Case Digest (G.R. No. L-53337)
Facts:
The case involves the American Wire & Cable Workers Union (TUPAS) as the petitioner and the National Labor Relations Commission (NLRC) along with American Wire & Cable Co., Inc. as the respondents. The events leading to this case began with the signing of a Collective Bargaining Agreement (CBA) between the petitioner Union and the respondent Company on June 2, 1976, which was retroactive to May 1, 1976. This CBA stipulated a three-stage wage increase for all rank-and-file employees, specifically providing for a 20% increase in the first year, a 10% increase in the second year, and another 10% increase in the third year. The first-year increase was implemented retroactively to May 1, 1976.
On April 21, 1977, during the second year of the CBA, Presidential Decree (P.D.) 1123 was enacted, mandating an increase of P60.00 in the Emergency Allowance under P.D. 525, effective May 1, 1977. The respondent Company claimed exemption from this decree under paragraph (k), Secti...
Case Digest (G.R. No. L-53337)
Facts:
Collective Bargaining Agreement (CBA):
- A CBA was entered into between petitioner American Wire & Cable Workers Union (TUPAS) and respondent American Wire & Cable Co., Inc. on June 2, 1976, retroactive to May 1, 1976.
- The CBA provided for a three-stage wage increase for rank-and-file employees:
- First year: 20% increase.
- Second year: 10% increase.
- Third year: 10% increase.
- The first-year 20% increase was implemented retroactively from May 1, 1976.
Presidential Decree (P.D.) 1123:
- On April 21, 1977, P.D. 1123 was enacted, effective May 1, 1977, granting an additional P60.00 Emergency Allowance under P.D. 525.
- Respondent Company claimed exemption under paragraph (k), Section 1 of the Rules Implementing P.D. 1123, which exempted employers who had granted at least P60.00 monthly wage increases on or after January 1, 1977.
- The Company credited the second-year 10% wage increase under the CBA against the P60.00 Emergency Allowance, offering to pay only the difference.
Union’s Complaint:
- On August 3, 1977, petitioner Union sought assistance from the Secretary of Labor to enforce the wage increase under the CBA.
- Labor Arbiter Conrado O. Lasquite dismissed the Union’s complaint, ruling that the Company was exempt under paragraph (k) of the Implementing Rules.
- The National Labor Relations Commission (NLRC) affirmed the Labor Arbiter’s decision.
Petitioner’s Arguments:
- The Union argued that it was entitled to both the 10% wage increase under the CBA and the P60.00 Emergency Allowance under P.D. 1123.
- It contended that the NLRC and Labor Arbiter acted with grave abuse of discretion and misinterpreted the Implementing Rules.
Issue:
- Whether the NLRC and Labor Arbiter acted with grave abuse of discretion in denying the Union’s claim for the P60.00 Emergency Allowance under P.D. 1123.
- Whether paragraph (k), Section 1 of the Rules Implementing P.D. 1123 is valid and applicable to exempt the Company from paying the Emergency Allowance.
- Whether the Union is entitled to both the 10% wage increase under the CBA and the P60.00 Emergency Allowance under P.D. 1123.
Ruling:
- (Subscriber-Only)
Ratio:
- (Subscriber-Only)