GGSR
GGSR
LEARNING CONTENT
Introduction:
Good governance is not only important for corporations, it’s important for society. To
begin with, good corporate governance improves the public’s faith and confidence in its
corporate leaders. Legislative processes were designed to protect societies from known
threats and to keep problems from occurring or reoccurring. Recent corporate scandals
shed light on the effect that corporations have on social responsibility. The new focus on
corporate social responsibility increases corporations’ responsibility and accountability
to their stakeholders. As a result, we’re seeing corporations increasingly place pressure
on themselves to improve best practices for corporate governance with the goal of
enhancing their relationships with stakeholders. The largest attraction for corporations
to direct some of their attention on sustainability is that it ultimately improves
corporations’ ability to thrive and prosper. (Price, 2018)
Lesson Proper:
WHAT IS GOOD GOVERNANCE?
Recently the terms "governance" and "good governance" are being increasingly used in
development literature. Bad governance is being increasingly regarded as one of the
root causes of all evil within our societies. Major donors and international financial
institutions are increasingly basing their aid and loans on the condition that reforms that
ensure "good governance" are undertaken.
GOVERNANCE
The concept of "governance" is not new. It is as old as human civilization. Simply put
"governance" means: the process of decision-making and the process by which decisions
are implemented (or not implemented). Governance can be used in several contexts
such as corporate governance, international governance, national governance and local
governance.
Since governance is the process of decision-making and the process by which
decisions are implemented, an analysis of governance focuses on the formal and
informal actors involved in decision-making and implementing the decisions made and
the formal and informal structures that have been set in place to arrive at and implement
the decision.
Government is one of the actors in governance. Other actors involved in governance
vary depending on the level of government that is under discussion. In rural areas, for
example, other actors may include influential land lords, associations of peasant
farmers, cooperatives, NGOs, research institutes, religious leaders, finance institutions
political parties, the military etc. The situation in urban areas is much more complex.
Figure 1 provides the interconnections between actors involved in urban governance. At
the national level, in addition to the above actors, media, lobbyists, international donors,
multi-national corporations, etc. may play a role in decision-making or in influencing the
decision-making process.
All actors other than government and the military are grouped together as part of the
"civil society." In some countries in addition to the civil society, organized crime
syndicates also influence decision-making, particularly in urban areas and at the
national level.
Similarly formal government structures are one means by which decisions are arrived at
and implemented. At the national level, informal decision-making structures, such as
"kitchen cabinets" or informal advisors may exist. In urban areas, organized crime
syndicates such as the "land Mafia" may influence decision-making. In some rural areas
locally, powerful families may make or influence decision-making. Such, informal
decision-making is often the result of corrupt practices or leads to corrupt practices.
Figure 1: Urban actors
GOOD GOVERNANCE
Good governance has 8 major characteristics. It is participatory, consensus oriented,
accountable, transparent, responsive, effective and efficient, equitable and inclusive and
follows the rule of law. It assures that corruption is minimized, the views of minorities
are taken into account and that the voices of the most vulnerable in society are heard in
decision-making. It is also responsive to the present and future needs of society.
Figure 2: Characteristics of good governance
Participation
Participation by both men and women is a key cornerstone of good governance.
Participation could be either direct or through legitimate intermediate institutions or
representatives. It is important to point out that representative democracy does not
necessarily mean that the concerns of the most vulnerable in society would be taken
into consideration in decision making. Participation needs to be informed and organized.
This means freedom of association and expression on the one hand and an organized
civil society on the other hand.
Rule of law
The rule of law refers to the institutional process of setting, interpreting and
implementing laws and other regulations. It means that decisions taken by government
must be founded in law and that private firms and individuals are protected from
arbitrary decisions.
Good governance requires fair legal frameworks that are enforced impartially. It also
requires full protection of human rights, particularly those of minorities. Impartial
enforcement of laws requires an independent judiciary and an impartial and
incorruptible police force.
Transparency
Transparency means that decisions taken and their enforcement are done in a manner
that follows rules and regulations. It also means that information is freely available and
directly accessible to those who will be affected by such decisions and their
enforcement. It also means that enough information is provided and that it is provided in
easily understandable forms and media.
Transparency is an important aspect of good governance, and transparent decision
making is critical for the private sector to make sound decisions and investments.
Accountability and the rule of law require openness and good information so higher
levels of administration, external reviewers and the general public can verify
performance and compliance to law.
Governments have access to a vast amount of important information. Dissemination of
this information through transparency and open information systems can provide
specific information that firms and individuals need to have to be able to make good
decisions. Capital markets depend for example on information openness.
Responsiveness
Good governance requires that institutions and processes try to serve all stakeholders
within a reasonable timeframe.
Consensus oriented
There are several actors and as many view points in a given society. Good governance
requires mediation of the different interests in society to reach a broad consensus in
society on what is in the best interest of the whole community and how this can be
achieved. It also requires a broad and long-term perspective on what is needed for
sustainable human development and how to achieve the goals of such development.
This can only result from an understanding of the historical, cultural and social contexts
of a given society or community.
Equity and inclusiveness
A society’s well-being depends on ensuring that all its members feel that they have a
stake in it and do not feel excluded from the mainstream of society. This requires all
groups, but particularly the most vulnerable, have opportunities to improve or maintain
their well being.
Effectiveness and efficiency
Good governance means that processes and institutions produce results that meet the
needs of society while making the best use of resources at their disposal. The concept
of efficiency in the context of good governance also covers the sustainable use of
natural resources and the protection of the environment.
Accountability
Accountability is a key requirement of good governance. Not only governmental
institutions but also the private sector and civil society organizations must be
accountable to the public and to their institutional stakeholders. Who is accountable to
whom varies depending on whether decisions or actions taken are internal or external to
an organization or institution? In general, an organization or an institution is accountable
to those who will be affected by its decisions or actions. Accountability cannot be
enforced without transparency and the rule of law.
CONCLUSION
From the above discussion it should be clear that good governance is an ideal which is
difficult to achieve in its totality. Very few countries and societies have come close to
achieving good governance in its totality. However, to ensure sustainable human
development, actions must be taken to work towards this ideal with the aim of making it
a reality.
Lesson 2: Ethics
Topic: Ethics
LEARNING CONTENT
Introduction:
Ethics is considered the moral standards by which people judge behavior. Ethics
is often summed up in what is considered the “golden rule”—do unto others as you
would have them do unto you. In business, there are many different people you have to
answer to: customers, shareholders and clients. Determining what to do when an ethical
dilemma arises among these different interests can be extremely tricky and as such
business ethics as a field is complex and multi-faceted.
Lesson Proper:
Business ethics can be defined as written and unwritten codes of principles and
values that govern decisions and actions within a company. Companies and
businesspeople who wish to thrive long-term must adopt sound ethical decision-making
practices. Companies and people who behave in a socially responsible manner are
much more likely to enjoy ultimate success than those whose actions are motivated
solely by profits. In many cases, doing the right thing often leads to the greatest
financial, social, and personal rewards in the long run. (White, Mary Gormandy,
Sundblad, Donna and Finely, Amy)
It is a form of applied ethics that examines ethical rules, theories and principles in
business context. Generally, speaking is a normative discipline, whereby particular
ethical standards are advocated and then applied. It makes specific judgments about
what is right or wrong, which is to say, it teaches what ought to be done and what ought
to be done, (De George, 1999).
Some business ethics are imposed by law. For example, the SEC governs the
way investment bankers and stock brokers do business, and court rules dealing with
attorney client privilege dictate some ethical decisions for attorneys. However, there are
also business decisions that do not fall within the guidelines of the law, in which ethical
or moral judgments must be made. www.yourdictionary.com
An ethical approach is becoming necessary both for corporate success and a
positive corporate image. Following pressure from consumers for more ethical and
responsible business practices, many organizations are choosing to make a public
commitment to ethical business by formulating codes of conduct and operating
principles. In doing so, they must translate into action the concepts of personal and
corporate accountability, corporate giving, corporate governance, and whistle
blowing. dictionary.bnet.com
Ethics sets standards as to what is good or bad in conduct and decision making.
Ethics deals with internal values that are a part of corporate culture and shapes
decisions concerning social responsibility with respect to the external environment.
Criteria of Ethical Decision Making
1.
1. The right of free consent
2. The right to privacy
3. The right of freedom of conscience
4. The right of free speech
5. The right to due process
6. The right to life and safety
4. Justice Approach – Holds that moral decisions must be based on standards of
equity, fairness, and impartiality.
