Labor unions and strikes: Employers’ nightmare?

Striking workers with raised placards, shouting for increased wages and benefits – this could be the worst scenario that a business owner or employer would not want to see.  These images cause many employers to be afraid.  To them, this could mean lawsuits, suspension of business operations, loss of profits, or even closure of business.  This could be their biggest nightmare.

Why do most employers shy away from the idea of unions, strikes, collective bargaining and related concepts?  It is because they have a mistaken notion about these topics.  They think of a union as troublesome, a nuisance which will only lead to the failure of their businesses.  They also often associate a strike with violence as if it were some sort of a mutiny or an armed attack.  What employers fail to see is that forming unions and participating in strikes are only some ways by which employees exercise their legal right to express their sentiments about their working conditions.  If only employers would listen well, they could constructively see it as a form of an evaluation on how they are running their businesses.  If people are given their correct wages, as well as fair and reasonable working conditions, they will not go on strike.  And there would not be a need to form unions, which are precisely meant for negotiating or bargaining for terms and conditions of work.  Simply put, if they are satisfied and happy, they will not complain. Read more

How to compute separation pay in the Philippines?

If you’re a business owner who employs people, you must know how much is the minimum legal amount of separation pay you must give to your employees who are leaving your company. Likewise, if you’re an employee who has been terminated by your boss for whatever reason, you may also need to have an idea if you are entitled to separation pay or not. The law understands the need of employees when they become jobless for reasons covered by Article 283 and 284 of the Labor Code. Separation pay gives employees a livelihood after he leaves his former company and while he is looking for a new job. Read more

Overtime pay laws and computation in the Philippines

Man is not a machine. At the end of the day, he has to rest to rejuvenate and prepare himself for tomorrow’s work. That is why labor standard laws in many countries set up maximum hours of work for employees. In the Philippines, our Labor Code fixed the maximum at eight (8) hours a day (see Article 83, Labor Code of the Philippines) for six consecutive work days (Article 91, LCP). If the employee works beyond eight hours, the employer is required to pay an additional compensation equivalent to the employee’s regular wage plus at least twenty-five percent (25%) of such regular wage. The rate is increased to thirty percent (30%) if the worker renders overtime on a holiday or rest day. (Article 87, LCP).   Read more

How to compute 13th Month Pay: DOLE Philippines

We are already on the month of October and after a few months, Christmas season is here again. For employees, that season sounds delightful. Aside from the enjoyable Christmas party and the series of vacations, the long awaiting 13th Month pay will finally land in our hands. For employers, this extra month pay is an additional mandated expense given to employees once or twice (installment) a year. However, some good business owners and employers see the giving of this added remuneration to employees as an appreciation and gratitude for their valuable contribution to their companies.

An employer must know how to compute the lawful amount of 13th month pays to be distributed to his employees. On the other hand, it is clever for an employee to know the computation of his thirteenth month paycheck to ensure that he is receiving it in the right amount of money. So to know what must be known, the following guidelines are presented below. Read more

Business management tip: Directing people in an organization

Directing is considered as the most humane function of management. It is also called as the heart of management. This function involves influencing human behavior through motivation, communication, coaching, leadership, discipline, development of interpersonal skills and assistance for the achievement of individual’s personal goals. In this function, managers are transforming into good leaders – that is, they are considering not only the organizational goals but also the personal objectives of their people. Directing tries to align the future of the organization and its people. The philosophy behind this is that, the organization cannot be considered as successful if its members are failing. Read more

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