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Question XVI
XVI. The Company and Triple-X Union, the certified bargaining agent of rank-and-file employees, entered into a Collective Bargaining Agreement (CBA) effective for the period January 1, 2002 to December 31, 2007.
For the 4th and 5th years of the CBA, the significant
improvements in wages and other benefits obtained by the Union were:
1) Salary increases of P1,000 and P1,200 monthly, effective January 1, 2006 and January 1, 2007, respectively;
2) Vacation Leave and Sick Leave were adjusted from 12 days to 15 days annually for each employee;
3) Medical subsidy of P3,000 per year for the purchase of medicines and hospitalization assistance of P10,000 per year for actual hospital confinement;
4) Rice Subsidy of P600 per month, provided the employee has worked for at least 20 days within the particular month; and
5) Birthday Leave with Pay and Birthday Gift of P1,500.
As early as October 2007, the Company and the Union started negotiations to renew the CBA. Despite mutual good faith and earnest efforts, they could not agree. However, no union filed a petition for certification election during the freedom period. On March 30, 2008, no CBA had been concluded. Management learned that the Union would declare a bargaining deadlock on the next scheduled bargaining meeting.
As expected, on April 3, 2008, the Union declared a deadlock. In the afternoon of the same day, management issued a formal announcement in writing, posted on the bulletin board, that due to the CBA expiration on December 31, 2007, all fringe benefits contained therein are considered withdrawn and can no longer be implemented, effective immediately.
When was the "freedom period" referred to in the foregoing narration of facts? Explain. (2%)
After April 3, 2008, will a petition for certification election filed by another legitimate labor union representing the rank-and-file employees legally prosper? Reasons. (3%)
Is management’s withdrawal of the fringe benefits valid?
Reasons. (2%)
If you were the lawyer for the union, what legal recourse or action would you advise? Reasons. (3%)
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