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All ▸ Bar 2024 ▸ LABOR LAW AND SOCIAL LEGISLATIONS ▸ VIII. LABOR RELATIONS ▸ B. Rights of Legitimate Labor Organizations ▸ 2. Collective Bargaining ▸ c. Economic Provisions and Conditions

Question

Collective Bargaining: Economic Provisions and Conditions

A manufacturing company in the Philippines is experiencing financial difficulties due to declining sales and increased production costs. As a result, the company is considering implementing certain economic provisions and conditions in their collective bargaining agreement (CBA) to address the financial challenges they are facing. Discuss the validity and enforceability of the following proposed economic provisions and conditions:

  1. Imposing a temporary wage freeze for a period of one year to help stabilize the company's finances;
  2. Implementing a reduced workweek schedule for all employees without any corresponding reduction in wages;
  3. Introducing a profit-sharing scheme wherein employees will be granted a percentage of the company's profits in addition to their regular wages.


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Bar Review Question: Collective Bargaining: Economic Provisions and Conditions A manufacturing company in the Philippin