6/21/2021 G.R. No. 195297, December 05, 2018 - COCA-COLA BOTTLERS PHILIPPINES, INC., Petitioner, v.

ner, v. ILOILO COCA-COLA PLANT EMPL…

SECOND DIVISION

G.R. No. 195297, December 05, 2018

COCA-COLA BOTTLERS PHILIPPINES, INC., Petitioner, v. ILOILO COCA-COLA PLANT

DECISION

A. REYES, JR., J.:

Challenged before this Court via this Petition for Review on Certiorari1 under Rule 45 of the Rules of
Court is the Decision2 dated June 23, 2010 of the Court of Appeals (CA), and its Resolution3  dated
October 19, 2010 which reversed the Decision4 dated September 7, 2006 of the National Conciliation
and Mediation Board (NCMB), Regional Branch No.6, Iloilo City, in Case No. PAC-613-RB6-02-01-06-
2006.

The Antecedent Facts

Petitioner Coca-Cola Bottlers Philippines, Inc. (CCBPI) is a domestic corporation engaged in the
business of manufacturing and selling of leading non-alcoholic products and other beverages.5  It
operates a manufacturing plant in Ungka, Pavia, Iloilo City, where the aggrieved former employees
herein, as represented by respondent Iloilo Coca-Cola Plant Employees Labor Union (respondent),
worked as regular route drivers and helpers.6

The conflict arose due to the CCBPI's policy involving Saturday work. In the said policy, several of
CCBPI's employees were required to report for work on certain Saturdays to perform a host of
activities, usually involving maintenance of the facilities. This prerogative was supposedly consistent
with the pertinent provisions7 in the Collective Bargaining Agreement (CBA) between CCBPI and its
employees, which stated that management had the sole option to schedule, work on Saturdays on the
basis of operational necessity.8

CCBPI later on informed the respondent that, starting July 2, 2005, Saturday work would no longer be
scheduled, with CCBPI citing operational necessity as the reason for the decision.9  Specifically, the
discontinuance was done with the purpose of saving on operating expenses and compensating for the
anticipated decreased revenues. As Saturday work involved maintenance-related activities, CCBPI
would then only schedule the day's work as the need arose for these particular undertakings,
particularly on some Saturdays from September to December 2005.10

On July 1, 2005, the parties met, with CCBPI's Manufacturing Manager setting forth the official
proposal to stop the work schedule during Saturdays.11 This proposal was opposed and rejected by
the officers and members of the respondent who were present at the meeting. Despite this
opposition, CCBPI pushed through with the non-scheduling of work on the following Saturday, July 2,
2005.

As a result of the foregoing, the respondent submitted to CCBPI its written grievance, stating therein
that CCBPI's act of disallowing its employees to report during Saturday is a violation of the CBA
provisions, specifically Section 1, Article 10 thereof.12  Along with the submission of the written
grievance, the respondent also requested a meeting with CCBPI to discuss the issue. CCBPI response
to the request, however, was to merely send a letter reiterating to the respondent that under the set
of facts, management has the option to schedule work on Saturday on the basis of operational
necessity.13  Further letters on the part of the respondent were responded to in the same way by
CCBPI.

Respondent thus brought its grievances to the office of the NCMB, and on June 9, 2006, the parties
pursuant to the provisions of their CBA submitted the case for voluntary arbitration.14  The panel
comprised of three (3) voluntary arbitrators (the Panel of Arbitrators), was charged with resolving two
issues: First, whether or not members of the respondent were entitled to receive their basic pay
during Saturdays under the CBA even if they would not report for work, and second, whether or not
CCBPI could be compelled by the respondent to provide work to its members during Saturdays under
the CBA.15

After the presentation of evidence and the subsequent deliberations, the Panel of Arbitrators ruled in
favor of CCBPI, the dispositive part of the decision reading:

IN VIEW OF THE FOREGOING, the Panel of Arbitrators, rules on the first issue, that the
Complainant's Union members are nary entitled to receive their Basic Pay during
Saturdays under the CBA if they are not reporting for work, under Section I Article 10, and
Sections 1(c) and 3(c) Article II of the CBA.

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On the second issue, the PANEL, rules that [CCBPI] cannot be compelled by the
Complainant Union to provide works to its members during Saturdays under the CBA, for
lack of legal and factual basis.

