Importance of Collective Bargaining Agreement

In a labor organization every employee except managerial employees has given a right to join in
any labor organization or union from the beginning of his/her first day of work for the purpose of
collective bargaining. Collective Bargaining is the process by which representatives of management and
the unions meet and negotiate over wages, benefits, hours of work and other terms and conditions of
employment in good faith. It is a give and take process between the employee and its employer which
aims to attain at a conclusion beneficial to both the parties. Collective bargaining includes not only
negotiations between the employers and unions but also includes the process of resolving labor-
management conflicts. Collective bargaining is essential and acts as a method of introducing civil rights
in the labor organization.
One of the most important aspects of collective bargaining is that it is a never ending process. It
does not finish after an agreement has been reached. It continues for the life of the agreement and beyond.
Good faith or equal bargaining is at the center of effective labor management relations between employee
and the employer. It means that no party should force another to agree to a proposal. Nor does it require
any of the parties to make any specific concessions.
The right to bargain collectively is under the provisions of the Labor Relations Law in Labor
Code of the Philippines that give and institutionalized the rights of any employee in an organization to
join any labor union. Collective rather than individual bargaining has become necessary today. A reason
why collective bargaining is necessary is that workers who are employed by a firm may not speak out in
the fear of being fired. The collectiveness of trade unions changed the way the labor organization operates
or functions. Because of its basis in collaboration, collective bargaining is inherently a democratic process
since a majority of employees select the subjects they bargain over and vote on whether they agree to a
contract.

Collective bargaining agreement as well as negotiation is necessary in a labor organization. To
conduct collective bargaining, employees in a labor organization must create a legitimate labor union. If
we differentiate the unionized and non-unionize workers, the unionized tend to have higher wages than
non-unionized workers. Trade unions also sometimes act as representatives of workers in case of legal
matters while non-unionized workers they are independent by each other. The rights of the employees are
better protected if there are union. For example, they cannot be unjustly removed from work. Through
collective bargaining it helps in developing a sense of responsibility amongst employees and ensures
adequate wages and working conditions to them. It also improves the morale and productivity of
employees and helps in quick settlement of grievances. Collective bargaining develops a sense of self-
respect and responsibility among the employees. While for the employers, it is relatively easier for the
management to resolve disputes through collective bargaining instead of taking up complaints
individually. It improves workers participation in decision making. In the society, collective bargaining
promotes peace in the society that avoids strike and lock-out of the employees as well as organized rallies.
The employees enjoys job stability because they are totally protected by the union if there is
unequal treatment of their employers. Through collective bargaining it brought the standard rate policies
that ensure equality in distribution of income between workers of the same skill set. This reduces
economic efficiency and increases inequalities by raising the wages of highly skilled workers. As a
collective voice, unions can have a positive effect on productivity. Unions collect information about the
preferences of all workers leading the firm to choose the best mix of employee compensation.
If management uses the collective bargaining process to learn about and improve the operation of
the workplace and the production process, unionism can be a significant for the enterprise efficiency. On
the other hand, if management responds negatively to collective bargaining, unionism can significantly
harm the performance of the firm. If management listens quietly to unreasonable union wage demands,
the organized sector may suffer serious economic decline. If it reaches sensible agreements with labor, all
parties may benefit.
And in totality collective bargaining agreement plays a major importance in the life of employees
as well as the company. This can contain a very important issues about employee to employer relationship
the communication between both parties is critically important for their mutual benefits. The employees
party or the trade union usually discusses their salaries and wages, grievances and other concerns they
may also discuss recommendation and their rights in management participation. The employers
party may include management and other representatives that can be in a team of discussion or debate
they usually act as the negotiator, decision maker that can answer the concerns of the bargaining
parties involved.
Both parties can take part about their grievances or settlement proposal of the trade union who
would ask for the increase in salary and health and safety while the management and representative may
balance their conditions or they can also come up with the resolution that they can best offer for the
benefits of the organization as a whole. With all settlement said and done they will form another
agreement which they call Collective Bargaining Agreement this agreement for like an increase in salary,
additional health benefits and other agreement can be automatically imposed or depending on stipulated
conditions but both parties must ensure that they perform their rights or it may revoke the agreement upon
lack of performance or non performance this can even weaken a good relationship between trade union
and management.
If the trade union and management do not meet both of their objectives this can usually result in
a dispute and negative impact that result in strikes, rally or forcible retrenchment of employees
or changes in management and other violent measures so it is basically important to accept whatever
decisions that the collective bargaining have agreed upon.
Most importantly the trade union party should make a clear statement of what they necessarily
need to provide a comprehensive methods and solutions in the delivery of their needs and wants to their
employers and this is the primary importance of the employees party. Additionally the employer
themselves must make sure that they do not tolerate and exercise unfair labor practice for their employees
that maybe it leads to government control of their company. They should not
consider overworked and underpaid situation in their company, the threats and safety of their employees
should also be considered and most importantly they should pay them proper wages as impose by the
government.
The importance of trade union participation is that they are able to exercise their rights to oppose
or question the non participation of the company as well as if the company violates in any provisions of
the Labor Code of the Philippines. They can keep the workers updated to their rights and privilege
through collective bargaining agreement and they are able to participate in a wider key objectives that will
definitely cater to the benefits of employees and to the general provision to exercise their rights to be
gainfully employed the parties can also eliminate and destroy unfair labor practice in their company.
Finally if the provision has been completed both parties should hold on to such conditions of the
collective bargaining agreement most importantly if the consideration would still be for lasting mutual
benefit of both parties.

