of the Philippines.
The existence of labor unions is a necessary development of the industrial revolution and is recognized as one of the effective means by which workers may obtain protection of their rights and privileges. 

 

THE MEANING OF SOCIAL JUSTICE
Social justice is the humanization of laws and the equalization of the social and economic forces by the state so that justice in its rational and objectively secular conception may at least be approximated;
For the government, social justice means tilting the scales in favor of the underprivileged at the expense of those who have bounties to share.

How society treats him will determine whether the knife in his hands shall be a caring tool for beauty and progress or an angry weapon for defiance and revenge.  The choice is obvious.  For if we cherish him as we should, we must resolve to lighten the weight of centuries of exploitation and disdain that bends his back but bows not his head.”  (Cebu Royal vs. Deputy Minister of Labor and Ramon Pilones, 153 SCRA 34).

Source: alevars@yahoo.com

DEPARTMENT ORDER NO. 18 - 02

DEPARTMENT ORDER NO. 18 - 02
(Series of 2002)
RULES IMPLEMENTING ARTICLES 106 TO 109
OF THE LABOR CODE, AS AMENDED

By virtue of the power vested in the Secretary of Labor and Employment under Articles 5 (Rule-making) and 106 (Contractor or Subcontractor) of the Labor Code of the Philippines, as amended, the following regulations governing contracting and subcontracting arrangements are hereby issued:
Section 1. Guiding principles. - Contracting and subcontracting arrangements are expressly allowed by law and are subject to regulation for the promotion of employment and the observance of the rights of workers to just and humane conditions of work, security of tenure, self-organization, and collective bargaining. Labor-only contracting as defined herein shall be prohibited.

Section 2 . Coverage. - These Rules shall apply to all parties of contracting and subcontracting arrangements where employer-employee relationship exists. Placement activities through private recruitment and placement agencies as governed by Articles 25 to 39 of the Labor Code are not covered by these Rules.

Section 3. Trilateral Relationship in Contracting Arrangements. - In legitimate contracting, there exists a trilateral relationship under which there is a contract for a specific job, work or service between the principal and the contractor or subcontractor, and a contract of employment between the contractor or subcontractor and its workers. Hence, there are three parties involved in these arrangements, the principal which decides to farm out a job or service to a contractor or subcontractor, the contractor or subcontractor which has the capacity to independently undertake the performance of the job, work or service, and the contractual workers engaged by the contractor or subcontractor to accomplish the job work or service.

Section 4. Definition of Basic Terms. - The following terms as used in these Rules, shall mean:
(a) "Contracting" or "subcontracting" refers to an arrangement whereby a principal agrees to put out or farm out with a contractor or subcontractor the performance or completion of a specific job, work or service within a definite or predetermined period, regardless of whether such job, work or service is to be performed or completed within or outside the premises of the principal.

(b) "Contractor or subcontractor" refers to any person or entity engaged in a legitimate contracting or subcontracting arrangement.

(c) "Contractual employee" includes one employed by a contractor or subcontractor to perform or complete a job, work or service pursuant to an arrangement between the latter and a principal.

(d) "Principal" refers to any employer who puts out or farms out a job, service or work to a contractor or subcontractor.
Section 5. Prohibition against labor-only contracting. - Labor-only contracting is hereby declared prohibited. For this purpose, labor-only contracting shall refer to an arrangement where the contractor or subcontractor merely recruits, supplies or places workers to perform a job, work or service for a principal, and any of the following elements are present:
(i) The contractor or subcontractor does not have substantial capital or investment which relates to the job, work or service to be performed and the employees recruited, supplied or placed by such contractor or subcontractor are performing activities which are directly related to the main business of the principal; or

(ii) the contractor does not exercise the right to control over the performance of the work of the contractual employee.
The foregoing provisions shall be without prejudice to the application of Article 248 (C ) of the Labor Code, as amended.

