ATOK BIG WEDGE MINING CO. INC. Petitioner

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G.R. No.

L-5276             March 3, 1953


ATOK-BIG WEDGE MINING CO., INC., petitioner,
vs.
ATOK-BIG WEDGE MUTUAL BENEFIT ASSOCIATION, respondent.
LABRADOR, J.:
Facts :

1. This is an appeal by certiorari against a decision of the Court of Industrial Relations. On September 4,
1950, demand was submitted to petitioner by respondent union among which were (a) an increase of
P0.50 in wages, (b) commutation of sick and vacation leave if not enjoyed during the year, (c) various
privileges, such as free medical care, medicine, and hospitalization, (d) right to a closed shop, check off,
etc., (e) no dismissal without prior just cause and with a prior investigation, etc.
Some of the demands, were granted by the petitioner, and the other were rejected,hearings were held
and evidence submitted on the latter. After the hearing the respondent court rendered a decision, fixing
the minimum wage for the laborers at P3.20, declaring that additional compensation representing
efficiency bonus should not be included as part of the wage, and making the award effective from
September 4, 1950.

2. Petitioner contended that as that the laborer and his family at least need the amount of P2.58 for
food, this should be the basis for the determination of his wage, not what he actually spends. That it is
not justifiable to fix a wage higher than that provided by Republic Act No. 602; and that respondent
union made the demand in accordance with a pernicious practice of claiming more after an original
demand is granted.

3. Petitoner contended that the efficiency bonus paid the laborer should have been included in his
(minimum) wage, in the same manner as the value of living quarters.

Issue 1: whether or not fix a wage higher than that provided by Republic Act No. 602 justifiable

Yes. wage higher than that provided by Republic Act No. 602 justifiable
The Law provides, guaranteed laborer fair and just wages
In the case at Bar, A person's needs increase as his means increase. This is true not only as to food but as
to everything else — education, clothing, entertainment, etc. The minimum must be fair and just. The
"minimum wage" can by no means imply only the actual minimum. Some margin or leeway must be
provided, over and above the minimum, to take care of contingencies such as increase of prices of
commodities and desirable improvement in his mode of living. Certainly, the amount of P0.22 a day
(difference between P2.80 fixed and P2.58 actual) is not excessive for this purpose. The P3 minimum
wage fixed in the law is still far below what is considered a fair and just minimum is shown by the fact
that this amount is only for the year after the law takes effect, as thereafter the law fixes it at P4.
Therefore wage higher than that provided by Republic Act No. 602 justifiable

Issue 2 :
Whether or not bonus forms part of wages depends upon the circumstances or condition for its
payment.

NO. bonus forms part of wages does not depend upon the circumstances or condition for its payment.
If it is an additional compensation which the employer promised and agreed to give without any
conditions imposed for its payment, such as success of business or greater production or output, then it
is part of the wage. But if it is paid only if profits are realized or a certain amount of productivity
achieved, it cannot be considered part of the wages.
In the case at bar, it is not payable to all but to laborers only. It is also paid on the basis of actual
production or actual work accomplished. If the desired goal of production is not obtained or the amount
of actual work accomplished, the bonus does not accrue. It is evidence that under the circumstances it is
paid only when the labor becomes more efficient or more productive. It is only an inducement for
efficiency, a prize therefor, not a part of the wage.

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