ncmbweb\lmcFAQ

Republic of the Philippines
Department of Labor and Employment
National Conciliation and Mediation Board
Intramuros, Manila

The Official Government Portal
of the Republic of the Philippines

LABOR-MANAGEMENT COOPERATION

WHAT IS LABOR-MANAGEMENT COOPERATION?

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

It is the outcome of a continuing process of enhancing mutual trust and respect through:

information sharing
discussion
consultation
negotiations

as schemes of workers' participation in decision making process on matters not covered by collective bargaining agreements.

WHY IS THERE A NEED FOR LABOR AND MANAGEMENT TO COOPERATE?

Primary, because labor and management are social partners sharing a common interest in the success and growth of the enterprise and the economy Specifically,

to promote workers' participation in decision-making processes
to create a labor relations climate conducive to productivity improvement
to improve the quality of working life
to achieve and sustain economic growth

WHAT ARE THE MECHANISMS TO PROMOTE LABOR - MANAGEMENT COOPERATION?

Direct participation mechanisms through small group activities like quality control circles or productivity improvement circles
Indirect participation mechanisms through joint consultative bodies like labor-management councils or committees
Combination of direct and indirect participation mechanisms like joint bodies and small group activities

WHAT FACTORS ARE NECESSARY FOR THE SUCCESS OF LABOR MANAGEMENT COOPERATION?

Attitudes

sincerity - mutual support
mutual trust - openness
commitment - teamwork
mutual respect - objectivity

Appropriate skills

leadership - facilitation
communication - team building
problem-solving - planning

Suitable structure

addresses identified needs and concerns
can be formal, informal or both
assures adequate representation of labor and management
ensures attainment of decisions through consensus
provides feedback mechanism at all levels of the organization

WHAT ARE USUALLY COVERED BY LABOR-MANAGEMENT COOPERATION PROGRAMS?

Sharing of information, discussions, consultations and negotiations on matters outside the collective bargaining agreement which may cover, among others, areas of management decisions like:

personnel policies
production plans
business expansion programs
productivity improvement programs
productivity gain-sharing programs
job security
improvement of quality of worklife
occupational health and safety programs
introduction of new technology and machinery
retrenchment programs
business mergers or closure
workers' welfare and livelihood programs
sports, recreation and social activities

WHAT BENEFITS CAN WORKERS DERIVE FROM LABOR-MANAGEMENT COOPERATION PROGRAMS?

Opportunity to participate in policy and decision-making process
A channel of communication to top management
Means to make inputs in solving operational problems and management plans affecting workers in the workplace
Avenues for employees to air complaints that cannot be appropriately addressed in the grievance procedure
Opportunity to demonstrate that the union is a responsible organization with a constructive role to play beyond the traditional contract negotiations and grievance settlement
Opportunity for self-improvement and on-the- job leadership training

WHAT BENEFITS CAN MANAGEMENT DERIVE FROM LABOR-MANAGEMENT COOPERATION PROGRAMS?

A forum to share information about business conditions, quality problems, product development and other matters that demonstrate the role of employees in the success of the enterprise.
An opportunity for advanced discussions of operational problems and plans, particularly those affecting employee work schedules, overtime, lay-offs, transfers etc.
A means to relate with the union without being bogged down in labor relations issues.
Opportunity to demonstrate responsiveness to constructive suggestions and valid complaints of employees in improving the workplace.
Means to tap the large reservoir of know-how and creativeness of employees.
A channel of communication with employees.
Enhancement of human factor in organizational effectiveness.

STEPS IN THE FORMULATION OF LABOR-MANAGEMENT COOPERATION PROGRAMS

Orientation on labor-management cooperation
Recognition of common objectives and problems and the need to cooperate and agree on mutually acceptable solution
Determination of appropriate organizational structure
Adoption of operating guidelines to govern the cooperation program
Setting-up of the operating structure
Training of persons involved in the cooperation program
Identification and prioritization of problems
Formulation and development of plans and projects
Implementation of plans and projects
Monitoring and evaluation of projects

GUIDELINES IN SETTING UP APPROPRIATE ORGANIZATIONAL STRUCTURE

Under R.A. 6715, the operating mechanism f labor-management cooperation program in organized establishments is called Labor-Management Council. In unorganized establishment, the mechanism is called Labor-Management Committees.

To ensure the orderly operations of the Council or the Committee, it is desirable that the parties agree on basic guidelines or principles which may include:

The objectives of the committee/council
Coverage of committee's/council's activities
Structure and size of the committee/council
Time, place, duration and frequency of meeting
Procedure for the timing and exchange of agenda
Recording, maintenance and dissemination of minutes of meetings
Other matters the parties may wish to include

ORGANIZATION AND STRUCTURE OF A LABOR-MANAGEMENT COUNCIL OR COMMITTEE

While there are no set rules, 'a typical committee/ council has the following organizational features:

Composed of an adequate number of representatives from labor and management.
Labor representatives shall be elected by at least the majority of the workers in the establishment.
Management is represented by top level officials, the personnel or industrial relations manager, the production manager and other officers including supervisors.
There are two co-chairmen -- one from each side who serve concurrently or on a rotating basis. A secretary is also appointed.
A third party facilitator acceptable to tabor and management may assist the committee particularly in the early stages of its operation
Sub-committees may be formed to consider specific concerns at the shop-floor level.

THE PROBLEM-SOLVING PROCESS

To ensure the non-adversarial character of the labor-ma nagement committee, issues should be addressed using the problem-solving process involving the following steps:

Define the problem
Get all the facts
Find the cause of the problem
Propose solutions
Evaluation proposed solutions
Select the best solution
Implement the corrective action
Evaluate the corrective action undertaken

THE ROLE OF THIRD PARTIES

Parties to a labor-management cooperative effort may require the services of a third party facilitator. At their invitation, a facilitator can assist in a variety of ways particularly in the initial stages, to wit:

Help enhance mutual trust between labor and management
Assist the parties in identifying common interests, problems and opportunities
Facilitate the first few and often difficult meetings of a new labor-management committee
Provide objectivity and encouragement to the committee
Guide the committee in problem-solving techniques
Provide technical assistance to the committee
Assist the parties obtain technical assistance from other agencies and institutions.

NCMB SERVICES ON LABOR-MANAGEMENT COOPERATION

Promotional Activities

Development, production and dissemination of IEC materials (NCMB Briefing Paper, Primer on Plant-Level LMC Program, posters/ stickers, jingles, sound slides/video)
Conduct of
symposia, seminar-workshop, conference
discussion groups/networking

Technical Assistance

Conduct of orientation seminar on LMC
Conduct of "LMC FACILITATORS' TRAINING" - Interpersonal Relationship/Group Dynamic Skills
Communication Skills
Needs Identification and Analysis
Problem-solving Skills
Value Formation
Setting up of labor-management cooperation mechanisms
Publication and Research "LMC AT WORK'
Action researches/studies