G.R. No. L-1377 – 80 Phil. 842 – Labor Law – Labor Standards – Minimum Wage; Defined – Who are covered
Sometime in the mid-1940’s, seventy-six drivers and laborers who were members of the Leyte Farmer’s and Laborer’s Union (LFLU), staged a strike against the Leyte Land Transportation Company, Inc. (LLTC). The labor dispute went to court and the Court of Industrial Relations (CIR) ordered LLTC to pay all its employees an increased minimum wage and grant the employees 15 sick leave days and 15 vacation leave days.
LLTC appealed and questioned, among others, the order which mandates it to grant the benefits not only to the striking employees but to all its employees including those that did not join the strike.
ISSUE: Whether or not the increased rate and other benefits shall only apply to the employees who joined the strike.
HELD: No, it applies to all employees, regardless if they joined the strike or not. The employees who did not strike shall also benefit from the result of the strike. This is even if the employees who did not join the strike are also not member of LFLU. Since they are laborers of LLTC, they too are covered by the wage increase. To accord such increase only to members of the union would constitute an unjust and unwarranted discrimination against non-members.
In this case, the Supreme Court also defined minimum wage as follows:
It is the just compensation, for the employee’s labor and an adequate income to meet essential necessities of civilized life, and at the same time allow the capital a fair return on its investment.
Note: At that time, the then CIR had the power to fix the minimum wage.
