G .R .N o .5 8 7 6 8 -7 0D e c e m b e r2 9 ,1 9 8 9 e titio n e rs , L IB E R T Y F L O U R M IL L S E M P L O Y E E S , A N T O N IO E V A R IS T O a n d P O L IC A R P IO B IA S C A N ,p v s . L IB E R T Y F L O U R M IL L S , IN C . P H IL IP P IN E L A B O R A L L IA N C E C O U N C IL (P L A C ) a n d N A T IO N A L L A B O R R E L A T IO N SC O M M IS S IO N , (N L R C ), re s p o n d e n ts . L a b o r; A rb itra tio n ; J u ris d ic tio n ; P e titio n e rs a re e s to p p e d fro m ra is in go b je c tio n sa g a in s t th ec h o ic eo f th ev o lu n ta ry a rb itra to r.

W e fin d th e re w a sn os u c hv io la tio na s th ec h o ic eo f th ev o lu n ta ry a rb itra to rw a sn o t lim ite d to B a c u g a n a lth o u g hh ew a sp ro b a b ly th e firs tp re fe re n c e .M o re o v e r, th ep e titio n e rs a re e s to p p e d fro mra is in g th is o b je c tio nn o w b e c a u s eth e yd idn o ts e a s o n a b ly in te rp o s e it a n d in s te a dw illin g ly s u b m itte dto C a b a ls ju ris d ic tio nw h e nh eu n d e rto o kto h e a r th e ir c o m p la in t. S a m e ; S a m e ; S a m e ; S u p re m eC o u rt; E x c e p tio n to fin a lity o f ju d g m e n t; D e c is io no f v o lu n ta ry a rb itra to r, fin a l a n d u n a p p e a la b le . In s u s ta in in gL a b e rA rb ite rL o m a b a o , th eN L R Ca g re e d th a t th ed e c is io no fV o lu n ta ry A rb ite rC a b a lw a s fin a la n du n a p p e a la b le u n d e rA rtic le 2 6 2 -Ao f th eL a b o rC o d ea n ds oc o u ld n o lo n g e rb e re v ie w e db y it. T ru ee n o u g h . H o w e v e r, it ise q u a lly tru eth a t th es a m ed e c is io nis n o tb in d in go nth is C o u rt, a sw eh e ldinO c e a n ic B ic D iv is io n(F F W )v . R o m e roa n d re ite ra te dinM a n tra d e /F M M CD iv is io nE m p lo y e e sa n dW o rk e rs U n io nv .B a c u g a n .T h eru lea sa n n o u n c e d inth e s ec a s e sisre fle c te dinth efo llo w in gs ta te m e n ts : Ins p iteo fs ta tu to ry p ro v is io n sm a k in gfin a l th ed e c is io no fc e rta in a d m in is tra tiv ea g e n c ie s ,w eh a v e ta k e nc o g n iz a n c eo fp e titio n sq u e s tio n in g th e s ed e c is io n sw h e re w a n to f ju ris d ic tio n , g ra v ea b u s eo fd is c re tio n ,v io la tio no fd u ep ro c e s s ,d e n ia lo fs u b s ta n tia l ju s tic e ,o re rro n e o u s in te rp re ta tio no f th e la w w e reb ro u g h t too u ra tte n tio n . S a m e ;E m e rg e n c ya llo w a n c e su n d e rP D5 2 5 ;A llo w a n c e sa b s o rb e db y th ew a g e in c re a s ere q u ire du n d e r th eC B A . T h e C o u rt h o ld sth a ts u c ha llo w a n c e sa rein d e e da b s o rb e db y th ew a g ein c re a s e s re q u ire du n d e r th ea g re e m e n t. S a m e ;S a m e ;S a m e ;S a m e ;T h ec o m p a n y fa lls u n d e rp a r. (a )o fS e c . 5o fL O I1 7 4w h ic hh a s ac a p ita liz a tio no fm o reth a n P 1m illio na n dm u s tp a y am in im u ma llo w a n c eo fP 5 0 .0 0am o n th ;A m o u n to fa llo w a n c ea lre a d yc o v e re db y th ein c re a s e s u n d e r th eC B A . It is n o td e n ie d th a t th ec o m p a n y fa lls u n d e rp a ra g ra p h (a ), a s it h a s ac a p ita liz a tio no fm o re th a nP 1 m illio n ,a n ds om u s tp a yam in im u ma llo w a n c eo fP 5 0 .0 0am o n th .T h is a m o u n t is c le a rly c o v e re db y th e in c re a s e s p re s c rib e dinth eC B A ,w h ic hre q u ire dam o n th ly in c re a s e(o nth eb a s is o f3 0d a y s )o fP 6 0 .0 0fo r1 9 7 4 , tob ein c re a s e db y P 3 0 .0 0 in 1 9 7 5 (to P 9 0 .0 0 )a n da n o th e rP 3 0 .0 0 in 1 9 7 6 (to P 1 2 0 .0 0 ). T h e firs t in c re a s e in 1 9 7 4w a sa lre a d ya b o v e th e m in im u ma llo w a n c eo fP 5 0 .0 0 ,w h ic hw a se x c e e d e de v e nm o re w ith th e in c re a s e so fP 1 .0 0 fo re a c ho f th en e x t tw o y e a rs . S a m e ;S a m e ;S a m e ;S a m e ; In te rp re ta tio n ;S e c .1 5o fP D5 2 5s h o u ldb ere la te dtoth eo th e rs e c tio n s to g iv ee ffe c t toth e in te n ta n ds p irit o f th ed e c re e ;U n d e rS e c .1 5 ,a n yb e n e fit o v e ra n da b o v eth ep re s c rib e da llo w a n c e sm a ys till b ea g re e d u p o nb y th ee m p lo y e e sa n dth ee m p lo y e r. O b v io u s ly , th is s e c tio ns h o u ldn o tb e re a din is o la tio nb u tm u s tb ere la te dto th eo th e rs e c tio n sa b o v e -q u o te d , tog iv ee ffe c t toth ein te n ta n ds p irit o f th ed e c re e .T h em e a n in go f th es e c tio ns im p lyis th a ta n yb e n e fit o v e ra n da b o v e th ep re s c rib e da llo w a n c e sm a ys till b ea g re e du p o nb y th ee m p lo y e e sa n d th ee m p lo y e r o r, if a lre a d yg ra n te d ,m a yn olo n g e rb ew ith d ra w no rd im in is h e d . S a m e ;S a m e ;S a m e ;S a m e ;N ob e n e fits a re b e in gw a iv e du n d e rS e c . 