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SUPREME COURT as verified and confirmed per review of the respondent payrolls
Manila and interviews with the complainant workers and all other
EN BANC information gathered by the team, it is respectfully recommended
G.R. No. 78909 June 30, 1989 to the Honorable Regional Director, this office, that Antera
MATERNITY CHILDREN'S HOSPITAL, represented by ANTERA L. DORADO, Dorado, President be ORDERED to pay the amount of SIX
President, petitioner, HUNDRED FIFTY FOUR THOUSAND SEVEN HUNDRED
vs. FIFTY SIX & 01/100 (P654,756.01), representing underpayment
THE HONORABLE SECRETARY OF LABOR AND THE REGIONAL DlRECTOR of wages and ecola to the THIRTY SIX (36) employees of the
OF LABOR, REGION X,respondents. said hospital as appearing in the attached Annex "F" worksheets
and/or whatever action equitable under the premises. (p.
MEDIALDEA, J.: 99, Rollo)
This is a petition for certiorari seeking the annulment of the Decision of the Based on this inspection report and recommendation, the Regional Director
respondent Secretary of Labor dated September 24, 1986, affirming with issued an Order dated August 4, 1986, directing the payment of P723,888.58,
modification the Order of respondent Regional Director of Labor, Region X, dated representing underpayment of wages and ECOLAs to all the petitioner's
August 4, 1986, awarding salary differentials and emergency cost of living employees, the dispositive portion of which reads:
allowances (ECOLAS) to employees of petitioner, and the Order denying
petitioner's motion for reconsideration dated May 13, 1987, on the ground of grave WHEREFORE, premises considered, respondent Maternity and
abuse of discretion. Children Hospital is hereby ordered to pay the above-listed
complainants the total amount indicated opposite each name,
Petitioner is a semi-government hospital, managed by the Board of Directors of thru this Office within ten (10) days from receipt thereof.
the Cagayan de Oro Women's Club and Puericulture Center, headed by Mrs. Thenceforth, the respondent hospital is also ordered to pay its
Antera Dorado, as holdover President. The hospital derives its finances from the employees/workers the prevailing statutory minimum wage and
club itself as well as from paying patients, averaging 130 per month. It is also allowance.
partly subsidized by the Philippine Charity Sweepstakes Office and the Cagayan
De Oro City government. SO ORDERED. (p. 34, Rollo)
Petitioner has forty-one (41) employees. Aside from salary and living allowances, Petitioner appealed from this Order to the Minister of Labor and Employment,
the employees are given food, but the amount spent therefor is deducted from Hon. Augusto S. Sanchez, who rendered a Decision on September 24, 1986,
their respective salaries (pp. 77-78, Rollo). modifying the said Order in that deficiency wages and ECOLAs should be
computed only from May 23, 1983 to May 23, 1986, the dispositive portion of
On May 23, 1986, ten (10) employees of the petitioner employed in different which reads:
capacities/positions filed a complaint with the Office of the Regional Director of
Labor and Employment, Region X, for underpayment of their salaries and WHEREFORE, the August 29, 1986 order is hereby MODIFIED
ECOLAS, which was docketed as ROX Case No. CW-71-86. in that the deficiency wages and ECOLAs should only be
computed from May 23, 1983 to May 23, 1986. The case is
On June 16, 1986, the Regional Director directed two of his Labor Standard and remanded to the Regional Director, Region X, for recomputation
Welfare Officers to inspect the records of the petitioner to ascertain the truth of the specifying the amounts due each the complainants under each of
allegations in the complaints (p. 98, Rollo). Payrolls covering the periods of May, the applicable Presidential Decrees. (p. 40, Rollo)
1974, January, 1985, November, 1985 and May, 1986, were duly submitted for
inspection. On October 24, 1986, the petitioner filed a motion for reconsideration which was
denied by the Secretary of Labor in his Order dated May 13, 1987, for lack of merit
On July 17, 1986, the Labor Standard and Welfare Officers submitted their report (p. 43 Rollo).
confirming that there was underpayment of wages and ECOLAs of all the
employees by the petitioner, the dispositive portion of which reads: The instant petition questions the all-embracing applicability of the award involving
salary differentials and ECOLAS, in that it covers not only the hospital employees
who signed the complaints, but also those (a) who are not signatories to the must order the necessary rectifications. However, this does not
complaint, and (b) those who were no longer in the service of the hospital at the include adjudication of money claims, clearly within the ambit of
time the complaints were filed. the labor arbiter's authority under Article 217 of the Code.
Petitioner likewise maintains that the Order of the respondent Regional Director of The Ong case relied on the ruling laid down in Zambales Base Metals Inc. vs. The
Labor, as affirmed with modifications by respondent Secretary of Labor, does not Minister of Labor, et al., (G.R. Nos. 73184-88, November 26, 1986, 146 SCRA 50)
clearly and distinctly state the facts and the law on which the award was based. In that the "Regional Director was not empowered to share in the original and
its "Rejoinder to Comment", petitioner further questions the authority of the exclusive jurisdiction conferred on Labor Arbiters by Article 217."
Regional Director to award salary differentials and ECOLAs to private
respondents, (relying on the case of Encarnacion vs. Baltazar, G.R. No. L-16883, We believe, however, that even in the absence of E. O. No. 111, Regional
March 27, 1961, 1 SCRA 860, as authority for raising the additional issue of lack Directors already had enforcement powers over money claims, effective under
of jurisdiction at any stage of the proceedings, p. 52, Rollo), alleging that the P.D. No. 850, issued on December 16, 1975, which transferred labor standards
original and exclusive jurisdiction over money claims is properly lodged in the cases from the arbitration system to the enforcement system.
Labor Arbiter, based on Article 217, paragraph 3 of the Labor Code.
To clarify matters, it is necessary to enumerate a series of rules and provisions of
The primary issue here is whether or not the Regional Director had jurisdiction law on the disposition of labor standards cases.
over the case and if so, the extent of coverage of any award that should be
forthcoming, arising from his visitorial and enforcement powers under Article 128
Prior to the promulgation of PD 850, labor standards cases were an exclusive
of the Labor Code. The matter of whether or not the decision states clearly and
function of labor arbiters, under Article 216 of the then Labor Code (PD No. 442,
distinctly statement of facts as well as the law upon which it is based, becomes
as amended by PD 570-a), which read in part:
relevant after the issue on jurisdiction has been resolved.
. . . the Regional Director, in the exercise of his visitorial and (d) Violations of labor standard laws;
enforcement powers under Article 128 of the Labor Code, has no
authority to award money claims, properly falling within the xxx xxx xxx
jurisdiction of the labor arbiter. . . .
(Emphasis supplied)
. . . If the inspection results in a finding that the employer has
violated certain labor standard laws, then the regional director
The Regional Director exercised visitorial rights only under then Article 127 of the Art. 216. Jurisdiction of Labor Arbiters and the
Code as follows: Commission. — (a) The Labor Arbiters shall
have exclusive jurisdiction to hear and
ART. 127. Visitorial Powers. — The Secretary of Labor or his decide the following cases involving all workers,
duly authorized representatives, including, but not restricted, to whether agricultural or non-agricultural:
the labor inspectorate, shall have access to employers' records
and premises at any time of the day or night whenever work is xxx xxx xxx
being undertaken therein, and the right to copy therefrom, to
question any employee and investigate any fact, condition or (3) All money claims of
matter which may be necessary to determine violations or in aid workers involving non-
in the enforcement of this Title and of any Wage Order or payment or underpayment of
regulation issued pursuant to this Code. wages, overtime or premium
compensation, maternity or
With the promulgation of PD 850, Regional Directors were given enforcement service incentive leave,
powers, in addition to visitorial powers. Article 127, as amended, provided in part: separation pay and other
money claims arising from
SEC. 10. Article 127 of the Code is hereby amended to read as employer-employee relations,
follows: except claims for employee's
compensation, social security
and medicare benefits and as
Art. 127. Visitorial and enforcement powers. — otherwise provided in Article
127 of this Code.
xxx xxx xxx
xxx xxx xxx
(b) The Secretary of Labor or
his duly authorized (Emphasis supplied)
representatives shall have the
power to order and administer,
after due notice and Under the then Labor Code therefore (PD 442 as amended by PD 570-a, as
hearing,compliance with the further amended by PD 850), there were three adjudicatory units: The Regional
labor standards provisions of Director, the Bureau of Labor Relations and the Labor Arbiter. It became
this Code based on the necessary to clarify and consolidate all governing provisions on jurisdiction into
findings of labor regulation one document. 2 On April 23, 1976, MOLE Policy Instructions No. 6 was issued,
officers or industrial safety and provides in part (on labor standards cases) as follows:
engineers made in the course
of inspection, and to issue POLICY INSTRUCTIONS NO. 6
writs of execution to the
appropriate authority for the TO: All Concerned
enforcement of their order.
SUBJECT: DISTRIBUTION OF JURISDICTION OVER LABOR
xxx xxx xxx CASES
Labor Arbiters, on the other hand, lost jurisdiction over labor standards cases. xxx xxx xxx
Article 216, as then amended by PD 850, provided in part:
1. The following cases are under the exclusive
SEC. 22. Article 216 of the Code is hereby amended to read as original jurisdiction of the Regional Director.
follows:
a) Labor standards cases Under PD 850, labor standards cases have been taken from the
arising from violations of labor arbitration system and placed under the enforcement system,
standard lawsdiscovered in the except where a) questions of law are involved as determined by
course of inspection or the Regional Director, b) the amount involved exceeds
complaints where employer- P100,000.00 or over 40% of the equity of the employer,
employee relations still exist; whichever is lower, c) the case requires evidentiary matters not
disclosed or verified in the normal course of inspection, or
xxx xxx xxx d) there is no more employer-employee relationship.
2. The following cases are under the exclusive The purpose is clear: to assure the worker the rights and benefits
original jurisdiction of the Conciliation Section of due to him under labor standards laws without having to go
the Regional Office: through arbitration. The worker need not litigate to get what
legally belongs to him. The whole enforcement machinery of the
Department of Labor exists to insure its expeditious delivery to
a) Labor standards cases
him free of charge. (Emphasis supplied)
where employer-employee
relations no longer exist;
Under the foregoing, a complaining employee who was denied his rights and
benefits due him under labor standards law need not litigate. The Regional
xxx xxx xxx Director, by virtue of his enforcement power, assured "expeditious delivery to him
of his rights and benefits free of charge", provided of course, he was still in the
6. The following cases are certifiable to the employ of the firm.
Labor Arbiters:
After PD 850, Article 216 underwent a series of amendments (aside from being re-
a) Cases not settled by the numbered as Article 217) and with it a corresponding change in the jurisdiction of,
Conciliation Section of the and supervision over, the Labor Arbiters:
Regional Office, namely:
1. PD 1367 (5-1-78) — gave Labor Arbiters
1) labor standard cases where exclusive jurisdiction over unresolved issues in
employer-employee collective bargaining, etc., and those cases
relations no longer exist; arising from employer-employee relationsduly
indorsed by the Regional Directors. (It also
xxx xxx xxx removed his jurisdiction over moral or other
damages) In other words, the Labor Arbiter
entertained cases certified to him. (Article 228,
(Emphasis supplied)
1978 Labor Code.)
MOLE Policy Instructions No. 7 (undated) was likewise subsequently issued,
enunciating the rationale for, and the scope of, the enforcement power of the 2. PD 1391 (5-29-78) — all regional units of the
Regional Director, the first and second paragraphs of which provide as follows: National Labor Relations Commission (NLRC)
were integrated into the Regional Offices
Proper of the Ministry of Labor; effectively
POLICY INSTRUCTIONS NO. 7 transferring direct administrative control and
supervision over the Arbitration Branch to the
TO: All Regional Directors Director of the Regional Office of the Ministry of
Labor. "Conciliable cases" which were thus
SUBJECT: LABOR STANDARDS CASES previously under the jurisdiction of the defunct
Conciliation Section of the Regional Office for
purposes of conciliation or amicable settlement,
became immediately assignable to the
Arbitration Branch for joint conciliation and them through the conciliation section of the
compulsory arbitration. In addition, the Labor Regional Office.
