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Issue: Whether or not the workers who joined the strike violated
ORGANIZATION vs. PHILIPPINE BLOOMING MILLS CO.,
the CBA?
INC
Ruling: NO. The demonstration against police officers, not
against the employer, as evidence of bad faith in collective
Facts: Petitioners claim that on March 1, 1969, they decided to bargaining and hence a violation of the collective bargaining
stage a mass demonstration at Malacañang on March 4, 1969,
agreement and a cause for the dismissal from employment of
in protest against alleged abuses of the Pasig Police to be
participated in by the workers in the first shift (from 6 A.M. to 2 the demonstrating employees, stretches unduly the compass of
P.M.) as well as those in the regular second and third shifts (from the collective bargaining agreement, is "a potent means of
7 A.M. to 4 P.M. and from 8 A.M. to 5 P.M., respectively); and inhibiting speech" and therefore inflicts a moral as well as mortal
that they informed the respondent Company of their proposed wound on the constitutional guarantees of free expression, of
demonstration. peaceful assembly and of petition.
PASEI vs. DRILON "Protection to Labor" does not signify the promotion of
employment alone.—Protection to labor" does not signify the
Facts: Petitioner, Philippine Association of Service Exporters, promotion of employment alone. What concerns the Constitution
Inc. (PASEI, for short), a firm "engaged principally in the more paramountly is that such an employment be above all,
recruitment of Filipino workers, male and female, for overseas decent, just, and humane. It is bad enough that the country has
placement”. PASEI challenges the temporary suspension of to send its sons and daughters to strange lands because it
deployment of Filipino domestic and household workers," cannot satisfy their employment needs at home. Under these
circumstances, the Government is duty-bound to insure that our
toiling expatriates have adequate protection, personally and
It assails for "discrimination against males or females;" that it
economically, while away from home. In this case, the
"does not apply to all Filipino workers but only to domestic Government has evidence, an evidence the petitioner cannot
helpers and females with similar skills;" and that it is violative of seriously dispuce, of the lack or inadequacy of such protection,
the right to travel. and as part of its duty, it has precisely ordered an indefinite ban
on deployment.
Respondent: SolGen on behalf of the Labor Secretary and the
administrator of the POEA invokes the police power of the
Philippine State. EMS MANPOWER vs. NLRC
Re: Petitioner/EPC/Male&Female
Facts: Manuel (DH): Private respondent Luisa G. Manuel was
hired as a domestic helper in Hong Kong. Under her
The petitioner has shown no satisfactory reason why the employment contract, secured through the efforts of petitioner
contested measure should be nullified. There is no question that placement agency (EMS), she would receive HK$2,500.00 per
Department Order No. 1 applies only to "female contract month during the term of her contract. When she was dismissed
workers," but it does not thereby make an undue discrimination and repatriated to the Philippines after she made repeated
between the sexes. demands for her weekly rest day, of which she was denied from
the start of her service, in violation of Clause 6(a) of the
The Court is well aware of the unhappy plight that has befallen employment contract. She also complained that she was not
our female labor force abroad, especially domestic servants. allowed to meet or see fellow Filipinos. By the time she left, she
The sordid tales of maltreatment suffered by migrant Filipina had only received a separation pay of HK$2,500.00 and her
workers, even rape and various forms of torture, confirmed by return flight ticket.
testimonies of returning workers, are compelling motives for
urgent Government action. Luisa filed a complaint before the POEA for illegal dismissal and
illegal exaction against Yee, EMS and its surety, Paramount
There is likewise no doubt that such a classification is germane Insurance Corporation.
to the purpose behind the measure: to "enhance the protection
for Filipino female overseas workers" POEA: Dismissed the complaint for lack of merit. POEA’s basis
is that Luisa was given her separation pay in lieu of notice of her
Department Order No. 1 is a valid implementation of the Labor termination of the employment contract, and Yee actually paid
Code, in particular, its basic policy to "afford protection to labor," her repatriation expenses as provided in the POEA Rules and
Regulations. Thus, he concluded that "under the circumstances,
Issue: Whether D.O. No.1 in the nature of a police power respondent (Yee) has complied with the law and with
measure is constitutional. complainant's contract of employment and her consequential
repatriation cannot be termed illegal.
Ruling: Yes. The concept of police power is it is the authority of
the State to enact legislation that may interfere with personal
NLRC: Reversed and set aside POEA’s decision and ordered
liberty or property in order to promote the general welfare.” It
respondent EMS Manpower and Placement Services to pay
may be consists of (1) an imposition of restraint upon liberty or
complainant the peso equivalent at the time of actual payment.
property, and (2) in order to foster the common good.
