Title
American Wire and Cable Workers Union vs. National Labor Relations Commission
Case
G.R. No. L-53337
Decision Date
Jun 29, 1984
A union contested a company’s exemption from paying a P60.00 Emergency Allowance under P.D. 1123, claiming entitlement to both the allowance and a 10% wage increase under their CBA. The Supreme Court ruled in favor of the union, voiding the exemption rule and affirming entitlement to both benefits.
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Case Digest (G.R. No. L-53337)

Facts:

  1. 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.
  2. 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.
  3. 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.
  4. 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:

  1. 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.
  2. 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.
  3. 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)


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