Three Types of Justice
Learning Outcomes: At the end of this module, you are expected to:
examine fully the contextual factors that influence CSR
compare and contrast ethics and corporate social
responsibility
LEARNING CONTENT
Introduction:
Good governance is not only important for corporations, it’s important for society. To
begin with, good corporate governance improves the public’s faith and confidence in its
corporate leaders. Legislative processes were designed to protect societies from known
threats and to keep problems from occurring or reoccurring. Recent corporate scandals
shed light on the effect that corporations have on social responsibility. The new focus on
corporate social responsibility increases corporations’ responsibility and accountability
to their stakeholders. As a result, we’re seeing corporations increasingly place pressure
on themselves to improve best practices for corporate governance with the goal of
enhancing their relationships with stakeholders. The largest attraction for corporations
to direct some of their attention on sustainability is that it ultimately improves
corporations’ ability to thrive and prosper. (Price, 2018)
Lesson Proper:
Corporate social responsibility (CSR), also known as corporate responsibility,
corporate citizenship, responsible business, sustainable responsible business (SRB), or
corporate social performance, is a form of corporate self-regulation integrated into a
business model. Ideally, CSR policy would function as a built-in, self-regulating
mechanism whereby business would monitor and ensure its adherence to law, ethical
standards, and international norms. Business would embrace responsibility for the
impact of their activities on the environment, consumers, employees, communities,
stakeholders and all other members of the public sphere. Furthermore, business would
proactively promote the public interest by encouraging community growth and
development, and voluntarily eliminating practices that harm the public sphere,
regardless of legality. Essentially, CSR is the deliberate inclusion of public interest into
corporate decision making, and the honoring of a triple bottom line: People, Planet, and
Profit. (Wikipedia)
Corporate social responsibility (CSR) can be defined as the "economic, legal,
ethical, and discretionary expectations that society has of organizations at a given point
in time" (Carroll and Buchholtz 2003, p. 36). (www.uitp.com)
Corporate social responsibility is related to, but not identical with, business
ethics. While CSR encompasses the economic, legal, ethical, and discretionary
responsibilities of organizations, business ethics usually focuses on the moral
judgments and behavior of individuals and groups within organizations. Thus, the study
of business ethics may be regarded as a component of the larger study of corporate
social responsibility. (www.uitp.com)
CSR is often used to promote voluntary corporate initiatives, as an alternative to
additional or existing mandatory regulations. The International Chamber of Commerce
has aggressively promoted a standards-free concept of "corporate responsibility" that
enables companies to proclaim their "responsibility" without necessitating companies to
meet minimum standards.
Corporate social responsibility (CSR) promotes a vision of business
accountability to a wide range of stakeholders, besides shareholders and investors. Key
areas of concern are environmental protection and the wellbeing of employees, the
community and civil society in general, both now and in the future.
Some of the drivers pushing business towards CSR include:
6. Supplier relations
As stakeholders are becoming increasingly interested in business affairs, many
companies are taking steps to ensure that their partners conduct themselves in a
socially responsible manner. Some are introducing codes of conduct for their suppliers,
to ensure that other companies' policies or practices do not tarnish their reputation.
Some of the positive outcomes that can arise when businesses adopt a
policy of social responsibility include:
1. Company benefits:
Improved financial performance;
Lower operating costs;
Enhanced brand image and reputation;
Increased sales and customer loyalty;
Greater productivity and quality;
More ability to attract and retain employees;
Reduced regulatory oversight;
Access to capital;
Workforce diversity;
Product safety and decreased liability.
3. Environmental benefits:
Greater material recyclability;
Better product durability and functionality;
Greater use of renewable resources;
Integration of environmental management tools into business plans, including life-cycle
assessment and costing, environmental management standards, and eco-labeling.
Criteria in Evaluating Corporate Social Responsibility
1. Economic Responsibilities – its responsibility is to
produce the goods and services that society wants
and to maximize profits for its owners and
shareholders.
2. Legal Responsibilities – businesses are expected to
fulfill their economic goals within the legal framework.
Legal responsibility defines what society deems as
important with respect to appropriate corporate
behavior.
3. Ethical Responsibilities – includes behaviors that
are not necessarily codified into law and may not
serve the corporation’s direct economic interests.
Organization decision makers should act with equity,
fairness, and impartiality, respect the rights of
individuals and provide different treatment of
individuals only when relevant to the organization’s
goals and tasks.
4. Discretionary Responsibilities – is purely voluntary
and is guided by a company’s desire to make social
contributions not mandated by economics, law or
ethics.
WEEK 2
Lesson 4: Corporate Social Responsibility (Continuation)
LEARNING CONTENT:
Human resources
A CSR program can be an aid to recruitment and retention, particularly within the
competitive graduate student market. Potential recruits often ask about a firm's CSR
policy during an interview, and having a comprehensive policy can give an advantage.
CSR can also help improve the perception of a company among its staff, particularly
when staff can become involved through payroll giving, fund raising activities or
community volunteering.
Risk management
Managing risk is a central part of many corporate strategies. Reputations that
take decades to build up can be ruined in hours through incidents such as corruption
scandals or environmental accidents. These can also draw unwanted attention from
regulators, courts, governments and media. Building a genuine culture of 'doing the right
thing' within a corporation can offset these risks.
Brand differentiation
In crowded marketplaces, companies strive for a unique selling proposition that
can separate them from the competition in the minds of consumers. CSR can play a
role in building customer loyalty based on distinctive ethical values. Business service
organizations can benefit too from building a reputation for integrity and best practice.
As corporations pursue growth through globalization, they have encountered new
challenges that impose limits to their growth and potential profits. Government
regulations, tariffs, environmental restrictions and varying standards of what constitutes
labor exploitation are problems that can cost organizations millions of dollars. Some
companies use CSR methodologies as a strategic tactic to gain public support for their
presence in global markets, helping them sustain a competitive advantage by using
their social contributions to provide a subconscious level of advertising. (Fry, Keim,
Meiners 1986, 105) Global competition places particular pressure on multinational
corporations to examine not only their own labor practices, but those of their entire
supply chain, from a CSR perspective.
THE STAKEHOLDER CONCEPT
According to Post, Lawrence, and Weber, stakeholders are individuals and
groups that are affected by an organization's policies, procedures, and actions. A
"stake" implies that one has an interest or share in the organization and its operations,
per Carroll and Buchholtz. Some stakeholders, such as employees and owners, may
have specific legal rights and expectations in regard to the organization's operations.
Other stakeholders may not have specific rights granted by law, but may perceive that
they have moral rights related to the organization's operations. For example, an
environmental group may not have a legal right in regard to a company's use of natural
resources, but may believe that they have a moral right to question the firm's
environmental policies and to lobby the organization to develop environmentally friendly
policies.
Primary stakeholders have some direct interest or stake in the organization.
Secondary stakeholders, in contrast, are public or special interest groups that do not
have a direct stake in the organization but are still affected by its operations.
The owners of a firm are among the primary stakeholders of the firm. An
organization has legal and moral obligations to its owners. These obligations include,
but are not limited to, attempting to ensure that owners receive an adequate return on
their investment. Employees are also primary stakeholders who have both legal and
moral claims on the organization. Organizations also have specific responsibilities to
their customers in terms of producing and marketing goods and services that offer
functionality, safety, and value; to local communities, which can be greatly affected by
the actions of resident organizations and thus have a direct stake in their operations;
and to the other companies with whom they do business. Many social commentators
also suggest that companies have a direct responsibility to future generations and to the
natural environment.
An organization's responsibilities are not limited to primary stakeholders.
Although governmental bodies and regulatory agencies do not usually have ownership
stakes in companies in free-market economies, they do play an active role in trying to
ensure that organizations accept and meet their responsibilities to primary stakeholder
groups. Organizations are accountable to these secondary stakeholders. Organizations
must also contend with civic and special interest groups that purport to act on behalf of
a wide variety of constituencies. Trade associations and industry groups are also
affected by an organization's actions and its reputation. The media reports on and
investigates the actions of many companies, particularly large organizations, and most
companies accept that they must contend with and effectively "manage" their
relationship with the media. Finally, even an organization's competitors can be
considered secondary stakeholders, as they are obviously affected by organizational
actions. For example, one might argue that organizations have a social responsibility to
compete in the marketplace in a manner that is consistent with the law and with the best
practices of their industry, so that all competitors will have a fair chance to succeed.
