EMPLOYEE RELATIONS

- encompasses the broad field of HRM that is concerned with balancing employee satisfaction with
employee productivity and efficiency in the attainment of organizational goals.

FOUR SCHOOL OF THOUGHT

1. Mainstream Economics

- This school of thought emphasizes the existence of free market competition. Workers are free to resign
if they do not like the working conditions. in the company they are working for.

- A strike aims to slow down productivity and affect output levels (Kaufman, 2010).

2. Human Resources Management

HRM is formerly referred to as personnel management.

Human resources were merely essential factors of production.

What is better management? It is the effective handling of employees through human resource practices
such as fair and effective recruitment, selection, training, and performance management procedures.

Programs on compensation are objective, just, and properly implemented (Hughes 2000, Kaufman,
2010).

3. Industrial Relations

The great bargaining power of employers in determining workers' wages and benefits always raises issue.
This school of thought asserts that this considerable power, which breeds inequality, is the primary cause
of labor problems.

Thus, in the industrial relations framework, employees can acquire equally great bargaining power
mainly by forming independent labor unions and collective bargaining (Kaufman, 2008)

4. Marxist Industrial Relations

The Marxist point of view opposes mainstream economics. Therefore, it advocates the struggle of
workers against capitalism (free market) and perpetuates strong militant unions to help workers obtain
better working conditions, compensations, and benefits.
The three P's in employee relations are policies, practices, and prevention.

POLICIES (context of labor relations)

Policies denote certain rules, rights, and procedures that both the management and employees have to
follow to maintain harmony within the organization.

The main aspects are the following: basic rights of employees and employers, labor union and collective
bargaining, grievance handling, and employee discipline They constitute the main task of employee
relations personnel. For the HR successful to be in employee relationship management or in attaining a
harmonious relationship between management and employees.

ELEMENTS

1. Drive for Commitment

When a company fosters a good relationship between management and employees, the latter become
loyal and committed to the organization.

2. Harmonization of Terms and Conditions of Employment

When employees believe that the terms and conditions stated in their employment contracts are
adhered to, the company can be assured that employees are satisfied. Efforts of employees and
conditions of employment are united and harmonized.

3. Emphasis on Mutuality

This stresses teamwork. Employees must feel that management is also a part of the group.

4. Policies and Practices for Communication

The concept of labor relations is the maintenance of harmonious relationship between employees and
the management. It shows the ideal relationship between the two parties which centers on
communication.

Communication is a two-way process.

Basic Rights of Employees and Employers

1. Equal opportunities for all

All employees should be treated fairly and given work opportunities regardless of gender, race, and
religion, among others.

2. Security of tenure

No employee can be dismissed from work without due process. The employee has the right to be heard
before a decision for termination is made.

3. Work days and work hours

The normal number of hours of work in a day are eight (8) hours An employee must be paid for all the
hours he/she spent working in excess of the normal work hours, he/she is entitled to overtime pay

4. Wage and wage-related benefits

All employees are entitled to wages and other benefits as mandated by law. This right has been
discussed in the previous chapter on compensation and benefits.

5. Safe working conditions

Employees should be provided with safe working conditions which include appropriate seats, lighting
and ventilation, adequate passageways, exits, fire-fighting equipment, separate facilities for men and
women, gears, masks, safety shoes, coats and uniforms, medicine. medical supplies, and first aid kits.

6. Rest days and holidays

A rest day refers to at least a east a day off from work. Employers and entitled to holiday pay as
mandated by law for any during such days.

7. Leave

The three types of leave which should be enjoyed by the employees are the following: service incentive
leave, paternity leave, and maternity leave.

8. Right to self-organization and collective bargaining

An employee has the right to join any legitimate worker's association or union of his/her choice free
from any interference by the employer.9.

9. Workers' participation and tripartism

Employees and employers work in a partnership. They have to ensure harmony and settle any
differences between them, if any Tripartism refers to the cooperation of three parties: employees,
employers, and the government.
10. Social Legislation

There are social security benefits provided to workers such as pensions, financial assistance or allowance
for death or sickness, rehabilitation assistance for work-related disability, etc.

