LabStan Case Digests 1 (Autosaved).docx

Moreover in case of doubt the terms of a contract

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regulations by simply contracting with each other.” Moreover, in case of doubt, the terms of a contract should be construed in favor of labor.” RATIO: The applicable laws are Article 1700 of the Civil Code which declares: “Art. 1700. The relations between capital and labor are not merely contractual. They are so impressed with public interest that labor contracts must yield to the common good. Therefore, such contracts are subject to the special laws on labor unions, collective bargaining, strikes and lockouts, closed shop, wages, working conditions, hours of labor and similar subjects.” And Section 280 of the Labor Code. DISPOSITIVE: Petition is DENIED , and the assailed Decision and Resolution are AFFIRMED. Costs against petitioner. CIRTEK EMPLOYEES LABOR VS CIRTEK ELECTRONICS Digested By: L. Paniza FACTS: - Cirtek Electronics and Cirtek Employees Labor Union- Federation had an existing Collective Bargaining Agreement (CBA) for a period of 5 years - Prior to its 3 rd year, both parties renegotiated the terms but unable to reach a settlement particularly on the issue of wage increase - Cirtek Employees then declared a bargaining deadlock and filed a Notice of Strike - Cirtek Electronics, on the other hand, filed a Notice of Lockout - Before the Secretary of Labor could rule on the controversy, Cirtek Electronics created Labor Management Council where it provides for a daily wage increase of 6.00 per day effective Jan. 2004 and 9.00 per day effective Jan. 2005 - Cirtek Employees submitted a MOA via Motion and Manifestation to Sec. of Labor - Cirtek Employees alleged that their officers signed the MOA under Cirtek Electronics’ assurance that should the Sec of Labor order a higher award of wage increase, Cirtek Electronics would comply Decision of SEC OF LABOR: o Resolved CBA deadlock by awarding a wage increase of from 6.00 to 10.00 per day on 2004 and from 9.00 to 15.00 per day on 2005 - Cirtek Electronics moved for a reconsideration CA Ruling: o Ruled in favor of Cirtek Electronics and SET ASIDE the decision of Sec of Labor - Cirtek Employees filed the present petition. ISSUE: WON the Sec of Labor is authorized to give an award higher than that agreed upon by the MOA RULING: Yes. HOLDING: It is well-settled that the Secretary of Labor, in the exercise of his power to assume jurisdiction under Art. 263 (g) of the Labor Code, may resolve all issues involved in the controversy including the award of wage increases and benefits. Since the filing and submission of the MOA did not have the effect of divesting the Secretary of his jurisdiction, neither should the provisions of the MOA restrict the Secretary’s leeway in deciding the matters before him. And while the terms and conditions of a CBA constitute the law between the parties, it is not, however, an ordinary contract to which is applied the principles of law governing ordinary contracts. A CBA , as a labor contract within the contemplation of Article 1700 of the Civil Code of the Philippines which governs the relations between labor and capital, is not merely contractual in nature but impressed with public interest, thus, it must yield to the common good . As
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  • Spring '14
  • Trade union, Working time, Employment contract

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