ENVIRONMENTAL ISSUES
Corporations have long been criticized for their negative effect on the natural
environment in terms of wasting natural resources and contributing to environmental
problems such as pollution and global warming. The use of fossil fuels is thought to
contribute to global warming, and there is both governmental and societal pressure on
corporations to adhere to stricter environmental standards and to voluntarily change
production processes in order to do less harm to the environment. Other issues related
to the natural environment include waste disposal, deforestation, acid rain, and land
degradation. It is likely that corporate responsibilities in this area will increase in the
coming years.
GLOBAL ISSUES
Corporations increasingly operate in a global environment. The globalization of
business appears to be an irreversible trend, but there are many opponents to it. Critics
suggest that globalization leads to the exploitation of developing nations and workers,
destruction of the environment, and increased human rights abuses. They also argue
that globalization primarily benefits the wealthy and widens the gap between the rich
and the poor. Proponents of globalization argue that open markets lead to increased
standards of living for everyone, higher wages for workers worldwide, and economic
development in impoverished nations. Many large corporations are multinational in
scope and will continue to face legal, social, and ethical issues brought on by the
increasing globalization of business.
TECHNOLOGY ISSUES
Another contemporary social issue relates to technology and its effect on society.
For example, the Internet has opened up many new avenues for marketing goods and
services, but has also opened up the possibility of abuse by corporations. Issues of
privacy and the security of confidential information must be addressed. Biotechnology
companies face questions related to the use of embryonic stem cells, genetic
engineering, and cloning. All of these issues have far-reaching societal and ethical
implications. As our technological capabilities continue to advance, it is likely that the
responsibilities of corporations in this area will increase dramatically.
The Emergence of Corporate Social Responsibility
Heightened corporate attention to CSR has not been entirely voluntary. Many
companies awoke to it only after being surprised by public responses to issues they had
not previously thought were part of their business responsibilities. Nike, for example,
faced an extensive consumer boycott after the New York Times and other media outlets
reported abusive labor practices at some of its Indonesian suppliers in the early 1990s.
Shell Oil’s decision to sink the Brent Spar, an obsolete oil rig, in the North Sea led to
Greenpeace protests in 1995 and to international headlines. Pharmaceutical companies
discovered that they were expected to respond to the AIDS pandemic in Africa even
though it was far removed from their primary product lines and markets. Fast-food and
packaged food companies are now being held responsible for obesity and poor
nutrition.
Debates about CSR have moved all the way into corporate boardrooms. In 2005,
360 different CSR-related shareholder resolutions were filed on issues ranging from
labor conditions to global warming. Government regulation increasingly mandates social
responsibility reporting. Pending legislation in the UK, for example, would require every
publicly listed company to disclose ethical, social, and environmental risks in its annual
report. These pressures clearly demonstrate the extent to which external stakeholders
are seeking to hold companies accountable for social issues and highlight the
potentially large financial risks for any firm whose conduct is deemed unacceptable.
While businesses have awakened to these risks, they are much less clear on
what to do about them. In fact, the most common corporate response has been neither
strategic nor operational but cosmetic: public relations and media campaigns, the
centerpieces of which are often glossy CSR reports that showcase companies’ social
and environmental good deeds. Of the 250 largest multinational corporations, 64%
published CSR reports in 2005, either within their annual report or, for most, in separate
sustainability reports—supporting a new cottage industry of report writers.
How Corporate Responsibility Can Survive the Recession
Corporations engaged in recession-driven cost-cutting are trimming or eliminating
corporate responsibility initiatives. Though corporate survival is key and consumer
skepticism of business CR initiatives at an all-time high, such actions are short-sighted.
Now more than ever, businesses need to be saying "yes" rather than "no" to their social
responsibilities. There are five key reasons:
The San Miguel Group's corporate citizenship goes beyond its commitment to its
consumers, employees, and key stakeholders in government and the communities
where it operates. Past and current programs focus on specific projects where it makes
a difference.
Our Core Values
Passion for Success
We will constantly strive for excellence. We will be the best we can be and create
value in everything we do. We will be proactive and entrepreneurial, propelled by a
sense of urgency, competitiveness and total dedication to results.
Teamwork
With trust and respect for each other and with unity and purpose, we will work
toward our shared aspirations, transcending boundaries along functional and
organizational lines.
Customer Focus
We will be our customers’ preferred choice. They will choose our products and
services above others because we provide them with products and services that exceed
their expectations.
Innovativeness
We will encourage creativity and ingenuity in our processes and systems,
products and services. We will be forever looking for ways to outdo ourselves, always
striving to be the first to anticipate consumer needs and deliver something better.
Integrity
In the conduct of our business, we will be guided by what is ethical, fair and right.
We believe in profit with honor and are committed to good governance and the highest
moral standards.
Social Responsibility
We believe social responsibility and corporate citizenship are integral parts of our
business. We are committed to improving lives of people in the communities where we
live and work.
Community and Enterprise Development
These are projects have active community involvement and are implemented
with the objective of benefiting a larger number of people. This includes medical
missions, community clinics, barangay strengthening and enterprise development.
Education
San Miguel Foundation supports literacy in the Philippines through scholarship
assistance, supplemental feeding, book donation and functional literacy programs.
Environmental and other programs
The environmental program of San Miguel Foundation Inc. covers the protection
of land, water, and air. On a smaller scale, the Foundation conducts tree-planting
projects on areas identified by different San Miguel Corporation (SMC) plants. Tree-
planting projects are usually scheduled to coincide with plant celebrations.
The Foundation advocates the protection of coastal waters through its Coastal
Resource Management, which engages in mangrove reforestation, artificial reef
installation and regeneration of marine resources. Training on waste management and
donation of trash bins through plant facilities are also conducted.
Disaster Management
Buhay OFW provides tips and information regarding the Philippines. Filipino products
and goods are also sold as donation efforts to help underprivileged Filipinos.
VALUES OF MODERN FILIPINO
PANANALIG
Faith - Madonna and Child epitomize the kind of faith every Filipino carries in the heart
an assurance that the Divine Being watches over each and every one of us.
KATAPATAN
Faithfulness - Resembling marriage bands, this arrangement celebrates the modern
Filipino hero's faithfulness to husband or wife, as well as faithfulness to country and all
the ideals for which our Republic stands.
PAG-AARUGA
Nurturing - Every Filipino child grows and learns under the wing of a mentor who instills
in the child the sense of love, compassion, heroism and courage.
KASIPAGAN
Industry - The Fruits of the earth spring forth only through our industry and it is only
through our work that we will be able to achieve the rebuilding of our mother country,
the task of every one of us, modern Philippine heroes all.
TIBAY NG LOOB
Courage - Stalwart and firm in idealism and goodwill, the modern Philippine hero
stands by his or her values and ideals.
*** END of LESSON ***
Lesson 12: Labor Code of the Philippines (P.D. 442)
Labor Code of the Philippines
Topics:
- Overtime Pay & Night Shift Differential Pay
Learning Outcomes: At the end of this module, you are expected to:
1. Compute overtime pay and Night Shift Differential Pay
2. Compute compensation for a rest day, Sunday, or Holiday work.
LEARNING CONTENT:
The labor code of the Philippines stands as the law governing employment
practices and labor relations in the Philippines. It was enacted on Labor Day of 1974 by
president Ferdinand Marcos, in the exercise of his legislative powers.
Contents:
Book i- Pre-employment
Book ii- Human resource development program (training for special
workers, handicapped, learners, apprentice)
Book iii- Conditions of employment
Book iv- Health, safety, and social welfare benefits
Book v- Labor organizations
Book vi- Post-employment
Book vii- Transitory and final provisions
Features:
hiring and termination of private employees;
the 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 code contains several provisions which are beneficial to labor. It
prohibits termination from employment of private employees except for just or
authorized causes as prescribed in articles 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 closed 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 the law, especially the labor code, will be resolved in favor
of labor and against management.
Closed shop - is a form of union security agreement under which the employer
agrees to only hire union members, and employees must remain members of the
union at all times in order to remain employed.
Union shop - is a form of a union security clause under which the employer agrees
to hire either labor union members or nonmembers but where all non-union
employees must become union members within a specified period of time or lose
their jobs.
Strike action - often simply called a strike, is a work stoppage caused by the mass
refusal of employees to work. A strike usually takes place in response to employee
grievances.
