Question

Based on the principles of collective bargaining and the economic provisions provided under Philippine labor laws, answer the following questions:

1. Company A, an electronics manufacturing firm, is negotiating a new collective bargaining agreement (CBA) with its employees' union. The union proposes a provision that requires the company to provide annual salary increases based on the prevailing industry standards. The management of Company A argues that it should have the flexibility to determine wage increases based on the company's financial performance. Discuss the legal basis for both positions and provide recommendations on how to reconcile the conflicting interests of the union and the management.
2. Company B, a construction company, is experiencing financial difficulties due to a downturn in the industry. The union representing its workers demands job security provisions in the CBA, including a "no layoff" clause. However, Company B claims that it may need to implement temporary layoffs or downsizing measures to survive the economic downturn. Determine the legal grounds for job security provisions in collective bargaining agreements and analyze the circumstances under which temporary layoffs may be justified. Provide a framework for balancing job security and business viability in this scenario.
3. Company C, a multinational corporation, is engaging in collective bargaining with its employees' union. The union requests the inclusion of mandatory profit-sharing provisions in the CBA, where a percentage of the company's profits will be distributed among the employees. Company C argues that profit-sharing should be based on the discretion of management and linked to performance targets. Evaluate the legal basis for profit-sharing provisions in collective bargaining agreements and discuss the advantages and disadvantages of allowing management discretion versus establishing a fixed formula for profit-sharing.