Polytechnic University of the Philippines

PRESENTATION OF THE CASE

United Coconut Planters Bank (UCPB) is a provider of financial products and services to corporations, private and government institution, middle market companies, small and medium sized business and individuals in the Philippines. In the past few months UCPB has been experiencing labor piracy in which one employer offers an employee, from another company, lucrative incentives to work for them. Using competitive salaries and benefits to attract and retain personnel is now on everyone's radar screen, but it is not enough. Companies also need to be wary of industry rivals who may seek a competitive edge by soliciting or "pirating" away their key employees - The National Law Journal, November 8, 1999 By Michael Starr and Jordan Lippner. Due to this situation, UCPB is currently facing shortage of employees that can leads to poor performance of the branch banking group.

I.

POINT OF VIEW

As a corporate or division within a corporation, I can view this situation as fatal to the management and branches of the institution. It may lead to malfunctioning of each department and inconveniency to the company and its clients.

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II.

STATEMENT OF THE PROBLEM

What are the causes and effects of employment piracy? And how to avoid it? What causes the employees of UCPB to transfer to other banks? o What are the incentives offered by other employer to lure the employees? What are the effects to the management of transferring of their employees to other banks?

III.

OBJECTIVE To widen the information about labor piracy that will contribute not only to this studied institution but also for other future researchers.

IV.

ALTERNATIVE COURSES OF ACTION (ACA) According to the conducted interviews, employees refer to the benefits offered to them by the employer of the other company which result to labor piracy. Due to observations and further research there are ways founded to avoid labor piracy. Newly accepted employees should sign a contract that contains certain conditions like the range of years or months before they are allowed to resign.

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Polytechnic University of the Philippines

Surpass the offers of the company competitors to the key employees of the company. Increasing the rate of salary and other benefits proportionally to the range of their service.

V.

AREAS OF CONSIDERATION(ANALYSIS OF THE CASE) Tentative solutions on the problem needs greater observation to pick up the best

solution or solutions which provides with more positive feedback. The stated actions above widely affect the: Company The action to be perform should be beneficial to the company and helps them perform with more flexibility. Clients They should be in great advantage on whatever act the company will do to attract. It is to attract more clients too. Employees having a strong bond for your workers can make a mutual gain both for the company and the employees. Competitors Competing with the other banks requires a good strategy having the goal of earning more income and serving cuatomer much better than the others.

VI.

ANALYSIS OF THE COURSES OF ACTION Contract signing for the employees is good for the company. With this the company can grasp their employees and never have a problem of Labor Piracy
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Polytechnic University of the Philippines

or low work performance but having the employees trap with this kind of action can make a bad image for the company resulting in less clients and no new employees that leaves a good oppurtunity for your competitors. Employees are vital to a company much more a key employee. Surpassing whats being offered to them might pull them back but with that kind of stategy can cause disaster for the company too. Other employees might request a better benefits from the company or increase on the rate of their salary. Neglecting the request of your employees might make them to pull out of the company which is in favor for your competitive companies and customers will be strike by incoveniency because the lower the labor the lower the performance of the company which can have them shift to other banks. Increasing the rate and benefits of the employee with respect to the range of time they serve the company is a good solution to the problem. The employees that serve you for a long time and which became your key employees would not be wanting to transfer to other banks and the new employees have something to look forward too on the company. Competitors will be more challenge because of the strong bond you make with your employees. With more employees can make the transactions or negotiation on the company faster which is good for the clients and the company too. The faster the transaction the faster the money is being earn.

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Polytechnic University of the Philippines

VII.

RECOMMENDATION The management of UCPB should consider the right working payments like overtime payment and the right benefits for their employees, plus the increase of salary proportional to the range they serve to the company can keep them out of labor piracy. Enployees are as sensitive as the clients if they dont get what they want they go for another banks. Their needs should be put first also if the institution want to maintain them like an excellent leader do to its members.

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