Case Digest (G.R. No. 128399)
Facts:
Cagayan Sugar Milling Company v. Secretary of Labor and Employment, Director Ricardo S. Martinez, Sr., and CARSUMCO Employees Union, G.R. No. 128399, January 15, 1998, the Supreme Court Second Division, Puno, J., writing for the Court.On November 16, 1993, the Regional Tripartite Wage and Productivity Board, Regional Office No. II of the Department of Labor and Employment issued Wage Order No. RO2-02, which increased statutory minimum wage rates for Region II (including a P14.00 per day rate for Cagayan). On September 12–13, 1994, DOLE labor inspectors examined petitioner Cagayan Sugar Milling Company (CARSUMCO) and found that it had not implemented an across-the-board wage increase; instead, petitioner asserted at the DOLE regional hearing that it had paid the mandated increase in the statutory minimum wage.
Regional Director Ricardo S. Martinez, Sr. issued an Order dated December 16, 1994 finding CARSUMCO in violation of RO2-02 for failing to implement an across-the-board increase and ordering payment of salary deficiencies totaling P555,133.41. On January 6, 1995, CARSUMCO appealed to Secretary of Labor Leonardo A. Quisumbing. On that same date the Regional Board promulgated Wage Order No. RO2-02-A, which amended RO2-02 to provide for an across-the-board wage increase and declared the amendment curative and retroactive to the effectivity of RO2-02.
On October 8, 1996 the Secretary of Labor dismissed CARSUMCO’s appeal and affirmed the Regional Director’s Order; a motion for reconsideration was denied. Thereafter, on February 12, 1997 the CARSUMCO Employees Union moved for execution of the December 16, 1994 Order; Regional Director Martinez granted the motion and issued a writ of execution. CARSUMCO moved for reconsideration to set aside the writ on March 4, 1997, but the DOLE regional sheriff on March 5 served a notice of garnishment on its bank account and on March 10 seized a dump truck and scheduled its public sale.
CARSUMCO filed this petition for certiorari with a prayer for a temporary restraining order (TRO). On April 3, 1997 the Supreme Court issued a TRO enjoining enforcement of the writ of execution; on July 16 the TRO was amended to enjoin enforcement of the Secretary’s Decision and further proceedings. CARSUMCO urged (1) that RO2-02-A was null and void for having been issued without the procedure required by law and in violation of due process; (2) that RO2-02 provided for a statutory minimum wage increase, not an across-the-board increase; and (3) that the Secretar...(Subscriber-Only)
Issues:
- Was Wage Order No. RO2-02-A valid despite allegedly lacking public hearings/consultations and newspaper publication as required by law?
- Did Wage Order No. RO2-02 require an across-the-board wage increase, such that petitioner could be held liable for failing to implement an across-the-board increase?
- Did the Secretary of Labor commit grave abuse of discretion in upholding the Regiona...(Subscriber-Only)
Ruling:
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Ratio:
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Doctrine:
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