Dave Mariano Batara

FINALS PART 2 In LABOR and Social Legislation

Resolve the issue in accordance with the case of MAXIMO CALALANG vs A. D.

WILLIAMS, ET AL. G.R. No. 47800 December 2, 1940 (10 pts.)

FACTS:
The National Traffic Commission, in its resolution of July 17, 1940, resolved to
recommend to the Director of the Public Works and to the Secretary of Public Works
and Communications that animal-drawn vehicles be prohibited from passing along the
following for a period of one year from the date of the opening of the Colgante Bridge to
traffic:

1) Rosario Street extending from Plaza Calderon de la Barca to Dasmariñas Street from
7:30Am to 12:30 pm and from 1:30 pm to 530 pm; and
2) along Rizal Avenue extending from the railroad crossing at Antipolo Street to
Echague Street from 7 am to 11pm

The Chairman of the National Traffic Commission on July 18, 1940 recommended to the
Director of Public Works with the approval of the Secretary of Public Works the adoption
of the
measure proposed in the resolution aforementioned in pursuance of the provisions of th
eCommonwealth Act No. 548 which authorizes said Director with the approval from the
Secretary of the Public Works and Communication to promulgate rules and regulations t
o regulate and control the use of and traffic on national roads.

On August 2, 1940, the Director recommended to the Secretary the approval of the
recommendations made by the Chairman of the National Traffic Commission with
modifications. The Secretary of Public Works approved the recommendations on
August 10,1940. The Mayor of Manila and the Acting Chief of Police of Manila have
enforced and caused to be enforced the rules and regulation. As a consequence, all
animal-drawn vehicles are not allowed to pass and pick up passengers in the places
above mentioned to the detriment not only of their owners but of the riding public as
well.

Issue:
Whether the rules and regulations complained of infringe upon the constitutional
precept regarding the promotion of social justice to insure the well-being and economic
security of all the people?

Decision/Ruling:

No.

Commonwealth Act No. 548 was created with the aim of promoting safe transit
upon, and avoid obstructions on roads and streets designated as national roads by acts
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of the National Assembly or by Executive orders of the President of the Philippines and
to close them temporarily to any or all classes of traffic whenever the condition of the
road or traffic thereon makes such action necessary or advisable in the public
convenience and interest.

In the case at bar, the act is constitutional and observes social justice on the
principle of salus populi est suprema lex. Social Justice as the Supreme Court defined
is the promotion of the welfare of all the people, the adoption by the Government of
measures calculated to insure economic stability of all the competent elements of the
society, through the maintenance of a proper economic and social equilibrium in the
interrelations of the members of the community, constitutionally, through the adoption of
measures legally justifiable or extra-constitutionally, through the exercise of powers
underlying the existence of all governments on the time honored principle of salus
populi est suprema lex.

It must be founded therefore on the recognition of the necessity of

interdependence among divers and diverse units of a society and the protection that
should be equally and evenly extended to all groups as a combined force in our social
and economic life, consistent with the fundamental and paramount of the state of
promoting health, comfort, and quiet of all persons, and bringing about "the greatest
good to the greatest number."

2. Discuss the four-fold test of employer-employee relationship. (10 pts.)

The four-fold test in Labor Law is a way of determining the existence of

employer-employee relationship if such relationship is in question. In other words, the
four-fold test is applied by the courts to determine whether an employer-employee
relationship exists. It is comprised by the following;

1. The selection and engagement of the employee. (Power to Hire) – This refers to
the “choice” of the employer to hire the services of a worker and his commitment
to keep the latter as his employee by abiding to the laws that protect the rights of
the latter.
2. The payment of wages. (Power to Pay Wages) – Payment refers to the
compensation that an employee gets for work performed. It is therefore a
responsibility of the employer to compensate the employee in exchange of his
work rendered.
3. The power of dismissal (Power to Dismissal) – Dismissal is a component of the
employer’s power to move or organize employees. It’s a management prerogative
granted to him giving him the authority to choose whom to fire and/or hire. This
act by the employer may result to the termination of employment relationship.
4. The employer’s power to control the employee with respect to the means and
methods by which the work is to be accomplished. (Power to Control)- Control is
another management prerogative giving the employees the power to regulate
works to achieve a certain outcome. However, controlling does not mean
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manipulation the workers. It is considered as the most important element of the

four-fold test because without it, employer-employee relationship does not exist.

To sum it up, through the use of four-fold test, if substantial evidence is

presented showing that a person selects and engages another for employment, pays
his/her wages, has the power to dismiss him/her and control his/her actions or
conduct, then the court will consider it as his/her employer. Therefore, it will be clear
whether an employer-employee relationship exists between the two.

3. Give the Constitutional Provision that is relied upon the principle that Labor Disputes
are settled first through Alternative Dispute Resolution. (10 pts.)

Labor disputes under the Philippine Law are questions or controversies with
regards to the terms and conditions of employment, it also includes the methods implied
to negotiate, fix, arrange, or modify over such terms and conditions.

In settling these disputes, the law is vocal and clear that in order to foster
industrial peace, the Philippine Constitution mandates the promotion of shared
responsibility between workers and employers and the preferential use of voluntary
modes in settling disputes including conciliation and the enforcement of mutual
compliance therewith. (Art XIII Section 3 (3), 1987 Philippine Constitution)

It is mentioned in the above given constitutional provision that the voluntary

mode in settling disputes is highly preferred such as mediation, arbitration and including
conciliation. This is often referred to as Alternative Dispute Resolution or ADR. Labor
disputes are settled first through ADR instead of resorting to the adjudication of a
presiding judge or court or other related government agencies. Through ADR, both
parties are given a speedy and more efficient ways in resolving their disputes.

4. Discuss the meaning of Duty to Bargain Collectively under the following

circumstances:
a. without existing Collective Bargaining Agreement 5 pts.

It is the duty of the employer and the representatives of the employees to

bargain collectively in case of absence or non-existence of a Collective
Bargaining agreement or any voluntary arrangement providing for a more
expeditious manner of collective bargaining. (Art 251, Labor Code of the Phils)

With that being said, the duty to bargain means in essence the mutual
obligation of the employer and the employees’ majority union to meet and
convene for the purposes of;

(1) Negotiating an agreement on the subjects of:

(a) Wages
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(b) Hours of work and

(c) All other terms and conditions of employment including proposals for
adjusting grievances or questions arising under such agreement; and

(2) Executing a contract incorporating such agreement if requested by either

party.

However, the kind of compliance required is prompt, expeditious, and in

good faith and the limitations or reservations of the duty are that it does not
compel any party to agree to a proposal or to make a concession. (Art 252,
Labor Code of the Phils)

b. with existing Collective Bargaining Agreement. 5 pts.

In such cases where there is an existing Collective Bargaining Agreement,

duty to bargain means all of the above and, additionally, the obligation not to
terminate or modify the CBA during its lifetime.

But 60 days before the CBA expires, either party may notify the other in
writing that it desires to terminate or modify the agreement. During the 60-day
period and until a new agreement is reached, the CBA remains in full force
and effect; the parties are duty bound to keep the status quo. The law
therefore provides for automatic renewal or extension of the CBA.

This 60-day period under Art 253 refers to submission of proposals to

renegotiate the nonrepresentational provisions of the CBA. It does not always
coincide with the 60-day period mentioned in Articles 253-A and 256 pertaining
to “freedom period” to resolve representation contest between unions (Art 253,
Labor Code of the Phils)

GOOD LUCK!!!