ECOP vs NWPC Labor Law; Wages; The National Wages and Productivity
Commission noted that the determination of wages has
Facts: On October 15, 1990, the Regional Board of the National generally involved true methods, the “floor-wage” method
and the “salary-ceiling” method.
Capital Region issued Wage Order No. NCR-01, increasing the
minimum wage by P17.00 daily in the National Capital Region. Same; Same; Same; Republic Act No. 6727 was intended to
rationalize wages. first, by providing for full-time boards to
ECOP is questioning the validity of the said wage
police wages round-the-clock and second by giving the
rationalization or the Wage Order No. NCR-01-A boards enough powers to achieve this objective.—As the
Commission noted, the increasing trend is toward the second
ECOP assails that the board's grant of an "across-the-board" mode, the salary-cap method, which has reduced disputes
wage increase to workers already being paid more than existing arising from wage distortions (brought about, apparently, by the
minimum wage rates (up to P125. 00 a day) as an alleged floor-wage method), Of course, disputes are appropriate
subjects of collective bargaining and grievance procedures, but
excess of authority, and alleges that under the Republic Act No.
as the Commission observed and as we are ourselves agreed,
6727, the boards may only prescribe "minimum wages," not bargaining has helped very little in correcting wage distortions.
determine "salary ceilings."
Same; Same; Same; Court not convinced that the Regional
Board of the National Capital Region in decreeing an
across-the-board hike performed an unlawful act of ISSUE: Whether or not the there is distinction between foreign
legislation.—The Court is not convinced that the Regional and local hires.
Board of the National Capital Region, in decreeing an across-
RULING: NO. The employer in this case has failed to discharge
the-board hike, performed an unlawful act of legislation. It is true
this burden. There is no evidence here that foreign-hires perform
that wage-fixing, like rate-fixing, constitutes an act Congress; it
25% more efficiently or effectively than the local-hires. Both
is also true, however, that Congress may delegate the power to
groups have similar functions and responsibilities, which they
fix rates provided that, as in all delegations cases, Congress
perform under similar working conditions.
leaves sufficient standards. As this Court has indicated, it is
impressed that the above-quoted standards are sufficient, and
in the light of the floorwage method’s failure, the Court believes
The Labor Code’s and the Constitution’s provisions impregnably
that the Commission cor-rectly upheld the Regional Board of the
institutionalize in this jurisdiction the long honored legal truism
National Capital Region.
of "equal pay for equal work." Persons who work with
substantially equal qualifications, skill, effort and responsibility,
under similar conditions, should be paid similar salaries.
Same; Same; Same; The Act as meant to nationalize wages
that is, by having permanent boards to decide wages rather
than leaving wage determination to Congress year after
If an employer accords employees the same position and rank,
year and law after law.—lt is the Court’s thinking, reached after
the presumption is that these employees perform equal work. If
the Court’s own study of the Act. The Court is not of course
the employer pays one employee less than the rest, it is not for
saying that the Act is an effort of Congress to pass the buck, or
that employee to explain why he receives less or why the others
worse, to abdicate its duty, but simply, to leave the question of
receive more. That would be adding insult to injury.
wages to the expertise of experts.
The Union claims that the point-of-hire classification employed Same; Same; State directed to promote “equality of
by the School is discriminatory to Filipinos and that the grant of employment opportunities for all.”—The Constitution also
higher salaries to foreign-hires constitutes racial discrimination. directs the State to promote “equality of employment
The School justifies the difference on two "significant economic opportunities for all.” Similarly, the Labor Code provides that the
disadvantages" foreign-hires have to endure, namely: (a) the State shall “ensure equal work opportunities regardless of sex,
"dislocation factor" and (b) limited tenure. race or creed.” It would be an affront to both the spirit and letter
of these provisions if the State, in spite of its primordial obligation
to promote and ensure equal employment opportunities, closes
A foreign-hire would necessarily have to uproot himself from his its eyes to unequal and discriminatory terms and conditions of
home country, leave his family and friends, and take the risk of employment.
deviating from a promising career path.
Same; Same; Discrimination, particularly in terms of The Court awards financial assistance to employees who were
wages, is frowned upon by the Labor Code.—Discrimination, terminated for just causes, on grounds of equity and social
particularly in terms of wages, is frowned upon by the Labor justice. We recognized the harsh realities faced by employees
Code. Article 135, for example, prohibits and penalizes the that forced them, despite their good intentions, to violate
payment of lesser compensation to a female employee as company policies, for which the employer can rightfully
against a male employee for work of equal value. Article 248 terminate their employment. BUT the award of financial
declares it an unfair labor practice for an employer to assistance shall not be given to validly terminated employees,
discriminate in regard to wages in order to encourage or whose offenses are iniquitous or reflective of some depravity in
discourage membership in any labor organization. their moral character.
