A PRIMER
ON
PLANT-LEVEL
LABOR-MANAGEMENT
WHAT IS LABOR-MANAGEMENT
COOPERATION?
Labor-management cooperation is a state of relations
where labor and management work hand-in-hand to accomplish certain goals using mutually
acceptable means.
It is the outcome of a continuing process of enhancing mutual trust and respect through:
v information sharing
v discussion
v consultation
v 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?
Primarily, because labor
and management are social partners sharing a common interest in the success and
growth of the enterprise and the economy.
Specifically,
v to promote workers’ participation in decision-making processes
v to create a labor relations climate conducive to productivity improvement
v to improve the quality of working life
v 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.
THE PROBLEM SOLVING PROCESS
To ensure the non-adversarial character of the labor-management committee, issues should be addressed using the problem-solving process involving the following steps:
v Define the problem
v Get all the facts
v Find the cause of the problem
v Propose solutions
v Evaluate proposed solutions
v Select the best solution
v Implement the corrective action
v Evaluate the corrective action undertaken
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:
v personnel policies
v production plans
v business expansion programs
v productivity improvement program
v productivity gain-sharing program
v job security
v improvement of quality of worklife
v occupational health and safety programs
v introduction new technology and machinery
v retrenchment programs
v business mergers of closure
v workers’ welfare and livelihood programs
v sports, recreation and social activities
WHAT BENEFITS CAN WORKERS DERIVE FROM LABOR-MANAGEMENT
COOPERATION PROGRAMS?
v Opportunity to participate in policy and decision-making process
v A channel of communication to top management
v Means to make inputs in solving operational problems and management plans affecting workers in the workplace
v Avenues for employees to air complaints that cannot be appropriately addressed in the grievance procedure
v Opportunity to demonstrate that the union is a responsible organization with a constructive role to play beyond the traditional contract negotiations and grievance settlement
v Opportunity for self-improvement and on-the-job leadership training
WHAT BENEFITS CAN MANAGEMENT DERIVE
FROM LABOR-MANAGEMENT COOPERATION ROGRAMS?
v 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.
v An opportunity for advanced discussion of operational problems and plans, particularly those affecting employee work schedules, overtime, lay-offs, transfer, etc.
v A means to relate with the union without being bogged down in labor relations issues.
v Opportunity to demonstrate responsiveness to constructive suggestions and valid complaints of employees in improving the workplace.
v Means to tap the large reservoir of know-how and creativeness of employees.
v A channel of communication with employees
v Enhancement of human factor in organizational effectiveness.
STEPS IN THE
FORMULATION OF LABOR-MANAGEMENT COOPERATION PROGRAMS
v Orientation on labor-management cooperation
v Recognition of common objectives and problems and the need to cooperate and agree on mutually acceptable solution
v Determination of appropriate organizational structure
v Adoption of operating guidelines to govern the cooperation program
v Setting-up of the operating structure
v Training of persons involved in the cooperation program
v Identification and prioritization of problems
v Formulation and development of plans and projects
v Implementation of plans and projects
v Monitoring and evaluation of projects
GUIDELINES IN SETTING UP APPROPRIATE ORGANIZATION STRUCTURE
Under R.A. 6715, the operating mechanism for 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 the basic guidelines or principles which may include:
v The objectives of the committee/council
v Coverage of committee’s/council’s activities
v Structure and size of the committee/council
v Time, place, duration and frequency of meeting
v Procedure for the timing exchange of agenda
v Recording, maintenance and dissemination of minutes of meetings
v
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:
v Composed of an adequate number of representatives from labor and management.
v Labor representatives shall be elected by at least the majority of the workers in the establishment.
v Management is represented by top level officials, the personnel or industrial relations manager, the production manager and other officers including supervisors.
v There are two co-chairmen – one from each side who serve concurrently or on a rotating basis. A secretary is also appointed.
v A third party facilitator acceptable to labor and management may assist the committee particularly in the early stages of its operation.
v Sub-committees may be formed to consider specific concerns at the shop-floor level.
WHAT FACTORS ARE NECESSARY FOR THE
SUCCESS OF LABOR-MANAGEMENT COOPERATION?
v Attitudes
- sincerity - mutual support
- mutual trust - openness
- commitment - teamwork
- mutual respect - objectivity
v Appropriate skills
- leadership - facilitation
- communication - team building
- problem-solving - planning
v Suitable structure
v addresses identified needs and concerns
v can be formal, informal or both
v assures adequate representation of labor and management
v ensures attainment of decisions through consensus
v provides feedback mechanism at all levels of the organization
v
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:
v Help enhance mutual trust between labor and management
v Assist the parties in identifying common interests, problems and opportunities
v Facilitate the first few and often difficult meetings of a new labor-management committee
v Guide the committee in problem-solving techniques
v Provide technical assistance to the committee
v Assist the parties obtain technical assistance from other agencies and institutions.
v Promotional activities
v Development, production and dissemination of IEC materials (NCMB Briefing Paper, Primer on Plant-Level LMC Program, posters/stickers, jingles, sound slides/video)
v Conduct of
v Symposia, seminar-workshop, conference
v Discussion groups/networking
v Technical Assistance
v Conduct of orientation seminar on LMC
v Conduct of “LMC FACILITATORS’ TRAINING”
v Interpersonal Relationship/Group Dynamic Skills
v Communication Skills
v Organizing/Facilitating Skills
v Needs Identification and Analysis
v Problem-solving Skills
v Value Formation
v Setting up of labor-management cooperation mechanisms
v Publication and Research
v “LMC At Work”
v
Action Researches/studies
OFFICIALS
OF THE
NATIONAL CONCILIATION & MEDIATION BOARD
Ground Floor, DOLE
BLDG.
Intramuros, Manila
Tel.
Nos. 527-3421; 527-3588
527-3424; 527-3467
ROLANDO RICO C. OLALIA
Executive Director IV
REYNALDO R. UBALDO
Deputy Executive
Director IV
GILBERT D. PIMENTEL
Deputy Executive
Director IV
-----------------------------------------
DIR. LEOPOLDO DE
JESUS
National Capital
Region
2nd Floor, DOLE Bldg.
Intramuros, Manila
Tel. Nos.
527-3468;
527-8009/10
527-4468 527-7216
527-8271; 527-3453

NATIONAL
CONCILIATION & MEDIATION BOARD
Department
of Labor and Employment
Intramuros, Manila ![]()