Book I- Pre-employment
Art. 12. Statement of objectives. - it is the policy of the state:
A) to promote and maintain a state of full employment through improved manpower
training, allocation, and utilization;
B) to protect every citizen desiring to work locally or overseas by securing for him the
best possible terms and conditions of employment;
C) to facilitate a free choice of available employment by persons seeking work in
conformity with the national interest;
D) to facilitate and regulate the movement of workers in conformity with the national
interest;
E) to regulate the employment of aliens, including the establishment of a registration
and/or work permit system;
F) to strengthen the network of public employment offices and rationalize the
participation of the private sector in the recruitment and placement of workers, locally
and overseas, to serve national development objectives;
G) to ensure careful selection of Filipino workers for overseas employment to protect
the Philippines' good name abroad.
Recruitment and placement of workers
General Provisions
Art. 13. Definitions.
A) "worker" means any member of the labor force, whether employed or unemployed.
B) “recruitment and placement" refer to any act of canvassing, enlisting, contracting,
transporting, utilizing, hiring, or procuring workers, and includes referrals, contract
services, promising or advertising for employment, locally or abroad, whether for profit
or not: provided, that any person or entity which, in any manner, offers or promises for a
fee, employment to two or more persons shall be deemed engaged in recruitment and
placement.
C) "private fee-charging employment agency" means any person or entity engaged in
recruitment and placement of workers for a fee which is charged, directly or indirectly,
from the workers or employers or both.
D) "license" means a document issued by the department of labor authorizing a person
or entity to operate a private employment
E) "private recruitment entity" means any person or association engaged in the
recruitment and placement of workers, locally or overseas, without charging, directly or
indirectly, any fee from the workers or employers.
F) "authority" means a document issued by the department of labor authorizing a
person or association to engage in recruitment and placement activities as a private
recruitment entity.
G) "seaman" means any person employed in a vessel engaged in maritime navigation.
H) "overseas employment" means employment of a worker outside the Philippines.
I) "emigrant" means any person, worker, or otherwise, who emigrates to a foreign
country by an immigrant visa or resident permit or its equivalent in the country of
destination.
Book III - Conditions Of Employment
Hours of work
Art. 82. Coverage
The provisions of this title shall apply to employees in all establishments and
undertakings whether for profit or not, but not to government employees, managerial
employees, field personnel.
Members of the employer's family are dependent on him for support, domestic
helpers, persons in the personal service of another, and workers who are paid by
results as determined by the secretary of labor inappropriate regulations.
As used herein, "managerial employees" refer to those whose primary duty
consists of the management of the establishment in which they are employed or of a
department or subdivision thereof, and to other officers or members of the managerial
staff.
"Field personnel" shall refer to non-agricultural employees who regularly perform
their duties away from the principal place of business or branch office of the employer
and whose actual hours of work in the field cannot be determined with reasonable
certainty.
Art. 83. Normal hours of work
The normal hours of work of any employee shall not exceed eight (8) hours a
day.
Health personnel in cities and municipalities with a population of at least one
million (1,000,000) or hospitals and clinics with a bed capacity of at least one hundred
(100) shall hold regular office hours for eight (8) hours a day, for five (5) days a week.
Exclusive of time for meals, except where the exigencies of the service require
that such personnel work for six (6) days or forty-eight (48) hours, in which case, they
shall be entitled to additional compensation of at least thirty percent (30%) of their
regular wage for work on the sixth day.
For purposes of this article, "health personnel" shall include resident physicians,
nurses, nutritionists, dietitians, pharmacists, social workers, laboratory technicians,
paramedical technicians, psychologists, midwives, attendants, and all other hospital or
clinic personnel.
Art. 84. Hours worked
Hours worked shall include:
1. A) all-time during which an employee is required to be on duty or to be at
a prescribed workplace; and
2. B) all-time during which an employee is suffered or permitted to work.
Rest periods of short duration during working hours shall be counted as hours worked.
Art. 85. Meal periods
Subject to such regulations as the secretary of labor may prescribe, it shall be
the duty of every employer to give his employees not less than sixty (60) minutes time-
off for their regular meals.
Art. 86. Night shift differential
Every employee shall be paid a night shift differential of not less than ten percent
(10%) of his regular wage for each hour of work performed between ten o’clock in the
evening and six o’clock in the morning.
Art. 87. Overtime work.
Work may be performed beyond eight (8) hours a day provided that the
employee is paid for the overtime work, an additional compensation equivalent to his
regular wage plus at least twenty-five percent (25%) thereof.
Work performed beyond eight hours on a holiday or rest day shall be paid an
additional compensation equivalent to the rate of the first eight hours on a holiday or
rest day plus at least thirty percent (30%) thereof.
Art. 88. Under time is not offset by overtime.
Under-time work on any particular day shall not be offset by overtime work on
any other day. Permission given to the employee to go on leave on some other day of
the week shall not exempt the employer from paying the additional compensation
required in this chapter.
ARt. 89. Emergency overtime work.
Any employee may be required by the employer to perform overtime work in any
of the following cases:
A) when the country is at war or when any other national or local emergency has been
declared by the national assembly or the chief executive;
B) when it is necessary to prevent loss of life or property or in case of imminent danger
to public safety due to an actual or impending emergency in the locality caused by
serious accidents, fire, flood, typhoon, earthquake, epidemic, or other disaster or
calamity;
C) when there is urgent work to be performed on machines, installations, or equipment,
to avoid serious loss or damage to the employer or some other cause of similar
nature;
D) when the work is necessary to prevent loss or damage to perishable goods; and
E) where the completion or continuation of the work started before the eighth hour is
necessary to prevent serious obstruction or prejudice to the business or operations of
the employer.
Any employee required to render overtime work under this article shall be paid
the additional compensation required in this chapter.
Art. 90. Computation of additional compensation
For purposes of computing overtime and other additional remuneration as
required by this chapter, the "regular wage" of an employee shall include the cash wage
only, without deduction on account of facilities provided by the employer.
ART. 91. Right to a weekly rest day.
A) it shall be the duty of every employer, whether operating for profit or not, to provide
each of his employees a rest period of not less than twenty-four (24) consecutive hours
after every six (6) consecutive normal workdays.
B) the employer shall determine and schedule the weekly rest day of his employees
subject to collective bargaining agreement and such rules and regulations as the
secretary of labor and employment may provide. However, the employer shall respect
the preference of employees as to their weekly rest days when such preference is
based on religious grounds.
Art. 93. Compensation for a rest day, Sunday, or holiday work.
(a.) Where an employee is permitted to work on his scheduled rest day, he shall
be paid an additional compensation of at least thirty percent (30%) of his regular wage.
An employee shall be entitled to such additional compensation for work performed on
Sunday only when it is his established rest day.
(b.) When the nature of the work of the employee is such that he has no regular
workdays and no regular rest days can be scheduled, he shall be paid an additional
compensation of at least thirty percent (30%) of his regular wage for work performed on
Sundays and holidays.
(c.) Worked performed on any special holiday shall be paid an additional
compensation of at least thirty (30%) of the regular wage of the employees. Where
such holiday work falls on the employee's scheduled rest day, he shall be entitled to
additional compensation of at least fifty (50%) of his regular wage.
(d.) Where the collective bargaining agreement or other applicable employment
contract stipulates a higher premium pay payment than that prescribed under this
article, the employer shall pay such a higher rate.
Art. 94. Right to holiday pay.
(a) Every worker shall be paid his regular daily wage during regular holidays,
except in retail and service establishments regularly employing less than ten (10)
workers.
(b) The employer may require an employee to work on any holiday but such
employee shall be paid a compensation equivalent to twice his regular rate; and
What are the regular holidays observed in the Philippines?
(c) as used in the article, “holiday” includes:
o New Year’s Day,
o Maundy Thursday,
o Good Friday,
o On the Ninth of April,
o On the First of May,
o On the Twelfth of June,
o 2nd of November
o 3oth of November
o The Twenty-Fifth And
o Thirtieth of December And
o The Day Designated by law for holiday as the general
election.
Art. 95. Right to Service Incentive Leave.
A.) Every employee who has rendered at least one year of service shall be entitled to a
yearly service incentive leave of five days with pay.
B) This provision shall not apply to those who are already enjoying the benefit herein
provided, those enjoying vacation leave with pay of at least five days, and those
employed in establishments regularly employing less than ten employees or in
establishments exempted from granting this benefit by the secretary of labor and
employment after considering the viability or financial condition of such establishment.
C) The grant of benefit over that provided herein shall not be made a subject of
arbitration or any court or administrative action.
Art. 96. Service charges.
