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The CA ruled that Pag-asa Steel Works must pay additional wage increases ordered by the Regional Tripartite Wage and Productivity Board to its workers. However, the Supreme Court reversed, finding that Wage Order No. NC-04 clearly states only employees receiving salaries below the prescribed minimum wage are entitled to increases, not all employees. As none of the union members received salaries below P28,000, Pag-asa Steel was not obligated to grant the increases.
The CA ruled that Pag-asa Steel Works must pay additional wage increases ordered by the Regional Tripartite Wage and Productivity Board to its workers. However, the Supreme Court reversed, finding that Wage Order No. NC-04 clearly states only employees receiving salaries below the prescribed minimum wage are entitled to increases, not all employees. As none of the union members received salaries below P28,000, Pag-asa Steel was not obligated to grant the increases.
The CA ruled that Pag-asa Steel Works must pay additional wage increases ordered by the Regional Tripartite Wage and Productivity Board to its workers. However, the Supreme Court reversed, finding that Wage Order No. NC-04 clearly states only employees receiving salaries below the prescribed minimum wage are entitled to increases, not all employees. As none of the union members received salaries below P28,000, Pag-asa Steel was not obligated to grant the increases.
Facts: - This is a petition for review upon the order of the CA for Pag-asa Steel to pay the wage increase to its workers - Jan, 199, !T"P# issued a wage increase order of P1$%&& per day - 'n Septe()er *$, 1999, petitioner and the +nion entered into a Collective #argaining Agree(ent ,C#A-, effective July 1, 1999 until July 1, *&&.% Section 1, Article /0 ,Salaries and "age- of said C#A provides1 - Section 1% "A23 A4J+ST536T - The C'5PA67 agrees to grant all the workers, who are already regular and covered )y this A2!33536T at the effectivity of this A2!33536T, a general wage increase as follows1 o July 1, 1999 % % % % % % % % % % % P18%&& per day per e(ployee o July 1, *&&& % % % % % % % % % % % P*8%&& per day per e(ployee o July 1, *&&1 % % % % % % % % % % % P$&%&& per day per e(ployee - The wage increase shall )e i(ple(ented across the )oard% Any "age 'rder to )e i(ple(ented )y the !egional Tripartite "age and Productivity #oard shall )e in addition to the wage increase adverted to a)ove% 9owever, if no wage increase is given )y the "age #oard within si: ,;- (onths fro( the signing of this A2!33536T, the 5anage(ent is willing to give the following increases, to wit1 o July 1, 1999 % % % % % % % % % % % P*&%&& per day per e(ployee o July 1, *&&& % % % % % % % % % % % P*8%&& per day per e(ployee o July 1, *&&1 % % % % % % % % % % % P$&%&& per day per e(ployee - 'ct 1999, A "age 'rder was issued a P*8%8& increase per day in salary% - 6ov *&&&, Another "age order was issued for P*;%8& increase per day% - 06 S+55A!7 '< T93 50605+5 "A23 06C!3AS3 #7 T93 "A23 #'A!4% o #efore Jan% 199 = P18%&&>day o Jan 199 = P1$ ? P18%&& @ P19%&& o 'ct 1999 = P*8%8& ? P19%&& @ P**$%8& = "A23 '!43! no% 6C!-&A o 6ov *&&& = P*;%8& ? P**$%8& @ P*8&%&& = "A23 '!43! no% 6C!-& - The union President ordered an i(ple(entation of the "age increase, )ut the petitioner defended that none of their e(ployees have a salary lower than P*8&, therefore no need for the increase% - CA !uled infavor of the union for the additional wage increase% 0t held that the C#A is plain and clear, and leaves no dou)t as to the intention of the parties, that is, to grant a wage increase that (ay )e ordered )y the "age #oard in addition to the C#A- (andated salary increases regardless of whether the e(ployees are already receiving wages way a)ove the (ini(u( wage% ISSUE: - whether or not the co(pany was o)liged to grant the wage increase as a (atter of practice% HELD: - 6o - CA 4ecision is !eversed% "age 'rder 6o% 6C!-& clearly states that only those e(ployees receiving salaries )elow the prescri)ed (ini(u( wage are entitled to the wage increase provided therein, and not all e(ployees across-the-)oard as respondent +nion would want petitioner to do% Considering therefore that none of the (e()ers of respondent +nion are receiving salaries )elow the P*8&%&& (ini(u( wage, petitioner is not o)liged to grant the wage increase to the(%
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