2o f th eC B A ;B e n e fits a re a lre a d y in c lu d e d in th e w a g e in c re a s e ;T h e la wc o n s id e rs th e in c re a s e sa se q u iv a le n t to o r in lie uo f th ee m e rg e n c ya llo w a n c eg ra n te db yP D 5 2 5 . W h ileth ep rin c ip leis c o rre c t, th ea p p lic a tio nis n o t, fo r th e rea ren ob e n e fits b e in gw a iv e du n d e r th ep ro v is io n .T h e b e n e fitsa rea lre a d yin c lu d e dinth ew a g ein c re a s e s . It isth ela wits e lf th a tc o n s id e rs th e s ein c re a s e s ,u n d e r th ec o n d itio n s p re s c rib e dinL O IN o .1 7 4 ,a se q u iv a le n t to ,o r inlie uo f, th ee m e rg e n c ya llo w a n c eg ra n te db yP .D .N o .5 2 5 . S a m e ;S a m e ;S a m e ;N ow a iv e ro f in c re a s e sa sp e titio n e rs a re n o te n title d to th ea d d itio n a lP 5 0 .0 0a llo w a n c e . In fa c t, th ec o m p a n ya g re e dtog ra n t th ee m e rg e n c ya llo w a n c ee v e nb e fo reth eo b lig a tio nw a s im p o s e db y th eg o v e rn m e n t. W h a t th ep e titio n e rs c la imth e ya re b e in gm a d e to w a iv e is th ea d d itio n a lP 5 0 .0 0a llo w a n c eb u t th e tru th is th a t th e ya re n o t e n title dtoth isb e c a u s eth e ya rea lre a d ye n jo y in gth es tip u la te din c re a s e s .T h e reis n ow a iv e ro f th e s ein c re a s e s . S a m e ;S a m e ;S a m e ;S a m e ;D iffe re n c eb e tw e e n th es tip u la te dw a g e in c re a s ea n d th es ta tu to ry m in im u mw a g ew ill b e p a idb yth ec o m p a n y . M o re o v e r, S e c tio n2p ro v id e s th a t th ew a g ein c re a s es h a ll b ec o n s id e re dp a y m e n to fa n ys ta tu to ry in c re a s eo f th em in im u mw a g ea s fa ra s it w ill g o , w h ic hm e a n s th a ta n ya m o u n tn o tc o v e re db ys u c hw a g ein c re a s ew ill h a v e to b em a d eg o o db y th ec o m p a n y . In s h o rt, th ed iffe re n c eb e tw e e n th es tip u la te dw a g e in c re a s ea n d th es ta tu to ry m in im u mw a g ew ill h a v etob ep a id b y th ec o m p a n yn o tw ith s ta n d in ga n d , in d e e d ,p u rs u a n t toth es a ida rtic le .T h e reisn o w a iv e ra stoth is . S a m e ;S a m e ;S a m e ;C B A ;A nu n c e rtifie dC B Ad u ly file da n ds u b m itte dto th eB u re a uo fL a b o rR e la tio n s is c e rtifia b lefo r h a v in gc o m p lie dw ith a ll th e re q u ire m e n ts fo rc e rtific a tio n . In its c h a lle n g e dd e c is io n , th ep u b lic re s p o n d e n th e ld th a t in d e m a n d in g th ed is m is s a lo fE v a ris to a n dB ia s c a n ,P L A Ch a da c te dp re m a tu re ly b e c a u s e th e1 9 7 4C B Ap ro v id in g fo r u n io ns h o pa n dp u rs u a n t to w h ic h th etw op e titio n e rs w e re d is m is s e dh a dn o ty e tb e e nc e rtifie d .T h eim p lic a tio nis th a t it w a sn o ty e t in e ffe c ta n ds oc o u ld n o tb e th eb a s is o f th ea c tio n ta k e na g a in s t th e tw op e titio n e rs .T h is c o n c lu s io n is e rro n e o u s . It d is re g a rd s th e ru lin go f th is C o u rt in T a n d u a yD is tille ry L a b o rU n io nv .N L R C ,w e re w eh e ld ;T h e fa c t, th e re fo re , th a t th eB u re a uo fL a b o rR e la tio n s (B L R ) fa ile dtoc e rtify o ra c to nT D L U s re q u e s t fo rc e rtific a tio no f th eC B Ain q u e s tio n is o fn om o m e n t to th e re s o lu tio no f th e is s u e sp re s e n te d in th is c a s e .T h eB L Rits e lf fo u n d in its o rd e ro fJ u ly 8 ,1 9 8 2 , th a t th e (u n )c e rtifie dC B Aw a sd u ly file da n ds u b m itte do nO c to b e r2 9 ,1 9 8 0 , to la s tu n til J u n e3 0 ,1 9 8 2 is c e rtifia b lefo rh a v in gc o m p lie dw itha ll th ere q u ire m e n ts fo rc e rtific a tio n .