THE RIGHTS OF EMPLOYERS

1. Closure of business

The employer may decide to close the business when needed, such as when it goes bankrupt.

2. Transfer of workers

The management has the prerogative to transfer an employee from one department to another.

3. Hire and fire

The employer has the right to accept or hire an applicant and at the same time to fire an employee,
provided the latter case arises from a just or authorized cause. Termination with just cause means one
that is made after according due process.

4. Impose employee discipline

Any employee offense or violation of company standards and code of conduct is dealt with by the
employer through disciplinary measures

5. Issue rules and regulations

The management has the right to implement rules and regulations that employees must follow.

6.Management prerogatives

The management is given a leeway to administer the affairs of the company to maximize profits.

EMPLOYEE POLICIES

The objective of formulating good employee policies is to build a positive workforce and a conducive
workplace where all employees commit themselves maintaining good relations with each other and with
the top management.
Employee policies are covered by the following areas (Guest, Brown, et al, 2008)

1. Union recognition

The company should decide which union should represent employees.

2. Collective bargaining

The company should formulate policies on the coverage of collective bargaining agreements.

3. Procedures on grievance handling and discipline

Policies and procedures on handling grievance and discipline cases should be formulated and
implemented.

4. Communication policies

The organization should design policies so that employees can voice out their concerns and grievances.

5. Terms and conditions of employment

Policies on how terms and conditions of employment are governed by collective bargaining agreements
should be decided.

6. Employee handbook

Company policies should be stated and explained in the employee handbook.

EMPLOYEE HANDBOOK

An employee handbook guides employees and explains in written form the company's vision and mission
statements, corporate values or philosophy, history, policies, disciplinary offenses and sanctions, and
benefits. It also includes the key officers as well as management's standards and expectations regarding
employee conduct and behavior. Employees are expected to read the handbook and acknowledge that
they have received and understood its contents by signing the acknowledgment portion.

EMPLOYEE VOICE

Employee voice pertains to how much “say” employees have regarding matters that concern them and
the organization. It is a two-way dialogue, and employees are given the opportunity to be involved in
problem-solving and grievance procedures.
The forms of employee voice are the following (Boxall and Purcell, 2003)

1. Little voice

Information is always provided. Employers have little or minimal say about their concerns.

2. Some

Employees can give suggestions.

3. Two way

Employees can be consulted in the decision-making process.

4. Two way plus

Employers can be consulted in the making and implementation of a decision.

5. A lot

Employees have the right to delay a particular decision.

6. Veto power

Employers have the power to reject or refuse to enforce a decision.

7. Substantial

Employees have an equal "say" as the management in the decision- making process.

PRACTICES (Collective Bargaining Agreements CBA)

A labor organization is any union or association organized for the purpose of collective bargaining in
relation to the employees' conditions of employment www.dole.gov.phj

DIFFERENT KINDS OF LABOR ORGANIZATION

1. Independent labor union

This is a labor union without any affiliation to a national federation.

2. Legitimate labor organization

It is any labor organization registered with the Bureau of Labor Relations.

3. Company union
The formation of this labor organization is dominated, controlled, Influenced, and manipulated by the
employer. Thus, it is considered unlawful.

4. Federation and National Union

It is a group of unions in an industry of a particular area.

5. Trade Associations

These are labor organizations formed by self-employed individuals, rural workers, and those without any
definite employers or company affiliations.

The types of individuals who are eligible to join or form labor organizations are the following:

1. Rank and file employees of covered organizations

2. Supervisory employees, though they are not allowed to join or assist rank-and-file unions, can form
their own unions.

3. Government employees in the civil service

4. Employees of government corporations established under the Corporation Code

5. Aliens who are in the Philippines with valid employment permits, if they are nationals of a country
that also allows the same privileges for Filipino workers, can join or assist but not form labor
organizations of their choice for purposes of collective bargaining

These are the personnel who are not eligible or allowed to join or form laber organizations.

1. Managerial employees

The nature of their work includes policy-making for the organizations they are working for. They have the
power to implement management policies, such as hiring, transferring, suspending, laying off, recalling,
discharging, or disciplining employees.

