LA CONSOLACION COLLEGE, ET AL., PETITIONERS, VS. COURT OF INDUSTRIAL RELATIONS, ET AL., RESPONDENTS.

La Consolacion College is an educational institution operated and
administered by the Augustinian Sisters, a religious congregation of
Roman Catholic nuns, with its school situated in Bacolod City,
Occidental Negros. It has several employees and workers affiliated with
the National Employees Workers Security Union, a legitimate labor
organization, duly registered in the Department of Labor.

In view of a complaint containing acts constituting unfair labor
practice filed against said institution with the Court of Industrial
Relations, the prosecutor of said court, after due investigation, filed
a formal complaint against the institution and its Mother Superior Sor
Evangelista de San Agustin alleging among others that on or about
September 1, 1954 the aforesaid mother superior restrained or
interfered with some of its employees who were members of the
complaining union in the exercise of their right to self-organization
by questioning their union activities with a view to making them resign
therefrom, said acts having produced as a result their dismissal from
the service on December 31, 1954, all of which constitute unfair labor
practice within the meaning of section (4) (a), subsections 1 and 4, of the Industrial Peace Act.

Respondents, in their answer, averred that the real reason for the
separation of the employees mentioned in the complaint was that there
was no more work where they could be employed justifying the wages they
were demanding and not what the union claims that they were dismissed
because of their union activities. Respondents also raised the defense
that the court lack jurisdiction over them because they are not engaged
in a business enterprise but in a non-profit educational pursuit.

After hearing, the court on March 9, 1957, rendered decision
sustaining its jurisdiction over the case and ordering respondents to
reinstate the workers in whose favor the complaint was filed with back
pay from December 31, 1954, date of their dismissal, until their actual
reinstatement. When their motion for reconsideration was denied, they
brought the case before us for review on a petition for certiorari.

The Court of Industrial Relations found undisputed the following
facts The La Consolacion College is an educational institution operated
by the Agustinian order, a congregation of religious sisters, whose
school is situated at Bacolod City. Its mother superior is Sor
Evangelista de San Agustin. The college derives its income from the
fees collected from the students from which it pays the salaries of its
teachers and buys the books and equipment needed by the college. It
maintains a “free school” with an enrollment of 200 students who are
not required to pay any fee but whose teachers are paid by the college.
It has 8 working students who do part-time work and 38 “agraciadas” who
are poor girls admitted free, including board and lodging, clothing and
other personal effects, but who are required to do some housework like
sweeping, cleaning the rooms and dusting the furniture.

The workers involved in this case had been employed on different
dates, the nature of their employment being varied such as janitors,
gardeners, kitchen helpers, carpenters, masons, electricians, and other
odd jobs. Their salaries range from P25.00 to P80.00 a month, board and
lodging free, besides the food they can bring to their respective
families.

Sometime in May, 1954, one Supremo Lesaca was able to prevail upon
the laborers of the college to join the union organized by him and as
such members they used to attend the meetings held by the union in its
headquarters. On two different occasions the mother superior received
two letters from the president of the union containing a proposal to
improve the working conditions of the laborers working in the college
naming therein the laborers to be benefited. Upon receipt of these
letters, the mother superior gathered the laborers and after
confronting them with the letters, she told them: “Here are your names
and I know you are members of the NEWSUN. * * * I give you one month to
look for better jobs outside.”

Upon the foregoing facts, the industrial court reached the
conclusion that the mother superior of the La Consolacion College laid
off the laborers not only because they demanded that they be given
better wages and better working conditions, but also because they
joined a labor union.

Hence it found the institution guilty of unfair labor practice.

The main issued raised in this appeal by petitioner is that the
industrial court committed an error in holding that it has jurisdiction
to act on this case even if it involves unfair labor practice
considering that the La Consolacion College is not a business
enterprise but an educational institution not organized for profit.

If the claim that petitioner is an educational institution not
operated for profit is true, which apparently is the case, because the
very court a quo found that it has no stockholder, nor
capital, it is run by religious sisters who are bound by strict vow of
poverty and do not receive any salary for their work, the fees paid by
its students are spent for the salaries of its teachers and employees,
as well as for the purchase of books and equipment, then we are of the
opinion that the game does not come under the jurisdiction of the Court
of Industrial Relations in view of our ruling in the case of Boy Scouts
of the Philippines vs. Juliana V. Araos, 102 Phil, 1080.

In the above case, Juliana V. Araos, who was separated from the
service because of certain misconduct, filed charges for unfair labor
practice against the Boy Scouts organizations alleging that her
dismissal was motivated by her union activities. Respondent raised the
question of jurisdiction claiming that, being a civic, charitable,
humanitarian, and patriotic enterprise, not created for profit, there
was no labor dispute over which the court may exercise jurisdiction. In
holding that Republic Act 875 (Industrial Peace Act) only applies to
enterprises organized for profit and not to those organized, operated
and maintained for a lofty purpose, such as charity, education,
instruction and the like, this Court, thru Mr. Justice Montemayor, made
the following pronouncement:

“On the basis of the foregoing considerations, there
is every reason to believe that out labor legislation from Commonwealth
Act No. 103, creating the Court of Industrial Relations, down through
the Eight Hour Labor Law, to the Industrial Peace Act, was intended by
the Legislature to apply only to industrial employment and to govern
the relations between employers engaged in industry and occupations for
purposes of profit and gain, and their industrial employees, but not to
organizations and entities which are organized, operated, and
maintained not for profit or gain, but for elevated and lofty purposes,
such as, charity, social service, education and instruction, hospital
and medical service, the encouragement and promotion of character,
patriotism and kindred virtues in the youth of the nation, etc.”

Considering that this ruling applies squarely to this case, the
inescapable conclusion is that petitioner does not come within the
purview of Republic Act 875.

Wherefore, the decision appealed from is reversed. The complaint is dismissed, without costs.

Bengzon, Padilla, Montemayor, Labrador, Endencia, and Gutierrez David, JJ., concur.
Paras, C.J., Reyes, J.B.L., Concepcion, and Barrera, JJ., reserve their votes.