G.R. No. 144322 - Metropolitan Bank and Trust Company, Inc. vs. National Wages and Productivity Commission

On October 17, 1995, the Regional Tripartite Wages and Productivity Board, Region II, Tuguegarao, Cagayan (RTWPB) issued Wage Order No. R02-03 pursuant to Republic Act No. 6727 (the Wage Rationalization Act).
Section 1 of the Wage Order mandated an across‐the‐board P15.00 daily wage increase for all private sector employees in Region II, irrespective of employment status.
The Wage Order was published in a newspaper of general circulation on December 2, 1995, took effect on January 1, 1996, and its implementing rules were approved on February 14, 1996.

In May 1996, the Bankers’ Council for Personnel Management (BCPM) inquired with the National Wages and Productivity Commission (NWPC) regarding whether establishments with head offices outside Region II were exempted from the Wage Order, given that member banks already paid rates above the minimum wage in the National Capital Region.
On July 16, 1996, the NWPC replied that these member banks were within the ambit of the Wage Order and did not fall under any exemptible categories.
On July 23, 1996, petitioner Metropolitan Bank and Trust Company, Inc. sought interpretation of the Wage Order’s applicability, which was referred to and clarified by the RTWPB in a letter dated August 12, 1996, confirming the general application of the Wage Order to all private establishments in Region II regardless of voluntary adherence to Metro Manila wage orders.

On October 15, 1996, the petitioner filed a Petition for Certiorari and Prohibition with the Court of Appeals (CA), challenging the Wage Order on several grounds:

Alleging that the RTWPB acted without authority or exceeded its delegated power in issuing a blanket wage increase.
Arguing that, even if its authority were recognized, the issuance without any ceiling or qualification intruded unreasonably into its property rights and undermined collective bargaining.

The Office of the Solicitor General (OSG) filed a Manifestation and Motion in lieu of Comment on March 24, 1997, supporting the contention that the RTWPB exceeded its authority.
Respondents (NWPC and RTWPB) later submitted their Comments, emphasizing:

Petitioner's failure to avail of the appeal remedy provided in Section 13 of the Wage Order within 10 calendar days from its publication.
That the issuance was a purely administrative act and had already taken effect, rendering the petition moot.

The CA rendered its Decision on July 19, 2000, dismissing the petition by holding:

A writ of prohibition was unavailable because the Wage Order was already a fait accompli.
A petition for certiorari was improper since the Wage Order was issued as an administrative, not judicial or quasi-judicial, act.
Petitioner's letter-queries could not substitute a formal appeal.
The uniform wage increase did not constitute wage distortion for banks employing a unified wage system.

Whether Wage Order No. R02-03 is void and of no legal effect because the RTWPB exceeded its delegated authority under R.A. No. 6727 by enacting an across-the-board wage increase beyond setting minimum wages.
Whether the petitioner's recourse to a petition for certiorari and prohibition was proper, notwithstanding the failure to avail the prescribed administrative appeal remedy.

The parties submitted respective memoranda; the petitioner reiterated arguments on ultra vires actions, improper extension of benefits beyond the legal scope, and undue interference with collective bargaining.
Respondents maintained that the Wage Order was properly issued under the administrative functions of the RTWPB, citing established case law (including ECOP) and the mandatory appeal process under Section 13 of the Wage Order.
The Court also noted the doctrine of primary jurisdiction, holding that questions within the NWPC’s mandate should normally be resolved administratively.

Whether Wage Order No. R02-03 is void and without legal effect because it extends its application beyond setting the minimum wage rate.
Whether the RTWPB exceeded its statutory authority by granting an across-the-board wage increase to all employees, including those earning above the prescribed minimum wage rate, thereby:

Whether the petitioner's use of a petition for certiorari and prohibition is proper given its failure to file an appeal with the NWPC within the 10-calendar-day period mandated by the Wage Order.
Whether, under the doctrine of primary jurisdiction, the appropriate remedy should have been sought administratively and not via a special civil action in court.