Same; Same; If an employer accords employees the same
position and rank, the presumption is that these employees
On Capor’s allegation that her length of service and previously
perform equal work.—The School contends that petitioner has
clean employment record should be considered in awarding her
not adduced evidence that local-hires perform work equal to that
separation pay, the Court ruled that it cannot simply erase the
of foreign-hires. The Court finds this argument a little cavalier. If
gravity of the betrayal exhibited by a malfeasant employee.
an employer accords employees the same position and rank,
Length of service is not a bargaining chip that can simply be
the presumption is that these employees perform equal work.
stacked against the employer. After all, an employer-employee
This presumption is borne by logic and human experience. If the
relationship is symbiotic where both parties benefit from mutual
employer pays one employee less than the rest, it is not for that
loyalty and dedicated service. If an employer had treated his
employee to explain why he receives less or why the others
employee well, has accorded him fairness and adequate
receive more. That would be adding insult to injury. The
compensation as determined by law, it is only fair to expect a
employer has discriminated against that employee; it is for the
long-time employee to return such fairness with at least some
employer to explain why the employee is treated unfairly.
respect and honesty. Betrayal by a long-time employee is more
Same; Same; The State has the right and duty to regulate insulting and odious for a fair employer.
the relations between labor and capital.—The Constitution
Labor Law; Termination of Employment; A criminal
enjoins the State to “protect the rights of workers and promote
conviction is not necessary to find just cause for
their welfare,” “to afford labor full protection.” The State,
employment termination.— Otherwise stated, an employee’s
therefore, has the right and duty to regulate the relations
acquittal in a criminal case, especially one that is grounded on
between labor and capital. These relations are not merely
the existence of reasonable doubt, will not preclude a
contractual but are so impressed with public interest that labor
determination in a labor case that he is guilty of acts inimical to
contracts, collective bargaining agreements included, must yield
the employer’s interests.
to the common good. Should such contracts contain stipulations
that are contrary to public policy, courts will not hesitate to strike Same; Same; Separation Pay; Separation pay is not allowed
down these stipulations. when an employee is dismissed for just cause such as
serious misconduct.—The law is clear. Separation pay is only
warranted when the cause for termination is not attributable to
RENO FOODS vs NLM the employee’s fault, such as those provided in Articles 283 and
284 of the Labor Code, as well as in cases of illegal dismissal in
which reinstatement is no longer feasible. It is not allowed when
Facts: Petitioner Reno Foods, Inc. (Reno Foods) is a an employee is dismissed for just cause, such as serious
manufacturer of canned meat products, respondent Nenita misconduct.
Capor (Capor) was an employee of Reno Foods. Same; Same; Same; Jurisprudence has classified theft of
company property as a serious misconduct and denied the
It is a standard operating procedure of petitioner-company to award of separation pay to the erring employee.—
subject all its employees to reasonable search of their Jurisprudence has classified theft of company property as a
belongings upon leaving the company premises, the guard serious misconduct and denied the award of separation pay to
found six Reno canned goods inside Capor’s bag. RENO filed a the erring employee. We see no reason why the same should
case of qualified theft against Capor. While NLM-Katipunan filed not be similarly applied in the case of Capor. She attempted to
in behalf of Capor, filed a case of illegal dismissal and money steal the property of her long-time employer. For committing
claims against RENO before the NLRC, praying that Capor be such misconduct, she is definitely not entitled to an award of
awarded backwages and moral and exemplary damages. The separation pay.
Labor Arbiter found Capor guilty of grave misconduct which Same; Same; Length of service and a previously clean
was just cause for termination. Further, that Capor is not entitled employment record cannot simply erase the gravity of
to reinstatement, backwages, moral and exemplary damages. the betrayal exhibited by a malfeasant employee.—. Length
On appeal, the NLRC modified the ruling by awarding of service is not a bargaining chip that can simply be stacked
separation pay to Capor as financial assistance. Petitioner against the employer. After all, an employer-employee
appealed before the CA, which affirmed the ruling of NLRC. relationship is symbiotic where both parties benefit from mutual
loyalty and dedicated service. If an employer had treated his
employee well, has accorded him fairness and adequate
Issue: WON NLRC committed GADALEJ in granting the compensation as determined by law, it is only fair to expect a
financial assistance to an employee who was validly dismissed long-time employee to return such fairness with at least some
for theft of company property. respect and honesty. Thus, it may be said that betrayal by a
Ruling: YES. Separation pay is only warranted when the cause long-time employee is more insulting and odious for a fair
for termination is not attributable to the employee’s fault, , such employer.
as those provided in Articles 283 and 284 of the Labor Code, as
well as in cases of illegal dismissal in which reinstatement is no
longer feasible. It is not allowed when an employee is dismissed
for just cause, such as serious misconduct.