S a m e ;S a m e ;S a m e ;S a m e ;T h ec e rtific a tio no f th eC B Ab y th eB u re a uo fL a b o rR e la tio n s is n o t re q u ire d fo r its v a lid ity ; O n c ea C B Ais d u ly e n te re da n ds ig n e db y th ep a rtie s , it b e c o m e se ffe c tiv ea sb e tw e e n th ep a rtie sw h e th e ro rn o t th e s a m eh a sb e e nc e rtifie db y th eB u re a u . E v id e n c eo nre c o rds h o wth a ta fte r th ec a n c e lla tio no f th ere g is tra tio nc e rtific a te o f th eF e d e ra tio no fD e m o c ra tic L a b o rU n io n s ,n oo th e ru n io nc o n te s te d th ee x c lu s iv e re p re s e n ta tio no f th eP h ilip p in e L a b o rA llia n c eC o u n c il (P L A C ), c o n s e q u e n tly , th e rew a sn om o rele g a l im p e d im e n t th a ts to o do nth ew a ya stoth ev a lid ity a n de n fo rc e a b ility o f th ep ro v is io n so f th ec o lle c tiv eb a rg a in in ga g re e m e n te n te re d in to b ya n db e tw e e n re s p o n d e n t c o rp o ra tio na n d re s p o n d e n t u n io n . T h ec e rtific a tio no f th ec o lle c tiv eb a rg a in in ga g re e m e n t b y th eB u re a uo f L a b o r R e la tio n sisn o t re q u ire dto p u t as ta m po fv a lid ity tos u c hc o n tra c t. O n c eit is d u ly e n te re din toa n ds ig n e db yth ep a rtie s , ac o lle c tiv eb a rg a in in ga g re e m e n tb e c o m e se ffe c tiv ea sb e tw e e n th ep a rtie s re g a rd le s so fw h e th e ro rn o t th es a m eh a s b e e nc e rtifie db yth eB L R . S a m e ;S a m e ;S a m e ;S a m e ;C la imfo rb a c k w a g e sb y tw oe m p lo y e e sw h oh a v eb e e nre a d m itte dtoth eu n io n ,n o ta llo w e d ; U n io ns h o pc la u s ev a lid ly e n fo rc e da g a in s t th e ma n d ju s tifie d th e te rm in a tio no f th e ir s e rv ic e s . T h ep e titio n e rs s a y th a t th ere in s ta te m e n t is s u eo fE v a ris toa n dB ia s c a nh a sb e c o m ea c a d e m ic b e c a u s eth efo rm e rh a sb e e nre a d m itte da n dth e la tte rh a sc h o s e ntoa w a it th ere s o lu tio no f th is c a s e .H o w e v e r, th e ys till in s is to nth ep a y m e n to f th e ir b a c kw a g e so nth e g ro u n d th a t th e ir d is m is s a lw a s ille g a l. T h is c la imm u s tb ed e n ie d fo r th e re a s o na lre a d yg iv e n .T h eu n io ns h o pc la u s e w a sv a lid lye n fo rc e da g a in s t th e ma n dju s tifie dth ete rm in a tio no f th e ir s e rv ic e s . S a m e ;S a m e ;S a m e ;P o lic yo f th eS ta te to p ro m o te u n io n is m ;C o n s titu tio n a lg u a ra n te eo f rig h t to s e lf o rg a n iz a tio n , c o lle c tiv eb a rg a in in ga n dn e g o tia tio n sa n dp e a c e fu lc o n c e rte da c tio n s in c lu d in g th e rig h t to s trik e . It is th ep o lic yo f th e S ta te to p ro m o te u n io n is m to e n a b le th ew o rk e rs to n e g o tia te w ith m a n a g e m e n to n th es a m e le v e l a n dw ith m o re p e rs u a s iv e n e s s th a n if th e yw e re to in d iv id u a lly a n d in d e p e n d e n tly b a rg a in fo r th e im p ro v e m e n t o f th e ir re s p e c tiv e c o n d itio n s .T o th is e n d , th eC o n s titu tio ng u a ra n te e s to th e mth e rig h ts to s e lf-o rg a n iz a tio n ,c o lle c tiv eb a rg a in in ga n d n e g o tia tio n sa n dp e a c e fu lc o n c e rte da c tio n s in c lu d in gth erig h t tos trik eina c c o rd a n c ew ithla w . T h e reis n oq u e s tio nth a t th e s ep u rp o s e sc o u ld b e th w a rte d if e v e ry w o rk e rw e re to c h o o s e to g oh is o w ns e p a ra te w a y in s te a do f jo in in gh is c o a rg a in w ithth e ir e m p lo y e rs . e m p lo y e e sinp la n n in gc o lle c tiv ea c tio na n dp re s e n tin g au n ite d fro n tw h e nth e ys it d o w nto b It is fo r th is re a s o n th a t th e la wh a ss a n c tio n e ds tip u la tio n s fo r th eu n io ns h o pa n d th ec lo s e ds h o pa sam e a n so f e n c o u ra g in gth ew o rk e rs tojo in a n ds u p p o rt th ela b o ru n io no f th e ir o w nc h o ic ea s th e ir re p re s e n ta tiv einth en e g o tia tio n o f th e ir d e m a n d sa n dth ep ro te c tio no f th e ir in te re s tv is av is th ee m p lo y e r. S a m e ;S a m e ;S a m e ;S a m e ;C o u rt w o u ld h a v ep re fe rre d to re s o lv e th ec a s e in fa v o ro fp e titio n e rs b u t th e la wa n d th e fa c ts a re a g a in s t th e m . T h eC o u rt w o u ld h a v ep re fe rre d to re s o lv e th is c a s e in fa v o ro f th ep e titio n e rs ,b u t th e la wa n d th efa c tsa rea g a in s t th e m .F o ra ll th ec o n c e rno f th eS ta te , fo r th ew e ll-b e in go f th ew o rk e r, w em u s ta ta ll tim e sc o n fo rm to th e re q u ire m e n ts o f th e la wa s lo n ga ss u c h la wh a sn o tb e e ns h o w n to b ev io la tiv eo f th eC o n s titu tio n .N os u c h v io la tio nh a sb e e ns h o w nh e re . P E T IT IO N fo r c e rtio ra ri to re v ie w th e re s o lu tio no f th eN a tio n a l L a b o r R e la tio n sC o m m is s io n . [L ib e rty F lo u r M ills E m p lo y e e sv s .L ib e rty F