ASIAN TRANSMISSION CORP V CA(BISIG NGASIAN TRANSMISSION LABOR UNION) 425 SCRA 478 CARPIO-MORALES; March 15, 2004

NATURE Petition for certiorari seeking the nullification of the March 28, 2000 Decision of the Court of Appeals FACTS T h e D e p a r t m e n t o f L a b o r a n d E m p l o y m e nt ( D O L E ) , t h r o u g h Undersecretary Cresenciano B. Trajano, issued an Explanatory B u l l e t i n d a t e d M a r c h 11 , 1 9 9 3 , w h e r e i n i t c l a r i f i e d , t h a t employees are entitled to 200% of their basic wage on April 9, 1 9 9 3 , w h i c h , a p a r t f r o m b e i n g G o o d F r i d ay, a n d , t h er e f o r e, a legal holiday, is also Araw ng Kagitingan,which is also a legal holiday, even if unworked. - Said bulletin was reproduced on January 23, 1998, when April 9, 1998 was both Maundy Thursday and Araw ng Kagitingan - Despite the explanatory bulletin, petitioner Asian Transmission Corporation opted to pay its daily paid employees only 100% of their basic pay on April 9, 1998. - Respondent Bisig ng Asian Transmission Labor Union (BATLU) protested. - In accordance with Step 6 of the grievance procedure of the Collective Bargaining Agreement (CBA) existing b e t w e e n p e t i t i o n e r a n d B AT L U , t h e c o n t r o v e r s y w a s s u b m i t t e d f o r voluntary arbitration. - O n J u l y 3 1 , 1 99 8 , t h e O ff i c e o f t h e Vo l u n t ar y A r b i t r a t o r r e n d e r e d a d e c i s i o n d i r e c t i n g p et it i o n er t o p ay i t s covered e m p l o y e e s " 2 0 0 % a n d n o t j u s t 1 0 0 % o f t h e i r r e g u l a r d a i l y wages for the unworked April 9, 1998 - Subject of interpretation in the case at bar is Article 94 o f t h e Labor which was amended by Executive Order No. 2034 - In deciding in favor of the Bisig ng Asian Transmission Labor Union (BATLU), the Voluntary Arbitrator held that Article 94 of the Labor Code provides for holiday pay for every regular h o l i d a y, t h e c o m p u t at i o n o f w h i c h i s d et er m i n ed b y a l eg al

f o r m u l a w h i c h i s n ot c h an g e d b y t h e f ac t t h at t h er e ar e t w o holidays falling on one day; and that that the law, as amended, enumerates ten regular holidays for every year, and should not be interpreted as authorizing a reduction to nine the number of paid regular holidays "just because April 9 (Araw ng Kagitingan) in certain years, like 1993 and 1998, is also Holy Friday or Maundy Thursday." - T h e C o u r t o f A p p e al s u p h el d t h e f i n d i n g s o f t h e Vo l u n t ar y A r b it r at o r, h o l d i n g t h at t h e C o l l ect i v e B ar g ai n i n g A g r e em en t ( CB A ) b et w e e n p et i t i o n er a n d B AT L U, t h e l aw g o v e r n i n g t h e relations between them, clearly recognizes their intent to consider Araw ng Kagitingan an d M a u n d y T h u r s d ay, o n whatever date they may fall in any calendar year, as paid legal holidays during the effectivity of the CBA and that "there is no condition, qualification or exception for any variance from the clear intent that all holidays shall be compensated. - The Court of Appeals further held that "in the absence of an ex p l i c i t p r o v i s i o n i n l aw w h i c h p r o v i d es f o r [ a] r ed u c t i o n o f holiday pay if two holidays happen to fall on the same day, any d o u b t i n th e i n t e r p r e t a t i o n a n d i m p l em e n t a t i o n o f t h e Labor Code provisions on holiday pay must be resolved in favor of labor." Hence, this petition.

