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The Supreme Court in a corporate-governance case held that stockholders’ rights to inspect corporate books and records are subject to established statutory and by-law procedures, with access being limited by legitimate corporate needs and due process. In the context of labor relations, which of the following best reflects the status of “mandatory provisions” for Collective Bargaining Agreements (CBAs) as interpreted in Philippine law, considering due process and non-negotiability of core terms?

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Under current doctrine, a CBA may include productivity-based wage adjustments so long as wages never fall below the statutory minimum, and the presence of such a clause automatically renders all other wage-related provisions negotiable and non-mandatory. A CBA’s mandatory provisions include only procedural mechanics (grievance steps, arbitration) and the exclusive bargaining agent, with all substantive wage and benefit terms deemed negotiable and independent of statutory constraints. The by-law-like provisions of a CBA are enforceable only upon certification by the Civil Service Commission, making them non-binding unless so certified. Mandatory provisions are fixed non-negotiable terms required by statute or jurisprudence, while negotiable terms may be freely bargained; a wage-adjustment clause that violates minimum wage statutes is void but does not invalidate the rest of the agreement.

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