2. Subversive groups are those engaged in rebellious or seditious activities.

Subversives or members of subversive organizations

3. Employees of cooperatives

Since they are also members of such cooperatives, they are also considered owners of these
cooperatives and, therefore, cannot bargain or negotiate with themselves as part-owners. However, this
prohibition does not apply to employees who are not members or co-owners.

4. Employees exempted from being union members

These are employees who have access to confidential information which may be advantageous for the
labor organization. Examples are accounting personnel, radio and telegraph operators, and secretaries of
managerial employees.
Collective bargaining is the negotiation of certain terms and conditions of employment for union
members through labor organizations. The purpose of collective bargaining is to enable workers to
bargain more persuasively for the improvement of their working conditions.

CBA have a five-year duration or effectivity.

deadlock - When the management and the union cannot agree on the provisions during the
renegotiation of the CBA.

unfair labor practice (ULP) - violates the rights of da employees to resort to self-organization based on
the Philippine Constitution.

Union busting - form of UL.P which happens when militant union leaders are illegally dismissed,
threatening the very existence of the union.

Meanwhile, the right to strike or lockout is valid on three grounds: bargaining deadlock, unfair labor
practice, and union busting

strike - is a temporary employee work stoppage. Work stoppage also includes sit down and slow-down
strikes, masa leaves, among others.

lockout - in the employer's call to replace union members with non-union employees as substitutes to
continue plant operations and production. Both the strike and lockout are weapons of the union and
management against each other during ULP, union busting, or deadlock.

There are certain requirements for a strike or lockout:

1. The notice for a strike or lockout should be filed with the Department of Labor and Employment
(DOLE) at least fifteen (15) days before the staging of the strike or lockout arising from an ULP, and at
least thirty (30) days in case of a bargaining deadlock.

2. The strike should be supported by a majority of the members of the union and the lockout by a
majority of the members of management or board of directors through a secret ballot in a meeting
called for such decision.

3. A strike or lockout vote should be reported to the DOLE at least seven (7) days before the intended
strike or lockout.

4. In case of union busting, the union may take action immediately.

5. Non-compliance with the requirements for a valid strike or lockout will render it illegal.
DIFFERENT FORM OF STRIKE

1. Legal Strike

It has a valid purpose and is conducted according to what in allowed by law.

2. Illegal Strike

It is prohibited by law.

3. Economic Strike

This is staged by workers to compel employers to provide wages and other economic concessions which
they are not required by law to grant.

4. Unfair Labor Practice (ULP) Strike

Acts of ULP are enumerated in Article 248 of the Labor Code. They include violations of the CBA and
union busting.

5. Slow-down Strike

This is staged by workers not by abandoning their work areas, but by reducing their normal work output.

6. Wildcat Strike

This is staged without a formal filing of the required notice of strike and without the approval of a
majority of the union members.

7. Sit down Strike

This happens when the workers stop working but do not leave their respective work areas.

Settlement of disputes. It shall be the duty of labor conciliators to call the parties concerned within a
period exceeding forty-eight (48) hours immediately upon receipt of a valid notice for a strike or lockout.

Picketing is a way of having union members protest outside the workplace by carrying placards and
banners. Picketing should be done without acts of intimidation, violence, or coercion.

The National Labor Relations Commission has the power to issue temporary injunctions or restraining
orders when necessary, but it cannot prevent employers from peaceful picketing.
PREVENTION (explains employee violations and corresponding disciplinary actions)

Prevention refers to the company's ability to avert anything that could tarnish the relationship between
the management and employees such as unfair calls for termination. It is very important for a company
to impose discipline among its employees. Any infractions committed by employees should be dealt with
according to its gravity.

EMPLOYEE CODE OF CONDUCT

defines acceptable employee behavior. An employee should sign for his/her acceptance of the code of
conduct because it serves as a legal agreement between the company and the employee.