lo u rM ills , In c ., 1 8 0S C R A6 6 8 (1 9 8 9 )] J u liu sA .M a g n ofo rp e titio n e rs . D eL e o n ,D io k n o&A s s o c ia te s fo r re s p o n d e n tL ib e rty F lo u rM ills , In c . C R U Z ,J .: In th is p e titio n fo rc e rtio ra ri, th e re s o lu tio no f th ep u b lic re s p o n d e n td a te dA u g u s t3 ,1 9 7 8 , is fa u lte d fo r: (a )a ffirm in g th e d e c is io no f th e la b o ra rb ite rd is m is s in g th ee m p lo y e e s 'c la imfo re m e rg e n c ya llo w a n c e fo r la c ko f ju ris d ic tio n ;a n d (b ) m o d ify in g th es a id d e c is io nb yd is a llo w in g th ea w a rd o f b a c kw a g e s to p e titio n e rs P o lic a rp io B ia s c a na n dA n to n io E v a ris to . T h eb a s icfa c tsa rea s fo llo w s : O nF e b ru a ry 6 ,1 9 7 4 , re s p o n d e n tP h ilip p in eL a b o rA llia n c eC o u n c il (P L A C )a n d re s p o n d e n tL ib e rty F lo u rM ills , In c . e n te re din toath re e -y e a rc o lle c tiv eb a rg a in in ga g re e m e n te ffe c tiv eJ a n u a ry 1 ,1 9 7 4 ,p ro v id in gfo r ad a ily w a g ein c re a s eo f P 2 .0 0 fo r1 9 7 4 ,P l.0 0 fo r1 9 7 5a n da n o th e rP l.0 0 fo r1 9 7 6 .T h ea g re e m e n tc o n ta in e dac o m p lia n c ec la u s e ,w h ic hw ill b e e x p la in e dla te r inth is o p in io n .A d d itio n a lly , th ep a rtie sa g re e dtoe s ta b lis hau n io ns h o pb y im p o s in g"m e m b e rs h iping o o d 1 s ta n d in gfo r th ed u ra tio no f th eC B Aa s ac o n d itio nfo rc o n tin u e de m p lo y m e n t" o fw o rk e rs . O nO c to b e r1 8 ,1 9 7 4 ,P L A Cfile dac o m p la in ta g a in s t th ere s p o n d e n tc o m p a n y fo rn o n -p a y m e n to f th ee m e rg e n c yc o s to f 2 liv in ga llo w a n c eu n d e rP .D .N o .5 2 5 . As im ila rc o m p la in tw a s file do nM a rc h4 ,1 9 7 5 , th is tim eb y th ep e titio n e rs ,w h o 3 a p p a re n tlyw e rea lre a d yv e e rin ga w a y fro mP L A C . O nM a rc h2 0 , 1 9 7 5 , p e titio n e rs E v a ris to a n dB ia s c a n , a fte r o rg a n iz in gau n io nc a g e d th eF e d e ra tio no f N a tio n a l D e m o c ra ticL a b o rU n io n s , file dw ithth eB u re a uo fL a b o rR e la tio n s ap e titio nfo rc e rtific a tio ne le c tio na m o n gth era n k -a n d 4 file e m p lo y e e so f th e re s p o n d e n tc o m p a n y P L A Cth e ne x p e lle d th e tw o fo rd is lo y a lty a n dd e m a n d e d th e ir d is m is s a lb y 5 th ere s p o n d e n tc o m p a n y ,w h ic hc o m p lie do nM a y2 0 ,1 9 7 5 . T h eo b je c tio no fE v a ris toa n dB ia s c a nto th e ir te rm in a tio nw e rec e rtifie dfo rc o m p u ls o ry a rb itra tio na n da s s ig n e dto L a b o r A rb ite rA p o lin a rioN .L o m a b a o ,J r. M e a n w h ile , th ec la im s fo re m e rg e n c ya llo w a n c ew e rere fe rre dfo rv o lu n ta ry a rb itra tio n toE d m u n d oC a b a l, w h oe v e n tu a lly d is m is s e d th es a m eo nth eg ro u n dth a t th ea llo w a n c e sw e rea lre a d ya b s o rb e db yth e w a g e in c re a s e s . T h is la tte r c a s ew a su ltim a te ly a ls oc e rtifie d fo r c o m p u ls o ry a rb itra tio na n dc o n s o lid a te dw ith th e

te rm in a tio nc a s eb e in gh e a rd b yL o m a b a o .H is d e c is io nw a s ,o na p p e a l, d e a lt w ith b y th eN L R Ca sa b o v es ta te d , a n d 7 th em o tio nfo r re c o n s id e ra tio nw a sd e n ie do nA u g u s t2 6 ,1 9 8 1 . 9 7 4 .W h ile A t th eo u ts e t, w en o teth a t th ep e titio n e rs a reta k in ga na m b iv a le n tp o s itio nc o n c e rn in gth eC B Ac o n c lu d e din1 c la im in g th a t th isw a se n te re d in to inb a d fa ith a n d tofo re s ta ll th ep a y m e n to f th ee m e rg e n c ya llo w a n c e se x p e c te d to b e d e c re e d , th e yn o n e th e le s s in v o k e th es a m ea g re e m e n t to s u p p o rt th e ir c o n te n tio n th a t th e ir c o m p la in t fo re m e rg e n c y a llo w a n c e sw a sin v a lid ly re fe rre dtov o lu n ta ry a rb itra to rC a b a l ra th e r th a nF ro ila nM .B a c u n g a n . W efin dth e rew a sn os u c hv io la tio na s th ec h o ic eo f th ev o lu n ta ry a rb itra to rw a sn o t lim ite dtoB a c u n g a na lth o u g hh ew a s p ro b a b lyth efirs tp re fe re n c e .M o re o v e r, th ep e titio n e rs a ree s to p p e d fro mra is in gth is o b je c tio nn o wb e c a u s eth e yd idn o t s e a s o n a b lyin te rp o s eit a n din s te a dw illin g ly s u b m itte dtoC a b a l's ju ris d ic tio nw h e nh eu n d e rto o k toh e a r th e ir c o m p la in t. In s u s ta in in gL a b o r A rb ite r L o m a b a o , th eN L R Ca g re e d th a t th ed e c is io no f v o lu n ta ry A rb ite r C a b a l w a s fin a l a n d u n a p p e a la b le u n d e rA rtic le2 6 2 -Ao f th eL a b o rC o d ea n ds oc o u ld n olo n g e rb ere v ie w e db y it. T ru ee n o u g h .H o w e v e r, it is e q u a lly tru e th a t th es a m ed e c is io n is n o t b in d in go n th is C o u rt, a sw eh e c e a n ic B ic D iv is io n (F F W ) v . ld inO 8 9 R o m e ro a n d re