Flashcards Studio

During a two-year collective bargaining agreement (CBA) between LumenTech Manufacturing, Inc. and Lumen Workers Union (exclusive bargaining agent for all non-managerial employees at the plant), the instrument includes: (a) a grievance mechanism with steps culminating in binding arbitration; (b) a clause recognizing the union as exclusive bargaining agent for all non-managerial employees in the plant; (c) a productivity-based wage adjustment clause: “Wages may be adjusted upward or downward based on productivity targets, provided that wages never fall below the statutory minimum wage and statutory benefits are preserved”; (d) an integration clause: “This CBA constitutes the entire agreement and supersedes all prior understandings.” (1) Identify which items are mandatory provisions under Philippine law for CBAs; (2) Distinguish mandatory provisions from negotiable terms; (3) Apply the rule to clause (c) and state its validity as to wage provisions and any effect on the rest of the instrument.