LABOR STANDARDS CASE DIGEST

PASEI VS. DRILON [163 SCRA 386; L-81958; 30 JUN 1988] Monday, February 02, 2009 Posted by Coffeeholic Writes Labels: Case Digests, Political Law

Facts: Petitioner, Phil association of Service Exporters, Inc., is engaged principally in the recruitment of Filipino workers, male and female of overseas employment. It challenges the constitutional validity of Dept. Order No. 1 (1998) of DOLE entitled “Guidelines Governing the Temporary Suspension of Deployment of Filipino Domestic and Household Workers.” It claims that such order is a discrimination against males and females. The Order does not apply to all Filipino workers but only to domestic helpers and females with similar skills, and that it is in violation of the right to travel, it also being an invalid exercise of the lawmaking power. Further, PASEI invokes Sec 3 of Art 13 of the Constitution, providing for worker participation in policy and decision-making processes affecting their rights and benefits as may be provided by law. Thereafter the Solicitor General on behalf of DOLE submitting to the validity of the challenged guidelines involving the police power of the State and informed the court that the respondent have lifted the deployment ban in some states where there exists bilateral agreement with the Philippines and existing mechanism providing for sufficient safeguards to ensure the welfare and protection of the Filipino workers.

Issue: Whether or not there has been a valid classification in the challenged Department Order No. 1.

Held: SC in dismissing the petition ruled that there has been valid classification, the Filipino female domestics working abroad were in aclass by themselves, because of the special risk to which their classwas exposed. There is no question that Order No.1 applies only to female contract workers but it does not thereby make an undue discrimination between sexes. It is well settled hat equality before the law under the constitution does not import a perfect identity of rights among all men and women. It admits of classification, provided that:

1. Such classification rests on substantial distinctions 2. That they are germane to the purpose of the law 3. They are not confined to existing conditions 4. They apply equally to al members of the same class

In the case at bar, the classifications made, rest on substantial distinctions.

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Dept. Order No. 1 does not impair the right to travel. The consequence of the deployment ban has on the right to travel does not impair the right, as the right to travel is subjects among other things, to the requirements of “public safety” as may be provided by law. Deployment ban of female domestic helper is a valid exercise of police power. Police power as been defined as the state authority to enact legislation that may interfere with personal liberty or property in order to promote general welfare. Neither is there merit in the contention that Department Order No. 1 constitutes an invalid exercise of legislative power as the labor code vest the DOLE with rule making powers.

Article III Section 4. No law shall be passed abridging the freedom of speech, of expression, or of the press, or the right of the people peaceably to assemble and petition the government for redress of grievances

Liwaywayvs Permanent Concrete FACTS: Permanent concrete worker’s union and its members picketed the gate leading to Liwayway's bodega. This gate is about 200 meters from the gate leading to the premises of the employer of the appellants. Liwayway is not in any way related to the striking union except for the fact that it is the sublessee of a bodega in the company's compound. The picketers belonging to the union had stopped and prohibited the truck of the Liwayway from entering the compound to load newsprint from its bodega, the union members intimidating and threatening with bodily harm the employees of the Liwayway who were in the truck. The union members also stopped and prohibited the general manager, personnel manager including the man in-charge of the bodega and other employees of the Liwayway Publications, Inc. from getting newsprint in said bodega. The business of Liwayway is exclusively the publication of the magazines BannawagBisaya, Hiligaynon and Liwayway weekly magazines which has absolutely no relation or connection whatsoever with the cause of the strike of the union against their company, much less with the terms, conditions or demands of the strikers. As a consequence thereof, plaintiff rented another bodega during the time members of the defendant union prevented its employees from entering its bodega in the compound of Permanent Concrete Products, Inc. and thus incurred expenses both in terms of bodega rentals and in transporting newsprint from the pier to the temporary bodega.

Liwayway filed a writ of preliminary injunction which the trial court granted. Defendant union moved to dismiss the complaint on the following ground: 1.