ite ra te d inM a n tra d e /F M M CD iv is io n E m p lo y e e s a n d W o rk e rs U n io n v . B a c u n g a n . T h e ru le a s a n n o u n c e dinth e s ec a s e s is re fle c te dinth efo llo w in gs ta te m e n ts : In s p ite o fs ta tu to ry p ro v is io n sm a k in g "fin a l" th ed e c is io no fc e rta in a d m in is tra tiv ea g e n c ie s ,w eh a v e ta k e nc o g n iz a n c eo fp e titio n sq u e s tio n in g th e s ed e c is io n sw h e re w a n to f ju ris d ic tio n ,g ra v ea b u s eo f d is c re tio n ,v io la tio no fd u ep ro c e s s ,d e n ia lo fs u b s ta n tia l ju s tic e ,o re rro n e o u s in te rp re ta tio no f th e la w w e reb ro u g h t too u ra tte n tio n . x x xx x xx x x Av o lu n ta ry a rb itra to rb y th en a tu re o fh e r fu n c tio n sa c ts in a q u a s i-ju d ic ia lc a p a c ity .T h e re is n o re a s o n w h yh e rd e c is io n s in v o lv in g in te rp re ta tio no f la ws h o u ld b eb e y o n d th is C o u rt's re v ie w .A d m in is tra tiv e o ffic ia ls a re p re s u m e d to a c t in a c c o rd a n c ew ith la wa n dy e tw ed on o th e s ita te to p a s su p o n th e ir w o rk w h e rea q u e s tio no f la wis in v o lv e do rw h e rea s h o w in go fa b u s eo fa u th o rity o rd is c re tio nin th e ir o ffic ia l a c ts is p ro p e rly ra is e dinp e titio n s fo rc e rtio ra ri. A c c o rd in g ly , th ev a lid ity o f th ev o lu n ta ry a rb ite r's fin d in g th a t th ee m e rg e n c ya llo w a n c es o u g h tb y th ep e titio n e rs a re a lre a d ya b s o rb e dinth es tip u la te dw a g ein c re a s e sw ill n o wb ee x a m in e db y th eC o u rt its e lf. T h ep o s itio no f th ec o m p a n y is th a t th ee m e rg e n c ya llo w a n c e re q u ire db yP .D .N o .5 2 5 is a lre a d yc o v e re db y th ew a g e in c re a s e sp re s c rib e d in th es a id C B A .F u rth e rm o re ,p u rs u a n t to its A rtic le V III, s u c ha llo w a n c e sa ls o in c lu d ea ll o th e r s ta tu to rym in im u mw a g ein c re a s e s th a tm ig h tb ed e c re e dd u rin gth elife tim eo f th es a ida g re e m e n t. T h a ta g re e m e n tp ro v id e dinS e c tio n2th e re o fa s fo llo w s : S e c tio n2 .T h ew a g e in c re a s ein th ea m o u n ts a n dd u rin gth ep e rio da b o v es e t fo rths h a ll, inth ee v e n to f a n ys ta tu to ry in c re a s eo f th em in im u mw a g e ,e ith e ra sa llo w a n c eo ra sb a s ic w a g e ,d u rin gth e lifeo f th is A g re e m e n t, b ec o n s id e re dc o m p lia n c ea n dp a y m e n to fs u c hre q u ire ds ta tu to ry in c re a s ea s fa ra sit w ill g o a n du n d e r n oc irc u m s ta n c e sw ill it b ec u m u la tiv en o r d u p lic a tio n to th ed iffe re n tia la m o u n t in v o lv e d c o n s e q u e n t tos u c hs ta tu to ry w a g ein c re a s e . T h eC o u rt h o ld sth a ts u c ha llo w a n c e sa rein d e e da b s o rb e db y th ew a g ein c re a s e s re q u ire du n d e r th ea g re e m e n t. T h isis b e c a u s eS e c tio n6o f th eIn te rp re ta tiv eB u lle tino nL O IN o .1 7 4s p e c ific a lly p ro v id e s : S e c .6 .A llo w a n c e su n d e rL O I. -A ll a llo w a n c e s ,b o n u s e s ,w a g ea d ju s tm e n ts a n do th e rb e n e fits g iv e n b ye m p lo y e rs toth e ir e m p lo y e e ss h a ll b etre a te db y th eD e p a rtm e n to fL a b o ra s ins u b s ta n tia lc o m p lia n c e w ithth em in im u ms ta n d a rd ss e t fo rthinL O IN o .1 7 4if: (a ) th e y c o n fo rm w ith a t le a s t th e m in im u ma llo w a n c e s s c a le s s p e c ifie d in th e im m e d ia te ly p re c e d in gS e c tio n ;a n d (b ) th e ya re g iv e n inre s p o n s etoth ea p p e a lo f th eP re s id e n t in h is s p e e c ho n4J a n u a ry 1 9 7 4 ,o r to c o u n te rv a il th eq u a n tu mju m p in th ec o s to f liv in ga s a re s u lt o f th ee n e rg y c ris is s ta rtin g in N o v e m b e r1 9 7 3 ,o rp u rs u a n t to P re s id e n tia lD e c re eN o .3 9 0 ;P ro v id e d , T h a t th ep a y m e n t is re tro a c tiv eto1 8F e b ru a ry 1 9 7 4o re a rlie r. T h ea llo w a n c e sa n do th e rb e n e fits m a yb eg ra n te du n ila te ra lly b y th ee m p lo y e ro r th ro u g hc o lle c tiv e b a rg a in in g ,a n dm a yb ep a ida t th es a m etim ea s th ere g u la rw a g e so f th ee m p lo y e e s . A llo w a n c e sa n do th e rb e n e fits w h ic ha re n o tg iv e n in s u b s ta n tia lc o m p lia n c ew ith th eL O Ia s in te rp re te d h e re ins h a ll n o tb e tre a te db y th eD e p a rtm e n to fL a b o ra se m e rg e n c ya llo w a n c e s inth ec o n te m p la tio no f th eL O I u n le s so th e rw is es h o w nb ys u ffic ie n t p ro o f. T h u s , w ith o u t s u c hp ro o f, e s c a la tio nc la u s e s in c o lle c tiv eb a rg a in in ga g re e m e n ts c o n c lu d e db e fo reth ea p p e a lo f th eP re s id e n tp ro v id in gfo ra u to m a tico r p e rio d ic w a g e in c re a s e ss h a ll n o t b ec o n s id e re da llo w a n c e s fo r p u rp o s e so f th eL O I. (E m p h a s is s u p p lie d .)

