BoardRoom Discussions

If globalization were an evolutionary period in the Philippines, then trade unions might very well be aged dinosaurs on the brink of extinction. It used to be that smokestack industries could do little without the support of labor unions. But the development of the global job market, the changing forms of labor relations, new technology and patterns of work, as well as the appearance of millions of new workers willing to work at whatever cost, have made organizing an uphill struggle for these former vanguards of workers’ rights. To make matters worse, ferocious infighting, pitiable wages for ordinary workers, declining benefits, and the rising number of informal workers cast serious doubts on the union’s ability to represent the interests of workers. Are unions, then, suffering from a crisis of relevance? And if so, are they bound to become a thing of the past?

This question was asked by Alicor L. Panao to Professor Jun Sibal, Dean of UP- SOLAIR.

Depending on one’s point of view and school of thought, people differs on their regard to labor union. Even investors have different perspective, though I would assume, more would prefer to keep their company union free because of the troublesome CBA.

Why employees start a union?

Though the “right to organize” is guaranteed by the Philippine constitution, not all employees would jump to it,  unless…..

There is more to employer-employee relationship than a legal jargon. It goes beyond the terms of employment and compliance to the labor code. Like in other relationships, trust and mutual respect are important elements.

Employees can handle the imperfection of management as long as they’re happy with their job and they’re appreciated and respected. However, if employees begin to lose their trust to and question the motives of management, and believes that they are being abused or taken advantaged of, employees will turn to unionism.

You may say, why can’t they just resign? If employee’s skill is in demand, they could have left the company a long time ago. But if not, they will stick with the company and assert their rights.

The economy of employment is not always the issue why employee turns to unionism. Women employees who are constantly constantly exposed to sexual harassment will turn to unionism, even though they are paid well, if management tolerates such act. Likewise, blatant disregard of management to employee’s rights may also entice employees to organize themselves. Like failure to observe due process of law in administrative cases.

The economy of employment will become an issue if  management does not comply with the “social accountability” aspect of the labor code and relevant laws. And when a perception that distribution of profit is inequitable (company can afford to give more but chose not to).

Investors should look at their human resources as their most important asset. If treated fairly, employees can be the sales and marketing agents of the company. In the same note, a scorned employee who have no other means to sustain their needs and feels management is contributing to his woes, can cause serious trouble to employers.

This is the reason why a company needs a (modern) Human Resource practitioner.

Are trade unions still relevant? According to Dean Sibal.

“As long as there is a need to uphold social justice and equality, trade unions will be relevant. Neverthless, Sibal notes that there is an apparent decline in both membership and number of unions in recent years… Prof. Virginia Teodosio, Sibal’s colleague at UP SOLAIR, also points out that trade unions are in serious danger of being pushed to the margins, a phenomenon observed not just in the Philippines but also in many other places, even in industrialized countries where trade unions once flourished.

What about you, do you think they are still relevant?

You can read the article in full here: http://www.up.edu.ph/upforum