That this case arose out of a labor dispute involving unfair labor practices and, therefore, the Court of First Instance where this action was brought has no jurisdiction to issue an injunction since this case fans within the exclusive jurisdiction of the Court of Industrial Relations

Issue: WON the Liwayway is a third party or an "innocent bystander" whose right has been invaded and, therefore, entitled to protection by the regular courts. Held: The right to picket as a means of communicating the facts of a labor dispute is a phrase of the freedom of speech guaranteed by the constitution. If peacefully carried out, it cannot be curtailed even in the absence of employer-employee relationship.

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The right is, however, not an absolute one. While peaceful picketing is entitled to protection as an exercise of free speech, we believe that courts are not without power to confine or localize the sphere of communication or the demonstration to the parties to the labor dispute, including those with related interest, and to insulate establishments or persons with no industrial connection or having interest totally foreign to the context of the dispute. Thus, the right may be regulated at the instance of third parties or "innocent bystanders" if it appears that the inevitable result of its exercise is to create an impression that a labor dispute with which they have no connection or interest exists between them and the picketing union or constitute an invasion of their rights. This Court ruled that Liwayway was an “innocent bystander” and thus entitled to enjoin the union’s strike because Liwayway’s only connection with the employer company was the fact that both were situated in the same premises. Innocent bystanders' - are entitled to seek protection of their rights from the courts and the courts may, accordingly, legally extend the same.

Section 8. The right of the people, including those employed in the public and private sectors, to form unions, associations, or societies for purposes not contrary to law shall not be abridged. VictorianovsElizalde Benjamin Victoriano is a member of the “IglesianiKristo” and an employee of theElizalde Rope Factory, Inc. and therefore is a member of the ElizaldeRope Factory Union in pursuant to the compromise agreement between the union and the company that all employees must be members of union too. Under Section 4(a), paragraph 4, of Republic Act No. 875, prior to its amendment by Republic Act No. 3350, the employer was not precluded "from making an agreement with a labor organization to require as a condition of employment membership therein, if such labor organization is the representative of the employees." On June 18, 1961, however, Republic Act No. 3350 was enacted, introducing an amendment to — paragraph (4) subsection (a) of section 4 of Republic Act No. 875, as follows: ... "but such agreement shall not cover members of any religious sects which prohibit affiliation of their members in any such labor organization". Being a member of a religious sect that prohibits membership to any labor association, Victoriano twice presented a resignation to the union. The union advised the company to separate Victoriano from the company. This prompted Victoriano to file an action for injunction. Trial Court ruled in favour of Victoriano. The union appealed in the Supreme Court and contested the constitutionality of RA 875 Issue: WON RA 875 is constitutional. Held: The following are the contentions of the Union followed by the answer from the Supreme Court. 1.

that "the very phraseology of said Republic Act 3350, that membership in a labor organization is banned to all those belonging to such religious sect prohibiting affiliation with any labor organization" 4 , "prohibits all the members of a given religious sect from joining any labor union if such sect prohibits affiliations of their members thereto" 5 ; and, consequently, deprives said members of their constitutional