All service charges collected by hotels, restaurants, and similar establishments
shall be distributed at the rate of eighty-five percent (85%) for all covered employees
and fifteen percent (15%) for management. The share of the employees shall be equally
distributed among them. In case the service charge is abolished, the share of the
covered employees shall be considered integrated into their wages.
END OF LESSON
References:
Lesson 13: Equal Employment Opportunities and Affirmative Action
Topics: Equal Employment Opportunities and Affirmative Action
Learning Outcomes: At the end of this module, you are expected to:
Compare their rights as a person, be it about their ethnicity,
disability, or gender and their security in their work places.
LEARNING CONTENT:
Equal Employment Opportunity - involves the right of persons to apply and be
evaluated from employment opportunities without regard to race, color, religion, age,
national origin, sex, disability, or status of a disabled.
Affirmative action
A policy designed to redress past discrimination against women and minority groups
through measures to improve their economic and educational opportunities;
The term affirmative action refers to policies that take race, ethnicity, physical
disabilities, military career, sex, or a person's parents' social class
A policy or program providing advantages for people of a minority group who are seen
to have traditionally been discriminated against, with the aim of creating a more
egalitarian society through preferential access to education, employment, health care,
social welfare, etc
Policies of governments and other institutions that are designed to actively promote
and advance the status and the social and occupational participation of groups of people
designated by sex, ethnicity or other shared characteristics
Job Discrimination - refers to the unjust act of differentiating one group of people not on
the basis of personal merit but on the basis of partiality or bias.
Laws protect employees from receiving unequal treatment on the basis of race,
gender, age, citizenship, national origin, religion, marital status, disability, or labor union
activity. When employers use these factors against their workers, they have committed
employment discrimination.
Types of Job Discrimination
Age Discrimination
Age discrimination refers to an employer making hiring or promotion decisions
based on the employee's age, according to the EEOC website. This practice is a
violation of the Age Discrimination in Employment Act (ADEA), which protects people
who are 40 and over. An employer cannot choose to hire an employee because the
selected candidate is younger than others who competed for the job. During an
interview process, employers should not ask the applicant's age, or the company risks
being accused of age discrimination, particularly if that person is not hired for the job.
Unequal Pay
It is important for employers to recognize that employees of similar qualifications,
education and skill, should receive equal pay, as stated on the EEOC website.
According to the Equal Pay Act, male and female employees with similar roles and
responsibilities should be paid equally. If there is a need to pay unequal wages to
employees, the company should have significant justification to show the reason.
Sex Discrimination
Any conduct deemed as sexually inappropriate, including the expectation of
sexual favors in exchange for employment benefits, is considered sex discrimination.
Insensitive and seemingly harmless jokes or comments could land the employer in
trouble with the EEOC. Employers are also prohibited from discriminating against
female employees, or terminating their employment, due to pregnancy. Companies are
required to investigate allegations of sexual harassment, and all discrimination
complaints, and prevent hostile work environments by providing ongoing training for
current staff and new employees.
Stereotypes Against women
1. There are fields of occupation, which are traditionally suitable for women
because of their “sensitive, vulnerable and fragile” nature
2. There are types of work, which may not be fitting to women due to their
biological condition like monthly period
3. The inability of women to cope up with certain job requirements since their
common gender personality and aptitude traits make them unsuitable for those jobs
Note: Such generalizations about women are not only biased or prejudicial but also
untrue. Because of wrong person, women are not assigned to the tasks traditionally
directed to men and the result is that some women are never given the necessary break
to prove themselves (Burchell and Fagan, 2004)
1. Protected Class
2. Tangible Action
3. Harassment-
4. Illegal Connection –
Universal Human Rights- "Everyone has the right to work, to free choice of employment,
to just and favorable conditions of work and to protection against unemployment.
Everyone, without any discrimination, has the right to "equal pay for equal work," as
stated by the Universal Declaration of Human Rights. A violation of these individual
rights causes unlawful discrimination.
Safe Working Conditions- Physical and psychological safety are basic human rights.
Forced labor, an unsafe or toxic work environment, and unreasonable work hours cause
workplace-related discrimination.
The manager of an organization has a legal and moral obligation to fight discrimination
in the workplace. His duties include, following directions given by the Equal Employment
Opportunities Commission, implementing policies and procedures in line with the Civil
Rights Act and dealing with any concerns or complaints members of staff have
regarding discrimination in the workplace.
1. Civil Rights
It is the manager's legal duty to implement company policy that follows both
federal and state legislation. Title 7 of the Civil Rights Act 1964, provides that there shall
be no discrimination in the workplace based upon, race, color, religion, sex or national
origin. The Equal Pay Act of 1963, states that workers should be paid equally and fairly
and gender is not a valid reason for variations in pay. It is the responsibility of the
manager to keep abreast new developments in discrimination law and any amendments
made to existing legislation. Failure to fulfill this duty can result in severe criminal
punishments personally and for the company.
LEARNING CONTENT:
Good Working Condition: Basic Employee Right
Working Condition - refers to the safety and healthfulness of the workplace, particularly
the physical work environment and the procedures followed in performing the work.
Note: labor history is a witness to some poor and even dangerous working conditions,
long working hours, insufficient safety measures; exploitation of women and worst is the
child labor. All of which become notorious when the factory system and sweatshops
have been introduced during the industrial revolution.
Factory- refers to a large establishment employing scores of people involved in mass
production of industrial or consumer goods
Sweatshops- a small manufacturing establishment where tired employees work long
hours under substandard conditions for low wages
Dimensions of Working Condition
1. Offer wages that reflect the risk-premium prevalent in other similar but
competitive labor market
2. Provide employees with suitable health insurance programs
3. Collect information on health hazards that coincide with a given job and make
such information available to employees
Note: employees taking higher risk will be rewarded with higher compensation.
Employee rights to social security and health benefits
LEARNING CONTENT:
Sexual harassment - form of unlawful sex discrimination, which includes unwanted verbal or
physical behavior of a sexual nature that occurs in the workplace or in an educational
setting under certain conditions.
- always an unsolicited and unreciprocated behavior
- illegal if it creates an environment that is hostile or intimidating, if it interferes with a
person’s work or school performance, or if acceptance of the harasser’s behavior is
made a condition of employment or academic achievement
- form of discrimination
2 Types of Sexual Harassment:
LEARNING CONTENT:
Child labor - refers to illegal employment of children below 18 years old.
Under the law, child labor is defined as any work or economic activity performed
by a child that subjects him or her to any form of exploitation, or is harmful to his or
her health and safety, or physical, mental, or psycho-social development.
Most underage children are forced to labor to support their poor families due to
poverty.
Because of child labor, children suffer from malnutrition.
Instead of idling their time in a classroom, these children were rather roam around
the streets and risking their lives just to earn enough money for their families.
The United Nations Commission on Human Rights reports that if this exploitative
is a fact of life in the affluent society, it is even more shameful and disgraceful in poor
and developing countries.
2001 data
4 million child laborers in the Philippines
5 million – unpaid workers
900,000 – private workers
350,000 – household helps
270,000 – self-employed
2011 data
There are 5.59 million child laborers toiling in the Philippines and almost all of
them are working in hazardous conditions, according to a survey financed by the
International Labor Organization (ILO).
The 2011 Survey on Children conducted by the National Statistics Office (NSO)
showed that out of the 29.019 million Filipino children aged 5-17 years old, about
18.9 percent or 5.59 million, were already working.
This is higher than the 4 million Filipino working children registered in a 2001
survey conducted by the ILO and the US Department of Labor.
In the Philippines, according to the Philippine Statistics Authority (PSA), about 95
per cent of child laborers are in hazardous work. 69 per cent of these are aged 15-17
years old, beyond the minimum allowable age for work but still exposed to hazardous
working conditions. Children work in farms and plantations, in dangerous mines, on
streets, in factories, and in private homes as child domestic workers. Agriculture
remains to be the sector where most child laborers can be found at 58 per cent.
6% of our child laborers are unprotected from hazardous environment that put
their health and life and risk, which include long exposure to deadly chemicals as
well as physical dangers.
Child labor is a bold illustration of prioritization of material realities over the human
person or profit maximization at all cost.
GLOBAL MARCH AGAINST CHILD LABOR
was launched by the Office of the President on January 16, 1998 at Quezon
Memorial Circle in Quezon City.
Symbolic protest against Child Labor practice.
