Philippine Christian University

Sampaloc 1 City of Dasmariñas, Cavite

Labor Relation
Summarization of Chapter 1 to 7

Garcia, Joshua Patrick V.

BSBA Major in Management III
September 2019
Prof. Anie P. Martinez
 Chapter I – Constitutional Framework

In this chapter, the Constitutional Framework discuss the promotion in general of well being, and
the protection and rights of laborers. Dignity and full respect for all is a basic human rights.

Anyone can form unions and associations for purposes not contrary to the law. The first thing
they must build is the protection of employees by having a safe workplace on physical
surroundings, free of toxic substances for their health and other potential safety hazards.

Good housing and availability of necessary tools and equipments are being given by some
business establishments to their workers as being part of their incentives. And some elderlies
have been given an opportunity to work where they can still share their talent such as academic
expertise, knowledge becomes an asset, abilities, skills, ideas and most importantly experience
which will benefit the company in the future because they do not mandate the age policy for the
retirees. Everyone should have a decent standard of living which comes with full employment by
sentiments of justice and fair play. Where the environment is discrimination free and wages are
fair for their work. Lastly, the Congress is expected to provide the necessary legislation to this
end
 Chapter II – Beginnings of Employer – Employee Relationship

In this chapter it talks about the role of the Employer and Employee relationship this is the bond
between the two, It plays a vital role in the company or corporate, the stronger the relationship
the greater the employees happiness, which in return produces an increased productivity.

Guild System
Earlier before there was The Guild System, this system was formed for mutual aid and protection
and for their professional interest in Europe during the twelfth century, first it was for the
merchants then later for craftsmen, this were called the Merchant Guild and Crafts Guild.

Merchant Guild is a associations composed of traders, merchant guilds exercised a strong hand
in controlling production, marketing, domestic as well in international commerce, this guild
practiced in some of the town whereas formed up by a fraternity brotherhood of merchants.

While Crafts Guild is like a merchant guild also, they were formed organizations for protection
and mutual aid, crafts guild ensured that their craft or trade effectively became a closed shop or
monopoly preventing any outside competition.

The Industrial Revolution

This was the time when the manufacturing of goods moved from small shops and homes to a
large factories, this shift from a predominantly agrarian society to a predominantly industrial
society.
 Chapter III – The Labor Organization

This talks about a modern day type of guild which have workers instead of merchants and
craftsmen, this organization have the ability to raise wages and demand better working
conditions.

There were different unions first is the Craft Union is a union strives to organize all members of
its trade especially this were the carpentery.
And the second union is the Industrial Union a union that combines all workers who are
employed in a particular industry such as textile, ceramics and steel.
And the third union is the Labor Union also call as workers union is a organization that
represents the collective interest of laborers they are often industry specific and assigns more in
manufacturing, mining and construction/

Labor Organization in the Philippines

Before 1901, Philippine Trade Unionism did not begin to take healthy roots and development in
the hands of Spanish Regime,
In 1901 Isabelo De Los Reyes formed the Union de Litografos e Impressores de Filipinas, upon
his return to the country from his exile in Spain, He was acknowledged as the Father of
Philippine Trade Unionism.
 Chapter IV – The Human Element in an Industrial Organization

In this chapter, the human element in an organization talks about the important factors of
employee emotion and feelings and how employees are treated, employees are humans and every
employees should be treated fair and square, also in this chapter the word Pride in working
industry is a good thing for a working man to have it regardless of his/her position and status,
having a pride is a very applicable to have it in management a very useful characteristic to
deliver a individual dignity.

Also the word acceptance plays a major role for every employees, being treated like a human
being, and being accepted by fellow employees is everybody dreams and this the way for
becoming a union Steward, you are the voice of your fellow employee, because if someone in
need they will gladly to come for your help, Also this will enable you to talk to the foreman on
the foreman's own level.

And lastly in this chapter this will talk about Counseling and disciplinary action because there is
two kind of employees problem, one is personal and the other one is job-related, this two
problem need to be discussed and counseled, so that a specific problem might find a solution and
to resolve it easily but before that there is a guidelines to it, first of all the employee should be
feel welcome, so that he/she can easily express his/her own problem, after that don’t take sides,
just accept without judgement and sympathy and never ever lecture or moralize because
everyone has his/her own way of resolving it, it just give some insight into his/her problem then
so on, arrange for some follow up visit if necessary and to check if things worked out as planned.

