Title
Aboitiz Shipping Corp. vs. Dela Serna
Case
G.R. No. 88538
Decision Date
Apr 25, 1990
Aboitiz Shipping Corporation ordered to pay P1.35M for wage underpayments after failing to comply with hearings; compromise agreement deemed non-binding for union members.
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Case Digest (G.R. No. 88538)

Facts:

  1. Complaint Filed: The Aboitiz Shipping Employees Association (ASEA) filed a complaint against Aboitiz Shipping Corporation for non-compliance with mandated minimum wage rates and allowances under various Presidential Decrees and Wage Orders.
  2. Motion to Dismiss: Aboitiz Shipping Corporation filed a Motion to Dismiss, arguing that the union lacked legal capacity to sue due to a pending representation issue.
  3. Failure to Comply: Despite repeated notices, Aboitiz Shipping Corporation failed to appear at hearings or submit required employment records, including payrolls and vouchers.
  4. Compromise Agreement: Aboitiz Shipping Corporation claimed that a compromise agreement dated July 24, 1986, dismissed all cases between the parties. However, the Regional Director found that the agreement only bound one individual, Elizardo Manuel, and not the entire union.
  5. Regional Director’s Order: The Regional Director ordered Aboitiz Shipping Corporation to pay 717 complainants a total of P1,350,828.00, representing underpayment of a daily allowance of P2.00 from February 16, 1982, to February 15, 1985.
  6. Appeal to Undersecretary: Aboitiz Shipping Corporation appealed, questioning the Regional Director’s jurisdiction and alleging denial of due process. The Undersecretary of Labor affirmed the Regional Director’s decision.

Issue:

  1. Whether the Regional Director had jurisdiction over the money claims filed by the employees.
  2. Whether Aboitiz Shipping Corporation was denied due process.
  3. Whether the compromise agreement barred the claims.
  4. Whether the award of P1,350,828.00 had factual and legal basis.

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Modification

The Court excluded Elizardo Manuel from the list of complainants entitled to the money award, as he was bound by the compromise agreement.

Conclusion:

The petition was dismissed, and the Orders of the Regional Director and Undersecretary of Labor were affirmed, with the modification excluding Elizardo Manuel from the list of complainants.


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