Arbiter had jurisdiction even over termination
and labor-standards cases that may be 2. Labor Standards Cases.
assigned to them for compulsory arbitration by
the Director of the Regional Office. PD 1391
Cases involving violation of labor standards
merged conciliation and compulsory arbitration
laws where employer- employee relationshipstill
functions in the person of the Labor Arbiter. The
exists shall be assigned to the Labor Arbiters
procedure governing the disposition of cases at
where:
the Arbitration Branch paralleled those in the
Special Task Force and Field Services Division,
with one major exception: the Labor Arbiter a) intricate questions of law
exercised full and untrammelled authority in the are involved; or
disposition of the case, particularly in the
substantive aspect, his decisions and orders b) evidentiary matters not
subject to review only on appeal to the NLRC. 3 disclosed or verified in the
normal course of inspection by
3. MOLE Policy Instructions No. 37 — Because labor regulations officers are
of the seemingly overlapping functions as a required for their proper
result of PD 1391, MOLE Policy Instructions No. disposition.
37 was issued on October 7, 1978, and
provided in part: 3. Disposition of Cases.
Note further the second paragraph of Policy Instructions No. 7 indicating that the xxx xxx xxx
transfer of labor standards cases from the arbitration system to the enforcement
system is (b) Plant-level restitutions may be effected for
money claims not exceeding Fifty Thousand
. . to assure the workers the rights and benefits due to him under (P50,000.00). . . .
labor standard laws, without having to go through arbitration. . .
(c) Restitutions in excess of the aforementioned
so that amount shall be effected at the Regional Office
or at the worksite subject to the prior approval
of the Regional Director.
. . the workers would not litigate to get what legally belongs to
him. .. ensuring delivery . . free of charge.
which indicate the intention to empower the Regional Director to award money
claims in excess of P100,000.00;provided of course the employer does not
Social justice legislation, to be truly meaningful and rewarding to our workers, contest the findings made, based on the provisions of Section 8 thereof:
must not be hampered in its application by long-winded arbitration and litigation.
Rights must be asserted and benefits received with the least inconvenience. Labor
Section 8. Compromise agreement. — Should the parties arrive
laws are meant to promote, not defeat, social justice.
at an agreement as to the whole or part of the dispute, said
agreement shall be reduced in writing and signed by the parties
in the presence of the Regional Director or his duly authorized underpayment of wages and ECOLAs, we limit the award to only
representative. those who signed the complaint to the exclusion of the majority
of the workers who are similarly situated. Indeed, this would be
E.O. No. 111 was issued on December 24, 1986 or three (3) months after the not only render the enforcement power of the Minister of Labor
promulgation of the Secretary of Labor's decision upholding private respondents' and Employment nugatory, but would be the pinnacle of injustice
salary differentials and ECOLAs on September 24, 1986. The amendment of the considering that it would not only discriminate but also deprive
visitorial and enforcement powers of the Regional Director (Article 128-b) by said them of legislated benefits.
E.O. 111 reflects the intention enunciated in Policy Instructions Nos. 6 and 37 to
empower the Regional Directors to resolveuncontested money claims in cases . . . (pp. 38-39, Rollo).
where an employer-employee relationship still exists. This intention must be given
weight and entitled to great respect. As held in Progressive Workers' Union, et. al. This view is further bolstered by the provisions of Sec. 6, Rule II of the "Rules on
vs. F.P. Aguas, et. al. G.R. No. 59711-12, May 29, 1985, 150 SCRA 429: the Disposition of Labor Standards cases in the Regional Offices" (supra)
presently enforced, viz:
. . The interpretation by officers of laws which are entrusted to
their administration is entitled to great respect. We see no reason SECTION 6. Coverage of complaint inspection. — A complaint
to detract from this rudimentary rule in administrative law, inspection shall not be limited to the specific allegations or
particularly when later events have proved said interpretation to violations raised by the complainants/workers but shall be a
be in accord with the legislative intent. .. thorough inquiry into and verification of the compliance by
employer with existing labor standards and shall cover all
The proceedings before the Regional Director must, perforce, be upheld on the workers similarly situated. (Emphasis supplied)
basis of Article 128(b) as amended by E.O. No. 111, dated December 24, 1986,
this executive order "to be considered in the nature of a curative statute with However, there is no legal justification for the award in favor of those employees
retrospective application." (Progressive Workers' Union, et al. vs. Hon. F.P. who were no longer connectedwith the hospital at the time the complaint was filed,
Aguas, et al. (Supra); M. Garcia vs. Judge A. Martinez, et al., G.R. No. L- 47629, having resigned therefrom in 1984, viz:
May 28, 1979, 90 SCRA 331).
1. Jean (Joan) Venzon (See Order, p. 33, Rollo)
We now come to the question of whether or not the Regional Director erred in 2. Rosario Paclijan
extending the award to all hospital employees. We answer in the affirmative. 3. Adela Peralta
4. Mauricio Nagales
The Regional Director correctly applied the award with respect to those 5. Consesa Bautista
employees who signed the complaint, as well as those who did not sign the 6. Teresita Agcopra
complaint, but were still connected with the hospital at the time the complaint was 7. Felix Monleon
filed (See Order, p. 33 dated August 4, 1986 of the Regional Director, Pedrito de 8. Teresita Salvador
Susi, p. 33, Rollo). 9. Edgar Cataluna; and
The justification for the award to this group of employees who were not signatories 10. Raymond Manija ( p.7, Rollo)
to the complaint is that the visitorial and enforcement powers given to the
Secretary of Labor is relevant to, and exercisable over establishments, not over The enforcement power of the Regional Director cannot legally be upheld in cases
the individual members/employees, because what is sought to be achieved by its of separated employees. Article 129 of the Labor Code, cited by petitioner (p.
exercise is the observance of, and/or compliance by, such firm/establishment with 54, Rollo) is not applicable as said article is in aid of the enforcement power of the
the labor standards regulations. Necessarily, in case of an award resulting from a Regional Director; hence, not applicable where the employee seeking to be paid
violation of labor legislation by such establishment, the entire members/employees underpayment of wages is already separated from the service. His claim is purely
should benefit therefrom. As aptly stated by then Minister of Labor Augusto S. a money claim that has to be the subject of arbitration proceedings and therefore
Sanchez: within the original and exclusive jurisdiction of the Labor Arbiter.
Finally, the respondent hospital assails the order under appeal Art. 129. Recovery of wages, simple money
as null and void because it does not clearly and distinctly state claims and other benefits. — Upon complaint of
the facts and the law on which the awards were based. Contrary any interested party, the Regional Director of
to the pretensions of the respondent hospital, we have carefully the Department of Labor and Employment or
reviewed the order on appeal and we found that the same any of the duly authorized hearing officers of
contains a brief statement of the (a) facts of the case; (b) issues the Department is empowered, through
involved; (c) applicable laws; (d) conclusions and the reasons summary proceeding and after due notice, to
therefor; (e) specific remedy granted (amount awarded). (p. hear and decide any matter involving the
40, Rollo) recovery of wages and other monetary claims
and benefits, including legal interest, owing to
ACCORDINGLY, this petition should be dismissed, as it is hereby DISMISSED, as an employee or person employed in domestic
regards all persons still employed in the Hospital at the time of the filing of the or household service or househelper under this
complaint, but GRANTED as regards those employees no longer employed at that Code, arising from employer-employee
time. relations: Provided, That such complaint does
not include a claim for reinstatement: Provided,
further, That the aggregate money claims of
SO ORDERED. each employee or househelper do not exceed
five thousand pesos (P5,000.00). The Regional
Fernan, C.J., Narvasa, Gutierrez, Jr., Cruz, Paras, Feliciano, Gancayco, Padilla, Director or hearing officer shall decide or
Bidin, Cortes, Griño-Aquino and Regalado, JJ., concur. resolve the complaint within thirty (30) calendar
days from the date of the filing of the same. ...
Separate Opinions
7 Cited in J. Nolledo, Labor Code of the Philippines, Ann., 1988 Rev. Ed., p. 216.
SEC. 2. Article 129 of the Labor Code of the Philippines, as
amended, is hereby further amended to read as follows:
Maternity Children’s Hospital vs. Secretary of
Art. 129. Recovery of wages, simple money
Labor G . R . N o . 7 8 9 0 9 J u n e 3 0 , 1 9 8 9
claims and other benefits. — Upon complaint of
any interested party, the Regional Director of EN BANC: MEDIALDEA, J.:Facts:
the Department of Labor and Employment or
any of the duly authorized hearing officers of Petitioner is a semi-government hospital, managed by the Board of Directors of the
the Department is empowered, through Cagayan deOro Women's Club and Puericulture Center, headed by Mrs. Antera Dorado,
as holdover President. The hospital derives its finances from the club itself as well
summary proceeding and after due notice, to
as from paying patients,averaging 130 per month. It is also partly subsidized by the
hear and decide any matter involving the
Philippine Charity SweepstakesOffice and the Cagayan De Oro City
recovery of wages and other monetary claims government.Petitioner has forty-one (41) employees. Aside from salary and living
and benefits, including legal interest, owing to allowances, theemployees are given food, but the amount spent therefor is deducted
an employee or person employed in domestic from their respectivesalariesOn May 23, 1986, ten (10) employees of the petitioner
or household service or househelper under this employed in different capacities/positionsfiled a complaint with the Office of the Regional
Code, arising from employer-employee Director of Labor and Employment, Region X,for underpayment of their salaries and
relations: Provided, That such complaint does ECOLAS, which was docketed as ROX Case No. CW-71-86.On June 16, 1986, the
not include a claim for reinstatement: Provided, Regional Director directed two of his Labor Standard and WelfareOfficers to inspect the
further, That the aggregate money claims of records of the petitioner to ascertain the truth of the allegations in thecomplaints. Based
each employee or househelper do not exceed on their inspection report and recommendation, the Regional Director issuedan Order
five thousand pesos (P5,000.00). The Regional dated August 4, 1986, directing the payment of P723,888.58, representingunderpayment
Director or hearing officer shall decide or of wages and ECOLAs to all the petitioner's employees.Petitioner appealed from this
resolve the complaint within thirty (30) calendar Order to the Minister of Labor and Employment, Hon. Augusto S.Sanchez, who rendered
days from the date of the filing of the same. ... a Decision on September 24, 1986, modifying the said Order in thatdeficiency wages and
ECOLAs should be computed only from May 23, 1983 to May 23, 1986,On October 24,
1986, the petitioner filed a motion for reconsideration which was denied by theSecretary
Footnotes
of Labor in his Order dated May 13, 1987, for lack of merit.
