National Waterworks and Sewerage Authority v NWSA Consolidated Unions, Et Al Date: August 31, 1964 Ponente: Bautista Angelo

Facts: NWSA (P) is a GOCC governed ! "A 13#3$ NWSA Consolidated %nions (") are various la or organi&ations 'o()osed o* la orers and e()lo!ees o* t+e NAWASA$ ,+e intervenors are Centeno, et$ al$ C-" 'ondu'ted a +earing regarding t+e 'ontrovers! et.een NWSA and NWSA Consolidated %nions on t+e *ollo.ing/ o -()le(entation o* t+e 4012our Wee3 4a. ("A 1##0)5 alleged violations o* t+e 'olle'tive argaining agree(ent dated 6e'e( er 7#, 1986 'on'erning 9distress )a!95 (ini(u( .age o* P8$785 )ro(otional a))oint(ents and *illing o* va'an'ies o* ne.l! 'reated )ositions5 additional 'o()ensation *or nig+t .or35 .age in'reases to so(e la orers and e()lo!ees5 and stri3e duration )a!$ o NWSA Consolidated %nions also raised t+e issue o* .+et+er t+e 78: additional 'o()ensation *or Sunda! .or3 s+ould e in'luded in 'o()uting t+e dail! .age and .+et+er, in deter(ining t+e dail! .age o* a (ont+l!1salaried e()lo!ee, t+e salar! s+ould e divided ! 30 da!s$ o -ntervenors; issues/ Additional 'o()ensation *or nig+t .or3 and ne. de(and *or overti(e )a! in *avor o* <esus Centeno, Cesar Ca rera, =eli'iano 6uiguan, Ce'ilio "e(otigue, and ot+er e()lo!ees re'eiving P4,700$00 )er annu( or (ore$ "es)ondent Court ruled as *ollo.s/ 1$ ,+e NAWASA is an agen'! not )er*or(ing govern(ental *un'tions and, t+ere*ore, is lia le to )a! additional 'o()ensation *or .or3 on Sunda!s and legal +olida!s 'on*or(a l! to Co((on.ealt+ A't No$ 444, 3no.n as t+e >ig+t12our 4a or 4a., even i* said da!s s+ould e .it+in t+e staggered *ive .or3 da!s aut+ori&ed ! t+e President$ 7$ ,+e intervenors do not *all .it+in t+e 'ategor! o* 9(anagerial e()lo!ees9 as 'onte()lated in "e)u li' A't 73?? and so are not e@e()t *ro( t+e 'overage o* t+e >ig+t12our 4a or 4a.$ 3$ ,+ose intervenors atta'+ed to t+e General Auditing O**i'e and t+e Bureau o* Pu li' Wor3s 'o(e .it+in t+e )urvie. o* Co((on.ealt+ A't No$ 444$ 4$ ,+e 'o()utation *ollo.ed ! NAWASA in 'o()uting overti(e 'o()ensation is 'ontrar! to Co((on.ealt+ A't 444$ 8$ ,+e underti(e o* a .or3er s+ould not e set1o** against t+e .or3er in deter(ining .+et+er t+e latter +as rendered servi'e in e@'ess o* eig+t +ours *or t+at da!$ 6$ -n 'o()uting t+e dail! .age o* t+ose e()lo!ed on dail! asis, t+e additional 78: 'o()ensation *or Sunda! .or3 s+ould e in'luded$ ?$ ,+e 'o()utation used ! t+e NAWASA *or (ont+l! salaried e()lo!ees to .it, dividing t+e (ont+l! asi' )a! ! 30 is erroneous$ #$ ,+e (ini(u( .age a.arded ! res)ondent 'ourt .a! a'3 on Nove( er 78, 1980 in Case No$ 3891A entitled BW6 Wor3ers %nion v$ Betro)olitan Water 6istri't, a))lies even to t+ose .+o .ere e()lo!ed long a*ter t+e )ro(ulgation o* t+e a.ard and even i* t+eir .or3ers are +ired onl! as te()orar!, e(ergen'! and 'asual .or3ers *or a de*inite )eriod and *or a )arti'ular )roCe't$ 9$ ,+e aut+orit! granted to NAWASA ! t+e President to stagger t+e .or3ing da!s o* its .or3ers s+ould e li(ited e@'lusivel! to t+ose s)e'i*ied in t+e aut+ori&ation and s+ould not e e@tended to ot+ers .+o are not t+erein s)e'i*ied$ 10$ %nder t+e 'olle'tive argaining agree(ent entered into et.een t+e NAWASA and res)ondent unions on 6e'e( er 7#, 1986, as .ell as under "esolution No$ 79, series o* 198? o* t+e Grievan'e Co((ittee, even t+ose .+o .or3 outside t+e se.erage '+a( ers s+ould e )aid 78: additional 'o()ensation as 9distress )a!$9