International Labor Organization declared June 12 as Anti-Child Labor Day
The Philippines has adopted the Philippine Program Against Child Labor (PPACL)
as the official national program on the elimination of child labor. This is a
convergence of the efforts of government, the private sector, employers’ groups,
trade unions, NGOs and international development institutions towards the
prevention, protection and removal from hazardous and exploitative work of child
labor victims and, as may be appropriate, healing and reintegrating them.
The ILO has been supporting the Philippines in the implementation of the PPACL
through its International Programme on the Elimination of Child Labour (IPEC).
Presently, ILO is managing a Project funded by the US Department of
Labor called Country Level Engagement and Assistance to Reduce Child Labor
(CLEAR). It aims to enhance the capacity of the Philippines to reduce child labor by
supporting its actions in addressing the recommendations contained in the "Finding
on the Worst Forms of Child Labor Report" of the USDOL.
What constitute Child Labor?
RA 7610 (June 17, 1992)
Special Protection of Children against Child Abuse, Exploitation and
Discrimination Act
Approved by the President of the Philippines, Corazon C. Aquino
RA 7658 (May 12, 1994)
was issued by the DOLE which provides that, among others, it is illegal to
employ children under 15 years of age.
What are the dire reasons why children work?
1. Poverty
2. Traditional distorted beliefs
3. Convenience on the part of the employer
What are the evil consequences of Child Labor?
Children who work may suffer in 4 areas: Physical, Mental, Emotional and Moral.
1. Physical Deterioration
2. Mental Wasting
3. Low Aspiration
4. Moral Decay
Difference between child labor and child work
Work burdens the child; too heavy for Work is appropriate to child's age and
child's age and capabilities mental capabilities
Child works unsupervised or Supervised by responsible and caring
supervised by abusive adults adults
Very long hours of work; child has Limited hours of work; does not hinder
limited or no time for school, play or the child from going to school, playing
rest or resting
Workplace poses hazards to child's Workplace is kept safe and child
health and life friendly, does not pose hazards to
health and life of the child
Child is subject to psychological, Child's physical, emotional and mental
verbal, or physical/sexual abuse well-being are nourished even in the
work environment
Child is forced by circumstances or by Child works voluntarily to participate
coercive individuals to work in the family responsibility of
maintaining the household
Child is justly compensated materially
Limited or no positive rewards for the
and psychologically
child
Child's work is regulated by law or
Child's work is excluded from
governed by family/community norms
legislation, social security and
and values
benefits
Child's work serves as a vehicle for
Child's work is used for exploitative,
social advancement and improvement
subversive or clandestine operations
in the child's quality of life
or disguised illegal activities
Are parents legally liable?
Under RA 7610
Signed by Pres. Corazon C. Aquino on June 17, 1992
The law attaches criminal liability to any parents who, by his/her actuation,
deprived his/her parental love, care, protection and education.
Are parents morally liable?
Child Labor is a socio-ethical issue for the global community, including business.
The primary responsibility for eliminating child labor should be shouldered by national
governments and international bodies such as the International Labor Organization or
ILO and the United Nations or UN.
What are the multiple approaches to the problem of child labor?
1. Labeling
Seeks to ensure that a single product or product type is free from child labor.
Products now carry a label indicating to consumers that the product was
manufactured under their fair and equitable conditions and without the use of
child labor.
Critics suggest that labeling is generally too simplistic an approach by which
to combat such problem, for it is extremely hard to guarantee that a product has
been manufactured without the use of child labor.
However, such labels can bring benefits when they are supported by
rigorously applied audit process.
2. Codes of Conduct and Supplier Guidelines
Can be useful when introduced by companies with a detailed understanding
of the complexities of child labor.
In the absence of external monitoring and verification, codes of conduct may
be seen as, and proved to be, little more than rhetoric and may even prove
counterproductive if introduced without sufficient thought.
How do businesses learn from the experiences of others?
Focus of Customers
Reputation preservation with customers
Do some businesses focus on suppliers and the community?
A company that focuses on the needs of its suppliers and local community
stakeholders might well have a different response to the same problem.
Rather than seeking to eliminate all work undertaken by children, it might choose
instead to change the nature of the work, in line with ILO recommendations and ideally
in consultation with a local community-based organization.
Or provide employment to their parents, if such case is not unlikely. This option
needs a lot of sustained planning and preparation.
Elimination or change in the role of children
The benefit to both the company and the child will be greatest if the changes
are introduced in a controlled fashion, possibly over a period of time. Whatever
the response is, good communication with all affected stakeholders is absolutely
essential.
END OF LESSON
Lesson 17: Unions: Responsibilities and Duties
Topics: Unions: Responsibilities and Duties
Learning Outcomes: At the end of this module, you are expected to:
Ø Examine the responsibilities and duties of labor organizations.
LEARNING CONTENT:
LABOR ORGANIZATIONS
DEFINITION OF TERMS
Labor organization – any union or association of employees in the private sector which exists in whole or in
part for the purpose of collective bargaining or of dealing with employers concerning terms and conditions
of employment.
Union – any labor organization in the private sector organized for collective bargaining and for other
legitimate purposes.
Legitimate Labor Organization or Labor Union – Any labor organization as defined above registered with
DOLE.
NOTE: Not every legitimate labor organization can act as bargaining representative and be certified as
such. This is true ONLY of a union that has won in certification election or has been voluntarily recognized
by the employer.
Art. 234: Requirements of Registration
PRINCIPLE OF AGENCY APPLIED
1. Principal – Employees
2. Agent – local/chapter
3. Agent of Agent – federation
PURPOSE OF FORMATION OF LABOR UNIONS: for securing fair and just wages and good working
conditions for the laborers; and for the protection of labor against the unjust exactions of capital.
CLASSIFICATION OF LABOR ORGANIZATIONS
1. National Union/Federation – any labor organization with at least 10 locals/chapters each of
which must be a duly certified or recognized collective bargaining agent.
2. Industry Union – group of legitimate labor organizations within an identified industry,
organized for collective bargaining or for dealing with employers concerning terms and
conditions of employment, within an industry or for participating in the formulation of social and
employment policies, standards, and programs in such industry registered with DOLE
3. Trade Union Center – group of registered national unions or federations organized for the
mutual aid and protection of its members and for assisting such members in collective
bargaining or for participating in the formulation of social and employment policies, standards,
and programs duly registered with the Department.
4. Alliance – aggregation of unions existing in one line of industry or in a conglomerate, a
group of franchisees, a geographical area, or an industrial center.
5. Company union – a labor organization which in whole or in part, is employer-controlled or
employer dominated.
MODES OF ACQUIRING LEGITIMACY FOR LABOR ORGANIZATIONS
1. It is the fact of being registered with the DOLE that makes a labor organization legitimate in the
sense that it is clothed with legal personality to claim representational and bargaining rights
enumerated in Article 242 or to strike or picket under Article 263.
1. For registration of independent labor unions, chartered locals, worker’s association shall be filed
with the Regional Office where the applicant principally operates. It shall be processed by the
Labor Relations Division at the Regional Office.
2. Applications for registration of federations, national unions or worker’s associations operating in
more than one region shall be filed with the BLR or the regional offices, but shall be processed by
the BLR.
ART. 241: RIGHTS AND CONDITIONS OF MEMBERSHIP IN A LABOR UNION
1. Deliberative and Decision-Making Right – the right to participate in deliberations on major policy
questions and decide by secret ballot.
2. Right to Information – the right to be informed about:
1. the organization’s constitution and by-laws
2. the collective bargaining agreement, and labor laws
3. Rights Over Money Matters – the rights of the members:
1. Against imposition of excessive fees;
2. Right against unauthorized collection of contributions or unauthorized
disbursements;
3. To require adequate records of income and expenses;
4. To access financial records;
5. To vote on officers’ compensation;
6. To vote on special assessments;
7. To be deducted a special assessment only with the member’s written authorization
1. Political Right – the right to vote and be voted for, subject to lawful provisions on qualifications and
disqualifications.
NOTE: Any violation of the above rights and conditions of membership shall be a ground for cancellation of
union registration or expulsion of an officer from office, whichever is appropriate. At least 30% of all the
members of the union or any member or members specifically concerned may report such violation to the
BLR.
UNION MEMBERSHIP
Any employee, whether employed for a definite period or not, shall, beginning on his first
day of service, be considered an employee for purposes of union membership.