1 Cited in J. Nolledo, Labor Code of the Philippines, Ann., 1988 Rev. Ed. p. 217. Issue:
Whether or not the Regional Director had jurisdiction over the case and if so, the extent
2 (See Critical Areas in the Administration of Labor Justice) (Proceedings of the of coverage of any award that should be forthcoming, arising from his visitorial and
16th Annual Institute on Labor Relations Law — 1979, U.P. Law Center, p. 5). enforcementpowers under Article 128 of the Labor Code.
3 Ibid. Held:
This is a labor standards case, and is governed by Art. 128-b of the Labor Code, as
4 as amended by Section 2, PD 1691. amendedby E.O. No. 111. Under the present rules, a Regional Director exercises
both visitorial andenforcement power over labor standards cases, and is therefore
5 EO 111 expressly declared that its provisions would become effective fifteen empowered to adjudicatemoney claims, provided there still exists an employer-employee
(15) days after publication in the Official Gazette. The executive order was relationship, and the findings of the regional office is not contested by the employer
published on February 16, 1987 (83 O.G. No. 7, p. 5770) and therefore became concerned.
effective on March 3, 1987.
El ultimo fundamento que se alega en contra de la validez de la Ley No. 103 se It should be observed at the outset that our Constitutionwas adopted in
hace consistir en que las facultades judiciales que concede al Tribunal de the midst of surging unrest and dissatisfaction resulting from economic
Relaciones Industriales son tan artibrarias e irrazonables que permiten la and social distresswhich was threatening the stability of governments
privacion de la libertad y la propiedad sin el debido proceso de ley; y que se theworld over. Alive to the social and economic forces atwork, the farmers
articulo 20, por lo menos, adolece de este defecto fundamental porque confiere al of our Constitution boldly met the problems and difficulties which faced
Tribunal de Relaciones Industriales la facultad de dictar sus propias reglas de them and endeavored to crystallize, with more or less fidelity, the political,
procedimiento, lo cual contraviene el articulo 13, Titulo VIII, de la Constitucion que social; and economic proposition of their age, and this they did, with the
prescribe que el Tribunal Supremo dictara reglas concernientes a los escritos de consciousness that the political and philosophicalaphorism of their
alegaciones, practica y procedimiento uniformes para todos los tribunales de la generation will, in the language of a great jurist, "be doubted by the next
misma categoria. and perhaps entirely discarded by the third." (Chief Justice Winslow in
Gorgnis v. Falk Co., 147 Wis., 327; 133 N. W., 209.) Embodying the spirit
El articulo 20 de la Ley No. 103 se lee asi: of the present epoch, general provisions were inserted in the Constitution
which are intended to bring about the needed social and economic
ART. 20. Reglamentos del Tribunal. — El Tribunal de Relaciones equilibrium between component elements of society through the
Industriales promulgara sus reglas de procedimiento y tendra las demas application of what may be termed as the justitia communis advocated by
atribuciones que en general corresponden a un tribunal de Grotius and Leibnits many years ago to be secured through the
justicia:Entendiendose, sin embargo, Que en la vista, investigacion y counterbalancing of economic and social forces and opportunities which
resolucion de cualquier cuestion o conflicto, y en el ejercicio de cualquier should be regulated, if not controlled, by the State or placed, as it were,
de sus deberes y faculades en virtud de esta Ley, el Tribunal actuara de in custodia societatis. "The promotion of social justice to insure the well-
acuerdo con la justicia y la equidad y los meritos substanciales de la being and economic security of all the people' was thus inserted as vital
causa, sin consideracion a los tecnicismos o formulismos legales, y no principle in our Constitution. (Sec. 5, Art. II, Constitution.) And in order
estara sujeto a cualquiera reglas, tecnicas de prueba legal, sino que that this declaration of principle may not just be an empty medley of
formara juicio de la manera que crea justo y equitativo. words, the Constitution in various sections thereof has provided the
means towards its realization. For instance, section 6 of Articles XIII
declares that the State "shall afford protection to labor, especially to
Una simple lectura de dicho articulo demuestra que la ley no ha facultado al working women and minors, and shall regulated the relations between
Tribunal de Relaciones Industriales a investigar y resolver las cuestiones y landowner and tenant, and between labor and capital in industry and in
conflictos entre obreros y patronos, e inquilinos y propietarios, de una manera
agriculture." The same section also states that "the State may provide for
arbitraria y caprichosa sin someterse a una norma de conducta determinada. El
compulsory arbitration." In extraordinary cases mentioned in section 16,
articulo dispone claramente que las reglas de procedimiento que adopte, a las Articles VI, of the Constitution, the President of the Philippines may be
cuales debera ajustarse el tribunal, deberan insperarse en la justicia y la equidad, authorized by law, for a limited period and subject to such restrictions as
y prescribe que el criterio que se forma debera fundarse en los meritos
the National Assembly may prescribed, to "promulgate rules and
substanciales de la causa sin consideracion a los tecnicismos o formulismos
regulations to carry out a declared national policy." Albeit, almost at the
legales. La Ley No. 103 que crea un tribunal especial denominado Tribunal de
same time the Congress of the United States approved the National
Relaciones Industriales con facultad para dictar sus propios reglamentos y para Labor Regulations Act (49 Stat., 449) on July 5, 1935, commonly known
resolver y decidir los conflictos agrarios e industriales de acuerdo con los dictados as the Wagner Act, we were in the Philippines headway towards the
de la justicia y equidad, no puede ser impugnada bajo el fundamento de que adoption of our fundamental law, pursuant to congressional authority
auoriza la privacion de la libertad y propiedad sin el debido proceso de ley; ni given in the Tydings-McDuffie Independence Act, approved March 24,
pugna con el precepto del articulo 13, Titulo VIII, de la Constitucion porque el
1934. In our Bill of Rights we now find the following provision "The right to xxx xxx xxx
form associations or societies for purposes not contrary to law shall not
be abridged." (Par. 6, section 1, art. III, Constitution.) What was an From what has been stated, it appears that the legislation which are now
agitation in the United States which brought about the recommendation called upon to construe was enacted in pursuance of what appears to be
by the Commission on Industrial Relations created by an Act of Congress deliberate embodiment of a new social policy, founded on the conception
in 1912 for the adoption of a Labor Bill of Rights as an amendment to the of a society integrated not by independent individuals dealing at arms'
United States Constitution is, in our case, virtually an accepted principle, length, but by interdependent members of a consolidated whole whose
which may be expanded and vitalized by legislation to keep pace with the interests must be protected against mutual aggression and warfare
development of time and circumstances. among and between divers and diverse units which are impelled by
counter vailing and opposite individual and group interests, and this is
By and large, these provisions in our Constitution all evince and express particularly true in the relationship between labor and capital. Social and
the need of shifting emphasis to community interest with a view to industrial disturbances which fifty years ago were feudal-like and of
affirmative enhancement of human values. In conformity with the isolated importance may now well result in a serious strain upon the
constitutional objective and cognizant of the historical fact that industrial entire economic organism of the nation . In the United States labor
and agricultural disputes had given rise to disquietude, bloodshed and legislation has undergone a long process of development too long to
revolution in our country, the National Assembly enacted Commonwealth nature here, culminating in the enactments of what were commonly
Act No. 103, entitled "An Act to afford protection of labor by creating a known as the Clayton Act, the Norris-La Guardia Act, and finally, the
Court of Industrial Relations empowered to fix minimum wages for Wagner Act and the Fair Labor Standards Act of 1938. The Wagner Act
laborers and maximum rental to be paid tenants, and to enforce created the National Labor Relations Board as an instrumentality of the
compulsory arbitration between employers or landlords, and employees Federal Government in the settlement of labor disputes, which device is
or tenants, respectively; and by prescribing penalties for the violation of aimed at the avoidance of unnecessary friction between labor and capital
the orders" and, later, Commonwealth Act. No. 213, entitled, "An Act to and the establishment of industrial peace. Scrutiny of legislation in that
define and regulate legitimate labor organizations." (Asto this last country and of pronouncement made by its Supreme Court reveals a
act, vide "finding and policy," preamble [sec. 1]of the Wagner Act [49 Sta., continuous renovation and change made necessary by the impact of
449]). changing needs and economic pressure brought about by the irresistible
momentum of new social and economic forces developed there. In the
Commonwealth Act No. 103, approved October 29, 1936, was originally light of changes that have occured, it is doubted if the pronouncement
Bill No. 700 of the National Assembly. More light is shed by the made by the said Supreme Court in 1905 (Lochner v. New York, 198,
explanatory statement of the Bill than by what transpired in the course of U.S., 45) or in 1908 (Adair v. U.S., 52 Law. ed. 430, 208 U.S., 161, and
the deliberation of the measure in the legislative chamber. "El presente Coppage v. Kansas, 236 U.S., 1) — cases which are relied upon by the
proyecto de ley," thus the explanatory statement of Bill No. 700, 'crea una petitioner in its printed memorandum — still retain their virtuality at the
Junta de Relaciones Industriales . . . y provee el arbitraje obligatorio. . . present time. In the Philippines, social legislation has had a similar
de acuerdo con el Articulo 6, Titulo XIII de la Constitucion, el provee que development although of course to a much smaller degree and of
"El Estado podrs establacerel arbitraje obligatorio." "Incorporating the different adaptation giving rise to several attempts at meeting and solving
conclusion reached by a committee appointed, a year or so before it was our peculiar social and economic problems. (See Commonwealth to the
observed that 'bajo la legislacion actual' " — evidently referring to Act No. National Assembly, September 2,1936; Executive Order No. 49, S. 1936).
4055 — "no existe instrumento adecuado para evitar las huelgas. El The system of voluntary arbitration devised by Act No. 4055 of the
Departamentode Trabajo desempeña maramente el papel de defunct Philippine Legislature has apparently been abandoned by the
pacificadorentre las partes en controversia y sus decisiones no enactment of the aforementioned Commonwealth Acts Nos. 103 and 213.
sonobligatorias ni para los patronos ni para los obreros. El pueblo la In the midst of changes that have taken place, it may likewise be doubted
allegado a un grado de desarrollo industrial, quehace imperiosa el que la if the pronouncement made by this court in the case of People vs. Pomar
intervencion del gobierno en estosconflictos sea mas efectiva . . . ." The (46 Phil., 440) — also relied upon by the petitioner in its printed
creation of a Court of Industrial Relations was thus proposed, endowed memorandum — still retains its virtually as a living principle. The policy of
"no solamente del poder de arbitrar sino tambien del deberde investigar, laissez faire has to some extent given way the assumption by the
decidir, y hacer recomendaciones sobre las cuestiones en conflicto y los government of the right of intervention even in contractual relations
problem as que afectan al Capitaly al Trabajo en la Industria y la affected with public interests.
