I.

PROBLEM STATEMENT:

 The Case Analysis answers the following questions, to wit

1. WHETHER OR NOT the change of corporate name from GI to GIST

shall cease the company in recognizing the CBA?

2. WHETHER OR NOT the termination of GIST employment of employees

is valid?

3. WHETHER OR NOT the CBA between the employees and GIST is

binding until 2020?

II. STATEMENT OF THE OBJECTIVE

 At the end of this case analysis , the students shall:

1. Differentiate the Authorized and Just Causes of terminating

employment and its Effects.

2. Recognize the rights of the employees and employer as well.

3. Appreciate the real purpose of the Collective Bargaining Agreement for

both parties, employees and employer.

III. AREAS OF CONSIDERATION

 In order to provide necessary alternatives, the students cited and

enumerated their Strengths, Weaknesses, Opportunities and Threats (SWOT)

Analysis.

1. STRENGTHS:
o Knowledgeable Faculties – producing bright students and

alumni are evident that the school is equipped with faculties

with extensive knowledge, ability, skills and habits in their

respective specializations.

o With outstanding School Facilities – having been observed

to have complete facilities, classrooms, laboratories, and library.

o Geographical location – situated in a progressive City of

Gandara which is an adjacent to the highly cosmopolitan

Biringan City- the biggest city in the region.

o Demographic (economic) capability of the customers –

people working in the scattered business districts of Biringan

City are migrating to this City. Property developers have taken

advantage of its proximity in terms of transportation to the

working places.

o With good philosophical objectives - the Founders of GIST

established its objectives and philosophy to be their guiding

path to serve their stakeholders.

o Complete curriculum from primary to tertiary level – due

to their outstanding performance in the academic field, the

school is continuously transforming and improving their

academic offers to the public from grade school to collegiate

level.
 o Third Parties Accreditation (CHED & TESDA) – there is a

great potential for the school to achieve more accreditations

based on their performance.

2. WEAKNESSES:

o Poor harmonious relationship and industrial peace

between the employees and management – existence of

strikes because of unfair labor practice is a proof that there is a

labor-management conflict.

o Limited Labor Code knowledge – ignorance of the law

excuses no one, employees and management had limited

understanding about their rights and its limitation resulting to

labor-management disputes.

o Lack of motivating consideration of employees –

termination of benefits by the management shall provoke the

employees to file legal action as well as demotivating the

remaining employees.

o Revenue-motivated – GIST plan in increasing its enrollees in

tertiary, the school terminated the veterans employment,

rehired the young workers and ceased the effectivity of CBA.

o Family Corporation –power and authority is vested in a single

group of people (family/clan) that resulted to the absence of

 check and balance and separation of power between

shareholders and other stakeholders.

3. OPPORTUNITIES:

o Training and Development – to further improve the

academic status of GIST, the school shall take advantage on the

required skills and knowledge by attending some learning

sessions not only by the faculties but all the employees, from

top to bottom group. This trainings shall also be form part of

the requirements for future accreditation.

o Improvement of academic offers (e.g. Graduate Studies)

– to conduct an in-depth studies on the requirements and

guidelines in offering graduate studies.

o More accreditation from third parties – to look for other

accreditation that will benefit the school not only pertaining in

the schools organization but also other facets of organization

including HR practitioners, Trainers, Accountants etc.

o Comprehensive knowledge about the Labor Code –

equipped the employees and management in terms of

familiarization in labor laws.

o Technological Advancement – taking advantage on the

available technologies in the market which is cost effective and

cost efficient.
 o Expansion – population of the students might grow in number

therefore GIST must be ready on the potential location in order

to offer its goals with other neighboring communities.

4. THREATS:

o Filing of legal cases against the company from third

parties – if the school has a limited knowledge in terms of

compliance with other parties like government entities, there

will be monetary penalty or worst closure of the business.

o Payment of penalties due to “daÑos perwisyo” and

moral damages – limited knowledge in Labor Laws shall result

rampant filing of case against the school. In the event they loss

the case, they are required to pay as consequence of their act.

o Negative branding in terms of customer service (bad

publicity) – because of numerous cases, there will be negative

publicity that might hindrance the school to win back the trust

and confidence of the public.

o Loss of stakeholders – because of frequent problems, the

stakeholders shall look for better opportunity that will protect

their interest.

IV. ASSUMPTION:
  To fully realize the content of the case analysis, the researchers had assumed

some significant details that will provide relevant information to the case.

1. The mere change in the corporate name is not considered as the

creation of new corporation. The renamed corporation remains liable

for the illegal dismissal of its employee separated under that guise.