SO ORDERED.16

Respondent's Motion for Reconsideration to the Panel of Arbitrators' ruling was denied for lack of merit
on October 24, 2006.17

Unwilling to accept the findings of the Panel of Arbitrators, the respondent elevated its case to the
CA via a Petition for Review under Rule 43 of the Rules of Court. After a review of the same, the CA
subsequently rendered a Decision18  dated June 23, 2010 granting the respondent's Petition for
Review and reversing the decision of the Panel of Arbitrators. The dispositive portion of the CA
decision reads, to wit:

WHEREFORE, premises considered, the petition is GRANTED. The assailed Decision, dated
07 September 2006, and, Order, dated 24 October 2006, respectively, by the panel of
voluntary arbitrators, namely: Atty. Mateo A. Valenzuela, Atty. Inocencio Fener, Jr., and
Gloria Aniola, of the NCMB. Regional Branch No. 6, Iloilo City, are REVERSED and SET
ASIDE. A NEW judgment is rendered ORDERING CCBPI to:

1. COMPLY with the CBA provisions respecting its normal work week, that is, from Monday
to Friday for eight (8) hours a day and on Saturdays for four (4) hours;

2. ALLOW the concerned union members to render work for four (4) hours on Saturdays;
and

3. PAY the corresponding wage for the Saturdays work which were not performed pursuant
to its order to do so commencing on 02 July 2005, the date when it actually refused the
concerned union members to report tor work, until the finality of this decision. The rate for
work rendered on a Saturday is composed of the whole daily rate (not the amount
equivalent to one-half day rate) plus the corresponding premium.

No Costs.

SO ORDERED.19

CCBPI's Motion for Reconsideration was denied by the CA in a Resolution20 dated October 19, 2010
received on January 28, 2011. On appeal to this Court, on February 11, 2011, CCBPI filed Motion for
Extension and requested for an additional period of 30 days from February 12, 2011, or until March
14, 2014, within which to file its Petition for  Certiorari, which was granted by this Court in a
Resolution21 dated February 21, 2011.

Hence, this Petition, to which the respondent filed a Comment22  to on June 11, 2011, the latter
pleading responded to by CCBPI via Reply23 on September 6, 2011.

The Issues of the Case

A perusal of the parties' pleadings will show the following issues and points of contention:

First,  whether or not the CA erred in ruling that under the CBA between the parties, scheduling
Saturday work for CCBPI's employees is mandatory on the part of the Company.

Second,  whether scheduling Saturday work has ripened into a company practice, the removal of
which constituted a diminution of benefits, to which CCBPI is likewise liable to the affected employees
for, including the corresponding wage for the Saturday work which was not performed pursuant to the
policy of the Company to remove Saturday work based on operational necessity.

The Arguments of the Parties

It is the contention of CCBPI that the CA erred in reversing the decision of the Panel of Arbitrators and
finding that the CBA gave the employees the right to compel CCBPI to give work on Saturdays, that
the scheduling of work on a Saturday had ripened into a company practice, and that the subsequent
withdrawal of Saturday work constituted a prohibited diminution of wages. CCBPI states that this
ruling is contrary to fact and law and unduly prejudiced CCBPI as the company was ordered to allow
the affected employees to render work for four hours on Saturdays. CCBPI was also ordered to pay
the corresponding wage for the Saturday work which were not performed pursuant to its order to do
so, the said amount corresponding to the date when the company actually refused the affected
employees to report for work, until the finality of this decision.24

CCBPI argues that based on the provisions of its CBA, specifically Article 10, Section 1, in relation
with, Article 11, Section 1 (c) and Section 2(c), it is clear that work on a Saturday is optional on the
part of management,25  and constitutes a legitimate management prerogative that is entitled to
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respect and enforcement in the interest of simple fair play.26 CCBPI likewise posits that the option to
schedule work necessarily includes the prerogative not to schedule it. And, as the provisions in the
CBA are unmistakable and unambiguous, the terms therein are to be understood literary just as they
appear on the face of the contract.27

For CCBPI, permitting the workers to suffer work on a Saturday would render the phrase "required to
work'' in Article 10, Section 1 and Article II, Section 2(c) meaningless and superfluous, as while the
scheduling of Saturday work would be optional on the pat1of management, the workers would still be
required to render service even if no Saturday work was scheduled.28

Aside front the clear and unambiguous provisions of the CBA, CCBPI states that the evidence on
record negates the finding that Saturday work is mandatory.29 The evidence shows that only some,
and not all the same daily-paid employees reported for work on a Saturday, and the number of the
daily-paid employees who reported for work on a Saturday always depended on the CCBPI's
operational necessity.30 The optional nature of the work on the Saturday is also highlighted by the
fact that, subject to the fulfillment of certain conditions, the employees who were permitted to suffer
work on such day are compensated with a premium pay.31 This means that work on a Saturday is
part of the normal work week, as there would be no reason why employees who reported for work on
such date should be given additional compensation or premium pay.