T h e"im m e d ia te lyp re c e d in gs e c tio n " re fe rre dtoa b o v es ta te s : in g th ea m o u n to fa llo w a n c e s th a ts h o u ld b eg iv e nb y S E C .5 .D e te rm in a tio no fA m o u n to fA llo w a n c e s . In d e te rm in e m p lo y e rstom e e t th ere c o m m e n d e dm in im u ms ta n d a rd s , th eL O Ih a sc la s s ifie de m p lo y e rs in toth re eg e n e ra lc a te g o rie s . p lia n c ew ith th es c a le so f A sa n im p le m e n ta tio np o lic y , th eD e p a rtm e n t o f L a b o r s h a ll c o n s id e r a ss u ffic ie n t c o m a llo w a n c e sre c o m m e n d e db y th eL O I if th efo llo w in gm o n th ly a llo w a n c e sa reg iv e nb ye m p lo y e rs : (a )P 5 0 .0 0o rh ig h e rw h e re th ea u th o riz e dc a p ita ls to c ko f th ec o rp o ra tio n ,o r th e to ta l a s s e ts inth ec a s eo fo th e ru n d e rta k in g s ,e x c e e d s P1m illio n ; (b ) P3 0 .0 0o rh ig h e rw h e re th ea u th o riz e dc a p ita ls to c ko f th ec o rp o ra tio n ,o r th e to ta l a s s e ts in th ec a s eo fo th e ru n d e rta k in g s , is n o t le s s th a nP 1 0 0 ,0 0 0 .0 0b u tn o tm o reth a n P 1 m illio n ;a n d (c )P 1 5 .0 0o rh ig h e rw h e re th ea u th o riz e dc a p ita ls to c ko r to ta la s s e ts ,a s th ec a s em a y b e , is le s s th a nP 1 0 0 ,0 0 0 .0 0 . It is n o td e n ie d th a t th ec o m p a n y fa lls u n d e rp a ra g ra p h (a ), a s it h a s ac a p ita liz a tio no fm o re th a n Pl m illio n , a n ds o m u s tp a yam in im u ma llo w a n c eo fP 5 0 .0 0am o n th .T h is a m o u n t is c le a rly c o v e re db y th e in c re a s e sp re s c rib e d in th e C B A ,w h ic hre q u ire da m o n th ly in c re a s e(o n th eb a s is o f3 0d a y s )o fP 6 0 .0 0fo r1 9 7 4 , tob ein c re a s e db yP 3 0 .0 0in1 9 7 5 a sa lre a d ya b o v e th em in im u m (to P 9 0 .0 0 )a n da n o th e r P3 0 .0 0 in 1 9 7 6 (to P 1 2 0 .0 0 ). T h e firs t in c re a s e in 1 9 7 4w a llo w a n c eo fP 5 0 .0 0 ,w h ic hw a se x c e e d e de v e nm o rew ithth ein c re a s e so fP l.0 0fo re a c ho f th en e x t tw oy e a rs . E v e nif th eb a s isu s e dw e re2 6d a y s am o n th(e x c lu d in gS u n d a y s ), th ec o n c lu s io nw o u ld re m a inu n c h a n g e da sth era is e inw a g ew o u ldb eP 5 2 .0 0fo r1 9 7 4 ,w h ic ha m o u n tw a s in c re a s e dtoP 7 8 .0 0in1 9 7 5a n dtoP 1 0 4 .0 0in1 9 7 6 . B u t th ep e titio n e rs c o n te n d th a t th ew a g e in c re a s e sw e re th e re s u lt o f n e g o tia tio nu n d e rta k e n lo n gb e fo re th e p ro m u lg a tio no fP .D .N o .5 2 5a n ds os h o u ld n o tb ec o n s id e re dp a rt o f th ee m e rg e n c ya llo w a n c ed e c re e d . In s u p p o rt o f th is c o n te n tio n , th e yc iteS e c tio n1 5o f th eR u le s im p le m e n tin gP .D .N o .5 2 5 ,p ro v id in ga s fo llo w s : N o th in gh e re in s h a ll p re v e n t th ee m p lo y e ra n dh is e m p lo y e e s , fro me n te rin g in to a n ya g re e m e n tw ith te rm sm o re fa v o ra b le to th ee m p lo y e e s th a n th o s ep ro v id e dh e re in ,o rb ec o n s tru e d to s a n c tio n th e d im in u tio no fa n yb e n e fits g ra n te d to th ee m p lo y e e su n d e re x is tin g la w s ,a g re e m e n ts ,a n dv o lu n ta ry p ra c tic e . O b v io u s ly , th is s e c tio ns h o u ld n o tb e re a d in is o la tio nb u tm u s tb e re la te d to th eo th e rs e c tio n sa b o v e -q u o te d , to g iv e e ffe c t to th e in te n ta n ds p irit o f th ed e c re e .T h em e a n in go f th es e c tio ns im p ly is th a ta n yb e n e fit o v e ra n da b o v e th e p re s c rib e da llo w a n c e sm a ys till b ea g re e du p o nb yth ee m p lo y e e sa n dth ee m p lo y e ro r, if a lre a d yg ra n te d ,m a yn o lo n g e r b ew ith d ra w no rd im in is h e d . T h ep e titio n e rs a ls om a in ta in th a t th ea b o v e -q u o te dS e c tio n2o fC B A is in v a lid b e c a u s e it c o n s titu te saw a iv e rb y th e la b o re rs o f fu tu re b e n e fits th a tm a yb eg ra n te d th e mb y la w .T h e yc o n te n d th is c a n n o tb ed o n eb e c a u s e it is c o n tra ry to p u b licp o lic y . W h ile th ep rin c ip le is c o rre c t, th ea p p lic a tio n is n o t, fo r th e re a re n ob e n e fits b e in gw a iv e du n d e r th ep ro v is io n .T h e b e n e fitsa rea lre a d yin c lu d e dinth ew a g ein c re a s e s . It isth ela wits e lf th a tc o n s id e rs th e s ein c re a s e s ,u n d e r th ec o n d itio n s p re s c rib e dinL O IN o .1 7 4 ,a se q u iv a le n t to ,o r inlie uo f, th ee m e rg e n c ya llo w a n c eg ra n