About disciplinary action this talks about employees behavior, especially when this affect his
work and the most commonly problem are tardiness and absenteeism, and there are two basic
ways to deal with this kind of behavior, this are punishment and reward, this method means that
the offenders are being punished based on their behavior, and rewards those who hardly work
their best. There are ways before conducting a punishment, first this are written warnings or an
oral reprimand, if things don’t work out you can now conduct a suspension and if things gets
more worst this is the time for termination with proper and legal due process.
 Chapter V – Collective Bargaining

In this chapter, the Collective Bargaining is a process or method which a labor union between
a employee to a employer, especially to negotiate a specific agreement led by the union, this
include employment relation, wages, incentives, working hours, promotion and grievance
procedures, but it can be develop and maintained only if each party to the labor contract is
willing to bargain fairly in good faith.

This Chapter also talks about individual versus collective bargaining, since the disadvantages
of individual worker is that the major factor is labor, a labor is a service, if he is unable to
work for a day he loses a wages for that totals days of absent, and the strength of collective
bargaining is that it allows each worker to compliance with workplace, and employers also
use this process to find the best employees to reduce the turnover rates and improve
productivity levels.

This chapter also tells about negotiation technique, there is no generally a formula to conduct
a negotiation but for the best of two parties they should be talk about their opportunities and
its long range objectives.
 Chapter VI – Wages

In this chapter, this talks about wages, during the time of primitive society there was no such
thing as wage, or employer-employee relationship, because that time early man worked for
himself in order to survive and to maintain basic needs in life.

The Birth if the Wage System

This emerge from a guild organization this serve up the rise of free artisan to individual skills
and crafts in any kind of production, this also talks about slaves and serfs, where serfs are
way more favorable status than the slaves.

Remuneration of workers tells about the type of compensation of payment then an individual
worker or laborer receives as payment depends of the services or work that they do, it also
includes the base salary an laborer receives, along with the other method of payment.

And this chapter also talks about the Wage System in the Philippines, it talks about the
proper and legal ways of payment this include payments thru bank checks or money, also
there must be bank or facilities for encashment within one kilometer from the workplace
based on the Labor Code of the Philippines. This also talk about the time of payment, wages
be paid at least every month.
Regulation regarding wages
 Wage deduction – employers should informed there employees about his insurance, or a
employer is authorized or regulate by the secretary of Labor and Employment.
 Deposit for Loss or Damage – whereas that the employee is clearly shown responsible for
the Loss or Damages. ( no more than 20% of employees wages should be deducted in a
week for the reimbursement.
 Withholding of Wages – this is a unlawful act of a employer to this employee either
directly or indirectly, more over it is unlawful to make any deduction from the wages of a
laborer in favor of employers benefits,

Civil Liability of Employer and Contractor

This talks about the contractor and subcontractor for the unpaid salary of a employees, and
they are liable to pay the employees his or her wages and other benefits, and directly exercise
control and supervision over the employee not only as to the results of the work but also as
the means employed to attain this result, they has the power to select and hire employee.
Criteria for Minimum Wage Fixing

This talks about minimum wages this are determined by the factors such as poverty, cost of
living, comparable wages and other incomes in the economy, fair return of the capital
invested and the imperatives of economic and social development, so that the wage
commission shall be economically feasible to maintain the minimum standards of living.
 Chapter VII – Hours of Work
This chapter talks about the working conditions of a employee/worker especially when it
comes to their working hours, health and safety, since the 15th and 16th century long hours of
labor for most factory workers are prone to accident and injury.

During that era England passed a numerous laws concerning labor specified the working
hours during the summer time, toward the end of the 17 th century, the hours of craftsmen
were extended.

Arguments for shorter hour of work the numbers of hours has interested unions the
arguments for working less are compelling. Shorter work hours would free up time for us to
do things outside of work. And it tells that longer work hours are associated with various
form of sickness.

Shorter hours of work promotes and reduce absenteeism which often times is brought about
by fatigue and monotony, but shorter hours of work tends to reduce the profits of the
employer because shorter labor it means reduction in output and studies belief that increasing
leisure time of workers would merely lead them to idleness, immoral practices and bad
conduct.

Regulation of Hours of Work

During that time Henry Ford who on his own initiative and volition established the eight hour
day in his company in 1914 and five day week in 1926. This practices makes a just and
healthy day.
This practices the working eight hour and five times a week , also embraced the work hours
in the Philippines, The Philippines Commonwealth Act No. 444 approved on June 3,1939
provided the legal working day, whether public or private sector, with the exception of farm
workers and laborers who prefer to be paid on piece work basis, domestic servant and
persons in the personal service of another and member of the family of employer working for
him.