CCBPI also disagrees with the CA that the scheduling of work on a Saturday had ripened into a
company practice and that the withdrawal of Saturday work constitutes a prohibited diminution of
wages.32  CCBPI maintains that work on a Saturday does not amount to a benefit as a result of a
long-established practice. CCBPI states that in several analogous cases involving overtime
work,  Manila Jockey Club Employees Labor-Union-PTGWO v. Manila Jockey Club, Inc.33  and  San
Miguel Corporation v. Layoc, Jr.,34 the Court has already ruled that the work given in excess of the
regular work hours is not a "benefit" and the previous grant thereof cannot amount to a "company
practice." CCBPI particularly cites the Layoc case which held that there is no violation of the rule on
non-diminution of benefits as.the nature of overtime work of the supervisory employees would show
that these are not freely given by the employer, and that on the contrary, the payment of overtime
pay is made as a means of compensation for services rendered in addition to the regular hours of
work.35

CCBPI likewise cites several cases involving overtime work, there the Court ruled that the work given
in excess of the regular work hours is not a "benefit" and the previous grant thereof cannot amount to
a "company practice."36 As a premium day, that Saturday would have the effect of being a holiday
wherein the employees are entitled to receive their pay whether they reported for work or not.37

For CCBPI, the previous grant of Saturday work cannot amount to a benefit that cannot be withdrawn
by the Company. Contrary to the nature of "benefits" under the law, CCBPI did not freely give
payment for Saturday work, instead paying the employees the corresponding wage and premium pay
as compensation for services rendered in addition to the regular work of eight (8) hours per day from
Mondays to Fridays.38

On the other hand, the respondents argue that CCBPI failed to regard the express provision of the
CBA which delineates CCBPI's normal work-week which consists of five (5) consecutive days (Monday
to Friday) or eight (8) hours each and one (1) day (Saturday) of four (4) hours.39  The highlighted
provision reads as follows:

ARTICLE 10
HOURS OF WORK

SECTION 1.  Work Week. For daily paid workers the nom1al work week shall consist of
five (5) consecutive days (Monday to Friday) of eight (8) hours each find one (1) day
(Saturday) of four (4) hours. Provided, however, that any worker required to work on
Saturday must complete the scheduled shift tor the day and shall be entitled to the
premium pay provided in Article IX hereof.

As such, the respondent advocates that the various stipulations of a contract shall be interpreted
together, and that assuming there is any ambiruity in the CBA, this ambiguity should not prejudice
respondents under the principle that any doubt in all labor legislation and all labor contracts shall be
construed in favor of the safety and decent living for the laborer.40  According to the respondent,
Article 11, Section 1(c) merely grants to CCBPI the option to schedule work on Saturdays on the basis
of operational necessity, and by contrast nothing in the CBA allegedly allows or grants CCBPI the right
or prerogative to unilaterally amend the duly established work week by eliminating Saturday work.41

Respondent also alleges that CCBPI was obliged to provide work on Saturday, not only due to the
apparent .mandate in the CBA, but also as the same ripened into an established company practice, as
CCBPI's practice of providing Saturday work had been observed for several years.42 Respondent thus
contends that the unilateral abrogation of the same would squarely tantamount to diminution of
benefits, especially as the CBA itself expressly provides that Saturday is part of CCBPI's normal work

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week, hence the same cannot be unilaterally eliminated by CCBPI,43 and that the option granted by
the CBA to CCBPI is merely to schedule Saturday work, not eliminate it entirely. Thus, to eliminate
the Saturday work allegedly would amount to diminution of benefits because the affected employees
are ultimately deprived of their supposed salaries or income for that day.44

In its Reply45 to the counter-arguments posited by the respondent in its Comment, CCBPI alleges that
if indeed Saturday work is mandatory under the CBA and all the workers are obliged to render work
on a Saturday, then the phrase "required to work" under Article 10, Section 1 and Article 11, Section
2(c) would be meaningless and superfluous.46  Also, CCBPI takes stock in the fact that the
compensation for work on Saturday is not freely given. Under the scheme followed by the parties
under the CBA, i.e., if the daily-paid employees were permitted to suffer work on a Saturday, they are
given additional compensation or premium pay amounting to 50% of their hourly rate for the first
eight (8) hours, and 75% of their hourly rate for the work rendered in excess thereof under Article
11, Section 2(c) of the CBA.47

Ruling of the Court

The petition is impressed with merit..

