Module 8:

Employee Benefits and Services

• Benefits are rewards given to an Reasons for Granting Benefits
employee or group of employees 1. Employers grant benefits to keep the
for maintaining membership in organization competitive.
the organization. 2. Benefits are granted to motivate
employees to perform.
• Base salary-doing a job-every
3. Benefits are granted to keep a union
employee out.
• Incentives-doing a job well-a few 4. Benefits are granted to comply with
good performers legal requirements.
• Benefits-staying on the job- 5. Benefits are granted to keep turnover
mandated by the law costs low.
Factors influencing the decision to set up a Types of Employee Benefits
particular employee benefit and service program
1. Legally required benefits
a. Social Security Benefits
• Cost [Link]’s Compensation. It covers expenses incurred
as a result of work-related injury, sickness, disability or
• Ability to pay death.
c. Thirteenth Month Pay. This pay is designed to augment
• Needs of the employees the annual income of the individual and is equivalent to
one month’s pay of the employee.
• Bargaining strength of the trade d. Paid Vacation, Paid Sick Leave, and Paid Holidays.
[Link]-IBIG Fund Benefit. It is managed by the government
union and extends housing and other types of loans to members.
• Tax consideration [Link]. It provides medical insurance benefits to
employees which covers expenses related to
• Social responsibility hospitalization, surgical, and other medical expenses of
the member and his/her dependents.
• The reaction of employees g. Maternity & Paternity Leave
[Link] benefits • Education Programs. It is mostly used in
• Group Life Insurance. Private insurers educational institutions.
are able to reduce their rates and • Pre-retirement Programs
provide additional benefits if a • Company Sponsored Social and
company insure all its employees as a Recreational Events
group. • Counseling Services. To minimize the risk
• Health Insurance of inadequate performance, organizations
offer counselling services.
• Pension Plans • Credit Unions
3. Employee services. It constitute • Free Uniforms
another indirect form of compensation. • Housing and moving Expenses
The purpose is to improve the work life • Food Services
of the employee which make it easy for • Company Paid Transportation and Parking
them to be productive and loyal to the
organization.
 Problems Raised by Benefit Programs
• Charge of Paternalism . When too many benefits & services are offered to employees
, a feeling develops that employers are playing the role of parents and workers are
looked upon as children.
• Excessive Expenditure . It’s a very costly affair and involves a great deal of paper
work
• Maintenance of least productive worker. With increase in benefits and services
employees ,particularly when they are not very productive ,tend to stick to their jobs
and are not interested in changing them.
• Neglect of other personnel functions. Due to excessive concern from management
they stop emphasizing on other aspects of personnel programs which can develop a
concern among the employees .
 Module 9:

Labour Management Relations

• The objective of management is usually concerned with making profits for the
organization; otherwise, the concern is maximization of income and/or
minimization of expenses.
• This is in direct contrast with the concern of labor, which are the maximization of
monetary and non-monetary benefits they receive from the organization.
• This difference makes conflict inevitable between labor and management. In
addressing the possibility management has three options, which are as follows:
1. solve labor related problems as they occur;
2. treat employees fairly; and
3. let employees find ways to solve their labor-related problems.
Why Employees Form and Join What is labor union?
Unions? • It may be defined as an organization
1. collective bargaining with the formed to represent the interest of
employer; workers in bargaining with employers
for contracts concerning wages, fringe
2. for self-preservation and benefits, and working conditions.
protection;
Types of Labor Unions
3. to belong to a group that will help 1. Craft or trade unions
them secure entitlements and
2. Industrial union
provided by law; and
4. to protect themselves from human
rights abuses of employers.
Labor Legislation What is Collective Bargaining?
Labor-management relations in the • The primary reason for the formation of
Philippines is governed by law. The Labor union is collective bargaining.
Code, approved on May 1, 1974, covers • defined as the negotiation,
specific concerns which are as follows: administration, and interpretation of a
1. Pre-employment (book 1); written agreement between labor and
2. Human resource development (book2); management that covers a specific time
3. Conditions of employment (book 3); frame.
4. Health, safety, and social welfare benefits Collective bargaining is a process
(book 4); consisting of the following activities:
5. Labor relations (book 5); and 1. Negotiating a collective bargaining
6. Post employment (book 6) agreement (CBA)
2. Administering the CBA
 Pressures Used in Collective Bargaining
Pressures Commonly Used by Labor Alternatives to Pressure Tactics
1. Strikes 1. Mediation
• economic strike
2. Fact-finding
• jurisdictional strike
• wildcat strike 3. Arbitration
2. Picketing
3. Boycott
Pressures Commonly Used by the
Employer
4. Lockout
5. Strikebreakers or scabs
6. Employer’s association.
Contents of the CBA
Administering the CBA
1. An enumeration of management rights
2. Union recognition and security 1. Information dissemination
3. Grievance and arbitration procedures 2. Contract implementation
4. Disciplinary procedures
3. Contract interpretation and
5. Compensation rates and benefits
grievances resolutions
6. Hours of work and overtime
7. Health and safety provisions 4. Monitoring
8. Selected personnel management and plant
operation practice
9. Contract expiration date