Flashcards Studio
Practice bar questions and get clear AI feedback on every answer.
Question
DeltaTech Components, Inc., bound by a two-year Collective Bargaining Agreement from January 1, 2024 to December 31, 2025, fixes: Economic terms—daily wage 1,450 PHP; 4% cost‑of‑living adjustment (COLA) after 12 months; overtime pay 25% beyond 8 hours. Non-economic terms—five‑day workweek; health insurance for employees and dependents; 30 days’ transfer notice. The CBA includes a clause stating that management prerogative exists but terms and conditions of employment may be altered only by mutual agreement. On February 20, 2025, due to a severe downturn, management unilaterally reduces the daily wage to 1,300 PHP; suspends the COLA for the remainder of the term; narrows health coverage to employee only; and shifts the workweek from five days to six days, with no additional compensation. The DeltaTech Workers Union files complaints with the NLRC for breach of contract and unfair labor practices, seeking restoration of the CBA terms and damages. (a) Is management’s unilateral action lawful? Explain, identifying the controlling doctrine and applying it to the facts. (b) If not lawful, what remedies are available to the union and employees?