COMMON CONTENTS OF AN EMPLOYEE CODE OF CONDUCT

1. Prohibition of illegal activities such as gambling, smoking, or drinking

2. Prohibition of discrimination (gender, race, religion, and civil status)

3. Sexual harassment

4.Confidentiality expectations such as non-disclosure of confidential information

5. Dress code and appearance

6. Punctuality and absenteeism (tardiness and absences)

7. Procedures for sick and emergency leaves Sanctions for each violation

The objectives of having an employee code of conduct are the following:

1. To maintain peace and harmony among employers

2. To avoid litigation and lawsuits for wrong decisions on suspension, termination, etc.

3. To promote teamwork and transparency on all levels of the company's organizational structure

Employee discipline enables employees to conform to established standards of performance and

behavior. It is usually a procedure that corrects or punishes an employee when one of the rules of the
company is violated.
Common employee violations are usually based on the following:

1. Personal habits of employees

These are habitual traits that may seem petty, but, if they are done most of the time without apparent
justifiable reason or excuse, may affect company productivity. Such personal habits may be the following:
tardiness, absenteeism, non-wearing of the company uniform, substance abuse, and intoxication.

2. Incompetence

This denotes the non-performance of assigned duties and responsibilities, such as not submitting reports
on time or underperforming.

3. Misconduct

This involves fraud, malversation of funds, deceit and dishonesty, violation of a rule, sleeping while on
duty, and sexual harassment.

POSITIVE AND NEGATIVE DISCIPLINE

Positive discipline encourages employees' participation by allowing them to willingly conform to the
company policies and code of conduct.

POSITIVE DISCIPLINE APPROACH

1. Identify the problem.

The first thing the immediate supervisor should do is to identify the root cause of underperformance.

2. Analyze the severity or seriousness of the problem.

Know the degree or the seriousness of the problem. How does, for example, a specific case of
underperformance affect the productivity of the group to which the employee belongs, the customers,
and the overall company output?

3. Discuss the problem or issue.

It is important to discuss the problem, how it affects the employet, and the suggested solution.

4. Document the discussion.

Make sure the discussion of the suggested course of action and the supervisor's expectations are
documented. Notes are taken down so that the next step, which is follow-up, will be easy.

5. Follow up on the correction.

The employee and supervisor should agree on a particular time frame when to follow up the case of the
underperforming employee.

Negative discipline if focuses on punishment. Punishments include demotion, suspension, and

termination

General Steps in the Disciplinary Process

1. Identify the employee who committed the violation.

2. Identify the violation committed.

3. Consult the department head/immediate supervisor and make an initial assessment of the violation.

4. Set a meeting with the departiment head/immediate supervisor.

5. Set a meeting with the department head/immediate supervisor and the employee.

6. Accord the employer due process.

7. Plan and discuss the corrective action with the department head or immediate supervisor.

DUE PROCESS OF LAW

Due process is a very important right, and it encompasses all the other of employees. It ensures a fair
and impartial hearing regarding an employee's violation or management decision that threatens an
employee's tenure or status of employment. It also provides an objective investigation of the case. Due
process, however, also equally allows the management to impose appropriate disciplinary action and
progressive discipline on an erring employee.

EMPLOYEE GRIEVANCES

It is natural for an employee to feel discontented and dissatisfied. When an employee thinks that he/she
is being treated unjustly, he/she posts a grievance According to Julius (2011), a grievance is "any
discontent or dissatisfaction. whether expressed or not, whether valid or not, arising out of anything
connected with the company which an employee thinks, believes, or even feels to be unfair unjust, or
inequitable"

Torrington (1987) differentiated the meaning of dissatisfaction, complaint, and grievance.

Dissatisfaction is a mental or emotional disturbance of an employee which may either be expressed or

not. A complaint is dissatisfaction that is spoken or written and brought to the attention of the
supervisor or shop steward. A grievance is formally presented to management or a union official

THREE TYPES OF EMPLOYEE GRIEVANCES

1. Factual

This is a type of grievance which is based on facts or reality. An example is not giving a wage increase for
the last three years despite the need for it.

2. Imaginary

This is usually caused by the misinterpretation of a rule, procedure, or policy such as the non-admittance
of women in the production areas during the graveyard shift.

3. Disguised

This is usually caused by pressure from the employee's family and friends. The employee may come to
the office with a heavy heart.