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right to form or join lawful associations or organizations guaranteed by the Bill of Rights, and thus becomes obnoxious to Article III, Section 1 (6) of the 1935 Constitution. appears nowhere in the wording of Republic Act No. 3350; neither can the same be deduced by necessary implication therefrom. RA 3350 recognizes the “right” of a person, and that entails the right to join an organization as well as the right to NOT join an organization. Secondly, the Union contended that Republic Act No. 3350 is unconstitutional for impairing the obligation of contracts in that, while the Union is obliged to comply with its collective bargaining agreement containing a "closed shop provision," the Act relieves the employer from its reciprocal obligation of cooperating in the maintenance of union membership as a condition of employment; and that said Act, furthermore, impairs the Union's rights as it deprives the union of dues from members who, under the Act, are relieved from the obligation to continue as such members.  The Act, therefore, introduced a change into the express terms of the union security clause; the Company was partly absolved by law from the contractual obligation it had with the Union of employing only Union members in permanent positions, It cannot be denied, therefore, that there was indeed an impairment of said union security clause.  It should not be overlooked, however, that the prohibition to impair the obligation of contracts is not absolute and unqualified. In spite of the constitutional prohibition, the State continues to possess authority to safeguard the vital interests of its people. Legislation appropriate to safeguarding said interests may modify or abrogate contracts already in effect. Thirdly, the Union contended that Republic Act No. 3350 discriminatorily favors those religious sects which ban their members from joining labor unions, in violation of Article Ill, Section 1 (7) of the 1935 Constitution;  The constitutional provision into only prohibits legislation for the support of any religious tenets or the modes of worship of any sect, thus forestalling compulsion by law of the acceptance of any creed or the practice of any form of worship. Fourthly, Republic Act No. 3350, asserted the Union, violates the constitutional provision that "no religious test shall be required for the exercise of a civil right,"  The Act does not require as a qualification, or condition, for joining any lawful association membership in any particular religion or in any religious sect; neither does the Act require affiliation with a religious sect that prohibits its members from joining a labor union as a condition or qualification for withdrawing from a labor union. Fifthly, the Union contended that Republic Act No. 3350, violates the "equal protection of laws"as by exempting from the operation of closed shop agreement the members of the "Iglesiani Cristo", it has granted said members undue advantages over their fellow workers  The equal protection of the laws clause of the Constitution allows classification. Classification in law, as in the other departments of knowledge or practice, is the grouping of things in speculation or practice because they agree with one another in certain particulars. A law is not invalid because of simple inequality. 52 The very idea of classification is that of inequality, so that it goes without saying that the mere fact of inequality in no manner determines the matter of constitutionality. 53 All that is required of a valid classification is that it be reasonable, which means that the classification should be based on substantial distinctions which make for real differences; that it must be germane to the purpose of the law; that it must not be limited to existing conditions only; and that it must apply equally to each member of the class. Sixthly, the Union contended that Republic Act No. 3350 violates the constitutional provision regarding the promotion of social justice.

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 Social justice is intended to promote the welfare of all the people. 63 Republic Act No. 3350 promotes that welfare insofar as it looks after the welfare of those who, because of their religious belief, cannot join labor unions; the Act prevents their being deprived of work and of the means of livelihood. In determining whether any particular measure is for public advantage, it is not necessary that the entire state be directly benefited — it is sufficient that a portion of the state be benefited thereby. WHEREFORE, the instant appeal is dismissed, and the decision, dated August 26, 1965, of the Court of First Instance of Manila, in its Civil Case No. 58894, appealed from is affirmed, with costs against appellant Union. It is so ordered.

Section 10. No law impairing the obligation of contracts shall be passed. Section 11. Free access to the courts and quasi-judicial bodies and adequate legal assistance shall not be denied to any person by reason of poverty. Section 16. All persons shall have the right to a speedy disposition of their cases before all judicial, quasi-judicial, or administrative bodies. Section 18. No person shall be detained solely by reason of his political beliefs and aspirations. No involuntary servitude in any form shall exist except as a punishment for a crime whereof the party shall have been duly convicted

KaisahanngManggagawa v. Gotamco Saw Mill (GR No. L-1573, 29 March 1948) Facts: The KaisahanngManggagawangKahoysaPilipinas declared a strike against Gotamco Saw Mill because thelatter did not accede to the former¶s request of a salary increase. While the case was being heard by the Court of Industrial Relations, the parties reached a temporary wage arrangement and the workers were ordered to go back to work while the saw mill was ordered to increase the salaries of the workers by P2.00, let them take home small piecesof lumber to be utilized as firewood, and was enjoined from laying-off, suspending, or dismissing any labourer affiliated with the petitioning union. Conversely, the workers were enjoined from staging walk-outs or strikes duringthe pendency of the hearing.Gotamco Saw Mill subsequently filed an urgent motion asking that the petitioning union be held in contemptof court for having staged a strike during the pendency of the main case, for picketing on the premises of the saw mill,and for grave threats which prevented the remaining laborers from working. The union alleged that one of itsrepresentatives conferred with the management of the saw mill, but instead of entertaining their grievances, the saw mill ordered the stoppage of the work and employed four new Chinese laborers without express authority of the courtand in violation of Section 19 of Commonwealth Act No. 103. The CIR ruled that there was a violation of the previousorder of the CIR by the union, which warranted the commencement of contempt proceedings and that the saw milldid not violate Section 19 of CA 103.