WHO ARE PROHIBITED FROM BECOMING MEMBERS/ OFFICERS OF A LABOR ORGANIZATION
1. non-employees
2. Subversives or those engaged in subversive activities
3. Persons who have been convicted of a crime involving moral turpitude shall not be eligible for
election as union officer or for appointment to any position in the union
LIMITATIONS:
The labor organization cannot compel employees to become members of their labor organization
1. Written resolution
2. Resolution must have been approved by a majority of all the members
3. The approval must be at a general membership meeting duly called for that purpose
4. The Secretary of the organization shall record the minutes of the meeting, which shall be attested
to by the President. The minutes include:
1. The list of all members present;
2. The votes cast; and
3. The purpose of the assessment or fees.
CHECK-OFF – a method of deducting from an employee’s pay at prescribed period, the amounts due to
the union for fees, fines or assessments.
NATURE AND PURPOSE OF CHECK-OFF
Union dues are the lifeblood of the union.
All unions are authorized to collect reasonable membership fees, union dues, assessments and
fines and other contributions for labor education and research, mutual death and hospitalization
benefits, welfare fund, strike fund and credit and cooperative undertakings.
REQUIREMENTS WITH REGARD TO CHECK-OFFS
No special assessment, attorney’s fees, registration fees or any other extraordinary fees may be checked
off from any amount due an employee without an individual written authorization duly signed by the
employee.
The authorization should specifically state the:
1. Amount
2. Purpose
3. and the beneficiary of the deduction
Exceptions:
1. Constitution and by-laws, or amendments thereto, minutes of ratification, and the list of members
who took part in the ratification of the constitution and by-laws within 30 days from adoption or
ratification of the constitution and by-laws or amendments thereto;
2. List of officers, minutes of the election of officers, and list of voters within 30 days from election;
3. Annual financial report within 30 days after the close of every fiscal year; and
4. List of members at least once a year or whenever required by the Bureau.
EXTENT OF THE RIGHT TO SELF-ORGANIZATION
1. To form, join and assist labor organizations for the purpose of collective bargaining through
representatives of their own choosing; and
2. To engage in lawful concerted activities for the same purpose or for their mutual aid and protection.
PERSONS/EMPLOYEES ELIGIBLE TO JOIN A LABOR ORGANIZATION FOR PURPOSES OF
COLLECTIVE BARGAINING
1. All persons employed in commercial, industrial and agricultural (CIA) enterprises; and
2. In religious, charitable, medical or educational (RCME) institutions whether operating for profit or
not
PERSONS/EMPLOYEES ELIGIBLE TO JOIN A LABOR ORGANIZATION FOR MUTUAL AID
AND PROTECTION (AIRSIW)
1. Ambulant - travelling
2. Intermittent – irregular, broken; alternating
3. Rural
4. Self-employed people
5. Itinerant workers - wandering
6. Workers without any definite employers
PERSONS/EMPLOYEES WHO ARE NOT GRANTED THE RIGHT TO SELF-ORGANIZATION:
(HEMACEN)
1. Members of the Armed Forces of the Philippines, including police officers, policemen, firemen and
jail guards
2. Confidential employees
3. Employees of cooperatives who are its members
4. Non-Employees
ELIGIBILITY OF FOREIGNERS TO FORM LABOR ORGANIZATION
Aliens working in the country with valid permits issued by DOLE may exercise the right to self-organization
and join or assist labor organizations of their own choosing for purposes of collective bargaining provided
further that said aliens are nationals of a country which grants the same or similar to Filipino workers. This
embodies the principle of reciprocity.
ART. 244: RIGHT OF EMPLOYEES IN THE PUBLIC SERVICE
RIGHT TO STRIKE:
GOCCs WITH ORIGINAL CHARTER: Employees cannot stage strikes since they are governed by Civil
Service Law. They are enjoined by Civil Service Memorandum Circular No.6 under pain of administrative
sanctions from staging strikes, demonstrations, mass leaves, walkouts and other concerted activities.
GOCCs WITHOUT ORIGINAL CHARTER: The GOCC is created under the Corporation Code, the
employees are covered by the Labor Code. Therefore, the employees have the same rights as those as
employees of private corporations, one of which is the right to strike.
BARGAINING RIGHTS
GOCC WITH ORIGINAL CHARTER: Corporations with original charters cannot bargain with the
government concerning the conditions of their employment. However, they can negotiate (through CBA or
MOA) with the government on those terms and conditions of employment which are not fixed by law. Thus,
they have limited bargaining rights.
GOCC WITHOUT ORIGINAL CHARTER: The GOCC created under the Corporation Code being governed
by the Labor Code can bargain with the government concerning the terms and conditions of employment.
Thus, they have unlimited bargaining rights.
NEGOTIABLE TERMS AND CONDITIONS OF EMPLOYMENT IS GOCCs WITH ORIGINAL CHARTER
1.
1. Appointments;
2. Promotion;
3. Assignments/details;
4. reclassification/upgrading of position;
5. Revision of compensation structure;
6. Penalties imposed as a result of disciplinary actions;
7. Selection of personnel to attend seminar, trainings, study grants;
8. Distribution of work load; and
9. External communication linkages
To sum up, government employees covered by E.O. No. 180 may organize, even unionize, and negotiate
employment conditions not fixed by law but they cannot strike.
WHERE TO REGISTER:
Government employees’ organizations shall register with the Civil Service Commission and DOLE.
The application shall be filed with the BLR, which shall process the same in accordance with the provisions
of LC.
Applications may also be filed with the Regional Offices of DOLE, which shall immediately transmit said
applications to the BLR within 3 days from receipt thereof.
ISSUANCE OF REGISTRATION CERTIFICATE
Upon approval of the application, a registration certificate shall be issued to the organization recognizing it
as a legitimate employees’ organization with the right to represent its members and undertake activities to
further and defend its interest.
The certificates of registration shall be jointly approved by the Chairman of Civil Service Commission and
Secretary of Labor.
ART. 245: INELIGIBILITY OF MANAGERIAL EMPLOYEES TO JOIN ANY LABOR ORGANIZATION;
RIGHT OF SUPERVISORY EMPLOYEES
1. MANAGERIAL EMPLOYEES – those who are vested with powers or prerogatives to lay down and
execute management policies and/or to hire, transfer, suspend, lay-off, recall, discharge, assign or
discipline employees.
REASON OF INELIGIBILITY
1. Managerial employees are the alter ego of the employers and this they are
supposed to be on the side of the employer to act as its representatives, and to see to
it that its interests are well protected. The employer is not assured of such protection if
these employees are union members.
2. In the same manner, the labor union might not be assured of their loyalty to the
union in view of the evident conflict of interest. The union can also become company-
dominated with the presence of managerial employees in union membership.
2. SUPERVISORY EMPLOYEES – those who, in the interest of the employer, effectively recommend
such managerial actions if the exercise of such authority is not merely routinary or clerical in nature but
requires the use of independent judgment.
SUPERVISORY EMPLOYEES may form, assist, join a labor organization on their own and NOT with
the rank-and-file employees.
3. CONFIDENTIAL EMPLOYEES – is one entrusted with confidence on delicate matters, or with the
custody, handling or care and protection of the employer’s property.
ART. 247: UNFAIR LABOR PRACTICES
NATURE:
1. Contracting out services is not ULP per se. It is ULP only when the following conditions exist:
1.
1. The service contracted out are being performed by union members; and
2. Such contracting out interferes with, restrains, or coerce employees in the exercise of their
right to self-organization.
HOWEVER, when contracting out is being done for business reasons such as decline in business,
inadequacy of equipment or to reduce cost, then it is a valid exercise of management prerogative.
4. RUNAWAY SHOP – an industrial plant moved by its owner from one location to another to
escape labor regulations or state laws or to discriminate against employees at the old plant
because of their union activities.
COMPANY-DOMINATION OF UNION
To initiate, dominate, assist or otherwise interfere with the formation or administration of any labor
organization, including the giving of financial or other support to it or its organizers or officers.
COMPANY UNIONISM/CAPTIVE UNIONISM
Considered as a ULP because the officers will be beholden to the employers and they will not look
after the interest of whom they represent.
INITIATION OF THE COMPANY UNION IDEA BY:
LEARNING CONTENT:
Issues probed in this chapter:
1. Product safety - the legal and the moral responsibilities of the manufacturers
and the pros and cons of government regulations designed to protect consumers.
2. The responsibilities of business to consumers concerning products’ quality,
prices, labeling and packaging.
3. Deceptive, the morally questionable techniques used in advertising.
4. The choice between the “reasonable” consumer and “ignorant” consumer
standards is the basis for identifying deceptive advertisements.