2. The Collective Bargaining Agreement (CBA) between GIST and its

employees shall take effect considering the change of name does not

cease the substance of said stipulation.

3. The GIST shall specify the per item benefits of the employees as result

of termination of employment.

4. The mediation and conciliation made by the National Labor Relations

Commission way back in 2015 is evident that the government act in

favor of the union based on the given circumstances and stipulations

made by both parties.

5. There is no reason for the GIST to claim that they are losing the

business, it is not in the authorized causes mentioned in the Labor

Code especially in closure and cessation of the business provision.

There are lacking requirements of declaring bankruptcy with the DOLE

and issuance of notice to the employees within 30 days.

V. ALTERNATIVE COURSES OF ACTION:

  Based on the objectives set by the students, the following are the Alternative

Courses of Actions (ACA) to provide possible solutions to the problem.

1. (ACA 1) - An Effective and Efficient Learning Session would be, “Labor

Relations, Human Relations and Productivity (LHP) Program”

2. (ACA 2) – Standardization of Rewards Management Policies and

Guidelines and Provide Attractive Retirement Package

3. (ACA 3) - Tripartism - intervention of three parties including the

management, union and DOLE

VI. ANALYSIS

 Based on the objectives set by the students, the following are the Alternative

Courses of Actions (ACA) to provide possible solutions to the problem.

1. (ACA 1) - An Effective and Efficient learning session would be, “Labor

Relations, Human Relations and Productivity (LHP) Program”

o Advantages:

 Employees and management will be informed with their

rights and privileges including but not limited to labor

standards and labor relations.

 Minimize possible legal complaints.

o Disadvantages

 Additional Expense for the company

 Spending extra time with the project.

2. (ACA 2) - Standardize a Rewards Management Policies and Guidelines

and Provide Attractive Retirement Package

o Advantages:

 A way of reconciliation of both parties that can save time,

effort and money by avoiding any legal action and chaos.

o Disadvantages

 Fighting for the employee rights and their dignity will not

be practiced.

 Additional Expense for the company

3. (ACA 3) - Tripartism - intervention of three parties including the

management, union and DOLE

o Advantages:

 To use the government agency as support system.

 Builds open communication of three parties for a

harmonious relationship.

 Set standard guidelines for all issues and controversies.

 DOLE shall provide different learning sessions based on

the needs of both parties.

o Disadvantages

 It requires long process and procedures.

  Red Tape – vulnerable to corruption

VII. CONCLUSION

Based on the set criteria, the group considered ACA 3- Tripartism -

intervention of three parties including the management, union and DOLE

ACA 01 ACA 02 ACA 03

1 Effectiveness 2 2 3
2 Efficiency 2 2 3
3 Fairness 3 2 3
4 Consistency 1 2 2
5 Realistic 3 1 2
6 Legality 3 3 3
TOTAL 14 12 16

Good - 1

Better - 2

Best - 3

As result of our discussion and collaboration, we come-up to recommend the

Alternative Course of Action No. 3 “Tripartism” due to the following reasons, to wit:

 The most important thing in any form of groups especially in corporate world,

communication is the best tool of understanding, caring and loving our partners.

This ACA provides a three way communication between the organization, union and

DOLE to sit, discuss and settle disputes in the most peaceful ambience.

Communication is not a competition between parties, it does not also reiterate who
 may possibly won in the discussion BUT it’s a collaboration of involved entities

through sharing of ideas and action plans for the benefits of stakeholders.

1. Effective: there is a great potential for this ACA to be

accomplished.

2. Efficiency: time, effort and money will be saved in case of

compliance.

3. Fairness- presentation of equal protection and participation of all

parties involved.

4. Consistency- regular meetings shall be the answer of this

concern.

5. Realistic – process and procedures are workable and therefore

achievable.

6. Legality- it’s within the purview of the law and guidelines.

VIII. PLAN OF ACTION

ACTIVITY/S PERSON RESPONSIBLE TIME FRAME

 Creation of Tripartite  Union, Management  Immediately
Group (HRD / VP-
Administration) and
Local DOLE

 Setting of possible  Union, Management  Within one month

guidelines of (HRD / VP-
addressing issues and Administration)
controversies  Local DOLE for
 Creating grievance consultation
machineries

 Final copy of guidelines  Union, Management  After one month

and grievance (HRD / VP-
 machineries Administration)

 Information  Union, Management  One week after

Dissemination to all (HRD / VP- the signing of
concerns Administration) final copy of
 Other Management & guidelines
Employees

 Scheduling of Regular  Union, Management  Every 1st Friday of

Meetings with the (HRD / VP- the month
tripartite members for Administration)
updates, feedback and  Local DOLE for
other concerns. consultation