National Sugar Refineries Corporation (NASUREFCO) vs. NLRC, NBSR Supervisory Union (PACIWU) TUCP G.R. No.

101761, March 24, 1993 FACTS: Petitioner National Sugar Refineries Corporation (NASUREFCO), is a corporation wholly owned and controlled by the Government. On June 1, 1988, petitioner implemented a Job Evaluation (JE) program affecting all employees, from rank-and-file to department heads. The JE program was designed to rationalize the duties and functions of all positions, reestablish levels of responsibility, and recognize both wage and operational structures. Ten years prior to the JE program, members of the respondent labor union were treated the same as rank-and-file employees and as such, were entitled to overtime pay, rest day and holiday pay pursuant to Arts. 87, 93, 94 of the Labor Code as amended. After the JE program was implemented, the following were made (1) members of respondent labor union were re-classified under levels S5 to S8 which are considered managerial staff for purposes of compensation and benefits, (2) increase in pay of an average of 50% of their basic pay, (3) longevity pay increased on top of alignment adjustments, (4) increase COLA, (5) grant of PHP 100 allowance for rest day/holiday work. On May 11, 1990, NASUREFCO recognized herein labor union pursuant to RA 6715 allowing supervisory employees to form their own unions. On June 20, 1990, herein labor union filed a complaint with labor arbiter for non-payment of overtime, rest day and holiday pay. Labor arbiter ruled in favor of respondent labor union and affirmed by the NLRC. ISSUE: Are the members of respondent labor union entitled to overtime, rest day and holiday pay? RULING: No, although it is undisputed that under Art. 212 (m) of the Labor Code, members of the respondent labor union are considered supervisors, whose basic function is to recommend managerial actions (hire, transfer, suspend, lay-off, recall, discharge, assign or discipline employees) if such authority is not merely routinary or clerical in nature but requires the use of independent judgement. As averred by petitioner, for purposes of determining whether said labor union members are entitled to overtime, rest and holiday pay, they are considered officers or members of the managerial staff as defined under Art. 82 of the Labor Code. The court tips the scales in favor of petitioner. It is clear that after the implementation of the JE program, the members of the labor union were no longer considered rank-and-file employees with regards to the pay and benefits received as aforementioned since they are now exempt from the coverage of Art. 82 of the Labor Code and hence, not entitled to overtime, rest and holiday pay.