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P.I.
MANUFACTURING,
INCORPORATED,
Petitioner,
Present:
- versus -
P.I.
MANUFACTURING
SUPERVISORS
AND
FOREMAN ASSOCIATION and
the NATIONAL LABORUNION,
AZCUNA, and
LEONARDO-DE CASTRO, JJ.
Respondents.
Promulgated:
February 4, 2008
x-----------------------------------------------------------------------------------------x
DECISION
SANDOVAL-GUTIERREZ, J.:
c)
The salary increases from May 12, 1987 to November 30,
1987 shall be excluding and without increment on fringe benefits and/or
premium and shall solely be on basic salary.
B. For SUPERVISORS
a)
Effective May 12, 1987, an increase of P625.00 per
month/employee to all qualified regular supervisors who are in the service
of the COMPANY as of said date and who are still in its employ on the
signing of the Agreement, subject to the conditions set forth in
subparagraph (d) hereunder;
b)
Effective July 26, 1988, an increase of P625.00 per
month/employee to all covered supervisors;
c)
Effective July 26, 1989, an increase of P625.00 per
month/employee to all covered supervisors;
d)
The salary increase from May 12, 1987 to November 30,
1987 shall be excluding and without increment on fringe benefits and/or
premiums and shall solely be on basic salary.
law. Thus, the waiver in the CBA does not bar the union from
claiming adjustments in pay as a result of distortion of wages
brought about by the implementation of R.A. 6640.
Just how much are the supervisors and foremen entitled to
correct such distortion is now the question. Pursuant to the said
law, those who on December 14, 1987 were receiving less
thanP100.00 are all entitled to an automatic across- the-board
increase of P10.00 a day. The percentage in increase given those
who received benefits under R.A. 6640 should be the same
percentage given to the supervisors and foremen.
The statutory minimum pay then was P54.00 a day. With
the addition of P10.00 a day, the said minimum pay raised
to P64.00 a day. The increase of P10.00 a day is P13.5% of the
minimum wage prior to December 14, 1987. The same percentage
of the pay of members of petitioner prior to December 14,
1987 should be given them.
Finally, the claim of respondent that the filing of the present
case, insofar as the provision of R.A. 6640 is concerned, is
premature does not deserve much consideration considering that
as of December 1988, complainant submitted in grievance the
aforementioned issue but the same was not settled. [4]
2)
3)
4)
Petitioner contends that the findings of the NLRC and the Court of
Appeals as to the existence of a wage distortion are not supported by
evidence; that Section 2 of R.A. No. 6640 does not provide for an increase in
the wages of employees receiving more than P100.00; and that the 1987
CBA has obliterated any possible wage distortion because the increase
granted to the members of respondent PIMASUFA in the amount of P625.00
and P475.00 per month substantially widened the gap between the foremen
and supervisors and as against the rank and file employees.
Respondents PIMASUFA and NLU, despite notice, failed to file
their respective comments.
In a Minute Resolution dated April 18, 2005, we denied the petition
for petitioners failure to show that the Court of Appeals committed a
reversible error.
Hence, this motion for reconsideration.
We grant the motion.
In the ultimate, the issue here is whether the implementation of R.A.
No. 6640 resulted in a wage distortion and whether such distortion was
cured or remedied by the 1987 CBA.
R.A. No. 6727, otherwise known as the Wage Rationalization
Act, explicitly defines wage distortion as:
RATE
BEFORE
INCREASE
OF
NAME OF
SUPERVISOR (S)
RA-6640P10.00
RATE AFTER
INCREASEOF
P109.01
P118.80
P128.08
OVER-
OVER-
OVER-
PASSED
PASSED
PASSED
P108.80
P118.08
P123.76
RATE AFTER
RATE AFTER
RATE AFTER
RA-6640P10.00
AND
FOREMAN (F)
1. ALCANTARA,
V(S)
P 99.01
P 109.01
2. MORALES, A(F)
94.93
104.93
3. SALVO, R (F)
96.45
106.45
P10.00
4.BUENCUCHILLO,
C (S)
102.38
102.38
P 112.38
5. MENDOZA, D(F)
107.14
107.14
117.14
6. DEL
M(S)
108.80
108.80
118.80
7. PALENSO, A (F)
109.71
109.71
P 119.71
8. OJERIO, E (S)
111.71
111.71
121.71
9. REYES, J (S)
114.98
114.98
124.98
10. PALOMIQUE,
S(F)
116.79
116.79
126.79
11. PAGLINAWAN,
116.98
116.98
126.98
PRADO,
P10.00
A (S)
117.04
117.04
127.04
13.
P(S)
TUMBOCON,
117.44
117.44
118.08
118.08
119.80
119.80
P 129.80
123.76
123.76
133.76
151.49
151.49
255.72
255.72
127.44
128.08
It has not escaped our attention that requiring petitioner to pay all the
members of respondent PIMASUFA a wage increase of 18.5%, over and
above the negotiated wage increases provided under the 1987
CBA, is highly unfair and oppressive to the former. Obviously, it was not the
intention of R.A. No. 6640 to grant an across-the-board increase in pay to all
the employees of petitioner. Section 2 of R.A. No. 6640 mandates only the
following
increases
in
the
private
sector: (1) P10.00
per
day for the employees in the private sector, whether agricultural or nonagricultural, who are receiving the statutory minimum wage rates; (2) P11.00
per day for non-agricultural workers and employees outside Metro Manila;
and (3) P10.00 per day for those already receiving the minimum wage up
to P100.00. To be sure, only those receiving wages P100.00 and below are
entitled
to
the P10.00
wage
increase. The apparent intention of the law is only
to
that will stabilize business conditions and fix fair standards of working
conditions.[15] Definitely, respondents posture contravenes this goal.
In fine, it must be emphasized that in the resolution of labor cases, this Court
has always been guided by the State policy enshrined in the Constitution that
the rights of workers and the promotion of their welfare shall be
protected. However, consistent with such policy, the Court cannot favor
one party, be it labor or management, in arriving at a just solution to a
controversy if the party concerned has no valid support to its claim, like
respondents here.
WHEREFORE, we GRANT petitioners motion for reconsideration
and REINSTATE the petition we likewise GRANT. The assailed Decision
of the Court of Appeals in CA-G.R. SP No. 54379 is REVERSED.