Agricultuta bajola direccion del Presidente de la Mancomunidad de
Filipinaso a peticion del Secretario del Trabajo. xxx xxx xxx
In Commonwealth Act No. 103, and it, our Government no longer No. 254, confieren facultad y jurisdiccion al tribunal de Relaciones Inbdustriales
performs the role of a mere mediator or intervenor but that of the supreme para conocer, resolver y decidir todas las cuestiones, controversiasy disputas
arbiter. entre patronos y obreros y propietarios y terratenientes, y los jornales de los
obreros repuestos, duranteel tiempo en que fueron separados del
En su siguiente senalmiento de error la recurrentealega que la conducta del servicio,esteban incluidos en las controverias y disputas sometidasal
investigador, la investigacion quepracticio y la manera como conocio del asunto el Departamento del Trabajo y certificados por este al Tribunal de Relaciones
Tribunalde Relaciobes Industriales le privaron de una vista i,parcialy justa, y Industriales.
constituyen privacion de supropiedad sinel debido proceso de ley. Para demostrar
la carencia de fundamento del senalmiento de error, creemos suficientereproducir Se deniega el recurso de certiorari y se confiman laorden del 6 de mayo de 1939
a continuacion la forma como se practicio la investigacion por el comisionado y la resolucion del 17 deagosto del mismo ano, con las costas a la recurrente.
nombrado por el Tribunal de Relacionbes Industriales y la manera como Asise ordena.
secelebro la vista por dicho tribunal, tal como se expone en laorden del 6 de mayo
de 1939. Avanceña, Diaz, Laurel y Moran, MM., estan conformes.
El ultimo senalmiento de error guarda relacion conla parte de la orden del 6 mayo
de 1939 que disponeque la recurrente pague a los 55 obreros repustos
losjornales que dejaron de percibir durante su separaciondel servicio. La
recurrente sostiene que esta parte dela orden equivale a una sentencia por danos
y perjuiciosque el Tribunal de Relaciones Industriales no puede pronunciar por
carecer de jurisdiccion. La pretension noes meritoria. El Tribunal de Relaciones
Industriales,conforme ya se ha dicho, es un tribunal especial y comotal tiene
facultad para disponer que la recurrente paguelos jornales de sus empleados y
obreros que han sido repuestos.Los articulos 1 y 4 de la Ley No. 103 de
Commonwealth,segun ha sido enmendado el primero por elarticulo 1 de la Ley
FIRST DIVISION enactment of said law, and the state in order to promote the general welfare
may interfere with personal liberty, with property, and with business and
[G.R. No. 47800. December 2, 1940.] occupations. Persons and property may be subjected to all kinds of restraints
and burdens, in order to secure the general comfort, health, and prosperity of
MAXIMO CALALANG, Petitioner, v. A. D. WILLIAMS, ET the state (U.S. v. Gomer Jesus, 31 Phil., 218). To this fundamental aim of our
AL., Respondents. Government the rights of the individual are subordinated. Liberty is a blessing
without which life is a misery, but liberty should not be made to prevail over
Maximo Calalang in his own behalf. authority because then society will fall into anarchy. Neither should authority be
made to prevail over liberty because then the individual will fall into slavery.
Solicitor General Ozaeta and Assistant Solicitor General Amparo for The citizen should achieve the required balance of liberty and authority in his
respondents Williams, Fragante and Bayan mind through education and, personal discipline, so that there may be
established the resultant equilibrium, which means peace and order and
City Fiscal Mabanag for the other respondents. happiness for all. The moment greater authority is conferred upon the
government, logically so much is withdrawn from the residuum of liberty which
SYLLABUS resides in the people. The paradox lies in the fact that the apparent curtailment
of liberty is precisely the very means of insuring its preservation.
1. CONSTITUTIONAL LAW; CONSTITUTIONALITY OF COMMONWEALTH ACT No.
648; DELEGATION OF LEGISLATIVE POWER; AUTHORITY OF DIRECTOR OF 3. ID.; ID.; SOCIAL JUSTICE. — Social justice is "neither communism, nor
PUBLIC WORKS AND SECRETARY OF PUBLIC WORKS AND COMMUNICATIONS despotism, nor atomism, nor anarchy," but the humanization of laws and the
TO PROMULGATE RULES AND REGULATIONS. — The provisions of section 1 of equalization of social and economic forces by the State so that justice in its
Commonwealth Act No. 648 do not confer legislative power upon the Director of rational and objectively secular conception may at least be approximated. Social
Public Works and the Secretary of Public Works and Communications. The justice means the promotion of the welfare of all the people, the adoption by
authority therein conferred upon them and under which they promulgated the the Government of measures calculated to insure economic stability of all the
rules and regulations now complained of is not to determine what public policy competent elements of society, through the maintenance of a proper economic
demands but merely to carry out the legislative policy laid down by the National and social equilibrium in the interrelations of the members of the community,
Assembly in said Act, to wit, "to promote safe transit upon, and avoid constitutionally, through the adoption of measures legally justifiable, or extra-
obstructions on, roads and streets designated as national roads by acts of the constitutionally, through the exercise of powers underlying the existence of all
National Assembly or by executive orders of the President of the Philippines" governments on the time-honored principle of salus populi est suprema lex.
and to close them temporarily to any or all classes of traffic "whenever the Social justice, therefore, must be founded on the recognition of the necessity of
condition of the road or the traffic thereon makes such action necessary or interdependence among divers and diverse units of a society and of the
advisable in the public convenience and interest." The delegated power, if at all, protection that should be equally and evenly extended to all groups as a
therefore, is not the determination of what the law shall be, but merely the combined force in our social and economic life, consistent with the fundamental
ascertainment of the facts and circumstances upon which the application of said and paramount objective of the state of promoting the health, comfort, and
law is to be predicated. To promulgate rules and regulations on the use of quiet of all persons, and of bringing about "the greatest good to the greatest
national roads and to determine when and how long a national road should be number."
closed to traffic, in view of the condition of the road or the traffic thereon and
the requirements of public convenience and interest, is an administrative
function which cannot be directly discharged by the National Assembly. It must DECISION
depend on the discretion of some other government official to whom is confided
the duty of determining whether the proper occasion exists for executing the
law. But it cannot be said that the exercise of such discretion is the making of
LAUREL, J.:
the law.
Commission as aforesaid, with the modification that the closing of Rizal Avenue
to traffic to animal-drawn vehicles be limited to the portion thereof extending The above provisions of law do not confer legislative power upon the Director of
from the railroad crossing at Antipolo Street to Azcarraga Street; that on August Public Works and the Secretary of Public Works and Communications. The
10, 1940, the Secretary of Public Works and Communications, in his second authority therein conferred upon them and under which they promulgated the
indorsement addressed to the Director of Public Works, approved the rules and regulations now complained of is not to determine what public policy
recommendation of the latter that Rosario Street and Rizal Avenue be closed to demands but merely to carry out the legislative policy laid down by the National
traffic of animal-drawn vehicles, between the points and during the hours as Assembly in said Act, to wit, "to promote safe transit upon and avoid
above indicated, for a period of one year from the date of the opening of the obstructions on, roads and streets designated as national roads by acts of the
Colgante Bridge to traffic; that the Mayor of Manila and the Acting Chief of National Assembly or by executive orders of the President of the Philippines"
Police of Manila have enforced and caused to be enforced the rules and and to close them temporarily to any or all classes of traffic "whenever the
regulations thus adopted; that as a consequence of such enforcement, all condition of the road or the traffic makes such action necessary or advisable in
animal-drawn vehicles are not allowed to pass and pick up passengers in the the public convenience and interest." The delegated power, if at all, therefore, is
places above-mentioned to the detriment not only of their owners but of the not the determination of what the law shall be, but merely the ascertainment of
riding public as well. the facts and circumstances upon which the application of said law is to be
predicated. To promulgate rules and regulations on the use of national roads
It is contended by the petitioner that Commonwealth Act No. 548 by which the and to determine when and how long a national road should be closed to traffic,
Director of Public Works, with the approval of the Secretary of Public Works and in view of the condition of the road or the traffic thereon and the requirements
Communications, is authorized to promulgate rules and regulations for the of public convenience and interest, is an administrative function which cannot
regulation and control of the use of and traffic on national roads and streets is be directly discharged by the National Assembly. It must depend on the
unconstitutional because it constitutes an undue delegation of legislative power. discretion of some other government official to whom is confided the duty of
This contention is untenable. As was observed by this court in Rubi v. Provincial determining whether the proper occasion exists for executing the law. But it
Board of Mindoro (39 Phil, 660, 700), "The rule has nowhere been better stated cannot be said that the exercise of such discretion is the making of the law. As
than in the early Ohio case decided by Judge Ranney, and since followed in a was said in Locke’s Appeal (72 Pa. 491): "To assert that a law is less than a law,
multitude of cases, namely: ’The true distinction therefore is between the because it is made to depend on a future event or act, is to rob the Legislature
delegation of power to make the law, which necessarily involves a discretion as of the power to act wisely for the public welfare whenever a law is passed
to what it shall be, and conferring an authority or discretion as to its execution, relating to a state of affairs not yet developed, or to things future and
to be exercised under and in pursuance of the law. The first cannot be done; to impossible to fully know." The proper distinction the court said was this: "The
the latter no valid objection can be made.’ (Cincinnati, W. & Z. R. Co. v. Legislature cannot delegate its power to make the law; but it can make a law to
Comm’rs. Clinton County, 1 Ohio St., 88.) Discretion, as held by Chief Justice delegate a power to determine some fact or state of things upon which the law
Marshall in Wayman v. Southard (10 Wheat., 1) may be committed by the makes, or intends to make, its own action depend. To deny this would be to
Legislature to an executive department or official. The Legislature may make stop the wheels of government. There are many things upon which wise and
decisions of executive departments or subordinate officials thereof, to whom it useful legislation must depend which cannot be known to the law-making
has committed the execution of certain acts, final on questions of fact. (U.S. v. power, and, must, therefore, be a subject of inquiry and determination outside
Kinkead, 248 Fed., 141.) The growing tendency in the decisions is to give of the halls of legislation." (Field v. Clark, 143 U. S. 649, 694; 36 L. Ed. 294.)
prominence to the ’necessity’ of the case." cralaw virtua1aw library
In the case of People v. Rosenthal and Osmeña, G.R. Nos. 46076 and 46077, and be required to yield to the public good." And in People v. Pomar (46 Phil.,
promulgated June 12, 1939, and in Pangasinan Transportation v. The Public 440), it was observed that "advancing civilization is bringing within the police
Service Commission, G.R. No. 47065, promulgated June 26, 1940, this Court power of the state today things which were not thought of as being within such
had occasion to observe that the principle of separation of powers has been power yesterday. The development of civilization, the rapidly increasing
made to adapt itself to the complexities of modern governments, giving rise to population, the growth of public opinion, with an increasing desire on the part of
the adoption, within certain limits, of the principle of "subordinate legislation," the masses and of the government to look after and care for the interests of the
not only in the United States and England but in practically all modern individuals of the state, have brought within the police power many questions
governments. Accordingly, with the growing complexity of modern life, the for regulation which formerly were not so considered." cralaw virtua1aw library
all kinds of restraints and burdens, in order to secure the general comfort,
health, and prosperity of the state (U.S. v. Gomez Jesus, 31 Phil., 218). To this In view of the foregoing, the writ of prohibition prayed for is hereby denied, with
fundamental aim of our Government the rights of the individual are costs against the petitioner. So ordered.
subordinated. Liberty is a blessing without which life is a misery, but liberty
should not be made to prevail over authority because then society will fall into Avanceña, C.J., Imperial, Diaz. and Horrilleno. JJ. concur.
anarchy. Neither should authority be made to prevail over liberty because then
the individual will fall into slavery. The citizen should achieve the required
balance of liberty and authority in his mind through education and personal
discipline, so that there may be established the resultant equilibrium, which
means peace and order and happiness for all. The moment greater authority is
conferred upon the government, logically so much is withdrawn from the
residuum of liberty which resides in the people. The paradox lies in the fact that
the apparent curtailment of liberty is precisely the very means of insuring its
preservation.