ISSUE WON daily-paid employees are entitled to be paid for t w o regular holidays which fall on the same day HELD YES - Holiday pay is a legislated benefit enacted as part of t h e Constitutional imperative that the State shall afford protection to labor. Its

purpose is not merely "to prevent diminution of the m o n t h l y i n c o m e o f t h e w o r k e r s o n a c c o u n t o f w o r k interruptions. In other words, although the worker is forced to t a k e a r e s t , h e e a r n s w h at h e s h o u l d e a r n , t h at i s , h i s h o l i d a y pay." It is also intended to enable the worker to participate in the national celebrations held during the days identified as with great historical and cultural significance. - Independence Day (June 12), Araw ng Kagitingan (April 9), N at i o n a l H e r o e s D a y ( l a s t S u n d a y o f A u g u st ) , B on i f ac i o D ay ( N o v e m b e r 3 0 ) a n d R i z a l D a y ( D e c e m b er 3 0 ) w er e d ec l a r e d national holidays to afford Filipinos with a recurring opportunity t o c o m m e m o r a t e t h e h e r o i s m o f t h e F i l i p i n o p eo p l e, p r o m ot e national identity, and deepen the spirit of patriotism. Labor Day ( M a y 1 ) i s a day traditionally reserved to celebrate t h e c o n t r i b u t i o n s o f t h e w o r k i n g c l a s s t o t h e d ev e l o p m e nt o f t h e n at i o n , w h i l e t h e r e l i g i o u s h o l i d a y s d es i g n at ed i n E x ec u t i v e O r d er N o . 2 0 3 a l l o w t h e w o r k e r t o c e l e b r a t e h i s f ait h w i t h h i s family. - A s r e f l e c t e d a b o v e , A r t . 9 4 o f t h e L a b o r C o d e, a s a m en d ed , a ff o r d s a w o r k e r t h e e n j o y m e n t o f t e n p ai d r eg u l ar h o l i d ay s . The provision is mandatory, regardless of whether an employee is paid on a monthly or daily basis. Unlike a bonus, which is a m a n a g e m e n t p r er o g at i v e, h o l i d ay p ay i s a s t at u t o r y b e n e f i t demandable under the law. Since a worker is entitled to the enjoyment of ten paid regular holidays, the fact that two h o l i d a y s f a l l o n t h e s a m e d a t e s h o u l d n o t o p e r a t e t o reduce to nine t h e t e n h o l i d a y p a y b e n e f i t s a w o r k e r i s entitled to receive. - It is elementary, under the rules of statutory construction, that w h e n t h e language of the law is clear and unequivocal, the law must be taken to mean exactly what it says. In the case at bar, there is nothing in the law w h i c h provides or indicates that the entitlement to ten days of holiday pay shall be reduced to nine when two holidays fall on the same day. In any event, Art. 4 of the Labor Code provides that all d o u b t s i n t h e implementation and interpretation of its p r o v i s i o n s ,

i n c l u d i n g i t s i m p l e m e n t i n g r u l e s a n d r eg u l a t i o n s , s h a l l b e r e s o l v e d i n fa v o r o f l a b o r. F o r t h e working mans welfare should be the primordial and paramount consideration. M o r eo v er, S ec . 11 , R u l e I V, B o o k I I I o f t h e O m n i b u s R u l e s t o Implement the Labor Code provides that "Nothing in the law or the rules shall justify an employer in withdrawing or reducing an y b e n e f it s , s u p p l e m e nt s o r p ay m e nt s f o r u n w o r k ed r eg u l ar h o l i d a y s a s provided in existing individual or collective agreement or employer practice or policy. From the pertinent provisions of the CBA entered into by the p a r t i e s , p e t i t i o n e r h a d o b l i g a t e d i t s e l f t o p a y f o r t h e l e g a l holidays as required by law. Disposition Petition is dismissed
ART. 94. Right to holiday pay. (a) Every worker shall be paid his regular daily w a g e d u r i n g r e g u l a r h o l i d a ys , e x c e p t i n r e t a i l a n d s e r v i c e e s t a b l i s h m e n t s regularly employing less than ten (10) workers; (b) The employer may require an employee to work on any holiday but such employee shall be paid a compensation equivalent to twice his regular rate; and (c) As used in this Article, "holiday" includes: New Years Day, Maundy Thursday, Good Friday, the ninth of April, the first of May, the twelfth of J u n e , t h e f o u r t h o f J u l y, t h e t h i r t i e t h o f N o v e m b e r, t h e t w e n t y - f i f t h a n d t h i r t i e t h o f December and the day designated by law for holding a general election 4 regular holidays are now:1. New Years Day January 1; 2. Maundy Thursday Movable Date; 3. Good Friday Movable Date; 4. Araw ng Kagitingan April 9 (Bataan and Corregidor Day); 5. Labor Day May 1; 6. Independence Day June 12; 7 . N a t i o n a l Heroes Day Last Sunday of August; 8. Bonifacio Day November 30; 9. Christmas Day December 25; 10. Rizal Day December 30