G.R. No. L-21803. December 17, 1966

BAY VIEW HOTEL, INC., PETITIONER, VS. MANILA HOTEL WORKERS’ UNION-PTGWO, HONORABLES JOSE S. BAUTISTA, ARSENIO I. MARTINEZ, BALTAZAR M. VILLANUEVA AND AMANDO C. BUGAYONG, JUDGES …

Decisions / Signed Resolutions December 17, 1966 SANCHEZ, J.:
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SANCHEZ, J.:


Following are the grievances lodged in the Court of Industrial Relations
(herein referred to as CIR)[1] by
respondent union against petitioner, Bay View Hotel, Inc., on September 27,
1962, viz:

“3. That the respondent [petitioner herein], in violation of Commonwealth Act
No. 444, better known as the Eight-Hour Labor Law, has not been paying full
overtime compensation to the employees who have worked and have been working for
more than eight hours a day due to the exigency of the service and those also
who have worked and have been working on Sundays and legal holidays;

4. That the respondent, in violation of Sec. 10, letters (f) and (g), of
Republic Act No. 602, better known as the Minimum Wage Law, has been deducting
the amount of P2.00 from each employee every month allegedly for medical fees
thus reducing the salaries of the employees without the consent of the employees
concerned;

5. That the respondent has not also been paying or has not been refunding in
full to the employees concerned the collection from the customers of the Manila
Hotel of the extra ‘service charge’ in lieu of ‘tips’ to the waiters or roomboys
and which therefore are supposed to be paid to said employees but respondent has
not been able to pay or refund in full said collection to the employees
concerned;

6. That the respondent has not been complying with the grant of vacation
leave of three (3) days a year in accord- ance with the Collective Bargaining
Contract between the respondent and the Hotel Employees Union, another union in
the respondent premises which is the collective bargaining agency in the
Collective Bargaining Contract with the respondent;

7. That the respondent has been dismissing many of the members of the
petitioner union since the organization and registration of the petitioner
herein with the Department of Labor on May 31, 1962 beginning with the dismissal
of the Treasurer, Ramiro Zamora, and Manuel Braga, board member, on the same
date and thereafter, has dismissed and has been dismissing from the service its
employees who are members of the petitioner union without just cause or for
union activities up to this date, numbering 65 employees in all, 41 of whom were
refused admission by an illegal lock-out in the Laundry Department of the
respondent on August 26, 1962, and [of] the Bamboo Room on September 10, 1962,
whose names and dates of dismissal are herewith attached as Annex ‘A’ and made a
part of this petition;”

On January 16, 1963, petitioner moved to dismiss. Grounds: (1) CIR has no
jurisdiction; and (2) the dismissals and lockout alleged, constitutive of unfair
labor practice, are the subject matter of Case 3387-ULP before another branch of
the CIR.

On March 11, 1963, CIR Judge Emiliano C. Tabigne sustained the motion,
dismissed the petition for want of jurisdiction.

On August 15, 1963, the CIR en banc resolved to reverse Judge
Tabigne’s order. It declared itself with jurisdiction “under the Com. Act No.
103, and the ruling in the Prisco case” since “the number of the complainants
involved exceeds thirty (30), they are still employees of the respondent, their
claims arose out of employment relation, and the labor dispute may cause a
strike or lock-out”. The court gave due course to the complaint. As expected.
Judge Tabigne dissented. Petitioner now brings this matter to us on
certiorari.

  1. Petitioner’s case is planted upon the averment that respondent’s causes of
    action are not covered by any one of those enumerated in the 1956 case of PAFLU
    vs. Tan, 99 Phil. 854, 882. There, this Court confined the CIR’s jurisdiction to
    the following cases:

    “x x x (1) when the labor dispute affects an industry which is indispensable
    to the national interest and is so certified by the President to the industrial
    court (Section 10, Republic Act No. 875); (2) when the controversy refers to
    minimum wage under the Minimum Wage Law (Republic Act No. 602); (3) when it
    involves hours of employment under the Eight-Hour Labor Law (Commonwealth Act
    No. 444); and (4) when it involves an unfair labor practice [Section 5, (a).
    Republic Act No. 875].”

    But the court below asserted
    jurisdiction on the authority of PRISCO vs. CIR, et al., L-13806, May 23, I960.
    In that case, this Court reviewed the cases decided since PAFLU and then stated:

    “Analyzing these cases, the underlying principle, it will be noted in all of
    them, though not stated in express terms, is that where the employer-employee
    relationship is still existing or is sought to be reestablished because of its
    wrongful severance (as where the employee seeks reinstatement), the Court of
    Industrial Relations has jurisdiction over all claims arising out of, or in
    connection with employment, such as those related to the Minimum Wage Law and
    the Eight-Hour Labor Law. After the termination of the relationship and no
    reinstatement is sought, such claims become mere money claims, and come within
    the jurisdiction of the regular courts.