"Substantial capital or investment" refers to capital stocks and subscribed capitalization in the case of corporations, tools, equipment, implements, machineries and work premises, actually and directly used by the contractor or subcontractor in the performance or completion of the job, work or service contracted out.

The "right to control" shall refer to the right reserved to the person for whom the services of the contractual workers are performed, to determine not only the end to be achieved, but also the manner and means to be used in reaching that end.

Section 6. Prohibitions. - Notwithstanding Section 5 of these Rules, the following are hereby declared prohibited for being contrary to law or public policy:
(a) Contracting out of a job, work or service when not done in good faith and not justified by the exigencies of the business and the same results in the termination of regular employees and reduction of work hours or reduction or splitting of the bargaining unit;

(b) Contracting out of work with a "cabo" as defined in Section 1 (ii), Rule I, Book V of these Rules. "Cabo" refers to a person or group of persons or to a labor group which, in the guise of a labor organization, supplies workers to an employer, with or without any monetary or other consideration whether in the capacity of an agent of the employer or as an ostensible independent contractor;

(c) Taking undue advantage of the economic situation or lack of bargaining strength of the contractual employee, or undermining his security of tenure or basic rights, or circumventing the provisions of regular employment, in any of the following instances:
(i) In addition to his assigned functions, requiring the contractual employee to perform functions which are currently being performed by the regular employees of the principal or of the contractor or subcontractor;

(ii) Requiring him to sign, as a precondition to employment or continued employment, an antedated resignation letter; a blank payroll; a waiver of labor standards including minimum wages and social or welfare benefits; or a quitclaim releasing the principal, contractor or subcontractor from any liability as to payment of future claims; and

(iii) Requiring him to sign a contract fixing the period of employment to a term shorter than the term of the contract between the principal and the contractor or subcontractor, unless the latter contract is divisible into phases for which substantially different skills are required and this is made known to the employee at the time of engagement;
(d) Contracting out of a job, work or service through an in-house agency which refers to a contractor or subcontractor engaged in the supply of labor which is owned, managed or controlled by the principal and which operates solely for the principal;

(e) Contracting out of a job, work or service directly related to the business or operation of the principal by reason of a strike or lockout whether actual or imminent;

(f) Contracting out of a job, work or service being performed by union members when such will interfere with, restrain or coerce employees in the exercise of their rights to self organization as provided in Art. 248 (c) of the Labor Code, as amended.
Section 7. Existence of an employer-employee relationship. - The contractor or subcontractor shall be considered the employer of the contractual employee for purposes of enforcing the provisions of the Labor Code and other social legislation. The principal, however, shall be solidarily liable with the contractor in the event of any violation of any provision of the Labor Code, including the failure to pay wages.
The principal shall be deemed the employer of the contractual employee in any of the following cases as declared by a competent authority:

(a) where there is labor-only contracting; or

(b) where the contracting arrangement falls within the prohibitions provided in Section 6 (Prohibitions) hereof.
Section 8. Rights of Contractual Employees. - Consistent with Section 7 of these Rules, the contractual employee shall be entitled to all the rights and privileges due a regular employee as provided for in the Labor Code, as amended, to include the following:
(a) Safe and healthful working conditions;
(b) Labor standards such as service incentive leave, rest days, overtime pay, holiday pay, 13th month pay and separation pay;
(c) Social security and welfare benefits;
(d) Self-organization, collective bargaining and peaceful concerted action; and
(e) Security of tenure.
Section 9. Contract between contractor or subcontractor and contractual employee. - Notwithstanding oral or written stipulations to the contrary, the contract between the contractor or subcontractor and the contractual employee, which shall be in writing, shall include the following terms and conditions:
(a) The specific description of the job, work or service to be performed by the contractual employee;

(b) The place of work and terms and conditions of employment, including a statement of the wage rate applicable to the individual contractual employee; and

(c) The term or duration of employment, which shall be coextensive with the contract of the principal and subcontractor, or with the specific phase for which the contractual employee is engaged, as the case may be.
The contractor or subcontractor shall inform the contractual employee of the foregoing terms and conditions on or before the first day of his employment.