As to whether or not the CBA between the parties mandates that CCBII schedule Saturday work for
its employees.

A CBA is the negotiated contract between a legitimate labor organization and the employer concerning
wages, hours of work, and all other terms and conditions of employment in a bargaining unit.48  It
incorporates the agreement reached after negotiations between the employer and the bargaining
agent with respect to terms and conditions of employment.49

It is axiomatic that the CBA comprises the law between the contracting parties, and compliance
therewith is mandated by the express policy of the law.50 The literal meaning of the stipulations of
the CBA, as with every other contract, control if they are clear and leave no doubt upon the intention
of the contracting parties. Thus, where the CBA is clear and unambiguous, it, becomes the law
between the parties and compliance therewith is mandated by the express policy of the
law.51  Moreover, it is a familiar rule in interpretation of contracts that the various stipulations of a
contract shall be interpreted together, attributing to the doubtful ones that sense which may result
from all of them taken jointly.52

Consequently, in this case, recourse to the CBA between CCBPI and the respondent as regards the
hours of work is essential. In Article 10 of the CBA, the company work week is elaborated while also
defining how a Saturday is treated and in fact delineating the same from the other days of the work
week:

ARTICLE 10
Hours of Work

SECTION 1. Work Week. For daily paid workers, the normal work week shall consist of five
(5) consecutive days (Monday to Friday) of eight (8) hours and each and one (1) day
(Saturday) of four (4) hours, provided, however, that any worker required to work on
Saturday must complete the scheduled shift for the day and shall be entitled to the
premium pay provided in Article IX hereof.

xxxx

(c) Saturdays. Saturday is a premium day but shall not be considered as a rest day or
equivalent to a Sunday. It is further agreed that management has the option to schedule
work on Saturdays on the basis of operational necessity.

Section 5 of Article 9 of the CBA, explicitly referred to in Article 10 states:

SECTION 5.  Special Bonus. When a regular employee goes out on his route on a
Saturday, Sunday, or Legal Holiday, either because he is so required by District Sale
Supervisor or because, after securing approval from the District Sales Supervisor. he
voluntarily chooses to do so. he shall be entitled to a special bonus of P280.00.

In making its decision, the CA reasoned that had it really been the intention that Saturday work, by
itself, is optional on CCBPI's part, then there would have been no need to state under the CBA that
Saturday is part of the, normal work week together with the Monday to Friday schedule, and that if
Saturday work is indeed optional, then it would have expressly stipulated the same.53 According to
the CA's interpretation, the provision wherein CCBPI had the option to schedule work on Saturdays on
the basis of operational necessity, simply meant that CCBPI could schedule the mandated four (4)
hours work any time within the 24-hour period on that day, but not remove the hours entirely.54

For the CA, to interpret the phrase "option to schedule'' as limited merely to scheduling the time of
work on Saturdays and not the option to allow or disallow or to grant or not to grant the Saturday
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work itself, is more consistent with the idea candidly stated in the CBA regarding the work week which
is comprised of five (5) consecutive days (Monday to Friday) of eight (8) hours each and one (1) day
(Saturday) of four (4) hours. The foregoing interpretation, as held by the CA, is in harmony with the
context and the established practice in which the CBA is negotiated,55  and that, based on the
foregoing, CCBPI should comply with the provisions respecting its normal work week, that is, from
Monday to Friday of eight (8) hours a day and on Saturdays for four (4) hours. CCBPI thus should
allow the concerned union members to render work for four (4) hours on Saturday.56

The Court disagrees with the interpretation of the CA. In the perusal of the same, the Court finds that
a more logical and harmonious interpretation of the CBA provisions wherein Saturday work is optional
and not mandatory keeps more with the agreement between the parties.

