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Question 14

2025 Bar · Labor Law · 1 sub-question

14. The Regional Tripartite Wages and Productivity Board (RTWPB) of Region V issued Wage Order No. 16, providing an increase in the Cost-of-Living Allowance (COLA) for workers in the private sector. XYZ Corporation implemented the COLA increase in favor of its employees in its Naga Branch (Region V). ABC Union, as the exclusive bargaining agent of XYZ Corporation, demanded that the increase be extended to its employees outside Region V. According to the union, the implementation of the wage order created a wage distortion in the salary structure of rank-and-file employees in its Naga Branch vis-à-vis the other branches of XYZ Corporation. Is ABC Union correct? Reason(s).

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