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Question
NewTech Components, Inc., a manufacturing firm, is bound by a two-year Collective Bargaining Agreement (CBA) from January 1, 2024 to December 31, 2025. The CBA fixes: Economic terms: daily wage 1,400 PHP; 5% 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 contains a clause stating that management prerogative exists but terms and conditions of employment may be altered only by mutual agreement. On July 15, 2025, due to a severe downturn, management unilaterally reduces the daily wage to 1,250 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 NewTech Workers Union files complaints with the NLRC for breach of contract and unfair labor practices, seeking restoration of the CBA terms and damages.