To note, the CBA under Article 11, Section 1(c), clearly provides that CCBPI has the option to
schedule work on Saturdays based on operational necessity. There is no ambiguity to the provision,
and no other interpretation of the word "work" other than the work itself and not the working hours.
If the parties had truly intended that the option would be to change only the working hours, then it
would have so specified that whole term "working hours" be used, as was done in other provisions of
the CBA. By comparison, there is a provision in Article 10 that states:

SECTION 2.  Changes in Work Schedule. The present regular working hours shall be
maintained for the duration of this Agreement. However, it is hereby agreed that the
COMPANY may change the prevailing working hours, if in its judgment, it shall find such
change or changes advisable or necessary either as a permanent or temporary measure,
provided at least twelve (12) hours notice in advance is given of such change or changes,
and provided, further, that they are in accordance with law.

Here, hours are specified as that which can be changed regarding the work schedule. The Court
compares this to Article 11, where it is expressly stated' that management has the option to
schedule  work  on Saturdays on the basis of operational necessity. To emphasize, if it is only the
hours that management may amend, then it would have been so stated, with that specific term used
instead of just merely "work," a more general term.

Also, as correctly pointed out by CCBPI, if Saturday work is indeed mandatory under the CBA, the
phrase "required to work on a Saturday" in Article 10, Section 1 would be superfluous. The same
phrase is also found in Article 11, Section 2(c) which provides that "a worker paid on daily basis
required to work on a Saturday shall be paid his basic hourly rate plus fifty (50%) percent thereof."

For the Court, the phrase "schedule work on Saturdays based on operational necessity," by itself, is
union recognition that there are times when exigencies of the business will arise requiring a manning
complement to suffer work for four additional hours per week. Necessarily, when no such exigencies
exist, the additional hours of work need not be rendered.

As such, the provisions' tenor and plain meaning give company management the right to compel its
employees to suffer work on Saturdays. This necessarily includes the prerogative not to schedule
work. Whether or not work will be scheduled on a given Saturday is made to depend on operational
necessity. The CBA therefore gives CCBPI the management prerogative to provide its employees with
Saturday work depending on the exigencies of the business.

This reading of the CBA is made even more apparent by the fact that workers who are required to
work on Saturdays are paid a premium for such work. Notably, in the section on Premium Pay, it is
stated:

(c) Saturdays. Even though Saturday is not his rest day - A worker paid on daily basis
required to work on a Saturday shall be paid his basic hourly rate plus fifty (50%) percent
thereof for each hour worked not in excess of eight hours; if he is required to work more
than eight (8) hours, he shall be paid his basic hourly rate plus seventy-five (75%) thereof
for each hour worked in excess of eight (8) hours.

If Saturday was part of the regular work week and not dependent on management's decision to
schedule work, there would be no need to give additional compensation to employees who report to
work on that day. The CA erred in taking into account that employees required to work on that day
but who would fai1 to report, would be marked down as having gone on leave.57 The Court agrees
with CCBPI that such conclusion is non sequitur and that the markings merely indicated the fact that
they did not report for work (even if required) and the reasons for their absence, whether legitimate
or not.58 This understanding is bolstered by the fact that not all daily-paid workers were required to
report for work, which and if indeed Saturday was to be considered a regular work day, all the3e
employees should have been required to report for work.59

In sum, by not taking these provisions into account, the CA ignored the well-settled rule that the
various stipulations of a contract must be interpreted together. The Court finds that relying on the
interpretation of the CA would result in the patent absurdity that the company would have to look for
work for the employees to do even if there is none, on the Saturday as stated. Even if one were to
downplay the lack of logic with this assertion, as mentioned the CBA provisions are clear and
unambiguous, leaving no need for a separate interpretation of the same.
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As to whether scheduling Saturday work has ripened into a company practice, the removal of which
constituted a diminution of benefits.

In the decision of the CA, it was held that the fact that CCBPI had been providing work to its
employees every Saturday for several years, a circumstance that proved Saturday was part of the
regular work week, made the grant of Saturday work ripen into company practice.