GRIEVANCE HANDLING IN THE UNION

In a collective bargaining agreement (CBA), a problem is considered “grievable" if some provisions

contained within it are not implemented. Whatever is negotiated and approved but not followed
through by the management is grievable. Grievance handling refers to the process of solving conflicts
between a union member and the management.

GRIEVABLE PROBLEMS

a. CBA violations
b. Violations of labor laws and occupational health and safety standards
c. Unjust labor practices
d. Violations of union policies

GRIEVANCE HANDLING PROCEDURE

1. Interview

The process begins with an interview of the employee and all the other people involved in the case.

2. Investigation

It is an interrogation of witnesses (if any) in order to get their statement of facts about the case.

3. Research and documentation

This is a thorough research of applicable labor laws and Supreme Court decisions.

4. Counseling

This is a counseling session based on the examination of all the facts.

5. Drafting of necessary papers

This is the writing of position papers, testimonies of witnesses, and formal complaints.
6. Hearing

This is the actual hearing of the case in which documents, witnesses, and pieces of evidence are
presented.

7. Settlement

Whatever is agreed upon should be written down and documented in the minutes of the meeting. If the
grievance is not settled, a third-party mediation is done through conciliation.

Conciliation is "conceived of as a mild form of intervention by a neutral third party. The conciliator-
mediator, relying on his/her persuasive expertise takes an active role in assisting parties by trying to keep
disputants talking, facilitating other procedural niceties, carrying messages back and forth between. the
parties, and generally being a good fellow who tries to keep things calm and forward-looking in a tense
situation" (nemb.ph.CMD.CMD.htm).

Mediation is a mild intervention by a neutral third party, whereby the conciliator-mediator starts
advising the parties or offering solutions or alternatives to the problems with the end in view of assisting
them towards voluntarily reaching their own mutually acceptable settlement of the dispute
(nemb.ph.CMD.CMD.htm).

The most popular approach in implementing discipline is a progression of punishments based on

repetitive violations. For example, for tardiness, the first offense is a written warning. For the second
offense, it is a three-day suspension, etc.

PROGRESSIVE DISCIPLINE

The practice of progressive discipline promotes fairness in handling employee cases and protects
management from wrong decisions, thus preventing termination lawsuits.

STEPS FOR PROGRESSIVE DISCIPLINE

1. Oral reprimand

This is a war warning from the supervisor regarding a deficiency or once which needs to be corrected. A
meeting is set and underperformance the supervisor prepares and files a memo of what transpired. This
memo forms part of the employee's record. The supervisor can refer to this document in case further
action is needed.

2. Written Warning
If the employee commits the same offense or more problems crop up, then the supervisor issues a
written warning which states the objectionable behavior together with the consequences in case the
behavior continues. Again, a copy of the written warning is placed in the employee's record. There
should also be an acknowledgment of receipt of the written warning

3. Final Written Warning or Suspension

This depends on the employee's violation. A final written warning is issued both for underperformance
or suspension for sleeping while on duty. Suspension may be issued without oral reprimand or written
warning depending on the gravity of the case. It may last for three days, five days, one week, or several
weeks. Suspension also means that the employee is not paid for the corresponding days that he/she is
suspended.

4. Termination

If the employee keeps on committing a certain offense and the punishment is the possible termination of
an employee, then the case is thoroughly reviewed prior to termination. There are serious offenses
where outright termination is done after all the facts are laid down. These cases, if not resolved strictly,
may paralyze the company operations.

HOT-STOVE RULE

The hot-stove rule was conceptualized by Douglas McGregor. It is called a hot stove because when one
touches a hot stove, the effect is instantaneous Disciplinary action should likewise be immediate,
consistent, and impersonal.

CHARACTERISTICS OF THE HOT-STOVE RULE

1. Immediate

The penalty for an offense is quickly imposed.

2. Consistent

Each employee is sanctioned with the same penalty for a certain offense.

3. Impersonal

The sanction is given fairly, and no personal feelings or biases are taken into account.

4. Early warning and notice

Each employee is informed about the consequences of an offense and the manner of implementing a
disciplinary action.