References:
DEPARTMENT OF LABOR AND EMPLOYMENT
Book V - Labor Relations
http://www.dole.gov.ph/labor_codes/view/6
DEPARTMENT OF LABOR AND EMPLOYMENT
BUREAU OF LABOR RELATIONS
CBA and Collective Bargaining
http://www.blr.dole.gov.ph/index.php/faqs/cba-and-collective-bargaining


Importance of
Collective Bargaining
Agreement


Submitted by:
Tomas C. Tan Jr.
(BSBA)


Submitted to:
Atty. Rhoan Louiege B. Belgira
(Instructor)


Importance of Studying Labor Laws
Labor law or also called as the Labor Code of The Philippines or Presidential Decree No. 442
deals with the body of laws, administrative rulings and precedents which addresses the legal rights of and
restrictions on working people and their organizations. The direct function of labor law is that it deals
with the rules governing employment relationship. Labor law functions through the role accorded by
common law, legislation and is helped also by the extra legal sources such as the customs and collective
bargaining. The law established the rights of both workers and employers and prescribes the rules for
hiring and termination of employees, conditions of work including maximum work hours and overtime,
employee benefits such as holiday pay, thirteenth month pay and retirement pay and the guidelines in the
organization and membership in labor unions as well as in collective bargaining.
The Labor law contains several provisions which are beneficial to labor. It
prohibits termination from employment of employees except for just or authorized causes as prescribed
in Article 282 to 284 of the Code. The right to trade union is expressly recognized, as is the right of a
union to insist on a shop. Strikes are also authorized for as long as they comply with the strict
requirements under the Code, and workers who organize or participate in illegal strikes may be subject to
dismissal. Moreover, Philippine jurisprudence has long applied a rule that any doubts in the interpretation
of law, especially the Labor Code, will be resolved in favor of labor and against management.
An important objective of labor laws is to ensure the good relationship between the employer and
the employee, protects to labor, promote employment and human resource development. Labor laws came
into being as a step towards addressing the worker's poor working conditions. As a result, employees
benefited a great deal with many of them gaining rights which had been otherwise taken from them in the
work.
There are several significance of labor law to the society and without it in-equality may happen.
First is for the employee or workers in a firm or any labor organizations. This law serves as protection to
them wherein it governs the rights and condition between the employers to its employees. Under the
provision and branches of the law is the Labor Standard wherein it set out the minimum terms,
conditions and benefits of employment that employer must provide the basic examples are wages and
hours of work, safety and health of employees, employment benefits such as paid leaves and medical
services for work connected injuries and others.
The provision of the laws gives the basic rights of workers such as security of tenure, control the
hours of work, give weekly rest day, standard wage and wage related benefits, payment of wages,
employment of women workers, employment of young workers, give safe and healthful conditions of
work and welfare services, give right to the employees for self-organization and collective bargaining, a
right to be educate through seminars, dialogs and information, given a right to have peaceful concerted
activities in accordance with the law, SSS benefits and other social and welfare laws.
The next branch of labor law is the Labor Relations Law that defines the status, rights and
duties, as well as the institutional mechanism that govern the individual and collective interactions
between the employers to each employees and their representatives. Labor relations law remains to be
an important of labor law. It is the continuous relationship between a defined group of employees and
management. This encompasses the negotiation of a written contract concerning pay, hours, and other
terms and conditions of employment, as well as the interpretation and administration of this contract over
its period of coverage.
In every organization, the presence of organized groups of individuals is considered necessary to
ensure that the rights of the members are guarded and protected. It is good to note that here in the
Philippines employees enjoy adequate legal protection. As a matter of fact, the Labor Code of the
Philippines stands as a law governing employment practices and labor relations in the country according
to the Wikipedia. And as the Labor Code of the Philippines declares, it is the policy of the State to