The scope of police power keeps expanding as civilization advances. As was said
in the case of Dobbins v. Los Angeles (195 U.S. 223, 238; 49 L. ed. 169), "the
right to exercise the police power is a continuing one, and a business lawful
today may in the future, because of the changed situation, the growth of
population or other causes, become a menace to the public health and welfare,
Republic of the Philippines 3. As there was no action taken on said representation, private
SUPREME COURT respondents filed a formal grievance on November 4, 1984 pursuant
Manila to the grievance machinery Step 1 of the Collective Bargaining
SECOND DIVISION Agreement between petitioner and the union. . . . The topics which
the union wanted to be discussed in the said grievance were the
G.R. No. 77875 February 4, 1993 illegal/questionable salary deductions and inventory of bonded
PHILIPPINE AIRLINES, INC., petitioner, goods and merchandise being done by catering service personnel
vs. which they believed should not be their duty.
ALBERTO SANTOS, JR., HOUDIEL MAGADIA, GILBERT ANTONIO, REGINO
DURAN, PHILIPPINE AIRLINES EMPLOYEES ASSOCIATION, and THE NATIONAL 4. The said grievance was submitted on November 21, 1984 to the
LABOR RELATIONS COMMISSION, respondents. office of Mr. Reynaldo Abad, Manager for Catering, who at the time
Fortunato Gupit, Jr., Solon R. Garcia, Rene B. Gorospe, Bienvinodo T. Jamoralin, jr. was on vacation leave. . . .
and Paulino D. Ungos, Jr. for petitioner.
Adolpho M. Guerzon for private respondents.
5. Subsequently, the grievants (individual respondents) thru the shop
REGALADO, J.: steward wrote a letter on December 5, 1984 addressed to the office
of Mr. Abad, who was still on leave at the time, that inasmuch as no
reply was made to their grievance which "was duly received by your
The instant petition for certiorari seeks to set aside the decision of The National Labor secretary" and considering that petitioner had only five days to
Relations Commission (NLRC) in NLRC Case No. 4-1206-85, promulgated on resolve the grievance as provided for in the CBA, said grievance as
1
December 11, 1986, containing the following disposition: believed by them (private respondents) was deemed resolved in
their favor. . . .
WHEREFORE, in view of the foregoing consideration, the Decision
appealed from is set aside and another one entered, declaring the 6. Upon Mr. Abad's return on December 7, 1984, he immediately
suspension of complainants to be illegal and consequently, informed the grievants and scheduled a meeting on December 12,
respondent PAL is directed to pay complainants their salaries 1984. . . .
corresponding to the respective period(s) of their suspension, and to
2
delete the disciplinary action from complainants' service records.
7. Thereafter, the individual respondents refused to conduct
inventory works. Alberto Santos, Jr. did not conduct ramp inventory
These material facts recited in the basic petition are virtually undisputed and we on December 7, 10 and 12. Gilbert Antonio did not conduct ramp
reproduce the same hereunder: inventory on December 10. In like manner, Regino Duran and
Houdiel Magadia did not conduct the same on December 10 and 12.
1. Individual respondents are all Port Stewards of Catering Sub-
Department, Passenger Services Department of petitioner. Their 8. At the grievance meeting which was attended by some union
duties and responsibilities, among others, are: representatives, Mr. Abad resolved the grievance by denying the
petition of individual respondents and adopted the position that
Prepares meal orders and checklists, setting up inventory of bonded goods is part of their duty as catering service
standard equipment in accordance with the personnel, and as for the salary deductions for losses, he
requirements of the type of service for each flight; rationalized:
skiing, binning, and inventorying of Commissary
supplies and equipment. 1. It was only proper that employees are charged
for the amount due to mishandling of company
2. On various occasions, several deductions were made from their property which resulted to losses. However, loss
salary. The deductions represented losses of inventoried items may be cost price 1/10 selling price.
charged to them for mishandling of company properties . . . which
respondents resented. Such that on August 21, 1984, individual 9. As there was no ramp inventory conducted on the mentioned
respondents, represented by the union, made a formal notice dates, Mr. Abad, on January 3, 1985 wrote by an inter-office
regarding the deductions to petitioner thru Mr. Reynaldo Abad, memorandum addressed to the grievants, individual respondents
Manager for Catering. . . . herein, for them to explain on (sic) why no disciplinary action should
be taken against them for not conducting ramp inventory. . . .
10. The directive was complied with . . . . The reason for not Sec. 2 — Processing of Grievances
conducting ramp inventory was put forth as:
xxx xxx xxx
4. Since the grievance step 1 was not decided and
no action was done by your office within 5 days STEP 1 — Any employee who believes that he has a justifiable
from November 21, 1984, per provision of the grievance shall take the matter up with his shop steward. If the shop
PAL-PALEA CBA, Art. IV, Sec. 2, the grievance is steward feels there is justification for taking the matter up with the
deemed resolved in PALEA's favor. Company, he shall record the grievance on the grievance form
heretofore agreed upon by the parties. Two (2) copies of the
11. Going over the explanation, Mr. Abad found the same grievance form properly filled, accepted, and signed shall then be
unsatisfactory. Thus, a penalty of suspension ranging from 7 days to presented to and discussed by the shop steward with the division
30 days were (sic) imposed depending on the number of infractions head. The division head shall answer the grievance within five (5)
committed. * days from the date of presentation by inserting his decision on the
grievance form, signing and dating same, and returning one copy to
12. After the penalty of suspension was meted down, PALEA filed the shop steward. If the division head fails to act within the five (5)-
another grievance asking for lifting of, or at least, holding in day regl(e)mentary period, the grievance must be resolved in favor
abeyance the execution of said penalty. The said grievance was of the aggrieved party. If the division head's decision is not appealed
forthwith denied but the penalty of suspension with respect to to Step II, the grievance shall be considered settled on the basis of
respondent Ramos was modified, such that his suspension which the decision made, and shall not be eligible for further
5
was originally from January 15, 1985 to April 5, 1985 was shortened appeal. (Emphasis ours.)
by one month and was lifted on March 5, 1985. The union, however,
made a demand for the reimbursement of the salaries of individual Petitioner submits that since the grievance machinery was established for both labor
respondents during the period of their suspension. and management as a vehicle to thresh out whatever problems may arise in the
course of their relationship, every employee is duty bound to present the matter before
13. Petitioner stood pat (o)n the validity of the suspensions. Hence, management and give the latter an opportunity to impose whatever corrective measure
a complaint for illegal suspension was filed before the is possible. Under normal circumstances, an employee should not preempt the
6
Arbitration Branch of the Commission, . . . Labor Arbiter Ceferina J. resolution of his grievance; rather, he has the duty to observe the status quo.
Diosana, on March 17, 1986, ruled in favor of petitioner by
3
dismissing the complaint. . . . Citing Section 1, Article IV of the CBA, petitioner further argues that respondent
employees have the obligation, just as management has, to settle all labor disputes
Private respondents appealed the decision of the labor arbiter to respondent through friendly negotiations. Thus, Section 2 of the CBA should not be narrowly
7
commission which rendered the aforequoted decision setting aside the labor arbiter's interpreted. Before the prescriptive period of five days begins to run, two concurrent
order of dismissal. Petitioner's motion for reconsideration having been denied, it requirements must be met, i.e., presentment of the grievance and
interposed the present petition. its discussion between the shop steward and the division head who in this case is Mr.
Abad. Section 2 is not self-executing; the mere filing of the grievance does not trigger
8
the tolling of the prescriptive period.
The Court is accordingly called upon to resolve the issue of whether or not public
respondent NLRC acted with grave abuse of discretion amounting to lack of jurisdiction
in rendering the aforementioned decision. Petitioner has sorely missed the point.
Evidently basic and firmly settled is the rule that judicial review by this Court in labor It is a fact that the sympathy of the Court is on the side of the laboring classes, not only
cases does not go so far as to evaluate the sufficiency of the evidence upon which the because the Constitution imposes such sympathy, but because of the one-sided
9
labor officer or office based his or its determination, but is limited to issues of relation between labor and capital. The constitutional mandate for the promotion of
4
jurisdiction and grave abuse of discretion. It has not been shown that respondent labor is as explicit as it is demanding. The purpose is to place the workingman on an
NLRC has unlawfully neglected the performance of an act which the law specifically equal plane with management — with all its power and influence — in negotiating for
10
enjoins it to perform as a duty or has otherwise unlawfully excluded petitioner from the the advancement of his interests and the defense of his rights. Under the policy of
exercise of a right to which it is entitled. social justice, the law bends over backward to accommodate the interests of the
working class on the humane justification that those with less privileges in life should
11
have more privileges in law.
The instant case hinges on the interpretation of Section 2, Article IV of the PAL-PALEA
Collective Bargaining Agreement, (hereinafter, CBA), to wit:
It is clear that the grievance was filed with Mr. Abad's secretary during his employer. That could not have been the intendment of the pertinent provision of the
12
absence. Under Section 2 of the CBA aforequoted, the division head shall act on the CBA, much less the benevolent policy underlying our labor laws.
grievance within five (5) days from the date of presentation thereof, otherwise "the
grievance must be resolved in favor of the aggrieved party." It is not disputed that the ACCORDINGLY, on the foregoing premises, the instant petition is hereby DENIED and
grievants knew that division head Reynaldo Abad was then "on leave" when they filed the assailed decision of respondent National Labor Relations Commission is
13
their grievance which was received by Abad's secretary. This knowledge, however, AFFIRMED. This judgment is immediately executory.
should not prevent the application of the CBA.
SO ORDERED.
On this score, respondent NLRC aptly ruled:
Narvasa, C.J., Feliciano, Nocon and Campos, Jr., JJ., concur.
