What is the principle of co-determination?

What is the principle of co-determination? (Bar 2007)

● The principle of co-determination is one which grants to the workers the right to participate in policy and decision-making processes directly affecting their rights and benefits (Art 255, Labor Code)

● By the principle of co-determination, the workers have the right to participate in the decision-making process of employers on matters affecting their rights and benefits through collective bargaining agreements, grievance machineries, voluntary modes of settling disputes and conciliation proceedings mediated by the government. 

● Co-determination is a term identified with workers' participation in the determination of business policy. Under the German model, the most common form of co-determination, employees of some firms are allocated control rights by law in the form of board seats. It is based on the conviction that democratic legitimacy cannot be confined the government but must apply to all sectors of society. Besides corporate control rights, the German system deals with dual channels of representation of employees by union (at the industry-wide and micro-economic level) and work councils (at the firm level). (Labor Law Philippine Bar Examination Questions and Suggested Answers)

What, if any, is the basis under the Constitution for adopting it?

The basis for the principle of co-determination is Paragraph 2, Section 3 of Art XIII of the Constitution which states, in part, that workers "shall also participate in policy and decision-making processes affecting their rights and benefits as may be provided by law."

What is the extent of this right of the workers to participate in policy and decision process? Does it include membership in the Board of Directors of a corporation? (Bar 2008)

The workers' right to participate in policy and decision-making process under the 1987 Constitution extends to everything that affects their rights, duties, welfare and benefits except those reserved to management under the concept of management prerogative. The management prerogative reserved to management is not included in this right to participate in policy and decision making. This right does not extend to include the right to membership in the Board of Directors of a corporation