ssues, !eld " #atio: 1$ -/ WON NAWASA is )er*or(ing govern(ental *un'tions and, t+ere*ore, essentiall! a servi'e agen'! o* t+e govern(ent 2/ No. NAWASA, though a public corporation, does not perform governmental functions. It performs proprietary functions, and hence, it is covered by Commonwealth Act No. 444. ,+e National Water.or3s and Se.erage Aut+orit! .as not 'reated *or )ur)oses o* lo'al govern(ent$ -t .as 'reated *or t+e 9)ur)ose o* 'onsolidating and 'entrali&ing all .ater.or3s, se.erage and drainage s!ste( in t+e P+ili))ines under one 'ontrol and dire'tion and general su)ervision$9 -ts *un'tions are ut (ere (inistrant *un'tions o* govern(ent .+i'+ are ai(ed at advan'ing t+e general interest o* so'iet!$ 7$ -/ WON NAWASA is a )u li' utilit! and, t+ere*ore, e@e()ted *ro( )a!ing additional 'o()ensation *or .or3

3$

4$

8$

on Sunda!s and legal +olida!s 2/ NAWASA is a public utility. Although pursuant to Section 4 of Commonwealth Act 444 it is not obliged to pay an additional sum of !" to its laborers for wor# done on Sundays and legal holidays, $%& I& '(S& )A$ said additional compensation by virtue of the contractual obligation it assumed under the collective bargaining agreement. NAWASA is a )u li' utilit! e'ause its )ri(ar! *un'tion is to 'onstru't, (aintain and o)erate .ater reservoirs and .ater.or3s *or t+e )ur)ose o* su))l!ing .ater to t+e in+a itants, as .ell as 'onsolidate and 'entrali&e all .ater su))lies and drainage s!ste(s in t+e P+ili))ines$ W+ile under Co((on.ealt+ A't No$ 444 a )u li' utilit! is not reDuired to )a! additional 'o()ensation to its e()lo!ees and .or3ers *or .or3 done on Sunda!s and legal +olida!s, t+ere is, +o.ever, no )ro+i ition *or it to )a! su'+ additional 'o()ensation i* it voluntaril! agrees to do so$ NAWASA 'o((itted itsel* to )a! t+is additional 'o()ensation$ -t (ust )a! not e'ause o* 'o()ulsion o* la. ut e'ause o* 'ontra'tual o ligation$ -n t+e 'olle'tive argaining agree(ent entered into et.een t+e NAWASA and res)ondent unions it .as agreed t+at all e@isting ene*its enCo!ed ! t+e e()lo!ees and la orers )rior to its e**e'tivit! s+all re(ain in *or'e and s+all *or( )art o* t+e agree(ent, a(ong .+i'+ 'ertainl! is t+e 78: additional 'o()ensation *or .or3 on Sunda!s and legal +olida!s t+ere*ore enCo!ed ! said la orers and e()lo!ees$ -/ WON t+e intervenors are 9(anagerial e()lo!ees9 .it+in t+e (eaning o* "e)u li' A't 73?? and, t+ere*ore, not entitled to t+e ene*its o* Co((on.ealt+ A't No$ 444, as a(ended 2/ No. &he intervenors are not *managerial employees* as defined in +epublic Act No. ,--, hence they are covered by Commonwealth Act No. 444 .%ight /our 0abor 0aw1, as amended. 6is'ussion on Banagerial >()lo!ees/ o Se'tion 7, "A 73??/ ,+is A't s+all a))l! to all )ersons e()lo!ed in an! industr! or o''u)ation, .+et+er )u li' or )rivate .it+ t+e e@'e)tion o* *ar( la orers, la orers .+o )re*er to e )aid on )ie'e .or3 asis, (anagerial e()lo!ees, outside sales )ersonnel, do(esti' servants, )ersons in t+e )ersonal servi'e o* anot+er and (e( ers o* t+e *a(il! o* t+e e()lo!er .or3ing *or +i($ ,+e ter( 9(anagerial e()lo!ee9 in t+is A't s+all (ean eit+er (a) an! )erson .+ose )ri(ar! dut! 'onsists o* t+e (anage(ent o* t+e esta lis+(ent in .+i'+ +e is e()lo!ed or o* a 'usto(aril! re'ogni&ed de)art(ent or su division t+ereo*, or ( ) all! o**i'er or (e( er o* t+e (anagerial sta**$ 6istinguis+ing C+ara'teristi' o* Banagerial >()lo!ees ("A 73?? >@)lanator! Note)/ 2e is not su Ce't to t+e rigid o servan'e o* regular o**i'e +ours$ ,+e true .ort+ o* +is servi'e does not de)end so (u'+ on t+e ti(e +e s)ends in o**i'e ut (ore on t+e results +e a''o()lis+es$ -n *a't, +e is *ree to go out o* o**i'e an!ti(e$ o "eason e+ind e@e()tion/ ,+e )+iloso)+! e+ind t+e e@e()tion o* (anagerial e()lo!ees *ro( t+e #12our 4a or 4a. is t+at su'+ .or3ers are not usuall! e()lo!ed *or ever! +our o* .or3 ut t+eir 'o()ensation is deter(ined 'onsidering t+eir s)e'ial training, e@)erien'e or 3no.ledge .