te db yP .D .N o .5 2 5 . In fa c t, th ec o m p a n ya g re e d to g ra n t th ee m e rg e n c ya llo w a n c ee v e nb e fo re th eo b lig a tio nw a s im p o s e db y th e g o v e rn m e n t. W h a t th ep e titio n e rs c la imth e ya re b e in gm a d e to w a iv e is th ea d d itio n a lP 5 0 .0 0a llo w a n c eb u t th e tru th is th a t th e ya re n o te n title d to th is b e c a u s e th e ya re a lre a d ye n jo y in g th es tip u la te d in c re a s e s .T h e re is n ow a iv e ro f th e s e in c re a s e s . M o re o v e r, S e c tio n2 p ro v id e s th a t th ew a g e in c re a s es h a ll b ec o n s id e re dp a y m e n to fa n ys ta tu to ry in c re a s eo f th e m in im u mw a g e "a s fa ra s it w ill g o ," w h ic hm e a n s th a ta n ya m o u n tn o tc o v e re db ys u c hw a g e in c re a s ew ill h a v e to b e m a d eg o o db y th ec o m p a n y . In s h o rt, th ed iffe re n c eb e tw e e n th es tip u la te dw a g e in c re a s ea n d th es ta tu to ry m in im u m w a g ew ill h a v etob ep a idb y th ec o m p a n yn o tw ith s ta n d in ga n d , in d e e d ,p u rs u a n t toth es a ida rtic le .T h e reisn ow a iv e ra s toth is . C u rio u s ly ,A rtic le 2 w a sp ro d u c e dv e rb a timin th ec o lle c tiv eb a rg a in in ga g re e m e n tc o n c lu d e db y th ep e titio n e rs w ith th e 1 1 c o m p a n yin 1 9 7 7a fte rP L A Ch a db e e n re p la c e db y th en e wla b o ru n io n fo rm e db yp e titio n e rs E v a ris toa n dB ia s c a n . It isd iffic u lt tou n d e rs ta n dth ep e titio n e rs 'p o s itio nw h e nth e yb lo wh o ta n dc o ldlik eth is . C o m in gn o wtoth es e c o n dis s u e ,w efin dth a t it m u s ta ls ob ere s o lv e da g a in s t th ep e titio n e rs . E v a ris toa n dB ia s c a nc la imth e yw e reille g a lly d is m is s e dfo ro rg a n iz in ga n o th e r la b o ru n io no p p o s e dtoP L A C ,w h ic hth e y d e s c rib ea s ac o m p a n yu n io n .A rg u in g th a t th e yw e re o n ly e x e rc is in g th e rig h t to s e lf o rg a n iz a tio na sg u a ra n te e db y th e C o n s titu tio n , th e yin s is t th e ya ree n title dtoth eb a c kw a g e sw h ic hth eN L R Cd is a llo w e dw h ilea ffirm in gth e ir re in s ta te m e n t. Inits c h a lle n g e dd e c is io n , th ep u b lic re s p o n d e n th e ldth a t ind e m a n d in gth ed is m is s a lo fE v a ris toa n dB ia s c a n ,P L A Ch a d a c te dp re m a tu re ly b e c a u s e th e1 9 7 4C B Ap ro v id in g fo ru n io ns h o pa n dp u rs u a n t to w h ic h th e tw op e titio n e rs w e re
1 0

d is m is s e dh a dn o ty e tb e e nc e rtifie d . T h eim p lic a tio nis th a t it w a sn o ty e t ine ffe c ta n ds oc o u ld n o tb eth eb a s is o f th e T a n d u a y a c tio n ta k e na g a in s t th e tw op e titio n e rs .T h is c o n c lu s io n is e rro n e o u s . It d is re g a rd s th e ru lin go f th is C o u rt in 1 3 D is tille ryL a b o rU n io nv .N L R C , w e rew eh e ld : T h efa c t, th e re fo re , th a t th eB u re a uo fL a b o rR e la tio n s (B L R ) fa ile dtoc e rtify o ra c to nT D L U 'sre q u e s t fo r c e rtific a tio no f th eC B Ainq u e s tio nis o fn om o m e n t toth ere s o lu tio no f th eis s u e sp re s e n te dinth isc a s e . T h eB L Rits e lf fo u n d in its o rd e ro fJ u ly 8 ,1 9 8 2 , th a t th e (u n )c e rtifie dC B Aw a sd u ly file da n ds u b m itte d o nO c to b e r2 9 ,1 9 8 0 , tola s tu n til J u n e3 0 ,1 9 8 2is c e rtifia b lefo rh a v in gc o m p lie dw itha ll th ere q u ire m e n ts fo rc e rtific a tio n . (E m p h a s is s u p p lie d .) T h eC B Ac o n c lu d e din1 9 7 4w a sc e rtifia b lea n dw a s infa c tc e rtifie do nA p ril 1 1 ,1 9 7 5 , It b e a rs s tre s s in gth a tE v a ris toa n d B ia s c a nw e red is m is s e do n ly o nM a y2 0 ,1 9 7 5 ,m o reth a nam o n tha fte r th es a idc e rtific a tio n . T h ec o rre c tv ie wisth a te x p re s s e db yC o m m is s io n e rC e c ilioP .S e n oinh is c o n c u rrin ga n dd is s e n tin go p in io n , v iz .: Ic a n n o th o w e v e rs u b s c rib etoth em a jo rity v ie wth a t th e'd is m is s a lo fc o m p la in a n ts B ia s c a na n dE v a ris to , ... w a s , tos a y th ele a s t, ap re m a tu rea c tio no nth ep a rt o f th ere s p o n d e n ts b e c a u s ea t th etim eth e yw e re e x p e lle db yP L A Cth ec o n tra c tc o n ta in in gth eu n io ns e c u rity c la u s eu p o nw h ic hth ea c tio nw a sb a s e dw a s y e t tob ec e rtifie da n dth ere p re s e n ta tio ns ta tu so f th ec o n tra c tin gu n io nw a ss till inq u e s tio n . E v id e n c eo n re c o rd s h o w