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Issue: W/N Section 19 of CA 103 is unconstitutional for being in violation of the organic proscription of involuntary servitude. Ruling: NO. Section 19 of CA 103 does not offend against the constitutional inhibition proscribing involuntary servitude. The provisions of CA 103 were inspired by the constitutional injunction making it the concern of the Stateto promote social justice to insure the well-being and economic security of all the people. In order to attain this object,Section 19 was promulgated which grants to labor what it grants to capital and denies to labor what it denies tocapital. Among other things, Section 19 lays down the ³implied condition that when any dispute between theemployer or landlord and the employee, tenant or laborer has been submitted to the CIR for settlement or arbitration,pursuant to the provisions of the Act, and pending award or decision by it, the employee, tenant or laborer shall notstrike or walk out of his employment when so joined by the court after hearing and when public interest so requires,and if he has already done so, that he shall forthwith return to it, upon order of the court, which shall be issued only after hearing when public interest so requires or when the dispute cannot, in its opinion, be promptly decided orsettled.´ Thus, the voluntariness of the employee¶s entering into such a contract of employment²he has a free choice between entering into it or not²with such an implied condition, negatives the possibility of involuntary servitudeensuing. Issue: W/N the previous order of the CIR, which ordered the union laborers to go back to work, is unconstitutionalfor being in violation of the organic proscription of involuntary servitude. Ruling: NO. The order of the court was for the striking workers to return to their work. That order was made afterhearing, and Section 19 of CA 103 authorizes such order when the dispute cannot in its opinion be promptly decidedor settled. The very impossibility of prompt decision or settlement of the dispute confers upon the CIR the power toissue the order for the reason that the public has an interest in preventing undue stoppage or paralyzation of the wheels of industry. Several laws promulgated which apparently infringe the human rights of individuals were ³subjected toregulation by the State basically in the exercise of its paramount police power. From Justice Perfecto¶s concurring and dissenting opinion: If the laborers should feel that they arecompelled against their will to perform something which is repugnant to their conscience or dignity, they need not resort to any court action to seek judicial settlement of the controversy, as they can resign fromtheir work and there is no power that can compel them to continue therein. Right to Self-Organization LABOR

Section 3. The State shall afford full protection to labor, local and overseas, organized and unorganized, and promote full employment and equality of employment opportunities for all. It shall guarantee the rights of all workers to self-organization, collective bargaining and negotiations, and peaceful concerted activities, including the right to strike in accordance with law. They shall be entitled to security of tenure, humane conditions of work, and a living wage. They shall also participate in policy and decision-making processes affecting their rights and benefits as may be provided by law.

