Bacolod-Murcia Milling Co., Inc. v. Leogardo, Jr.
REITERATIONFacts
The Antecedents: Private respondents, representing workers of Bacolod-Murcia Milling Co., Inc. and Jose Sanchez, filed a complaint for non-implementation of Presidential Decree No. 1389 (PD 1389), alleging that petitioners were still paying laborers P11.00 per day despite the decree's effectivity. Procedural History: The Ministry of Labor and Employment (MOLE) Bacolod District Office initially ordered petitioners to pay the P1.00 increase effective July 1, 1978. However, Deputy Labor Minister Vicente Leogardo, Jr. reversed this order and dismissed the case. Subsequently, Leogardo reconsidered his dismissal and directed petitioners to pay specific minimum daily wages based on different effective dates and price conditions, including P12.00 effective July 1, 1978, P13.00 effective May 1, 1979, P14.00 based on a composite price of P110.00 per picul of sugar, and P15.00 pursuant to PD 1713. Petitioners' motion for reconsideration was denied, leading to this petition for certiorari. The Petition: Petitioners seek to annul the orders of Deputy Minister Leogardo, arguing that PD 1389 is not applicable to workers in the sugar industry, particularly non-agricultural workers in sugar mills.
Issue(s)
Whether Presidential Decree No. 1389 is applicable to workers in the sugar industry, specifically non-agricultural workers in sugar mills. Whether the petitioners have complied with existing wage orders and decrees.
Ruling
The petition is GRANTED. The Orders dated November 10, 1982, and May 30, 1983, of respondent Deputy Minister Leogardo are ANNULLED and SET ASIDE, and his order of June 11, 1981, is REINSTATED. The temporary restraining order dated August 24, 1983, is made permanent.
Ratio Decidendi
On the applicability of PD 1389 to sugar industry workers: The Court held that PD 1389, which amended PD 928 by increasing statutory minimum wages, was not applicable to non-agricultural workers in the sugar industry. This is because, prior to PD 928, a Wage Commission Order had already fixed the minimum daily wage for these workers at P11.00. Section 7 of the Rules and Regulations Implementing PD 928 explicitly stated that the minimum wage rate applicable to workers covered by existing Wage Commission Orders shall be the higher of the rates provided in the decree or the applicable Wage Commission Orders. Since the P11.00 rate under the Wage Commission Order was higher than the statutory minimum wages provided under PD 928 (P9.00 for non-agricultural workers outside Metro Manila), PD 1389, which amended PD 928, could not have covered these industrial workers. The Court emphasized that the rates prescribed in PD 1389's Implementing Rules, specifically Section 4(b) which set P10.00 for non-agricultural workers outside Metro Manila starting July 1, 1978, were not intended to apply to the sugar industry's non-agricultural workers due to the higher P11.00 rate already in effect. The private respondents' claim for higher wages based on PD 1389 was deemed erroneous as it would contradict the express rates in the implementing rules and subsequent decrees. On compliance with wage orders and decrees: The Court found that the petitioners had presented evidence, in the form of a table supported by vouchers, indicating they had paid differentials to the private respondents. These payments were not disputed by the private respondents and demonstrated compliance not only with PD 928, PD 1389, and PD 1614, but also with LOI 1016 and PD 1713, which set higher minimum wage rates for sugar mill workers at later stages. The private respondents' insistence on applying PD 1389 retroactively and demanding wages inconsistent with subsequent laws like LOI 1016 and PD 1713 was rejected. The Court noted that PD 1389 would only be applicable to mill workers on May 1, 1980, when the minimum wage rate was fixed at P12.00, as this was higher than the P11.00 rate under the Wage Commission Order, aligning with the principle of applying the higher rate. However, subsequent issuances like LOI 1016 and PD 1713 superseded these rates, and the petitioners' evidence showed compliance with these later mandates.
Main Doctrine
Presidential Decree No. 1389, which amended Presidential Decree No. 928 by increasing statutory minimum wages, did not apply to non-agricultural workers in the sugar industry because their minimum wage was already fixed at a higher rate by a Wage Commission Order prior to PD 928, and the rule for applying higher rates prevailed.