Legislative power

CEBU OXYGEN & ACETYLENE CO., INC. (COACO) petitioner,

vs.
SECRETARY FRANKLIN M. DRILON OF THE DEPARTMENT OF LABOR AND EMPLOYMENT,
ASSISTANT REGIONAL DIRECTOR CANDIDO CUMBA OF THE DEPARTMENT OF LABOR AND
EMPLOYMENT, REGIONAL OFFICE NO. 7 AND CEBU OXYGEN-ACETYLENE & CENTRAL
VISAYAS EMPLOYEES ASSOCIATION (COACVEA) respondents.

G.R. No. 82849 August 2, 1989

GANCAYCO, J.;

POINT OF THE CASE:

The legislative power, which includes altering a law, is vested in the Congress of the Philippines comprised
of the Senate and House of Representatives.

FACTS OF THE CASE:

Petitioner Cebu Oxygen and Acetylene Company Inc. entered into a Collective Bargaining Agreement
(CBA) with its employees, increasing the salaries of all regular covered employees by P200 for the years
1986 and 1987 and P300 for 1989. It was stipulated in the contract that if ever there were legislations
passed that would increase salaries greater than the one in the CBA, the company would pay the difference.
RA 6640 (An Act Providing for an Increase in the Wage of Public or Government Sector Employees on a
Daily Wage Basis and in the Statutory Minimum Wage and Salary Rates of Employees and Workers in the
Private Sector and for Other Purposes) was passed which directs minimum daily wage to be increased by
P10 per day. The Secretary of the Department of Labor and Employment (DOLE), Franklin Drilon,
promulgated Implementing Rules and Regulations for RA 6640. Section 8 of the IRR stated that increases
by companies will not be credited as compliance if these weren’t stated in the CBA in anticipation of RA
6640. The petitioner argue that the provision is null and void on the ground that it unduly expands the
provisions of the said law.

ISSUE:
Whether or not an Implementing Order of the Secretary of Labor and Employment (DOLE) can provide for
a prohibition not contemplated by the law it seeks to implement.

RULING:
No. Implementing rules and regulations cannot provide for a prohibition not contemplated by the law. The
law cannot be expanded by its regulations. Administrative regulations must harmonize with the law and not
unduly expand it. An administrative agency cannot amend an act of Congress. Section 8 of the rules
implementing Republic 6640 is declared null and void in so far as it excludes the anniversary wage
increases negotiated under collective bargaining agreements from being credited to the wage increase
provided for under Republic Act No. 6440.