A Study of the Best Labor Practices of Selected Tourism Establishments in the Philippines

Abstract

The philosophy that human resource is a company’s most valuable asset holds true in a service-oriented industry like tourism. However, this resource cannot be fully maximized towards the company’s growth when labor-related issues that deter a good work performance are mishandled.

This descriptive and exploratory study primarily aims to provide information on how selected Metro Manila-based companies from five tourism-oriented sectors handle or manage labor issues through expert interviews with purposively sampled human resource managers and other human resources personnel handling supervisory positions in the following sectors: hotel, restaurant, transport, travel trade, and tourist sites.

The research paradigm of this study shall be illustrated as follows:

A labor problem starts from the relationship existing between management and employees/workers. It is given that there always exist gaps between management and labor. These identified gaps give rise to a lot of labor-related problems. Hence, there is a need for management to provide creative, proactive and effective intervention measures to minimize gaps, increase productivity and eventually promote industrial peace. These intervention measures may be considered as the best labor practices being utilized by selected companies within the tourism-oriented sector. Possible outcomes by reason of these intervention measures may yield to higher productivity, employee morale, and high savings.

Data reveals the following as the leading problems encountered by the selected tourism-oriented establishments: absenteeism/tardiness, illegal dismissal/illegal suspension, pilferage/theft, dishonesty.

The top critical factors that give rise to the above labor problems are as follows: Personal/Family/Health problems, Poverty/Economic Reasons, Lack of discipline, Weak Human Resources Department/Lack of support of management with the Human Resources Department.

In summary, the following are the schemes employed by the selected tourism-oriented establishments in handling labor problems: Labor Management Council; Unions; Written reports/Incident Report/Committee Investigation; Grievance Machinery; Counseling/Coaching; Constant Dialogues with the Human Resources Department; General Assemblies/Departmental Meetings/Meetings with the President or General Manager; Employee councils to handle cases.

In conclusion, ninety percent of the key informants agreed on the imperativeness of having a proactive and supportive Human Resource Department and an open-door policy with the company’s General Manager or President. A comprehensive background check before employment, a two-week orientation, training and immersion, regular performance evaluation, incentives based on merits, due process in cases of termination, strict adherence to civil service laws, rules and regulations, are among the other “best labor practices”.

Keywords: tourism, labor problem, labor management council, best labor practices

JEL Classification: J50, K31, L83