+i'+ reDuires t+e e@er'ise o* dis'retion and inde)endent Cudg(ent, or )er*or( .or3 related to (anage(ent )oli'ies or general usiness o)erations along s)e'iali&ed or te'+ni'al lines$ =or t+ese .or3ers it is not *easi le to )rovide a *i@ed +ourl! rate o* )a! or (a@i(u( +ours o* la or$ ,+e intervenors are +olding )osition o* res)onsi ilit!$ One o* t+e( is t+e Se'retar! o* t+e Board o* 6ire'tors$ Anot+er is t+e )rivate se'retar! o* t+e general (anager$ Anot+er is a )u li' relations o**i'er, and (an! ot+er '+ie*s o* divisions or se'tions and ot+ers are su)ervisors and overseers$ "es)ondent 'ourt, +o.ever, a*ter e@a(ining 'are*ull! t+eir res)e'tive *un'tions, duties and res)onsi ilities *ound t+at t+eir )ri(ar! duties do not ear an! dire't relation .it+ t+e (anage(ent o* t+e NAWASA, nor do t+e! )arti'i)ate in t+e *or(ulation o* its )oli'ies nor in t+e +iring and *iring o* its e()lo!ees$ ,+e '+ie*s o* divisions and se'tions are given read! )oli'ies to e@e'ute and standard )ra'ti'es to o serve *or t+eir e@e'ution$ 2en'e, it 'on'ludes, t+e! +ave little *reedo( o* a'tion, as t+eir (ain *un'tion is (erel! to 'arr! out t+e 'o()an!Es orders, )lans and )oli'ies$ As a (atter o* *a't, t+e intervenors are reDuired to o serve .or3ing +ours and re'ord t+eir ti(e .or3 and are not *ree to 'o(e and go to t+eir o**i'es, nor (ove a out at t+eir o.n dis'retion$ -/ WON res)ondent Court o* -ndustrial "elations +as Curisdi'tion to adCudi'ate overti(e )a! 'onsidering t+at t+is issue .as not a(ong t+e de(ands o* res)ondent union in t+e )rin'i)al 'ase ut .as (erel! dragged into t+e 'ase ! t+e intervenors /2 $es. &he Court of Industrial +elations has 3urisdiction to ad3udicate overtime pay in the case at bar there being an employer4employee relationship e5isting between intervenors and petitioner. SC +as +eld ti(e and again t+at dis)utes t+at 'all *or t+e a))li'ation o* t+e #12our 4a or 4a. are .it+in t+e Curisdi'tion o* t+e Court o* -ndustrial "elations i* t+e! arise .+ile t+e e()lo!er1e()lo!ee relations+i) still e@ists, it is 'lear t+at t+e (atter su Ce't o* intervention 'o(es .it+in t+e Curisdi'tion o* res)ondent 'ourt$ -n la or dis)utes te'+ni'alities o* )ro'edure s+ould as (u'+ as )ossi le e avoided not onl! in t+e interest o* la or ut to avoid (ulti)li'it! o* a'tion$ -/ WON t+ose atta'+ed to t+e General Auditing O**i'e and t+e Bureau o* Pu li' Wor3s 'o(e .it+in t+e )urvie. o* Co((on.ealt+ A't No$ 444, as a(ended

/2 &he 6A7 employees assigned to wor# in the NAWASA cannot be regarded as employees of the NAWASA on matters relating to compensation. &hey are employees of the national government and are not covered by the %ight4/our 0abor 0aw. &he same may be said of the employees of the 8ureau of )ublic Wor#s assigned to wor# in the NAWASA. Pre'edent/ National 'ar#eting Corporation, et al. v. Court of Industrial +elations .+i'+ ruled t+at (e( ers o* audition *or'e are not e()lo!ees o* no. de*un't P"-SCO ut o* t+e Auditor General, t+e one .+o a))ointed and su)ervised t+e($ 6$ -/ -n deter(ining .+et+er one +as .or3ed in e@'ess o* eig+t +ours, WON t+e underti(e *or t+at da! s+ould e set o** 2/ No. &he method used by the NAWASA in off4setting the overtime with the undertime and at the same time charging said undertime to the accrued leave is unfair. ,+is is un*air *or under su'+ (et+od t+e e()lo!ee is (ade to )a! t.i'e *or +is underti(e e'ause +is leave is redu'ed to t+at e@tent .