In asking the Court to reverse the ruling of the CA, CCBPI argues that work on a Saturday is akin to
overtime work because employees who are required to perform such work are given additional
compensation or premium in the CBA.60 Citing Layoc,61 CCBPI stresses that since overtime work does
not fall within the definition of benefits, the same is not protected by Article 100 of the Labor Code
which proscribes the diminution of benefits. To wit:

First. respondents assert that Article 100 of the Labor Code prohibits the elimination or
diminution of benefits. However, contrary to the nature of benefits, petitioners did not
freely give the payment for overtime work to respondents. Petitioners paid respondents
overtime pay as  compensation  for services rendered in addition to the regular work
hours. Respondents rendered overtime work only when their services were needed after
their regular working hours and only upon the instructions of their superiors. Respondents
even differ as to the amount of overtime pay received on account of the difference in the
additional hours of services rendered.

xxxx

Aside from their allegations, respondents were not able to present anything to prove that
petitioners were obliged to permit respondents to render overtime work and give them the
corresponding overtime pay. Even if petitioners did not institute a "no time card policy,"
respondents could not demand overtime pay from petitioners if respondents did not render
overtime work. The requirement of rendering additional service differentiates overtime pay
from benefits such as thirteenth month pay or yearly merit increase. These benefits do not
require any additional service from their beneficiaries. Thus, overtime pay does not fall
within the definition of benefits under Article 100 of the Labor Code.62

The Court does not agree with the argument of CCBPI. CCBPI overlooks the fact that the term
overtime work has an established and technical meaning under our labor laws, to wit:

Article 87.  Overtime work. Work may be performed beyond eight (8) hours a day
provided that the employee is paid for the overtime work, an additional compensation
equivalent to his regular wage plus at least twenty-five percent (25%) thereof. Work
performed beyond eight hours on a holiday or rest day shall be paid an additional
compensation equivalent to the rate of the first eight hours on a holiday or rest day plus at
least thirty percent (30%) thereof.

It can be deduced from the foregoing provision that overtime work is work exceeding eight hours
within the worker's 24-hour workday.63 What is involved in this case is work undertaken within the
normal hours of work on Saturdays and not work performed beyond eight hours in one day. Under
Article 83 of the Labor Code:

Article. 83. Normal hours of work. The normal hours of work of any employee shall not
exceed eight (8) hours a day.

Despite the mistaken notion of CCBPI that Saturday work is synonymous to overtime work, the Court
still disagrees with the CA ruling that the previous practice of instituting Saturday work by CCBPI had
ripened into a company practice covered by Article 100 of the Labor Code.

To note, it is not Saturday work  per se  which constitutes a benefit to the company's employees.
Rather, the benefit involved in this case is the premium which the company pays its employees above
and beyond the minimum requirements set by law. The CBA between CCBPI and the respondent
guarantees the employees that they will be paid their regular wage plus an additional 50% thereof for
the first eight (8) hours of work performed on Saturdays. Therefore, the benefit, if ever there is one,
is the premium pay given by reason of Saturday work, and not the grant of Saturday work itself.

In Royal Plant Workers Union v. Coca-Cola Bottlers Philippines, Inc.-Cebu Plant,64 the Court had the
occasion to rule that the term "benefits" mentioned in the non-diminution rule refers to monetary
benefits or privileges given to the employee with monetary equivalents. Stated otherwise, the
employee benefits contemplated by Article 100 are those which are capable of being measured in
terms of money. Thus, it can be readily concluded from past jurisprudential pronouncements that
these privileges constituted money in themselves or were convertible into monetary equivalents.65

In order for there to be proscribed diminution of benefits that prejudiced the affected employees,
CCBPI should have unilaterally withdrawn the 50% premium pay without abolishing Saturday work.
These are not the facts of the case at bar. CCBPI withdrew the Saturday work itself, pursuant, as
already held, to its management prerogative. In fact, this management prerogative highlights the fact

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that the scheduling of the Saturday work was actually made subject to a condition,  i.e., the
prerogative to provide the company's employees with Saturday work based on the existence of
operational necessity.

In  Eastern Telecommunications Philippines, Inc. v. Eastern Telecoms Employees Union,66  the
company therein allegedly postponed the payment of the 14th  , 15th  , and 16th  month bonuses
contained in the CBA, and unilaterally made the payment subject to availability of funds. Because of
its severe financial condition, the company refused to pay the subject bonuses. The Court, in holding
that such act violated the proscription against diminution of benefits, observed that the CBA provided
for the subject bonuses without qualification-their grant was not made to depend on the existence o,f
profits. Since no conditions were specified in the CBA for the grant of the subject benefits, the
company could not use its dire financial straits to justify the omission.