    We are aware that in 2 cases,[2] some
    statements implying a different view have been made, but we now hold and declare
    the principles set forth in the next preceding paragraph as the one governing
    all cases of this nature.”

    Then, amongst the many cases thereafter, restatements
    were made in Sy Huan vs. Bautista, et al., L-16115, August 29, 1961, and Campos,
    etal., vs. Manila Railroad Co., et al., L-17905, May 25, 1962. In Sy
    Huan
    , we said:

    “The jurisdiction of the Court of Industrial Relations, under the law and the
    jurisprudence, extends only to cases involving (a) labor disputes affecting an
    industry which is indispensable to the national interest and so certified by the
    President to the Court, Section 10, Republic Act No. 875; (b) controversy about
    the minimum wage under the Minimum”Wage Law, Republic Act No. 602; (c) hours of
    employment under the Eight-Hour Labor Law, Commonwealth Act No. 444; and (d)
    unfair labor practice. Section 5 (a) Republic Act No. 875. PAFLUvs. Tan, 52 O.G.
    5836. xxx And such disputes and controversies, in order that they may fall under
    the jurisdiction of the Court of Industrial Relations, must arise while the
    employer-employee relationship between the parties exists, or the employee seeks
    reinstatement. When such relationship is over and the employee does not seek
    reinstatement, all claims become money claims that fall under the jurisdiction
    of the regular courts. Price Stabilization Corporation vs. Court of Industrial
    Relations, et al, x x x”.

    And in Campos, the language we employed was:

    “We may, therefore, restate, for the benefit of the bench and the
    bar, that in order that the Court of Industrial Relations may acquire
    jurisdiction over a controversy in the light of Republic Act No. 875, the
    following circumstances must be present: (a) there must exist between the
    parties an employer-employee relationship, or the claimant must seek his
    reinstatement; and (b) the controversy must relate to a case certified by the
    President to the CIR as one involving national interest, or must have a bearing
    on an unfair labor practice charge, or must arise either under the Eight-Hour
    Labor Law, or under the Minimum Wage Law. In default of any of these
    circumstances the claim becomes a mere money claim that comes under the
    jurisdiction of the regular courts.”

    Later pronouncements reiterate the Campos case. As matters now stand, the
    doctrine enunciated in Campos still prevails.[3

  2. A rule so highly esteemed and honored for so long a time is that
    jurisdiction over the subject matter is determined by the allegations of the
    complaint,[4] the truth of which is to be
    theoretically admitted.[5]

    With this precept on hand, we now proceed to analyze the recitals in the
    petition.

    There is an employer-employee relationship. And those dismissed seek
    reinstatement. The initial requirement of the Campos rule is thus satisfied.

    Next we go to the claims of respondent union.

    The first refers to a violation of Commonwealth Act 444. Petitioner herein,
    so the union asserts, “has not been paying full overtime compensation to the
    employees” who worked more than eight hours a day and also on Sundays and
    holidays.

    The second involves a transgression of Republic Act 602. Petitioner, it is
    alleged, “has been deducting the amount of P2.00 from each employee every month
    allegedly for medical fees thus reducing the salaries of the employees” without
    their consent.

    These two fall clearly within the orbit of the Campos decision. For, they are
    claims that “arise either under the Eight-Hour Labor Law, or under the Minimum
    Wage Law”.[6]

    Another claim: The alleged dismissals of union members, including union
    officials, numbering 65 in all, and lockout of 41 of that number — “without just
    cause or for union activities”. This is an unfair labor practice charge[7] over which the CIR unquestionably has
    jurisdiction.[8]

    We are not unmindful of the admission made by the respondent union in its
    opposition of January 19, 1963 — to the motion to dismiss — that “the dismissal
    and lockout made by respondent [petitioner herein], as alleged in the complaint,
    have been duly investigated by the Prosecuting Division” of the CIR “and
    assigned to another branch” of said court as Case No. 3387-ULP.[9] This fact alone will not dislodge
    jurisdiction from the CIR. The complaint in the case at bar, we must remember,
    was presented on September 27, 1962, long before the union made the admission
    aforesaid on January 19, 1963. And, it is not known whether ULP case was filed
    before the present complaint was received in court. Or, whether said ULP case
    was but an offshoot of that complaint. If the latter be the case, then the
    charge of unfair labor practice here is necessarily interwoven with the ULP
    case. And, said charge, should not be dismissed. Because, jurisdiction once
    acquired is not lost.

    Two grievances remain.