. . . Based on the facts heretofore narrated, division head Reynaldo
Abad had to act on the grievance of complainants within five days
from 21 November 1984. Therefore, when Reynaldo Abad, failed to
act within the reglementary period, complainants, believing in good
faith that the effect of the CBA had already set in, cannot be blamed
if they did not conduct ramp inventory for the days thereafter. In this
regard, respondent PAL argued that Reynaldo Abad was on leave at
the time the grievance was presented. This, however, is of no
moment, for it is hard to believe that everything under Abad's
authority would have to stand still during his absence from office. To
be sure, it is to be expected that someone has to be left to attend to
Abad's duties. Of course, this may be a product of inadvertence on
the part of PAL management, but certainly, complainants should not
14
be made to suffer the consequences.
15
Contrary to petitioner's submission, the grievance of employees is not a matter which
requires the personal act of Mr. Abad and thus could not be delegated. Petitioner could
at least have assigned an officer-in-charge to look into the grievance and possibly
make his recommendation to Mr. Abad. It is of no moment that Mr. Abad immediately
looked into the grievance upon returning to work, for it must be remembered that the
grievants are workingmen who suffered salary deductions and who rely so much on
their meager income for their daily subsistence and survival. Besides, it is noteworthy
that when these employees first presented their complaint on August 21, 1984,
petitioner failed to act on it. It was only after a formal grievance was filed and after Mr.
Abad returned to work on December 7, 1984 that petitioner decided to turn an ear to
their plaints.
As respondent NLRC has pointed out, Abad's failure to act on the matter may have
16
been due to petitioner's inadvertence, but it is clearly too much of an injustice if the
employees be made to bear the dire effects thereof. Much as the latter were willing to
discuss their grievance with their employer, the latter closed the door to this possibility
by not assigning someone else to look into the matter during Abad's absence. Thus,
private respondents should not be faulted for believing that the effects of the CBA in
their favor had already stepped into the controversy.
If the Court were to follow petitioner's line of reasoning, it would be easy for
management to delay the resolution of labor problems, the complaints of the workers
in particular, and hide under the cloak of its officers being "on leave" to avoid being
caught by the 5-day deadline under the CBA. If this should be allowed, the
workingmen will suffer great injustice for they will necessarily be at the mercy of their
Republic of the Philippines It is not capable of an exact definition but has been, purposely, veiled in general terms
SUPREME COURT to underscore its all-comprehensive embrace.
Manila
EN BANC "Its scope, ever-expanding to meet the exigencies of the times, even to anticipate the
G.R. No. 81958 June 30, 1988 future where it could be done, provides enough room for an efficient and flexible
PHILIPPINE ASSOCIATION OF SERVICE EXPORTERS, INC., petitioner, response to conditions and circumstances thus assuring the greatest benefits."
6
vs.
HON. FRANKLIN M. DRILON as Secretary of Labor and Employment, and TOMAS
D. ACHACOSO, as Administrator of the Philippine Overseas Employment It finds no specific Constitutional grant for the plain reason that it does not owe its
Administration, respondents. origin to the Charter. Along with the taxing power and eminent domain, it is inborn in
Gutierrez & Alo Law Offices for petitioner. the very fact of statehood and sovereignty. It is a fundamental attribute of government
that has enabled it to perform the most vital functions of governance. Marshall, to
7
SARMIENTO, J.: whom the expression has been credited, refers to it succinctly as the plenary power
8
of the State "to govern its citizens."
The petitioner, Philippine Association of Service Exporters, Inc. (PASEI, for short), a
firm "engaged principally in the recruitment of Filipino workers, male and female, for "The police power of the State ... is a power coextensive with self- protection, and it is
1
overseas placement," challenges the Constitutional validity of Department Order No. not inaptly termed the "law of overwhelming necessity." It may be said to be that
1, Series of 1988, of the Department of Labor and Employment, in the character of inherent and plenary power in the State which enables it to prohibit all things hurtful to
9
"GUIDELINES GOVERNING THE TEMPORARY SUSPENSION OF DEPLOYMENT the comfort, safety, and welfare of society."
OF FILIPINO DOMESTIC AND HOUSEHOLD WORKERS," in this petition for certiorari
and prohibition. Specifically, the measure is assailed for "discrimination against males It constitutes an implied limitation on the Bill of Rights. According to Fernando, it is
2
or females;" that it "does not apply to all Filipino workers but only to domestic helpers "rooted in the conception that men in organizing the state and imposing upon its
3
and females with similar skills;" and that it is violative of the right to travel. It is held government limitations to safeguard constitutional rights did not intend thereby to
likewise to be an invalid exercise of the lawmaking power, police power being enable an individual citizen or a group of citizens to obstruct unreasonably the
legislative, and not executive, in character. enactment of such salutary measures calculated to ensure communal peace, safety,
10
good order, and welfare." Significantly, the Bill of Rights itself does not purport to be
In its supplement to the petition, PASEI invokes Section 3, of Article XIII, of the an absolute guaranty of individual rights and liberties "Even liberty itself, the greatest of
11
Constitution, providing for worker participation "in policy and decision-making all rights, is not unrestricted license to act according to one's will." It is subject to the
4
processes affecting their rights and benefits as may be provided by law." Department far more overriding demands and requirements of the greater number.
Order No. 1, it is contended, was passed in the absence of prior consultations. It is
claimed, finally, to be in violation of the Charter's non-impairment clause, in addition to Notwithstanding its extensive sweep, police power is not without its own limitations.
the "great and irreparable injury" that PASEI members face should the Order be further For all its awesome consequences, it may not be exercised arbitrarily or unreasonably.
enforced. Otherwise, and in that event, it defeats the purpose for which it is exercised, that is, to
advance the public good. Thus, when the power is used to further private interests at
12
On May 25, 1988, the Solicitor General, on behalf of the respondents Secretary of the expense of the citizenry, there is a clear misuse of the power.
Labor and Administrator of the Philippine Overseas Employment Administration, filed a
Comment informing the Court that on March 8, 1988, the respondent Labor Secretary In the light of the foregoing, the petition must be dismissed.
lifted the deployment ban in the states of Iraq, Jordan, Qatar, Canada, Hongkong,
United States, Italy, Norway, Austria, and Switzerland. * In submitting the validity of the 13
As a general rule, official acts enjoy a presumed vahdity. In the absence of clear and
challenged "guidelines," the Solicitor General invokes the police power of the convincing evidence to the contrary, the presumption logically stands.
Philippine State.
The petitioner has shown no satisfactory reason why the contested measure should be
It is admitted that Department Order No. 1 is in the nature of a police power measure. nullified. There is no question that Department Order No. 1 applies only to "female
The only question is whether or not it is valid under the Constitution. 14
contract workers," but it does not thereby make an undue discrimination between the
15
sexes. It is well-settled that "equality before the law" under the Constitution does not
The concept of police power is well-established in this jurisdiction. It has been defined import a perfect Identity of rights among all men and women. It admits of
as the "state authority to enact legislation that may interfere with personal liberty or classifications, provided that (1) such classifications rest on substantial distinctions; (2)
5
property in order to promote the general welfare." As defined, it consists of (1) an they are germane to the purposes of the law; (3) they are not confined to existing
16
imposition of restraint upon liberty or property, (2) in order to foster the common good. conditions; and (4) they apply equally to all members of the same class.
The Court is satisfied that the classification made-the preference for female workers — measure, it is possessed of a necessary malleability, depending on the circumstances
rests on substantial distinctions. of each case. Accordingly, it provides:
As a matter of judicial notice, the Court is well aware of the unhappy plight that has 9. LIFTING OF SUSPENSION. — The Secretary of Labor and
befallen our female labor force abroad, especially domestic servants, amid exploitative Employment (DOLE) may, upon recommendation of the Philippine
working conditions marked by, in not a few cases, physical and personal abuse. The Overseas Employment Administration (POEA), lift the suspension in
sordid tales of maltreatment suffered by migrant Filipina workers, even rape and countries where there are:
various forms of torture, confirmed by testimonies of returning workers, are compelling
motives for urgent Government action. As precisely the caretaker of Constitutional 1. Bilateral agreements or understanding with the Philippines,
rights, the Court is called upon to protect victims of exploitation. In fulfilling that duty, and/or,
the Court sustains the Government's efforts.
2. Existing mechanisms providing for sufficient safeguards to ensure
The same, however, cannot be said of our male workers. In the first place, there is no the welfare and protection of Filipino workers.
19
evidence that, except perhaps for isolated instances, our men abroad have been
afflicted with an Identical predicament. The petitioner has proffered no argument that
the Government should act similarly with respect to male workers. The Court, of The Court finds, finally, the impugned guidelines to be applicable to all female
20
course, is not impressing some male chauvinistic notion that men are superior to domestic overseas workers. That it does not apply to "all Filipina workers" is not an
women. What the Court is saying is that it was largely a matter of evidence (that argument for unconstitutionality. Had the ban been given universal applicability, then it
women domestic workers are being ill-treated abroad in massive instances) and not would have been unreasonable and arbitrary. For obvious reasons, not all of them are
upon some fanciful or arbitrary yardstick that the Government acted in this case. It is similarly circumstanced. What the Constitution prohibits is the singling out of a select
evidence capable indeed of unquestionable demonstration and evidence this Court person or group of persons within an existing class, to the prejudice of such a person
accepts. The Court cannot, however, say the same thing as far as men are concerned. or group or resulting in an unfair advantage to another person or group of persons. To
There is simply no evidence to justify such an inference. Suffice it to state, then, that apply the ban, say exclusively to workers deployed by A, but not to those recruited by
insofar as classifications are concerned, this Court is content that distinctions are B, would obviously clash with the equal protection clause of the Charter. It would be a
borne by the evidence. Discrimination in this case is justified. classic case of what Chase refers to as a law that "takes property from A and gives it
21
to B." It would be an unlawful invasion of property rights and freedom of contract and
22
needless to state, an invalid act. (Fernando says: "Where the classification is based
As we have furthermore indicated, executive determinations are generally final on the on such distinctions that make a real difference as infancy, sex, and stage of
Court. Under a republican regime, it is the executive branch that enforces policy. For civilization of minority groups, the better rule, it would seem, is to recognize its validity
their part, the courts decide, in the proper cases, whether that policy, or the manner by only if the young, the women, and the cultural minorities are singled out for favorable
which it is implemented, agrees with the Constitution or the laws, but it is not for them treatment. There would be an element of unreasonableness if on the contrary their
to question its wisdom. As a co-equal body, the judiciary has great respect for status that calls for the law ministering to their needs is made the basis of
determinations of the Chief Executive or his subalterns, especially when the legislature discriminatory legislation against them. If such be the case, it would be difficult to
itself has specifically given them enough room on how the law should be effectively 23
refute the assertion of denial of equal protection." In the case at bar, the assailed
enforced. In the case at bar, there is no gainsaying the fact, and the Court will deal Order clearly accords protection to certain women workers, and not the contrary.)
with this at greater length shortly, that Department Order No. 1 implements the rule-
making powers granted by the Labor Code. But what should be noted is the fact that in
spite of such a fiction of finality, the Court is on its own persuaded that prevailing It is incorrect to say that Department Order No. 1 prescribes a total ban on overseas
conditions indeed call for a deployment ban. deployment. From scattered provisions of the Order, it is evident that such a total ban
has hot been contemplated. We quote:
There is likewise no doubt that such a classification is germane to the purpose behind
the measure. Unquestionably, it is the avowed objective of Department Order No. 1 to 5. AUTHORIZED DEPLOYMENT-The deployment of domestic
17
"enhance the protection for Filipino female overseas workers" this Court has no helpers and workers of similar skills defined herein to the following
quarrel that in the midst of the terrible mistreatment Filipina workers have suffered [sic] are authorized under these guidelines and are exempted from
abroad, a ban on deployment will be for their own good and welfare. the suspension.