+ile +e .as (ade to )a! *or it .it+ .or3 e!ond t+e regular .or3ing +ours$ ,+e )ro)er (et+od s+ould e to dedu't t+e underti(e *ro( t+e a''rued leave ut )a! t+e e()lo!ee t+e overti(e to .+i'+ +e is entitled$ ,+is (et+od also o viates t+e irregular s'+edule t+at .ould result i* t+e overti(e s+ould e set o** against t+e underti(e *or t+at .ould )la'e t+e s'+edule *or .or3ing +ours de)endent on t+e e()lo!ee$ ?$ -n 'o()uting t+e dail! .age, WON t+e additional 'o()ensation *or Sunda! .or3 s+ould e in'luded 2/ $es. &he differential pay for Sundays is a part of the legal wage. /ence, it was correctly included in computing the wee#ly wages of those employees and laborers who wor#ed seven days a wee# and were regularly receiving the !" salary differential for a period of three months prior to the implementation of +epublic Act 9::;. &his is so even if petitioner is a public utility in view of the contractual obligation it has assumed on the matter. #$ -/ W+at is t+e 'orre't (et+od to deter(ine t+e eDuivalent dail! .age o* a (ont+l! salaried e()lo!ee, es)e'iall! in a *ir( .+i'+ is a )u li' utilit!F 2/ In the computation of the daily wages of employees paid by the month distinction should be made between government employees li#e the 6A7 employees and those who are not. &he computation for government employees is governed by Section !4 of the +evised Administrative Code .i.e. in ma#ing payments for part of a month, the amount to be paid for each day shall be determined by dividing the monthly pay. Into as many parts as there are days in the particular month1 while for others the correct computation is the monthly salary divided by the actual number of wor#ing hours in the month or the regular monthly compensation divided by the number of wor#ing days in the month. 9$ -/ Considering t+at t+e )a!(ent o* nig+t 'o()ensation is not ! virtue o* an! statutor! )rovision ut e(anates onl! *ro( an a.ard o* res)ondent Court o* -ndustrial "elations, .+et+er t+e sa(e 'an e (ade retroa'tive and 'over a )eriod )rior to t+e )ro(ulgation o* t+e a.ard 2/ $es. &he Court of Industrial +elations did not err in ordering the payment of night compensation from the time such services were rendered. &he laborer must be compensated for nighttime wor# as of the date the same was rendered. -t is o* 'o((on o''urren'e t+at a .or3ing (an .+o +as alread! rendered nig+t ti(e servi'e ta3es +i( a long ti(e e*ore +e 'an (uster enoug+ 'ourage to 'on*ront +is e()lo!er .it+ t+e de(and *or )a!(ent *or it *or *ear o* )ossi le re)risal$ -t +a))ens t+at (an! (ont+s or !ears are allo.ed to )ass ! e*ore +e 'ould e (ade to )resent su'+ 'lai( against +is e()lo!er, and so it is neit+er *air nor Cust t+at +e e de)rived o* .+at is due +i( si()l! e'ause o* +is silen'e *or *ear o* losing t+e (eans o* +is liveli+ood$ 10$ -/ WON (ini(u( .age *i@ed and a.arded ! res)ondent Court o* -ndustrial "elations in anot+er 'ase (BW6 Wor3ers %nion v$ BW6 C-" Case No$ 3891A) a))lies to t+ose e()lo!ed long a*ter t+e )ro(ulgation t+ereo*, .+et+er +ired as te()orar!, e(ergen'! and 'asual .or3ers *or a de*inite )eriod and *or a s)e'i*i' )roCe't 2/ $es. &he rates of minimum pay fi5ed in CI+ Case No. ,!