Non-Economic Provisions of Collective Bargaining Agreements in 2017 (Third of a Three-Part Series)

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Monday, September 30, 2019

The registration of Collective Bargaining Agreements (CBAs) is closely monitored as an indicator of a harmonious labor-management relations and industrial peace in the country. A collective bargaining is a process where both parties, labor and management, agrees to fix and administer terms and conditions of employment which must not be below the minimum standards fixed by law. This also sets a mechanism for resolving the parties’ grievances.

Specifically, a CBA is a contract executed upon incorporating the agreements reached after negotiations with the employer and the exclusive bargaining representative of the employees with respect to wages, hours of work and all other terms and conditions of employment. As such, a CBA includes economic provisions and non-economic provisions. Economic provisions include monetary value of wage increases, loan benefits, bonuses, allowances, retirement plan, and other fringe benefits for the employees. On the other hand, non-economic provisions include union security clauses, grievance procedures, labor-management cooperation schemes, and other provisions without monetary value.

This three-part series of LABSTAT Updates presents administrative-based data on CBAs gathered from the CBA documents filed by labor organizations at the Bureau of Labor Relations (BLR) of the Department of Labor and Employment (DOLE). This last part of a three-part series on CBAs specifically highlights the non- economic provisions of CBAs registered in 2017.


Almost all of the registered CBAs have non-economic clauses

  • Out of 284 CBAs registered, almost all (97.9%) CBAs stipulated non-economic clauses which cover the following: union security; job security; union employees’ privileges; well-being/ health programs; leave benefits; supplemental benefits; grievance machinery; and labor-management cooperation schemes.


Union Security Clause

Nine out of every ten CBAs specified union security clauses

  • Union security aimed to protect the institutional life of the unions. In 2017, almost all CBAs (94.7%) stipulated union security clauses to the covered employees. (Table 1)
  • Of these clause, union dues checkoff was mentioned in most CBAs (86.6%). Checkoff is an arrangement by a union with the employer for union dues to be deducted regularly from the members’ salaries wherein the sum collected is remitted to the union by check.
  • Other checkoffs deducted include agency fees (64.4%) for non-union members, and special assessment fees (60.2%).




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