    One is that petitioner “has not been refunding in full” to the waiters and
    roomboys the amounts collected from customers as extra “service charge” in lieu
    of “tips”. The other is that petitioner has failed to comply “with the grant of
    vacation leave of three (3) days a year in accordance with the Collective
    Bargaining Contract”.

    Whether the two causes just mentioned, standing alone, belong to the domain
    of the CIR, we need not now consider. The industrial court has jurisdiction over
    the main causes of action with respect to rninimum wage, overtime compensation
    and unfair labor practice. Which places the complaint herein in its entirety,
    including the two, within the jurisdiction of the industrial court. Because,
    all of said claims arose out of the same employment.

  3. But, petitioner takes the position that jurisdiction over one is not
    jurisdiction over all.

This Court, however, already had occasion to rule in a case[10] similar in factual context to the present,
as follows:

“x x x But considering that in this case, plaintiff-appellant’s main claim is
for the collection of overtime compensation, which comes within the jurisdiction
of the Industrial Court, We see no reason for dividing the 2 causes of action,
involved herein and for holding that one falls within the jurisdiction of one
court and the remaining cause of action of another court, x x
x”

We find reinforcement of this view in PRISCO, supra, where
express pronouncement was made that as long as the employer-employee
relationship exists or is sought to be re-established, the industrial court “has
jurisdiction over all claims arising out of, or in connection with,
employment”.[11]

We are unprepared to break away from the teaching in the cases just adverted
to. To draw a tenuous jurisdictional line is to undermine stability in labor
litigations. A piecemeal resort to one court and another gives rise to
multiplicity of suits. To force the employees to shuttle from one court to
another to secure full redress is a situation gravely prejudicial. The time to
be lost, effort wasted, anxiety augmented, additional expense incurred — these
are considerations which weigh heavily against split jurisdiction. Indeed, it is
more in keeping with orderly administration of justice that all the causes of
action here “be cognizable and heard by only one court: the Court of Industrial
Relations.”[12]

FOR THE REASONS GIVEN, the petition for certiorar is hereby
denied and the appealed resolution of the Court of Industrial Relations en
banc
of August 15, 1963 is hereby affirmed. Costs against petitioner Bay
View Hotel, Inc.

SO ORDERED.

Concepcion, C.J., Reyes, J.B.L., Barrera, Dizon,
Regala, Makalintal, Bengzon, J.P., Zaldivar
and Ruiz Castro, JJ.,
concur.


[1] Case No. 1755-V, entitled “Manila
Hotel Workers’ Union-PTGWO, petitioner, vs. Bay View Hotel, Inc., operator of
the Manila Hotel, respondent”.

[2]
Mindanao Eus Employees Labor Union (PLUM) vs. Mindanao Bus Co., et al., L-9795,
December 28, 1957; Gomez vs. North Camarines Lumber Co., L-11945, August 18,
1958.

[3] Naguiat vs. Arcilla, et
al., L-16602, February 28, 1963; Araullo vs. Monte de Piedad Savings Bank, et
al., L-17840, April 23, 1963; Barranta vs. International Harvester Company of
the Philippines, L-18198, April 22, 1963; National Mines & Allied Workers’
Union vs. Philippine Iron Mines, Inc., et al., L-19372, October 31, 1964;
Mercado vs. Elizalde & Co., Inc., L-18962, December 23, 1964; Oriental Tin
Cans Workers’ Union vs. Court of Industrial Relations, et al., L-17695, February
26, 1965; Edward J. Nell Corporation vs. Cubacub, et al., L-20842, June 23,
1965.

[4] Suanes vs. Almeda Lopez,
73 Phil. 573-574; Atlantic Gulf & Pacific Company of Manila, Inc., etc. vs.
Olivar, et al., L-19526, September 20, 1965.

[5] Insular Sugar Refining Corporation vs.
Court of Industrial Relations, et al., L-19247; May 31, 1963; Edward J. Nell
Corporation vs. Cubacub, et al., supra.

[6] (a) As to overtime compensation, see also:
NASSCO vs. Almin, et al., L-9055, November 28, 1958; Monares vs. CNS
Enterprises, et al., L-11749, May 29, 1959. (b) On the question of propriety of
deductions made from wages, see Benguet Consolidated Mining Company vs. Coto
Labor Union, L-12394, May 29, 1959.

[7] Section 4 (a) (4), Industrial Peace
Act.

[8] Section 5, Industrial
Peace Act.

[9] Quoted from the
Order of Judge Tabigne dated March 11, 1963.

[10] Gomez vs. North Camarines Lumber Co.,
Inc., L-11945, August 18, 1958, which involves two claims: separation pay
and overtime compensation. See also; Pambujan Sur United Mine
Workers vs. Samar Mining Co., Inc., 94 Phil. 932, 938.

[11] Italics supplied.

[12] Gomez vs. North Camarines Lumber Co.,
supra.