Section 10. Effect of Termination of Contractual Employment. - In cases of termination of employment prior to the expiration of the contract between the principal and the contractor or subcontractor, the right of the contractual employee to separation pay or other related benefits shall be governed by the applicable laws and jurisprudence on termination of employment.

Where the termination results from the expiration of the contract between the principal and the contractor or subcontractor, or from the completion of the phase of the job, work or service for which the contractual employee is engaged, the latter shall not be entitled to separation pay. However, this shall be without prejudice to completion bonuses or other emoluments, including retirement pay as may be provided by law or in the contract between the principal and the contractor or subcontractor.

Section 11. Registration of Contractors or Subcontractors. - Consistent with the authority of the Secretary of Labor and Employment to restrict or prohibit the contracting out of labor through appropriate regulations, a registration system to govern contracting arrangements and to be implemented by the Regional Offices is hereby established.

The registration of contractors and subcontractors shall be necessary for purposes of establishing an effective labor market information and monitoring.

Failure to register shall give rise to the presumption that the contractor is engaged in labor-only contracting.

Section 12. Requirements for registration. - A contractor or subcontractor shall be listed in the registry of contractors and subcontractors upon completion of an application form to be provided by the DOLE. The applicant contractor or subcontractor shall provide in the application form the following information:
(a) The name and business address of the applicant and the area or areas where it seeks to operate;

(b) The names and addresses of officers, if the applicant is a corporation, partnership, cooperative or union;

(c) The nature of the applicant's business and the industry or industries where the applicant seeks to operate;

(d) The number of regular workers; the list of clients, if any; the number of personnel assigned to each client, if any and the services provided to the client;

(e) The description of the phases of the contract and the number of employees covered in each phase, where appropriate; and

(f) A copy of audited financial statements if the applicant is a corporation, partnership, cooperative or a union, or copy of the latest ITR if the applicant is a sole proprietorship.
The application shall be supported by:
(a) A certified copy of a certificate of registration of firm or business name from the Securities and Exchange Commission (SEC), Department of Trade and Industry (DTI), Cooperative Development Authority (CDA), or from the DOLE if the applicant is a union; and

(b) A certified copy of the license or business permit issued by the local government unit or units where the contractor or subcontractor operates.
The application shall be verified and shall include an undertaking that the contractor or subcontractor shall abide by all applicable labor laws and regulations.

Section 13. Filing and processing of applications. - The application and its supporting documents shall be filed in triplicate in the Regional Offices where the applicant principally operates. No application for registration shall be accepted unless all the foregoing requirements are complied with. The contractor or subcontractor shall be deemed registered upon payment of a registration fee of P100.00 to the Regional Office.

Where all the supporting documents have been submitted, the Regional Office shall deny or approve the application within seven (7) working days after its filing.

Upon registration, the Regional Office shall return one set of the duly-stamped application documents to the applicant, retain one set for its file, and transmit the remaining set to the Bureau of Local Employment. The Bureau shall devise the necessary forms for the expeditious processing of all applications for registration.

Section 14. Duty to produce copy of contract between the principal and the contractor or subcontractor. - The principal or the contractor or subcontractor shall be under an obligation to produce a copy of the contract between the principal and the contractor in the ordinary course of inspection. The contractor shall likewise be under an obligation to produce a copy of the contract of employment of the contractual worker when directed to do so by the Regional Director or his authorized representative.

A copy of the contract between the contractual employee and the contractor or subcontractor shall be furnished the certified bargaining agent, if there is any.

