There’s no such thing as a perfect contract– both parties of employers and employees can attest to that. Thus, it is only reasonable to have efforts in reviewing and revising the stipulations in agreements, most especially when important matters like basic and mandatory wages and benefits and crucial topics like employee welfare and management prerogatives are sometimes overlooked by companies. 

It is primarily important to know what CBA stands for and why it matters. A collective bargaining agreement (CBA) is a written legal contract signed by the employer (usually represented by the company’s Human Resources Department), and the employees (represented by the union). The CBA is a product of the representatives’ rigorous process of negotiation on employees’ rights and welfare.

Special Topics Most Companies Review in their Agreements

  1. Wages
  2. Benefits
  3. Hours of Work
  4. Benefits
  5. Terms of Employment

It might look like CBA is leaning towards the side of the employees. However, business owners should also realize that the written agreement is the easiest and most fool-proof way to settle problems that may arise in a common day at the workplace. When the basic rights and justified demands of workers are met, it also defines a greater productivity for them, where businesses can benefit greatly. 

Categories of Topics Reviewed in CBAs

Mandatory – items which are required by law (under the Labor Code and other special policy issuances released by government agencies such as the Department of Labor and Employment)

Voluntary  – items which are allowed to be negotiated but not required by law; usually organization-specific matters such as voting for union representatives, board, etc.

Illegal – items which are in violation of laws and other regulations

Negotiating with unions may first come off as scary or tiresome, but imagine how it can save you from bigger problems in the future. Negotiations need preparations, research, and strategies. The business should also be equipped with its own bargaining strategy.

Register for the Strategic CBA Negotiation Training

 

Article by Mae Malaya

Edgardo Lacson

Chairman of the Board

Edgardo G. Lacson is currently the Chairman of the Board of the Employers Confederation of the Philippines (ECOP), and Director of the Philippine Stock Exchange (PSE). He was formerly President and Honorary Chairman of the Philippine Chamber of Commerce and Industry (PCCI).  He was the President of ECOP from 2010 to 2016. Ed Lacson also serves as the President of various business firms, including MIS Maritime Corporation, Safe Seas Shipping Agency, Marine Industrial Supply Corporation, and EML Realty. He serves as Chairman of Metrostore Corporation, MIL Export Philippines, Beacon Environmental Management Services and Primelode, among others.

He is likewise Trustee of both the De La Salle Canlubang, Inc. and Philippine Petroleum Sea Transport Association (PHILPESTA), Managing Director of Link Edge, and a member of the Management Association of the Philippines (MAP), Philippine Interisland Shipping Association (PISA), and Makati Business Development Council (MBDC).

An alumnus of then De La Salle College and now De La Salle University where he earned his degree in Bachelor of Science in Commerce (BSC) Major in Accounting, Ed Lacson indeed through the years has expanded his horizons.

Edgardo Lacson serves as Honorary Chairman at PCCI. His previous business affiliations include the Philippine National Oil Company (PNOC), Marine Chemical Corporation, VLK Traders Philippines, Inc., and Esso Standard Eastern.