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The State shall promote the principle of shared responsibility between workers and employers and the preferential use of voluntary modes in settling disputes, including conciliation, and shall enforce their mutual compliance therewith to foster industrial peace. The State shall regulate the relations between workers and employers, recognizing the right of labor to its just share in the fruits of production and the right of enterprises to reasonable returns to investments, and to expansion and growth. SSSEA vs CA Facts: The petitioners went on strike after the SSS failed to act upon the union’s demands concerning the implementation of their CBA. SSS filed before the court action for damages with prayer for writ of preliminary injunction against petitioners for staging an illegal strike. The court issued a temporary restraining order pending the resolution of the application for preliminary injunction while petitioners filed a motion to dismiss alleging the court’s lack of jurisdiction over the subject matter. Petitioners contend that the court made reversible error in taking cognizance on the subject matter since the jurisdiction lies on the DOLE or the National Labor Relations Commission as the case involves a labor dispute. The SSS contends on one hand that the petitioners are covered by the Civil Service laws, rules and regulation thus have no right to strike. They are not covered by the NLRC or DOLE therefore the court may enjoin the petitioners from striking. Issue: Whether or not SSS employers have the right to strike Whether or not the CA erred in taking jurisdiction over the subject matter. Held: The Constitutional provisions enshrined on Human Rights and Social Justice provides guarantee among workers with the right to organize and conduct peaceful concerted activities such as strikes. On one hand, Section 14 of E.O No. 180 provides that “the Civil Service law and rules governing concerted activities and strikes in the government service shall be observed, subject to any legislation that may be enacted by Congress” referring to Memorandum Circular No. 6, s. 1987 of the Civil Service Commission which states that “prior to the enactment by Congress of applicable laws concerning strike by government employees enjoins under pain of administrative sanctions, all government officers and employees from staging strikes, demonstrations, mass leaves, walk-outs and other forms of mass action which will result in temporary stoppage or disruption of public service.” Therefore in the absence of any legislation allowing govt. employees to strike they are prohibited from doing so. In Sec. 1 of E.O. No. 180 the employees in the civil service are denominated as “government employees” and that the SSS is one such government-controlled corporation with an original charter, having been created under R.A. No. 1161, its employees are part of the civil service and are covered by the Civil Service Commission’s memorandum prohibiting strikes. Neither the DOLE nor the NLRC has jurisdiction over the subject matter but instead it is the Public Sector LaborManagement Council which is not granted by law authority to issue writ of injunction in labor disputes within its jurisdiction thus the resort of SSS before the general court for the issuance of a writ of injunction to enjoin the strike is appropriate. Art. 279. Security of tenure. In cases of regular employment, the employer shall not terminate the services of an employee except for a just cause or when authorized by this Title. An employee who is unjustly dismissed from work shall be entitled to reinstatement without loss of seniority rights and other privileges and to his full

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backwages, inclusive of allowances, and to his other benefits or their monetary equivalent computed from the time his compensation was withheld from him up to the time of his actual reinstatement. (As amended by Section 34, Republic Act No. 6715, March 21, 1989) Minimum Wage Minimum wages are set both nationally and statewide. The minimum wage gives employers a guideline as to the legal minimum amount paid to employees. In 1968 the minimum wage served to keep 86% of workers and their families above the poverty line for a family of four. Today that percentage has dropped to 64%, in effect leaving 36% of wage earners living at or below the poverty line. The current minimum wage amounts are roughly half of what the projected living wage is in any given area. Living wage is defined as the estimated amount of income necessary to live comfortably and put a family into the bracket of middle class.

Living Wage According to the living wage calculator from the Poverty in America website, the typical two parent, two child family forced to live on a minimum wage income puts them closer to the poverty line than middle class. Living wage for this family in an urban area such as Los Angeles is $34.07. The minimum wage is $8.00 and the poverty wage is $9.83. In a more rural area of California the numbers change to $25.01 for a living wage, $8.00 for the minimum wage and $9.83 for the poverty wage. It certainly proves that a single income family is a thing of the past. According to theUniversal Living Wage Website, 10.1 million people are working at minimum wage jobs and they are staying at these jobs for up to ten years and attempting to raise their families on these wages. Art. 255. Exclusive bargaining representation and workers’ participation in policy and decision-making. The labor organization designated or selected by the majority of the employees in an appropriate collective bargaining unit shall be the exclusive representative of the employees in such unit for the purpose of collective bargaining. However, an individual employee or group of employees shall have the right at any time to present grievances to their employer.

Any provision of law to the contrary notwithstanding, workers shall have the right, subject to such rules and regulations as the Secretary of Labor and Employment may promulgate, to participate in policy and decisionmaking processes of the establishment where they are employed insofar as said processes will directly affect their rights, benefits and welfare. For this purpose, workers and employers may form labor-management councils: Provided, That the representatives of the workers in such labor-management councils shall be elected by at least the majority of all employees in said establishment. (As amended by Section 22, Republic Act No. 6715, March 21, 1989)

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