As compared to the factual milieu in the Eastern Telecommunications case, the CBA between CCBPI
and the respondent has no analogous provision which grants that the 50% premium pay would have
to be paid regardless of the occurrence of Saturday work. Thus, the non-payment of the same would
not constitute a violation of the diminution of benefits rule.

Also, even assuming arguendo that the Saturday work involved in this case falls within the definition
of a "benefit" protected by law, the fact that it was made subject to a condition (i.e., the existence of
operational necessity) negates the application of Article 100 pursuant to the established doctrine that
when the grant of a benefit is made subject to a condition and such condition prevails, the rule on
non-diminution finds no application. Otherwise stated, if Saturday work and its corresponding
premium pay were granted to CCBPI's employees without qualification, then the company's policy of
permitting its employees to suffer work on Saturdays could have perhaps ripened into company
practice protected by the non-diminution rule.

Lastly, the Court agrees with the assertion of CCBPI that since the affected employees are daily-paid
employees, they should be given their wages and corresponding premiums for Saturday work only if
they are permitted to suffer work. Invoking the time-honored rule of "a fair day's work for a fair day's
pay," the CCBPI argues that the CA's ruling that such unworked Saturdays should be compensated is
contrary to law and the evidence on record.

The CA, for its part, ruled that the principle of "a fair day's work for a fair day's pay" was irrelevant to
the instant case. According to the appellate court, since CCBPI's employees are daily-paid workers,
they should be paid their whole daily rate plus the corresponding premium pay in the absence of a
specific CBA provision that directed wages to be paid on a different rate on Saturdays. This was
notwithstanding the fact that the duration of Saturday work lasted only for four hours or half the time
spent on other workdays.

The CA erred in this pronouncement. The age-old rule governing the relation between labor and
capital, or management and employee, of a "fair day's,wage for a fair day's labor" remains the basic
factor in determining employees' wages.67 If there is no work performed by the employee, there can
be no wage.68  In cases where the employee's failure to work was occasioned neither by his
abandonment nor by termination, the burden of economic loss is not rightfully shifted to the
employer; each party must bear his own loss.69 In other words, where the employee is willing and
able to work and is not illegally prevented from doing so, no wage is due to him. To hold otherwise
would be to grant to the employee that which he did not earn at the prejudice of the employer.

In the case at bar, CCBPI's employees were not illegally prevented from working on Saturdays. The
company was simply exercising its option not to schedule work pursuant to the CBA provision which
gave it the prerogative to do so. It therefore follows that the principle of "no work, no pay" finds
application in the instant case.

Having disposed of the issue on wages for unworked Saturdays in consonance with the well-settled
rule of "no work, no pay," this Court deems it unnecessary to belabor on the CA ruling that the
concerned employees should be paid their whole daily rate, and not the amount equivalent to one-half
day's wage, plus corresponding premium.

On a final note, the Court cannot emphasize enough that its primary role as the vanguard of
constitutional guaranties charges it with the solemn duty of affording full protection to labor.70 It is, in
fact, well-entrenched in the deluge of our jurisprudence on labor law and social legislation that the
scales of justice usually tilt in favor of the workingman.71 Such favoritism, however, has not blinded
the Court to the rule that justice is, in every case for the deserving, to be dispensed in the light of the
established facts and applicable law and doctrine.72 The law does not authorize the oppression or self-
destruction of the employer.73  Management also has its own rights, which, as such, are entitled to
respect and enforcement in the interest of simple fair play.74 After all, social justice is, in the eloquent
words of Associate Justice Jose P. Laurel, "the humanization of laws and the equalization of social and
economic forces by the State so that justice in its rational and objectively secular conception may at
least be approximated."75

WHEREFORE, the Decision of the Court of Appeals dated June 23, 2010, and the Resolution dated

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6/21/2021 G.R. No. 195297, December 05, 2018 - COCA-COLA BOTTLERS PHILIPPINES, INC., Petitioner, v. ILOILO COCA-COLA PLANT EMPL…

October 19, 2010 are  REVERSED  and  SET ASIDE. The Decision of the National Conciliation and
Mediation Board, Regional Branch No. 6, Iloilo City dated September 7, 2006, in Case No. PAC-613-
RB6-02-01-06-2006 is AFFIRMED.

SO ORDERED.

Carpio, (Chairperson), Perlas-Bernabe, Caguioa, and Carandang, JJ., concur.

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