5. Advertising and children.
6. The social desirability of advertising in general- is it a positive feature of our
economic system? Does it manipulate or merely respond to consumer needs?
Product Safety
The increasing complexity of today’s economy and the growing dependence
of consumers on business for their serial and enrichment have high lightened
businesses responsibilities to consumers- particularly in the area of product
safety
Because consumers are not in position of technical expertise to judge the
sophisticated products that are necessary for contemporary life, they must rely
primarily on the conscientious efforts of business to ensure consumer safety.
Legal Liability of Manufacturers
If a defective product injures any of us, we can sue the manufacturer of that
product.
Contractual relationship- simply the sale that is the exchange of money for a commodity
of the certain description.
It is an important source of moral and legal responsibilities for the
producer.
It obligates business firms to provide customs with a product that ties
up to the claims the firm about the product.
Due care
- the idea that consumers and sellers do not meet as equals and that consumers
interest are particularly vulnerable to being harmed by the manufacturer, who has
knowledge and expertise the consumer does not have.
- According to this view, manufacturers have an obligation, above and beyond any
contract, to exercise due care to prevent consumer from being injured by defective
products.
Caveat emptor- “Let the buyer beware”
- We associate it with an era of patent medicines and outrageously false product claims
- It symbolizes a period in which consumers themselves had greater legal responsibility
to accept the consequences of their product choices
Doctrine of strict product liability
Holds that the manufacturer of a product has legal responsibilities to
compensate the user of that product for injuries suffered because the
products defective condition made it unreasonably dangerous, even
though the manufacturer has not been negligent in permitting the defect to
occur.
Under this doctrine, a judgment for recovery of damages could
conceivably be won even if the manufacturer adhered to strict quality-
control procedures.
Arguments of critics regarding the Doctrine of Strict Product Liability:
2. Its advocates contend, first that only such a policy leads firm to bend over
backward to guarantee product safety.
3. Proponents of strict liability contend that the manufacturers are best able to
bear the cost of injuries due to defects.
Protecting the public
*Congress created one of the most important of these agencies in 1972 when it passed
the Consumer
Product Safety Act. This act empowers the Consumer Product Safety Commission to
“protect the public against unreasonable risk of injury associated with consumer’s
products”. The five-member commission sets standards for products the entire
consumer product marketing process from manufacturer to final sale,
In undertaking policy function, the commission aids consumers in evaluating product
safety, develops uniform standards, gather data, conducts research and coordinates
local, state and federal product safety laws and enforcement.
*Safety regulations may also prevent individuals from choosing to purchase a riskier,
though less expensive products.
CONTROVERSY OVER LEGAL PATERNALISM
The doctrine that the law may justifiably be used to restrict the freedom
of the individuals for their own good.
Paternalism is a large issue that can’t be done, justice here, but in
regard to safety regulations, three comments are in order:
1. The safety of same products or some features affect not just the consumers who
purchase the products but third parties as well
2. Anti-paternalism gains plausibility from the view that individuals know their own
interest better than anyone else and they are fully informed and able to advance
those interests.
3. The controversy over legal paternalism pits the values of individual freedom and
autonomy against social welfare.
How effective is regulation?
There is no doubt that in some case regulation interferes with rather than the
safeguarding consumers’ interests.
Regulations often prod business to recognize and to act on their
responsibilities to consumers.
Sometimes even without applying the force of law, agencies can affectively
safeguard the health and safety of consumers.
Do regulations help business meet its responsibility to consumers?
The answer is generally yes but sometimes no.
Nonetheless, the prevailing view today among business people favors self-
regulation. Such a view certainly is in keeping with the tenet of classical
capitalism and is arguably an attractive ideal.
However, self-regulation can easily become an instrument for subordinating
consumer interest to profit making when two goals clash.
Under the guise of self-regulation, business may end up ignoring or
minimizing responsibilities to consumers.
The Responsibilities of Business
Simply obeying the rules and regulations does not exhaust the moral
responsibilities of business in the area of consumer safety. The exact nature of those
responsibilities is difficult to specify in general, because much depends on the particular
products or service being provided. But abiding by the following steps would do much to
help the business behave morally with respect to consumer’s safety.
5. When a product reaches the market place, firms should make available to
consumers written information about the products performance.
- This information should include operating instruction, the products safety,
features, conditions that will cause it to fail, a complete list of the ways (it should not be
used) the product can be used, and a cautionary list of the ways should not be used.
Learning Outcomes: At the end of this module, you are expected to:
Ø Recognize the importance of knowing the rights and powers of consumers and buyers.
LEARNING CONTENT:
Ethical Problems in Providing Service to Customer
Problems in providing service
Production
Provides opportunities for unscrupulous person to commit
undesirable practice such as:
using sub-standard raw materials
substituting quality ingredients to inferior ones
Marketing
Selling to uninterested and reluctant customers such as:
Making false statement about the quality, content and
usefulness of the product
How Providing Service Becomes a Disservice
Misrepresentation
2 Types:
1. Intentional Misrepresentation-deliberate and willful, commonly
called lying
2. Unintentional Misrepresentation-not deliberate, the one making
may not be aware that he is engaging in such, commonly called
white lie
Indirect Misrepresentation
Omitting adverse information about the products or a service
1. Caveat emptor- “let the buyer beware”; the buyer is not
obligated to reveal any defect in product or service he is
selling
2. Business Ignorance-business is unable to provide the
customer with complete information he needs to make a fair
decision
Over persuasion
The process of appealing to the emotion of a prospective
customer and moving him into buying an item of merchandise he
needs.
ETHICAL PROBLEMS AND CONCERNS IN SELLING
Selling-the practice of exchanging goods for money.
1. Feedback system
2. Resolving complaints
3. Compensatory justice
Government Agencies Created to protect Consumers
1. Department of Trade and Industry
Questionable service practices with regard to repair
Sale of mislabeled products
Fraudulent advertising
Sale of counterfeit goods
Failure to award raffle prizes\violation of the Price Tag Law
Complaints regarding real estate transaction
Breach of contract or warranty
Violation of the sales promo mechanics
Sale of defective or substandard product (no product standard
mark)
2. Department of health
Adulterated/banned/mislabeled food and drugs
Hazardous substances
Cosmetics
3. Department of Interior and Local Government
Defective or tampered weighing scales
4. Bangko Sentral ng Pilipinas
Incomplete or non-disclosure of true cost of credit extended to
consumers
END OF LESSON
Lesson 21: Social Responsibility Towards Competitors
Topics: Social Responsibility Towards Competitors
At the end of this module, you are expected to:
Learning Outcomes: Ø distinguish a healthy and bad competition.
Ø examine different kinds of competitors and the competencies needed to
play fairly the rules of the game in competition.
LEARNING CONTENT:
Challenging Market Dominance and Price Fixing Scheme
Drivers of Free Market and Global Competition
Protectionist policies
A variety of policies can be used to achieve protectionist goals. These include:
1. Tariffs: Typically, tariffs (or taxes) are imposed on imported goods. Tariff rates usually
vary according to the type of goods imported.
2. Import quotas: To reduce the quantity and therefore increase the market price of
imported goods.
3. Administrative Barriers: Countries are sometimes accused of using their various
administrative rules (e. g. regarding food safety, environmental standards, electrical
safety, etc.) as a way to introduce barriers to imports.
4. Anti-dumping legislation Supporters of anti-dumping laws argue that they prevent
"dumping" of cheaper foreign goods that would cause local firms to close down.
5. Direct Subsidies: Government subsidies (in the form of lump-sum payments or cheap
loans) are sometimes given to local firms that cannot compete well against foreign
imports.
6. Export Subsidies: Export subsidies are often used by governments to increase exports.
Export subsidies are the opposite of export tariffs, exporters are paid a percentage of the
value of their exports.
7. Exchange Rate manipulation: A government may intervene in the foreign
exchange market to lower the value of its currency by selling its currency in the foreign
exchange market.
Interventions include:
subsidies,
taxes and tariffs,
non-tariff barriers, such as regulatory legislation and quotas,
Oligopoly
Cartel
A cartel is a formal (explicit) agreement among competing It is a formal
organization of producers and manufacturers that agree to fix prices, marketing,
and production.
There are several factors that will affect the firms' ability to monitor a cartel:
4. Behavior of demand
If an industry is characterized by a varying demand (that is, a demand with cyclical fluctuations),
it is more difficult for the firms in the cartel to detect whether any change in their sales volume is
due to a demand fluctuation or to cheating by another member of the cartel.