The Order does not narrowly apply to existing conditions. Rather, it is intended to apply 5.1 Hirings by immediate members of the family of
indefinitely so long as those conditions exist. This is clear from the Order itself Heads of State and Government;
("Pending review of the administrative and legal measures, in the Philippines and in
18
the host countries . . ." ), meaning to say that should the authorities arrive at a means 5.2 Hirings by Minister, Deputy Minister and the
impressed with a greater degree of permanency, the ban shall be lifted. As a stop-gap other senior government officials; and
5.3 Hirings by senior officials of the diplomatic The petitioners's reliance on the Constitutional guaranty of worker participation "in
29
corps and duly accredited international policy and decision-making processes affecting their rights and benefits" is not well-
organizations. taken. The right granted by this provision, again, must submit to the demands and
necessities of the State's power of regulation.
5.4 Hirings by employers in countries with whom
the Philippines have [sic] bilateral labor The Constitution declares that:
agreements or understanding.
Sec. 3. The State shall afford full protection to labor, local and
xxx xxx xxx overseas, organized and unorganized, and promote full employment
30
and equality of employment opportunities for all.
7. VACATIONING DOMESTIC HELPERS AND WORKERS OF
SIMILAR SKILLS--Vacationing domestic helpers and/or workers of "Protection to labor" does not signify the promotion of employment alone. What
similar skills shall be allowed to process with the POEA and leave for concerns the Constitution more paramountly is that such an employment be above all,
worksite only if they are returning to the same employer to finish an decent, just, and humane. It is bad enough that the country has to send its sons and
existing or partially served employment contract. Those workers daughters to strange lands because it cannot satisfy their employment needs at home.
returning to worksite to serve a new employer shall be covered by Under these circumstances, the Government is duty-bound to insure that our toiling
the suspension and the provision of these guidelines. expatriates have adequate protection, personally and economically, while away from
home. In this case, the Government has evidence, an evidence the petitioner cannot
xxx xxx xxx seriously dispute, of the lack or inadequacy of such protection, and as part of its duty, it
has precisely ordered an indefinite ban on deployment.
9. LIFTING OF SUSPENSION-The Secretary of Labor and
Employment (DOLE) may, upon recommendation of the Philippine The Court finds furthermore that the Government has not indiscriminately made use of
Overseas Employment Administration (POEA), lift the suspension in its authority. It is not contested that it has in fact removed the prohibition with respect
countries where there are: to certain countries as manifested by the Solicitor General.
1. Bilateral agreements or understanding with the The non-impairment clause of the Constitution, invoked by the petitioner, must yield to
31
Philippines, and/or, the loftier purposes targetted by the Government. Freedom of contract and
enterprise, like all other freedoms, is not free from restrictions, more so in this
jurisdiction, where laissez faire has never been fully accepted as a controlling
2. Existing mechanisms providing for sufficient economic way of life.
safeguards to ensure the welfare and protection of
24
Filipino workers.
This Court understands the grave implications the questioned Order has on the
business of recruitment. The concern of the Government, however, is not necessarily
xxx xxx xxx to maintain profits of business firms. In the ordinary sequence of events, it is profits
that suffer as a result of Government regulation. The interest of the State is to provide
The consequence the deployment ban has on the right to travel does not impair the a decent living to its citizens. The Government has convinced the Court in this case
right. The right to travel is subject, among other things, to the requirements of "public that this is its intent. We do not find the impugned Order to be tainted with a grave
25
safety," "as may be provided by law." Department Order No. 1 is a valid abuse of discretion to warrant the extraordinary relief prayed for.
implementation of the Labor Code, in particular, its basic policy to "afford protection to
26
labor," pursuant to the respondent Department of Labor's rule-making authority WHEREFORE, the petition is DISMISSED. No costs.
27
vested in it by the Labor Code. The petitioner assumes that it is unreasonable simply
because of its impact on the right to travel, but as we have stated, the right itself is not
absolute. The disputed Order is a valid qualification thereto. SO ORDERED.
Neither is there merit in the contention that Department Order No. 1 constitutes an Yap, C.J., Fernan, Narvasa, Melencio-Herrera, Cruz, Paras, Feliciano, Gancayco,
invalid exercise of legislative power. It is true that police power is the domain of the Padilla, Bidin, Cortes and Griño-Aquino, JJ., concur.
legislature, but it does not mean that such an authority may not be lawfully delegated.
As we have mentioned, the Labor Code itself vests the Department of Labor and Gutierrez, Jr. and Medialdea, JJ., are on leave.
28
Employment with rulemaking powers in the enforcement whereof.
Republic of the Philippines reasons that in those cases it was the persons themselves whose rights and
SUPREME COURT immunities under the constitution were being violated that invoked the protection of the
Manila courts.
EN BANC
G.R. No. L-2216 January 31, 1950 The petitioner is within its legitimate sphere of interest when it complains that the
DEE C. CHUAN & SONS, INC., petitioner, appealed order restrains it in its liberty to engage the men it pleases. This complaint
vs. merits a more detailed examination.
THE COURT OF INDUSTRIAL RELATIONS, CONGRESS OF LABOR
ORGANIZATIONS (CLO), KAISAHAN NG MGA MANGGAGAWA SA KAHOY SA
PILIPINAS and JULIAN LUMANOG AND HIS WORK-CONTRACT That the employer's right to hire labor is not absolute has to be admitted. "This
LABORERS, respondents. privilege of hiring and firing ad libitum is, of course, being subjected to restraints
Quisumbing, Sycip and Quisumbing for petitioner. today." Statutes are cutting in on it. And so does Commonwealth Act No. 103. The
Lazatin and Caballero for respondents. regulations of the hours of labor of employees and of the employment of women and
Arsenio I. Martinez for the Court of Industrial Relations. children are familiar examples of the limitation of the employer's right in this regard.
TUASON, J.: The petitioner's request for permission to employ additional; laborers is an implicit
recognition of the correctness of the proposition. The power of the legislature to make
regulations is subject only to the condition that they should be affected with public
Dee C. Chuan & Sons, Inc. assails the validity of an order of the Court of Industrial interest and reasonable under the circumstances. The power may be exercised directly
Relations. The order made upon petitioner's request for authority to hire" about by the law-making body or delegated by appropriate rules to the courts or
twelve(12) more laborers from time to time and on a temporary basis," contains the administrative agencies.
proviso that "the majority of the laborers to be employed should be native." The petition
was filed pending settlement by the court of a labor dispute between the petitioner and
Kaisahan Ng Mga Manggagawa sa Kahoy sa Pilipinas. We are of the opinion that the order under consideration meets the test of
reasonableness and public interest. The passage of Commonwealth Act No. 103 was
"in conformity with the constitutional objective and . . . the historical fact that industrial
At the outset, the appellant takes exception to the finding of the court below that Dee and agricultural disputes have given rise to disquietude, bloodshed and revolution in
C. Chuan & Sons, Inc. is capitalized with foreign descent. This question has little or no our country." (Antamok Goldfields Mining Co. vs. Court of Industrial Relations, 40 Off.
bearing on the case and may well be passed over except incidentally as a point of 1
Gaz., 8th Supp., 173.) "Commonwealth Act No. 103 has precisely vested the Court of
argument in relation to the material issues. Industrial Relations with authority to intervene in all disputes between employees or
strikes arising from the difference as regards wages, compensation, and other labor
It is next said that "The Court of Industrial Relations cannot intervene in questions of conditions which it may take cognizance of." (Central Azucarera de Tarlac vs. Court of
2
selection of employees and workers so as to impose unconstitutional restrictions," and Industrial Relations, 40 Off. Gaz., 3rd Supp., 319, 324.) Thus it has jurisdiction to
that "The restrictions of the number of aliens that nay be employed in any business, determine the number of men to be laid off during off-seasons. By the same token, the
occupation, trade or profession of any kind, is a denial of the equal protection of the court may specify that a certain proportion of the additional laborers to be employed
laws." Although the brief does not name the persons who are supposed to be denied should be Filipinos, if such condition, in the court's opinion, "is necessary or expedient
the equal protection of the laws, it is clearly to be inferred that aliens in general are in for the purpose of settling disputes or doing justice to the parties."
petitioner's mind. certainly, the order does not, directly or indirectly, immediately or
remotely, discriminate against the petitioner on account of race or citizenship. The The order in question has that specific end in view. In parallel view the court observed:
order could have been issued in a case in which the employer was a Filipino. As a "Undoubtedly, without the admonition of the Court, nothing could prevent petitioner
matter of fact the petitioner insists that 75 % of its shares of stock are held by from hiring purely alien laborers, and there is no gainsaying the fact that further conflict
Philippine citizens, a statement which is here assumed to be correct. or dispute would naturally ensue. To cope with this contingency, and acting within the
powers granted by the organic law, the court, believing in the necessity and
But is petitioner entitled to challenge the constitutionality of a law or an order which expediency of making patent its desire to avoid probable and possible further
does not adversely affect it, in behalf of aliens who are prejudiced thereby? The misunderstanding between the parties, issued the order."
answer is not in doubt. An alien may question the constitutionality of a statute (or court
order) only when and so far as it is being, or is about to be, applied to his We are not prepared to declare that the order is not conducive to the aim pursued. The
disadvantage. (16 C.J.S. 157 et seq.) The prospective employees whom the petitioner question is a practical one depending on facts with which the court is best familiar. The
may contemplate employing have not come forward to seek redress; their identity has fact already noted should not be lost sight of — that there is a pending strike and
not even been revealed. Clearly the petitioner has no case in so far as it strives to besides, that the employment of temporary laborers was opposed by the striking
protect the rights of others, much less others who are unknown and undetermined. employees and was the subject of a protracted hearing.
