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G.R. NO. 140689. February 17, 2004

The document is a decision from the Supreme Court of the Philippines regarding a case between the Bankard Employees Union-Workers Alliance Trade Unions (petitioner) and the National Labor Relations Commission and Bankard, Inc. (respondents). The issue is whether Bankard, Inc. unilaterally adopting an upgraded salary scale that increased hiring rates for new employees without increasing rates for current employees resulted in illegal wage distortion under the Labor Code. The salary scale increased hiring rates by P1,000-P900 depending on the employee level, and adjusted salaries of current employees that fell below the new minimum rates. This move by Bankard drew the petitioner union to demand an increase in salaries for current regular employees as well.

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53 views1 page

G.R. NO. 140689. February 17, 2004

The document is a decision from the Supreme Court of the Philippines regarding a case between the Bankard Employees Union-Workers Alliance Trade Unions (petitioner) and the National Labor Relations Commission and Bankard, Inc. (respondents). The issue is whether Bankard, Inc. unilaterally adopting an upgraded salary scale that increased hiring rates for new employees without increasing rates for current employees resulted in illegal wage distortion under the Labor Code. The salary scale increased hiring rates by P1,000-P900 depending on the employee level, and adjusted salaries of current employees that fell below the new minimum rates. This move by Bankard drew the petitioner union to demand an increase in salaries for current regular employees as well.

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maanyag6685
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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[G.R. NO. 140689.

February 17, 2004]

BANKARD EMPLOYEES UNION-WORKERS ALLIANCE TRADE UNIONS, Petitioner, v. NATIONAL LABOR RELATIONS COMMISSION and BANKARD, INC., Respondents.

DECISION

CARPIO MORALES, J.:

The present Petition for Review on Certiorari under Rule 45 of the Rules of Court raises the issue of whether the unilateral adoption by an employer of an upgraded salary scale that
increased the hiring rates of new employees without increasing the salary rates of old employees resulted in wage distortion within the contemplation of Article 124 of the Labor Code.

Bankard, Inc. (Bankard) classifies its employees by levels, to wit: Level I, Level II, Level III, Level IV, and Level V. On May 28, 1993, its Board of Directors approved a New Salary
Scale, made retroactive to April 1, 1993, for the purpose of making its hiring rate competitive in the industrys labor market. The New Salary Scale increased the hiring rates of new
employees, to wit: Levels I and V by one thousand pesos (P1,000.00), and Levels II, III and IV by nine hundred pesos (P900.00). Accordingly, the salaries of employees who fell below
the new minimum rates were also adjusted to reach such rates under their levels.

Bankards move drew the Bankard Employees Union-WATU (petitioner), the duly certified exclusive bargaining agent of the regular rank and file employees of Bankard, to press for the
increase in the salary of its old, regular employees.

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