promote and emphasize the importance of free collective bargaining and negotiations, to promote free
trade unionism as an instrument for the enhancement of democracy, to nurture free and voluntary
organization of a strong and united labor movement, to promote the enlightenment of workers concerning
their rights and obligations as union members and as employees, and many more. This particular
legislation contains several provisions which are beneficial to labor. It is even expressly recognized the
right to create or form trade and/or labor unions.
A labor union is an organization of employees that uses collective action to advance its members
interests in regard to wages and working conditions. Unions exist in whole or in part for the purpose of
collective bargaining or of dealing with employers concerning terms and conditions of employment. For
example since I am employed in a semi-private company the Iloilo-1 Electric Cooperative, Incorporated,
there exist two labor organizations. One is from the office of the general manager, the head of the three
departments namely Institutional Services Department, Technical Services Department and Finance
Services Department and the other is from the office staff and clerks. Our labor organizations somehow
influence the decision-making of the top management. Our company has a legitimate trade union namely
Iloilo-1 Electric Cooperative Employees Association. When there are some action from the higher
management that affects the condition of employment of every employee our labor union representatives
consult the management of our Coop this is now where the so-called bargaining agreement between the
employees and the employers come in.
The Collective Bargaining Agreement as the provision of the Labor Law is a process by which
the representatives of the organization meet and attempt to work out a contract with employees
representatives the unions. As embodied by the labor organization, collective negotiation agreement
bridges the gap between employees and the employers through open and free communication from both
parties for the ideal welfare of all the constituents. Like in any other organizations or institutions,
consultations are deemed necessary before the implementation of any regulation or policy. However,
some organizations seem to miss or ignore this very important process tending to cause misunderstanding
and conflict within the organization with affected sectors marching on streets rallying and raising their
protests before the administration but through labor laws provisions those actions has been eliminated.
Labor law and collective bargaining in the work context are closely related and the absence of
either means a failure. Labor law aimed at addressing and dealing with the legal rights of the working or
employed people and their organizations along with the restrictions on them. On the other hand,
Collective bargaining is given as the process of negotiations that take place between employers and trade
unions. The collective bargaining is done with the sole aim of making regulations and rules that govern
the working conditions of the employees.
As such, the collective bargaining does not work as a single body but it has been noted that it
draws its strength from the labor law. Given to the fact that collective agreements takes into account the
wage scales, health and safety at work, overtime, working hours, training and mechanisms of making
grievances to be heard along with the very rights that are associated with one's participation in the
workplace, labor law provide a ground or rather a foundation for this collective bargaining.
In relation to this point, labor law has a great role to play in the context of collective bargaining.
As such, it aids the trade unions and the organizations to come into the legal agreements on the issue of
the working conditions. Labor law regulates the working conditions and the relationship that should be
maintained by the employer and the employee in the workplace. Importantly, employees have their own
rights at the work place which are in most times violated and there being no law which provides ground
for the workers to bargain collectively, the rights of the employees end up being not granted.
Nevertheless, nowadays there have been rules and regulations that have been put forward to
govern the relationship between the employees and their employers. In the past, just as it has been
highlighted, there were no laws governing the employees as they fought for their rights in the workplace.
However, at the advent of labor law, it is possible for employees and trade unions to engage in collective
bargaining in regard to working conditions and still be listened to as well as attended to on the basis of the
