Enlarging the pie through workplace cooperation

We are practicing proactive two-way communication. This includes morale surveys, one-on-one dialogues, a suggestion system, town hall meetings, quality circles, and more. Are we missing anything? — Lonely Heart.

I’m not sure if you’ve tried setting up an LMC or Labor-Management Council, also known as Labor-Management Committee. With or without a union, Article 267 of the Labor Code (formerly Article 255 before renumbering) states that workers have the right to participate in policy and decision-making processes affecting their rights, benefits, and welfare.

In an organization without a union, the LMC is known as an Employee Involvement Group or Workplace Cooperation Council. A good example is the Bayanihan System of Unilab which is often hailed as a textbook manifestation of a comprehensive, paternalistic employee welfare system.

LMCs are strongly promoted by the National Conciliation and Mediation Board (NCMB) as a voluntary mechanism for industrial peace. While collective bargaining handles the “what” of a contract (wages and benefits), the LMC is the engine that handles the “how” of industrial harmony.

The LMC is designed to be non-adversarial. It bridges, connects, and supports all other communication tools you have. Also, it allows the workers and management to discuss non-wage and benefit issues like the cafeteria, office uniforms, quality, productivity, health, safety, and other workplace improvements.

In many dynamic organizations, the LMC acts as the oversight body for Kaizen and related Total Quality Management initiatives. It ensures that waste reduction programs aren’t seen as management strategies to reduce headcount or make work difficult, but as a collaborative effort that ensures job security and organizational stability.

By meeting regularly, even when there are no “burning” issues, the parties can use the LMC to make deposits in their common “trust bank account.” When a real crisis hits (like a sudden layoff or a shift change), the parties have a working relationship to fall back on.

KEY SUCCESS FACTORS
A successful LMC is less about paperwork and more about building trust and achieving visible results. Without this, the LMC will fail, if not become a useless talking shop instead of a problem-solving gathering. Here are the key success factors:

One, top management commitment. Workers are sensitive. It’s easy for them to sense whether management is serious or merely putting up a facade. To make an LMC successful, it needs active senior management participation, quick implementation of agreed actions, supported with time and a small budget for snacks.

Two, equal representation: An LMC is composed of a balanced number of management and worker representatives. Chairmanship is rotated or co-chaired by workers and management. This helps maintain balance, shared ownership, mutual accountability and at the same time train the workers for future leadership roles.

Three, common interests. The LMC, as a win-win forum, becomes the most powerful tool for ensuring industrial peace and operational excellence. To keep the structure proactive and effective, there must be a distinction between dividing the pie and enlarging its size for the common good.

Four, trust preservation. Focus on solving small problems fast. Early wins build credibility. Start with issues employees can immediately feel, like broken lockers, unpalatable canteen food, dirty restrooms, unfair overtime scheduling and more. When employees see action, trust grows.

Five, data versus emotions. An LMC encourages fact-based discussions like absenteeism rates, customer complaints, product defects, accident reports, and health concerns, among other issues. Discussions take place without finger-pointing so any issue could be solved quickly as opposed to council members making speeches.

Six, skills training. Even if the parties are sincere, issues could easily resurface if council members lack the skills of problem-solving, facilitation, active listening, root cause analysis, and time management. This can be addressed by a training program that builds professionalism.

The NCMB regularly promotes LMC capability-building programs.

Seven, psychological safety. Employees must feel safe speaking honestly without retaliation. This can be done through respectful disagreement, constructive criticism (directed against an issue, not the person), idea sharing, and upward communication.

Eight, regular meetings. Consistency matters. Try monthly meetings with a fixed agenda, minutes with actionable timelines, assigned accountabilities, and open status tracking. Nothing kills enthusiasm faster than when people bring up “what we discussed six months ago.”

Nine, joint celebration. Reward and recognize improvements like reduced accidents, improved productivity, waste elimination, and even an increase in the number of ideas submitted in a Kaizen and quality-circle process. By sharing victories, the parties can easily achieve a more dynamic relationship.

The bottom line? In a union setting, the relationship is anchored on both contractual obligations and ongoing cooperation. In a non-union environment, the relationship relies even more heavily on trust and voluntary collaboration.

 

Consult Rey Elbo for free insights on people management. Send your comments or questions to elbonomics@gmail.com or DM him on Facebook, LinkedIn, X or via https://reyelbo.com.

Enlarging the pie through workplace cooperation
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