Case #/ Name G.R. No.

L-25316 February 28, 1979

Parties Kapisanan ng mga Manggagawa sa Manila Railroad Company Credit Union, Inv vs. Manila Railroad Company
(Gregorio Fajardo) (Gregorio Baroque)
Topic/Point of Discussion When does Statutory Construction Come in
Facts
The petitioner-appellant seeks for the reversal of a decision made by the lower
court dismissing their petition for mandamus, which relied on what was considered to be
a right granted by Republic Act No. 2023 Section 62 more specifically paragraph 1 and 2.
*They argued that the provision of this law provides that the loans granted by credit unions to its members
enjoy first priority in the payroll collection from the employees‘ wage and salaries.
*However, the lower court determined that the mandatory character of RA 2023 is only to
compel the employer to make the deduction of the employees‘ debt from the latter‘s
salary and turn it over to the employees‘ credit union but it does not convert the credit
union‘s credit into a top priority credit.

Issue Whether or not RA 2023 makes credit union‘s credit into top priority credit in
making deductions to employees‘ salaries? NO.

Held/Ruling When the statutory norm speaks unequivocally, there is nothing for the courts to
do except apply it. The law, leaving no doubt as to the scope of its operation must be
obeyed.
Republic Act 2023 speaks for itself. There exists no ambiguity. As thus worded,
it is clear that in the assailed provisions of this law that it only compels employers to
deduct from the salaries of their employees‘ their credits to their credit unions, but it
does not make these credits top priority credits. As thus worded, it must then be
applied.

Republic Act No. 2023 Sec 62 par (1) and (2)

Supplemental Notes Section 62. Agreements with members for deductions from salary to meet claims of co-operative permitted.

(1) A member of a co-operative may, notwithstanding the provisions of existing laws, execute an agreement in
favor of the co-operative authorizing his employer to deduct from the salary or wages payable to him by the
employer such amount as may be specified in the agreement and to pay the amount so deducted to the co-
operative in satisfaction of any debt or other demand owing from the member to the co-operative.

(2) Upon the execution of such agreement the employer shall, if so required by the co-operative by a request in
writing and so long as such debt or other demand or any part of it remains unpaid, make the deduction in
accordance with the agreement and remit forthwith the amount so deducted to the co-operative.