Philippine Bar review · Question

Practice question: Limitations on Management Prerogative

Multiple Choice Hard

Practice question

An airline’s CBA provides an accrued monetary benefit without the extra forfeiture condition management later inserts in a manual. After employees separate, the airline refuses payment solely under the manual, asserting that management prerogative permits unilateral supplementation of the CBA. No agreed amendment supports the change. Which is best?
  1. A manual always amends a CBA
  2. A new forfeiture condition is automatically an interpretation
  3. The CBA binds only employees
  4. Management prerogative is beyond judicial review
  5. The airline cannot evade its agreed obligation by a unilateral inconsistent personnel rule

Legal references

  • Philippine Airlines v.Ahmee, GR221065/221164, April7,2025: https://lawphil.net/judjuris/juri2025/apr2025/gr_221065_2025.html

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