<4= are applicable not only to those who were already in the service as of the date of the decision but also to those who were employed subse>uent to said date. 11$ -/ 2o. s+ould t+e 'olle'tion argaining agree(ent o* 6e'e( er 7#, 1986 and "esolution No$ 79, series o* 198? o* t+e Grievan'e Co((ittee e inter)reted and 'onstrued inso*ar as t+e sti)ulations t+erein 'ontained relative to 9distress )a!9 is 'on'ernedF 2/ All the laborers, whether assigned to the sewerage division or not who are actually wor#ing inside or outside the sewerage chambers are entitled to distress pay. CBA/ GBe'ause o* t+e )e'uliar nature o* t+e *un'tion o* t+ose e()lo!ees and la orers o* t+e Se.erage 6ivision .+o a'tuall! .or3 in t+e se.erage '+a( ers, 'ausing 9unusual distress9 to t+e(, t+e! s+all re'eive e@tra 'o()ensation eDuivalent to t.ent!1*ive (78:) o* t+eir asi' .age$H Nove( er 78, 198? Agree(ent et.een la or and (anage(ent/ 96istress Banage(ent agreed to )a! e**e'tive O'to er 1, 1986 78: additional 'o()ensation *or t+ose .+o a'tuall! .or3 in and outside se.erage '+a( ers in a''ordan'e .it+ "esolution No$ 9 (e@)laining CBA sti)ulation) o* t+e Grievan'e Co((ittee$9

SC *inds t+at t+ose .+o are entitled to t+e distress )a! are t+ose e()lo!ees and la orers .+o .or3 in t+e se.erage '+a( ers .+et+er t+e! elong to t+e se.erage division or not, and ! se.erage '+a( ers s+ould e understood to (ean as the surroundings where the wor# is actually done, not ne'essaril! 9inside t+e se.erage '+a( ers$9 -t is 'lear t+en t+at all t+e la orers .+et+er o* t+e se.erage division or not assigned to .or3 in and outside t+e se.erage '+a( ers and su**er in unusual distress e'ause o* t+e nature o* t+eir .or3 are entitled to t+e e@tra 'o()ensator!$ And t+is 'on'lusion is *urt+er olstered ! t+e *indings o* t+e industrial 'ourt regarding t+e (ain a'tivities o* t+e se.erage division$ o A'tivities o* se.erage division/ (a) 'oo)eration o* t+e se.erage )u()ing stations5 ( ) 'leaning and (aintenan'e o* se.er (ains5 and (') installation and re)airs o* +ouse se.er 'onne'tions$ o ,+e .et )its, tren'+es, (an+oles, .+i'+ are *ull o* se.age (atters, are *ilt+! sour'es o* ger(s and di**erent diseases$ ,+e! e(it *oul and *ilt+! odor dangerous to +ealt+$ ,+ose .or3ing in su'+ )la'es and e@)osed dire'tl! to t+e distress o* 'onta(ination$ 17$ -/ WON, under t+e *irst indorse(ent o* t+e President o* t+e P+ili))ines dated August 17, 198?, .+i'+ aut+ori&es +erein )etitioner to stagger t+e .or3ing da!s o* its e()lo!ees and la orers, t+ose .+ose servi'es are indis)ensa l! 'ontinuous t+roug+out t+e !ear (a! e staggered in t+e sa(e (anner as t+e )u(), valve, *ilter and '+lorine o)erators, guards, .at'+(en, (edi'al servi'es, and t+ose atta'+ed to t+e re'reational *a'ilities$ 2/ &here is no valid reason to disturb the finding of the Court of Industrial +elations that the wor# of the personnel in the construction, sewerage, maintenance, machineries and shops of petitioner is not continuous as to re>uire staggering. -n resolving t+is issue, t+e industrial 'ourt Custi*ied t+e staggering o* t+e .or3 da!s o* t+ose +olding )ositions as )u() o)erators, valve o)erators, *ilter o)erators, '+lorine o)erators, .at'+(en and guards, and t+ose in t+e (edi'al servi'e *or t+e reason t+at t+e sa(e .as (ade )ursuant to t+e aut+orit! granted ! t+e President .+o in t+e valid e@er'ise o* t+e )o.ers 'on*erred u)on +i( ! "e)u li' A't No$ 1##0 'ould )res'ri e t+e .or3ing da!s o* e()lo!ees and la orers in govern(ent1o.ned and 'ontrolled 'or)orations de)ending u)on t+e e@igen'ies o* t+e servi'e$ ,+e 'ourt, +o.ever, stated t+at t+e staggering s+ould not a))l! to t+e )ersonnel in t+e 'onstru'tion, se.erage, (aintenan'e, (a'+ineries and s+o)s e'ause t+e! .or3 elo. 368 da!s a !ear and t+eir servi'es are not 'ontinuous to reDuire staggering$