Title
National Federation of Labor Unions vs. National Labor Relations Commission
Case
G.R. No. 90739
Decision Date
Oct 3, 1991
Ongbueco, appointed Energy Manager under B.P. 73, sought a salary increase, claiming promotion. SC ruled it a lateral move, upholding management prerogative; no legal mandate for salary adjustment.

Case Summary (G.R. No. 90739)

Applicable Law and Background

The decision emanates from issues involving labor law, specifically Article 217 of the Labor Code of the Philippines, concerning jurisdiction over money claims by workers. Relevant regulations stem from B.P. 73, the Omnibus Energy Conservation Law, which mandated the appointment of an Energy Manager, detailing responsibilities but not stipulating salary adjustments for such appointments.

Employment Designation and Responsibilities

Florante Ongbueco, as the First Production Staff Engineer for Union Ajinomoto, Inc., was appointed as the company’s Energy Manager due to the requirements of B.P. 73. His role encompassed designing, planning, implementing, monitoring, and evaluating energy conservation programs but did not come with an accompanying salary increase despite the additional title.

Claim for Salary Adjustment

On July 7, 1986, Ongbueco filed a complaint with the NLRC asserting underpayment of his salary post-appointment as Energy Manager, followed by an amended complaint claiming entitlement to a corresponding salary increase. The Labor Arbiter ruled in favor of Ongbueco, recognizing his promotion and ordering an appropriate salary adjustment.

Proceedings Through NLRC

The decision was appealed by Ajinomoto to the NLRC, which initially upheld the Labor Arbiter’s ruling but faced subsequent complications due to an Administrative Order curtailing En Banc sessions. Eventually, the case was reassigned and adjudicated by the Second Division, which ruled against Ongbueco, dismissing his complaint citing lack of merit.

Legal Arguments and Positions

Ongbueco argued that his position as Energy Manager constituted a permanent promotion justifying a salary increase, supported by the labor principle that ambiguity should favor employees. The respondents contended that the appointment did not confer managerial responsibilities or warrant a salary raise, asserting that the designation was primarily a legal compliance measure given the existing framework.

Court’s Analysis

The Court underscored the principle that labor laws do not supersede an employer's discretion regarding management matters, including promotions and salary adjustments. It emphasized that the title conferred was inadequate to substantiate a claim for promotion in terms of increased respons

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