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COLLEGE OF ARTS AND SCIENCES

SAN BEDA COLLEGE ALABANG


MUNTINLUPA CITY
Case Study in HRM
Title: Confil Garments, LTD.
Background:
In 1987, a family-owned Hongkong based garments firm sought to take
advantage of the investment attractions of the Aquino government. The following year,
Confil put up factory operation on its newly constructed facilities in Taguig, Metro
Manila. Confil makes knitwear and exports these to various US and European markets
thru its mother firm.
Among top officials manning confil are the presidents (a family member of the
Hongkong owners), the Administrative manager (a Chinese lady), the Personnel
Manager and the production Manager, Initially, the company hired 600 production
workers under the Philippine Governments apprenticeship agreement. The terms of the
agreement include: six-month contracts and wages equivalent to 75% of the legislated
minimum wage in the country. After the six month, the apprentice is either terminated or
is regularized, depending on his performance. 70% of the workforces are women with
ages raging from 15 to 18. The average educational attainment of the workforce is
second year collage.
Management style is highly autocratic and repressive. Top management always
wanders around to see that production standards and norms of behavior are followed.
There is no written code of ethics, only those verbally expressed by the Chinese and
Filipino managers which are sometimes conflicting. Production standards are set by the
Chinese supervisors who speak very little English. Therefore, there is much reliance on
actual demonstrations of work or on sign language. Workers who show initiative of
learning Chinese became easy favorites and are usually promoted to leadsmen by their
Supervisors. Employees suspected of violating unwritten rules were terminated without
due process. Top management cultivated favorites to serve as their eyes and ears.
These favorites constituted the spy network which secretly reported on the activities of
suspected deviants. Labor-management relations are thus anchored on suspicious and
mistrust.
Working conditions are among the best in the country. Thus workplace is clean,
roomy and well ventilated. Wages are 10% higher than the minimum. However, the
employees generally feel stifled with over strict work rules imposed on them (e.g. going
[Type text]
Source: Human resources Management (Principles and Practices revised edition by
C.R. Martires)

to comfort rooms during working hours is not allowed: unnecessary conversations are
prohibited while at work).
The Situation:
During the sixth month of operation, union organizers (outsiders) began courting
the workers to form and join their union. Some even joined GTU (genuine trade
unionism) teachings by radical labor groups. Top management was alarmed by these
developments. Subsequently, a consultancy group was invited to hold a series of
seminars focused on Labor-Management Cooperation for Productivity. This was about
the time management was choosing from among the apprentices, those who would be
considered for permanency. The training sessions culminated in the setting up of Labor
Management Committee (LMC), a body composed of labor and management
representatives (sanctioned by law) to allow workers participation in policy and
decision-making processes in matters affecting them.
Acting on the orders of the President, the consultants facilitated the selection of
workers representatives to the LMC. This was done through a pre-selection of potential
LMC representatives (actually these were those handpicked by the Personnel Manager)
who would attend further training on the mechanics of Labor Management Committees.
After this, the representatives were elected by this select group by viva voce votes.
In the days that followed, it was evident that the workers were still working toward
the formation of their union. The Confil President knew that he had to move fast. At that
time, strikes were on the rise and management was scared of union militancy. Again,
the consultants were contracted, this time to ask them to form the union at Confil. The
Presidents specific orders were: affiliate this with any other federation except the
KMU. Thus, Confil Employees Union came into being, and it was subsequently
attached to the moderate Federation of Labor. The officers of the union were also
selected by management.
Both LMC and the union continue to be managements adjuncts to deliberate and
enforce company rules. Soon however, the union members began noticing that their
union was not really articulating nor protecting their rights and interests. LMC activities
were geared toward social activities. However, there were no noticeable positive effects
of the LMC on the company and worker performance. In fact, Confils financial
statement still reflected negative economic returns. Productivity levels were not
increasing as expected.
Employee morale was low, and workers did not feel committed to carry out
organizational goals. Management continued to be repressive and acts arbitrary in favor
of pet employees. The term of the union was about to end. It was likely that contending
union which promised to fight for workers right would win this time. Meanwhile,
[Type text]
Source: Human resources Management (Principles and Practices revised edition by
C.R. Martires)

management was tightening its labor control mechanisms to flush out the leaders of the
contending union.

Prof. Narciso D. Isidro Jr MBA

*****Good Luck*****

[Type text]
Source: Human resources Management (Principles and Practices revised edition by
C.R. Martires)

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