th a ta fte r th ec a n c e lla tio no f th e re g is tra tio nc e rtific a te o f th eF e d e ra tio no f D e m o c ra tic L a b o rU n io n s ,n oo th e ru n io nc o n te s te d th ee x c lu s iv e re p re s e n ta tio no f th eP h ilip p in eL a b o r A llia n c eC o u n c il (P L A C ), c o n s e q u e n tly , th e rew a sn om o re le g a l im p e d im e n t th a ts to o do nth ew a ya s to th ev a lid ity a n de n fo rc e a b ility o f th ep ro v is io n so f th ec o lle c tiv eb a rg a in in ga g re e m e n te n te re din to b ya n d b e tw e e n re s p o n d e n t c o rp o ra tio na n d re s p o n d e n t u n io n . T h ec e rtific a tio no f th ec o lle c tiv eb a rg a in in g a g re e m e n tb y th eB u re a uo fL a b o rR e la tio n s is n o t re q u ire d to p u t as ta m po fv a lid ity to s u c hc o n tra c t. O n c e it is d u ly e n te re d in to a n ds ig n e db y th ep a rtie s , ac o lle c tiv eb a rg a in in ga g re e m e n t b e c o m e s e ffe c tiv ea sb e tw e e nth ep a rtie s re g a rd le s so fw h e th e ro rn o t th es a m eh a sb e e nc e rtifie db y th eB L R . T ob efa ir, it m u s tb em e n tio n e dth a t inth ec e rtific a tio ne le c tio nh e lda t th eL ib e rty F lo u rM ills , In c .o nD e c e m b e r2 7 ,1 9 7 6 , th e Ila wa t B u k lo dn gM a n g g a g a w a , w ith w h ic h th eu n io no rg a n iz e db yB ia s c a na n dE v a ris to w a sa ffilia te d , w o n 1 5 o v e rw h e lm in g ly w ith 4 4 1v o te sa sa g a in s t th e5 v o te sc a s t fo rP L A C . H o w e v e r, th is d o e sn o te x c u s e th e fa c t th a t th e tw od is a ffilia te d fro mP L A Ca se a rly a sM a rc h1 9 7 5a n d th u s re n d e re d th e m s e lv e ss u b je c t to d is m is s a lu n d e r th eu n io n s h o pc la u s einth eC B A . T h ep e titio n e rs s a y th a t th e re in s ta te m e n t is s u eo fE v a ris to a n dB ia s c a nh a sb e c o m ea c a d e m ic b e c a u s e th e fo rm e rh a s b e e nre a d m itte da n dth ela tte rh a sc h o s e ntoa w a it th ere s o lu tio no f th is c a s e .H o w e v e r, th e ys till in s is to nth ep a y m e n to f th e ir b a c kw a g e so nth eg ro u n dth a t th e ir d is m is s a lw a s ille g a l. T h is c la imm u s tb ed e n ie d fo r th ere a s o n sa lre a d yg iv e n . T h eu n io ns h o pc la u s ew a sv a lid ly e n fo rc e da g a in s t th e ma n dju s tifie dth ete rm in a tio no f th e ir s e rv ic e s . It is th ep o lic yo f th eS ta te to p ro m o te u n io n is mto e n a b le th ew o rk e rs to n e g o tia te w ith m a n a g e m e n to n th es a m e le v e l a n dw ith m o re p e rs u a s iv e n e s s th a n if th e yw e re to in d iv id u a lly a n d in d e p e n d e n tly b a rg a in fo r th e im p ro v e m e n to f th e ir re s p e c tiv ec o n d itio n s . T o th is e n d , th eC o n s titu tio ng u a ra n te e s to th e m th e rig h ts "to s e lf-o rg a n iz a tio n , c o lle c tiv e b a rg a in in ga n dn e g o tia tio n sa n dp e a c e fu lc o n c e rte da c tio n s in c lu d in g th erig h t to s trik eina c c o rd a n c ew ithla w ." T h e reis n oq u e s tio nth a t th e s ep u rp o s e sc o u ldb e th w a rte dif e v e ry w o rk e rw e retoc h o o s etog oh is o w ns e p a ra tew a yin s te a do f jo in in gh is c o -e m p lo y e e s in p la n n in gc o lle c tiv ea c tio na n dp re s e n tin gau n ite d fro n tw h e n th e ys it d o w n to b a rg a in w ith th e ir e m p lo y e rs . It is fo r th is re a s o n th a t th ela wh a ss a n c tio n e ds tip u la tio n s fo r th eu n io ns h o pa n d th ec lo s e ds h o pa sa m e a n so fe n c o u ra g in g th ew o rk e rs to jo in a n ds u p p o rt th e la b o ru n io no f th e ir o w nc h o ic ea s th e ir re p re s e n ta tiv e in th e n e g o tia tio no f th e ir d e m a n d sa n dth ep ro te c tio no f th e ir in te re s tv is -a -v is th ee m p lo y e r. T h eC o u rt w o u ldh a v ep re fe rre dtore s o lv eth is c a s einfa v o ro f th ep e titio n e rs ,b u t th ela wa n dth efa c ts a rea g a in s t th e m . F o ra ll th ec o n c e rno f th eS ta te , fo r th ew e ll-b e in go f th ew o rk e r, w em u s ta ta ll tim e sc o n fo rmtoth ere q u ire m e n ts o f th e la wa slo n ga ss u c hla wh a sn o tb e e ns h o w ntob ev io la tiv eo f th eC o n s titu tio n .N os u c hv io la tio nh a sb e e ns h o w nh e re . W H E R E F O R E , th ep e titio nis D IS M IS S E D ,w ith o u ta n yp ro n o u n c e m e n ta s toc o s ts . It is s oo rd e re d . N a rv a s a ,G a n c a y c o ,G ri o -A q u in oM e d ia ld e a ,J J ., c o n c u r.
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