A worker is asking why we have so many confidential employees in our rank-and-file workforce. That worker said in jest that the human resource (HR) manager could be getting ready for the entry of an employees’ union. I’m puzzled. How would you look at this situation? — Puzzled Look.
The joker is correct. “Confidential employees” are usually used in unionized establishments. Such employees are typically excluded from the bargaining unit and therefore not eligible to join any union due to the nature of their jobs. They are trusted by management to handle the company’s trade secrets and confidential information.
In general, “confidential employees” are trusted with three types of sensitive data: One, information pertaining to all employees. Two, information related to management strategy. And three, information involving trade secrets or business information.
The pertinent Supreme Court decision on “confidential employees” is San Miguel Foods, Inc. vs. San Miguel Corp. Supervisors (G.R. 146206, promulgated in 2011).
“Confidential employees are defined as those who (1) assist or act in a confidential capacity, in regard (2) to persons who formulate, determine, and effectuate management policies in the field of labor relations.” They are non-management workers assigned to work in the HR department, especially those who are handling payroll, the safekeeping of 201 folders, record-keeping of attendance policies and related tasks.
Many confidential employees are also assigned to accounting, collection, finance, and purchasing departments. They handle sensitive information which, if leaked to competitors, trade unions or other entities, may result in a disadvantageous or precarious situation for management and the organization.
This is why “executive assistants” and secretaries of senior management executives are classified as “confidential employees.” The San Miguel case indicates that such definitions are made within the context of labor relations. Unfortunately, when some people hear the terms “confidential employees” and “labor relations,” they automatically assume that a company has a union or several unions representing various bargaining units.
To avoid that confusion, it’s better for organizations to use the term “employee relations” as a neutral or objective term.
UNION MEMBERSHIPIf “confidential employees” are not qualified to join a union, can they form a new union purposely to protect its interests? The answer is no. They can’t form or join a union as their “access to confidential information may become the source of undue advantage” when they try to negotiate with management.
It can work both ways as they could be charged with being spies. This was the conclusion reached in another case, National Association of Trade Unions – Republic Planters Bank Supervisors Chapter vs. Hon. Ruben Torres (G.R. No. 93468 promulgated 1994).
Essentially, the problem is conflict of interest. If such activities are allowed, imagine the chaos that could result, possibly causing the organization to self-destruct.
PROACTIVE STRATEGIESJust the same, take the joker seriously. Watch his every move. He may be joking, but he may be planning something that could upset the HR department, top management, and the organization, in general. I hope I’m wrong. Per my experience, a person like this usually has the capacity to organize a union.
I’m not saying that organizing a union is wrong. It is the right of every worker to organize a union. However, this same right is also tempered by the right of every worker not to join a union.
What I’m saying is that the joker and his cohorts may not be happy with many of your management policies and could be thinking of testing the waters. Better come out soon with some proactive strategies, like a “sophisticated welfare” program. This is also known as paternalism, with the intent of making a union irrelevant.
Proactive employee relations strategies include the development and maintenance of a positive work environment that is advantageous to both labor and management. It is based on the belief that the organization is better served when the employees are working in harmony with management.
Many proactive employee relation strategies involve two-way communication tools like a morale survey, town hall meetings, and quality circles or related problem-solving activities designed to empower and engage. In summary, the best question to ask is: Do a majority of employees feel their interests are being neglected by management?
When management fails to maintain regular dialogue, chances are, both the rumormongers and rabble-rousers have a decent chance at ultimately destroying the organization. Don’t be surprised if the joker is part of this.
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