provisions of the law.
Labor law can be utilized as an important tool in what makes up an effective collective
bargaining. As a matter of fact, in the past, labor law was ultimately on the side of the employer. Thus, it
was an offense for an employee to voice out his or her complaints even when he or she was dissatisfied by
the conditions of work. Strikes were unheard of and in case they occurred, employees were punished and
others jailed. This meant that there was no room for collective bargaining in order for the employees to
negotiate with the employers on their wages, health and safety at work, overtime, training and working
conditions from a general point of view.
Though conditions were not favorable in the past, in the long run labor laws were developed with
clear definitions of what constitutes employee rights. For instance, there is the right for an employee to
refuse unsafe work. Under the labor law, this right is protected of which it is otherwise stated, the
quitting of labor by an employee or employees in good faith because of abnormally dangerous conditions,
shall not be considered a strike under the occupational safety standards of the labor code of the
Philippines (http://laborlawphilippines.wordpress.com).
From this point of view, collective bargaining is a process that has been pointed as an important
one in the context of the employer-employee relationships. Due to its importance it cannot therefore be
underestimated it is important to examine the role that is played by labor law in collective bargaining.
This is given to the reason that labor law governs how employers should relate to the employees in the
workplace clearly stating the good practices that are required.
Through this law illegal act of employers will be eliminated like discrimination, harassment,
employment termination and low standards of employment. The labor laws play a critical part in
moderating the actions of the unions and assisting them to remain within the stipulated work framework
as it regards the workers' rights. Labor laws play a vital part in protecting the rights of the workers which
may be taken away through collective bargaining.
Finally the labor laws, seek to provide a fair workplace culture as well as a place whereby there
would be no harassment of workers in order to improve productivity in the society as whole. In this sense,
labor laws are meant to ensure good working conditions of the workers. As such, collective bargaining
under book V of the Presidential Decree 442 or known as Labor Code of the Philippines are containing a
vital provisions that protects the labor.
The role of labor laws can be seen through what it performs upon collective bargaining. As a
matter of fact labor law was formulated as an act towards fulfilling the demands for better work
conditions. In this case the right to organize was one of the reasons that labor laws were formed with
collective bargaining to meet this requirement. It had been a long history of the powers of workers being
unequally treated with the employers seeking to make maximum profits at the lowest costs of labor and
thus labor laws were meant to correct this need.
As a whole Labor Code of the Philippines serve as the foundation and protection of labor. It gives
a policy to promote full employment, equal work opportunities regardless of sex, race or creed, regulate
the relations between workers and employees, assures the right of worker to self-organizations, collective
bargaining, security of tenure, work under humane condition, receive a living wage and employees can
participate in policy and decision making process affecting their rights and benefits as provided by law
From the side of the employers this labor code gives the rights for the management or
management prerogative. They have given the fall aspects of employment including hiring, giving work
assignments to its workers, give instructions and working methods, control and give time, place and
manner of work, provide tools to be used, provide process to be followed by workers, full supervision to
its workers, give working regulations, have a right to transfer the employees, can lay-off and dismiss
employees with valid reason and due process and give disciplinary action.
Labor Code of the Philippines protects not only for the employees but also for the employers.
And without it unfair labor practices and equalities will be prone in our society as well as through-out the
world.
References:
Department of Labor and Employment
Presidential Decree 442
LABOR CODE OF THE PHILIPPINES
http://www.dole.gov.ph/labor_codes

Philippines Labor Law
http://www.laborlaw.usc-law.org/


WHY THE STUDY OF
LABOR LAW IS
IMPORTANT?


Submitted by:
Tomas C. Tan Jr.
(BSBA)

Submitted to:
Atty. Rhoan Louiege B. Belgira
(Instructor)