Section 15. Annual Reporting of Registered Contractors. - The contractor or subcontractor shall submit in triplicate its annual report using a prescribed form to the appropriate Regional Office not later than the 15th of January of the following year. The report shall include:
(a) A list of contracts entered with the principal during the subject reporting period;

(b) The number of workers covered by each contract with the principal;

(c) A sworn undertaking that the benefits from the Social Security System (SSS), the Home Development Mutual Fund (HDMF), PhilHealth, Employees Compensation Commission (ECC), and remittances to the Bureau of Internal Revenue (BIR) due its contractual employees have been made during the subject reporting period.
The Regional Office shall return one set of the duly-stamped report to the contractor or subcontractor, retain one set for its file, and transmit the remaining set to the Bureau of Local Employment within five (5) days from receipt thereof.

Section 16. Delisting of contractors or subcontractors. - Subject to due process, the Regional Director shall cancel the registration of contractors or subcontractors based on any of the following grounds:
(a) Non-submission of contracts between the principal and the contractor or subcontractor when required to do so;

(b) Non-submission of annual report;

(c) Findings through arbitration that the contractor or subcontractor has engaged in labor-only contracting and the prohibited activities as provided in Section 6 (Prohibitions) hereof; and

(d) Non-compliance with labor standards and working conditions.
Section 17. Renewal of registration of contractors or subcontractors. - All registered contractors or subcontractors may apply for renewal of registration every three years. For this purpose, the Tripartite Industrial Peace Council (TIPC) as created under Executive Order No. 49, shall serve as the oversight committee to verify and monitor the following:
(a) Engaging in allowable contracting activities; and

(b) Compliance with administrative reporting requirements.
Section 18. Enforcement of Labor Standards and Working Conditions. - Consistent with Article 128 (Visitorial and Enforcement Power) of the Labor Code, as amended, the Regional Director through his duly authorized representatives, including labor regulation officers shall have the authority to conduct routine inspection of establishments engaged in contracting or subcontracting and shall have access to employer's records and premises at any time of the day or night whenever work is being undertaken therein, and the right to copy therefrom, to question any employee and investigate any fact, condition or matter which may be necessary to determine violations or which may aid in the enforcement of the Labor Code and of any labor law, wage order, or rules and regulations issued pursuant thereto.

The findings of the duly authorized representative shall be referred to the Regional Director for appropriate action as provided for in Article 128, and shall be furnished the collective bargaining agent, if any.

Based on the visitorial and enforcement power of the Secretary of Labor and Employment in Article 128 (a), (b), (c) and (d), the Regional Director shall issue compliance orders to give effect to the labor standards provisions of the Labor Code, other labor legislation and these guidelines.

Section 19. Solidary liability. - The principal shall be deemed as the direct employer of the contractual employees and therefore, solidarily liable with the contractor or subcontractor for whatever monetary claims the contractual employees may have against the former in the case of violations as provided for in Sections 5 (Labor-Only contracting), 6 (Prohibitions), 8 (Rights of Contractual Employees) and 16 (Delisting) of these Rules. In addition, the principal shall also be solidarily liable in case the contract between the principal and contractor or subcontractor is preterminated for reasons not attributable to the fault of the contractor or subcontractor.

Section 20. Supersession. - All rules and regulations issued by the Secretary of Labor and Employment inconsistent with the provisions of this Rule are hereby superseded. Contracting or subcontracting arrangements in the construction industry, under the licensing coverage of the PCAB and shall not include shipbuilding and ship repairing works, however, shall continue to be governed by Department Order No. 19, series of 1993.

Section 21. Effectivity. - This Order shall be effective fifteen (15) days after completion of its publication in two (2) newspapers of general circulation.
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Manila, Philippines, 21 February 2002.
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PATRICIA A. STO. TOMAS
Secretary

A PRIMER ON PLANT-LEVEL LABOR-MANAGEMENT COOPERATION PROGRAM

WHAT IS LABOR-MANAGEMENT COOPERATION?

Labor-management cooperation is a state of relations where labor and management work hand-in-hand to accomplish certain goals using mutually acceptable means.



Source: http://ncmb.ph/Publications/LMC_Primer/Primer_on_Plant_Level_LMC.htm