U.S. vs. Wong Ku Ark, 169 U.S. 649; Truax vs. Reich, 239 U.S. 39 60 Law ed., 131.,
and other American decisions cited do not support the petitioner for the very simple
We can not agree with the petitioner that the order constitutes an unlawful intrusion During the trial of an industrial dispute between the petitioner and the respondent labor
into the sphere of legislation, by attempting to lay down a public policy of the state or to union, the former applied to the Court of Industrial Relations for authority "to hire about
settle a political question. In the first place, we believe, as we have already explained, twelve more laborers from time to time and on a temporary basis, to be chosen by the
that the court's action falls within the legitimate scope of its jurisdiction. In the second petitioner from either Filipinos or Chinese." the court granted the authority applied for
place, the order does not formulate a policy and is not political in character. It is not a but imposed as a condition that the majority of the twelve new laborers to be hired
permanent, all-embracing regulation. It is a compromise and emergency measure "should be native and only a nominal percentage thereof alien." In imposing such
applicable only in this case and calculated to bridge a temporary gap and to adjust condition the court said:
conflicting interests in an existing and menacing controversy. The hiring of Chinese
laborers by the petitioner was rightly considered by the court likely to lead the parties The hiring of laborers who are not native or Filipino should be discouraged, as
away from the reconciliation which it was the function of the court to effectuate. it is being discouraged by this court. In these critical moments of
unemployment, any competition of alien and native labor would be destructive
As far as the petitioner is concerned, the requirement that majority of the laborers to be of our Nation that is in the making. By the act of God, this nation is the
employed should be Filipinos is certain not arbitrary, unreasonable or unjust. The Philippines, her soil is the patrimony of the Filipino people, and in this
petitioner's right to employ labor or to make contract with respect thereto is not Philippine soil the Filipino laborers must have priority and preference. No
unreasonably curtailed and its interest is not jeopardized. We take it that the nationality capitalistic management can violate this written law, unless it wants to court
of the additional laborers to be taken in is immaterial to the petitioner. In its application trouble and conflict. In the hiring, therefore, of laborers, it is the opinion of this
for permission to employ twelve temporary laborers it expressly says that these could court that management, in employing aliens, should be prudent and cautious
be Filipinos or Chinese. On the face of this statement, assuming the same to be and should, as much as possible, employ only a small percentage thereof
sincere, the petitioner objection to the condition imposed by the court would appear to limited to those absolutely necessary and confidential.
be academic and a trifle.
The power of the Court of Industrial Relations to impose such condition as to limit the
We should not close without adverting to the fact that the petitioner does not so much authority of the employer to hire laborers than Filipinos is challenged by the petitioner.
as pretend that the hiring of additional laborers is its prerogative as a matter of right. It "The petitioner is within its legitimate sphere of interest when it complains that the
seems to be conceded that during the pendency of the dispute the petitioner could appealed order restrains it in liberty to engage the men it pleases," says the majority
employ temporary laborers only with the permission of the Court of Industrial opinion, and we add — "regardless of race or nationality." It is true that no alien laborer
Relations. The granting of the application thus lies within the sound judgment of the who may be adversely affected by the order has been made a party herein. Under the
court, and if the court could turn it down entirely, as we think it could, its authority to circumstances of the case he could not be expected to have intervened in the incident
quality the permission should be undeniable, provided only that the qualification is not which gave rise to the order complained of. But his intervention is not necessary in
arbitrary, against law, morals, or established public policy, which it is not; it is an order to determine whether or not the Court of Industrial Relations is empowered by
expedient and emergency step designed to relieve petitioner's own difficulties. Also law to impose the condition above mentioned. If the court has no power to discriminate
important to remember is that it is not compulsory on petitioner's part to take against a certain class of laborers on account of their race or nationality, it has no
advantage of the order. Being a permute petitioner is the sole judge of whether it power to impose the condition in question, and the employer has legitimate right to
should take the order as it is, or leave it if it does not suit its interest to hire new complain against such imposition.
laborers other than Chinese.
The Court of Industrial Relations impliedly admits the nonexistence of any statue
The order appealed from is affirmed with costs to this appeal against the petitioner- providing that Filipino laborers must be preferred over aliens; but it claims or adopts an
appellant. "unwritten law" to that effect and says that "no capitalistic management can violate this
unwritten law, unless it wants to court trouble and conflict." Who made such unwritten
Moran, C.J., Pablo, Padilla, and Torres, JJ., concur. law? Certainly the Congress of the Philippines, the only entity authorized by the
Constitution to make laws, and which does not promulgate unwritten laws, did not do
so. The court, therefore, cannot take cognizance of, and much less apply, such
supposed unwritten law.
It is sheer usurpation of legislative power for the court to enact or make laws. Its power
Separate Opinions is confined to interpreting and applying the laws enacted by the legislature.
OZAETA, J., with whom concur PARAS, MONTEMAYOR, and The case of Truax vs. Reich (600 law. ed., 131), which was decided by the Supreme
REYES, JJ., dissenting: Court of the United States on November 1, 1915, is of pertinent and persuasive
application to the question at issue in that, in our opinion, it emphasizes the utter lack
of power of the court to impose the condition here complained of; for in said case
Supreme Court of the United States ruled that the Legislature of the State of Arizona alienage, the right to obtain support in the ordinary fields of labor, is
could not validly enact a law similar to the supposed unwritten law which the Court of necessarily involved.
Industrial Relations has conceived and has tried to enforce. The law involved in said
case pertinently reads as follows: Our own Constitution contains a provision similar to the Fourteenth Amendment to the
Constitution of the United States. Section 1 of Article III provides:
SEC. 1. Any company, corporation, partnership, association or individual who
is, may hereafter become, an employer of more than five (5) workers at any No person shall be deprived of life, liberty, or property without due process of
one time, in the state of Arizona, regardless of kind or class of work, or sex of law, nor shall any person be denied the equal protection of the laws.
workers, shall employ not less than (80) per cent qualified electors or native-
born citizens of the United States or some subdivision thereof.
It is patent that if the lawmaking body itself cannot validly enact the supposed unwritten
law conceived or adopted by the lower court, much less could the latter do so.
SEC. 2. Any company, corporation, partnership, association or individual,
their agent or agents, found guilty of violating any of the provisions of this act
shall be subject to a fine of not less than one hundred ($100) dollars, and Section 13 of Commonwealth Act No. 103, invoked by the trial court and by majority of
imprisoned for not less than thirty (30) days. this court as authorizing the imposition of the discriminatory condition contained in the
order appealed from, reads as follows:
Mike Raich, a native of Austria and an inhabitant of the State of Arizona, but not a
qualified elector, was employed as a cook by William Truax in his restaurant, where he SEC. 13. Character of the award. — In making an award, order or decision,
had nine employees, of whom seven were neither native-born citizens of the United under the provision of section four of this Act, the Court shall not be restricted
States nor qualified electors. After the passage of said law Raich was informed by his to the specific relief claimed or demands made by the parties to the industrial
employer that because of its requirements and because of the fear of the penalties that or agricultural dispute, but may include in the award, order or decision any
would be incurred in case of its violation, he would be discharged. Thereupon Raich matter or determination which may be deemed necessary or expedient for the
sued Truax and the Attorney General of Arizona to enjoin them from enforcing the law purpose of setting the dispute or of preventing further industrial or agricultural
on the ground that it was unconstitutional because it denied him the equal protection of dispute.
the laws. Both the District Court and the Supreme Court of the United States upheld
his contention. The court said that the complainant was entitled under the Fourteenth As correctly stated by Judge Lanting of the lower court in his dissenting opinion:
Amendment to the equal protection of the laws of Arizona. "These provisions," said the
court, "are universal in their application, to all person within the territorial jurisdiction, The reference in the resolution of the majority to section 13 of Commonwealth
without regard to any differences of race, of color, or of nationality; and the equal laws. Act No. 103, authorizing this Court to include in its awards, orders or
. . . The discrimination defined by the act does not pertain to the regulation or decisions "any matter or determination which may be deemed necessary or
distribution of the public domain, or of the common property or resources of the people expedient for the purpose of setting the dispute or of preventing further . . .
of the state, the enjoyment of which may be limited to its citizens as against both aliens disputes", is farfetched. This provision certainly does not authorize this Court
and the citizens of other states." The court said further: to go beyond its prescribed powers and issue an order which grossly violates
the fundamental law. More specifically, it cannot make any ruling which will
It is sought to justify this act as an exercise of the power of the state to make produce the effect of discriminating against and oppressing a person or class
reasonable classifications in legislating to promote the health, safety, morals, of persons and deny them the equal protection of the laws, aside from
and welfare of those within its jurisdiction. But this admitted authority, with the curtailing their individual freedom and their right to live.
broad range of legislative discretion that it implies, does not go so far as to
make it possible for the state to deny to lawful inhabitants, because of their As matter of fact the respondent labor union "manifested its conformity to the hiring of
race or nationality, the ordinary means of earning a livelihood. It requires no additional laborers, provided that it be consulted by the petitioner and that it be given
argument to show that the right to work for a living in the common the privilege of recommending the twelve new laborers that are to be hired." And
occupations of the community is of the very essence of the personal freedom Judge Roldan in his order overruled that proposition by saying : "The stand taken by
and opportunity that it was the purpose of the Amendment to secure. . . . If the respondent labor union is not correct, because it attempts to encroach upon the
this could be refused solely upon the ground of race or nationality, the prerogative of the company to determine and adopt its own policy in the selection of its
prohibition of the denial to any person of the equal protection of the laws employees and workers, and the Court should only intervene in questions of this
would be a barren form of words. It is no answer to say, as it is argued, that nature when there is discrimination or retaliation on the part of the company, which has
the act proceeds upon the assumption that 'the employment of aliens, unless not been proven or even alleged in the case bar (Manila Trading & Supply
restrained, was a peril to the public welfare. The discrimination against aliens 1
Co. vs. Judge Francisco Zulueta et al., G. R. No. 46853; Manila Chauffeurs
in the wide range of employments to which the acts relates is made an end in 2
League vs. Bachrach Motor Co., G. R. No. 49138; Pampanga Bus Co. vs. Pampanga
itself, and thus the authority to deny to aliens, upon the mere fact of their
3
Bus Co. Employees' Union, G. R. No. 46739; National Labor Union vs. San Miguel
Brewery, CIR case No. 26-V, June 12, 1947)."
Thus the Court of Industrial Relations itself correctly held that the respondent labor
union has no right to encroach upon the prerogative of the company to determine and
adopt its own policy in the selection of its employees and workers, and that the court
itself should not intervene in such selection because there was no proof of
discrimination or retaliation on the part of the company. Yet in the dispositive part of its
order the court not only intervenes in such selection but compels the company to
discriminate against a certain class of laborers. The inconsistency and illegality of the
order appealed from are too patent fro argument.
To hold that the Court of Industrial Relations may, under section 13, impose any
condition in its order or award in order to prevent further industrial disputes, regardless
of whether or not such condition is in violation of law or of the Constitution, is, in our
opinion, thinkable. It goes without saying that industrial dispute must be settled in
accordance with law and justice. Suppose that the members of a labor union should
demand of an employer that 80 per cent of the new laborers the latter may hire should
be Filipinos, or that all of them should be Tagalogs or Ilocanos, and should threaten to
declare a strike unless such demand be complied with; would the court be justified in
granting such demand under section 13 on the ground that by doing so it would
prevent a or strike or lockout and settle an industrial dispute? The negative answer can
hardly be disputed, since unreasonableness or illegal demands should not be
countenanced by the court. Yet the affirmance by this Court of the order appealed from
in effect authorizes the Court of Industrial Relations hereafter to commit such
arbitrariness.
For the foregoing reasons, we vote to modify the appealed order by eliminating
therefrom the discriminatory condition in question.