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THE INTERNATIONAL HARDWOOD AND VENEER COMPANY v THE PANGIL FEDERATION OF LABOR GR No. 47178 | November 25, 1940 Supreme Court En Banc Laurel, J. FACTS: The Secretary of Labor certified to the Court of Industrial Relations (CIR) that an Industrial dispute existed between the petitioner and certain of its employees who are members of respondent union, and that the controversy was a proper one to be dealt with by said Court in the public interest under section 4 of Commonwealth Act No. 103. The industrial dispute mentioned above referred to certain demands made by the respondent on the petitioner, among which were the following: 2. Set the minimum daily wages of common laborers at one peso. 3. Devise a proper schedule of rate of wages for all laborers. 4. The rate of wages for the mountain camps should be higher by 20 per cent over those given in the town. CIR ruled in favor of the union workers. While a motion for reconsideration was pending resolution by the Court, the petitioner filed a motion praying that said Court hold itself without jurisdiction to decide the question relating to demands Nos. 2 and 4, alleging (1) that the Court of Industrial Relations has no authority to determine minimum wages for an individual employer in connection with a particular and specific industrial dispute under the provisions of section 4 of Commonwealth Act No. 103; (2) that such authority would constitute an undue delegation of legislative power to the Court of Industrial Relations and would deny the petitioner the equal protection of the laws, thus rendering said section unconstitutional and void. ISSUE: 1 Whether or not the Court of Industrial Relations has the power to determine minimum wages for an individual employer in connection with an industrial dispute which said court might take cognizance of under the provisions of Commonwealth Act No. 103 2 If it has, whether or not such grant power is unconstitutional and void HELD: 1 Yes, Commonwealth Act No. 103 was created to give effect to the state’s policy recognizing compulsory arbitration in industrial disputes. Sections 4 & 5, together with the other sections complementing it, is designed to provide for compulsory arbitration in order to prevent nonspecific methods in the determination of industrial and agricultural disputes. In Section 4, the Court of Industrial Relations is empowered to "take cognizance for purposes of prevention, arbitration, decision, and settlement, of any industrial or agricultural dispute causing or likely to cause a strike or lockout, arising from differences as regard wages, shares or compensation, dismissals, layoffs, or suspensions of employees or laborers, tenants or farmlaborers, hours of labor, or conditions of tenancy or employment, between employers and employees or laborers and between landlords and tenants or farmlaborers." Section 5, on the other hand, provides for the careful examination that the CIR undertakes to arrive at a proper, just and reasonable minimum wage. 2 No. “Section 20 of Commonwealth Act No. 103 prescribes that in the hearing, investigation and determination of any question or controversy and in exercising any duties and power under this Act, the court shall act according to justice and equity and substantial merits of the case, without regard to technicalities or legal forms. The National Assembly has by this section furnished a sufficient standard by which the court will be guided in exercising its discretion in the determination of any question or controversy before it, and we have already ruled that the discretionary power thus conferred is judicial in character and does not infringe upon the principle of separation of powers, the prohibition against the delegation of legislative function, and the equal protection clause of the Constitution.”

The International Hardwood and Veneer Company v the Pangil Federation of Labor_case Digest

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"#$ %&"$'&("%)&(* #('+,))+ (&+ -$&$$' .)/0(&1 2 "#$ 0(&3%* 4$+$'("%)& )4 *(5)' C8 no. 47178 | november 23, 1940 Supreme CourL Ln 8anc Laurel, !. 4(."671he SecreLary of Labor cerLlfled Lo Lhe CourL of lndusLrlal 8elaLlons (Cl8) LhaL an lndusLrlal dlspuLe exlsLed beLween Lhe peLlLloner and cerLaln of lLs employees who are members of respondenL unlon, and LhaL Lhe conLroversy was a proper one Lo be dealL wlLh by sald CourL ln Lhe publlc lnLeresL under secLlon 4 of CommonwealLh AcL no. 103. 1he lndusLrlal dlspuLe menLloned above referred Lo cerLaln demands made by Lhe respondenL on Lhe peLlLloner, among whlch were Lhe followlng: 2. SeL Lhe mlnlmum dally wages of common laborers aL one peso. 3. uevlse a proper schedule of raLe of wages for all laborers. 4. 1he raLe of wages for Lhe mounLaln camps should be hlgher by 20 per cenL over Lhose glven ln Lhe Lown. Cl8 ruled ln favor of Lhe unlon workers. Whlle a moLlon for reconslderaLlon was pendlng resoluLlon by Lhe CourL, Lhe peLlLloner flled a moLlon praylng LhaL sald CourL hold lLself wlLhouL [urlsdlcLlon Lo declde Lhe quesLlon relaLlng Lo demands nos. 2 and 4, alleglng (1) LhaL Lhe CourL of lndusLrlal 8elaLlons has no auLhorlLy Lo deLermlne mlnlmum wages for an lndlvldual employer ln connecLlon wlLh a parLlcular and speclflc lndusLrlal dlspuLe under Lhe provlslons of secLlon 4 of CommonwealLh AcL no. 103, (2) LhaL such auLhorlLy would consLlLuLe an undue delegaLlon of leglslaLlve power Lo Lhe CourL of lndusLrlal 8elaLlons and would deny Lhe peLlLloner Lhe equal proLecLlon of Lhe laws, Lhus renderlng sald secLlon unconsLlLuLlonal and vold. %668$71-WheLher or noL Lhe CourL of lndusLrlal 8elaLlons has Lhe power Lo deLermlne mlnlmum wages for an lndlvldual employer ln connecLlon wlLh an lndusLrlal dlspuLe whlch sald courL mlghL Lake cognlzance of under Lhe provlslons of CommonwealLh AcL no. 103 2-lf lL has, wheLher or noL such granL power ls unconsLlLuLlonal and vold #$*+7 1-?es, CommonwealLh AcL no. 103 was creaLed Lo glve effecL Lo Lhe sLaLe's pollcy recognlzlng compulsory arblLraLlon ln lndusLrlal dlspuLes. SecLlons 4 & 3, LogeLher wlLh Lhe oLher secLlons complemenLlng lL, ls deslgned Lo provlde for compulsory arblLraLlon ln order Lo prevenL non-speclflc meLhods ln Lhe deLermlnaLlon of lndusLrlal and agrlculLural dlspuLes. ln SecLlon 4, Lhe CourL of lndusLrlal 8elaLlons ls empowered Lo "Lake cognlzance for purposes of prevenLlon, arblLraLlon, declslon, and seLLlemenL, of any lndusLrlal or agrlculLural dlspuLe causlng or llkely Lo cause a sLrlke or lockouL, arlslng from dlfferences as regard wages, shares or compensaLlon, dlsmlssals, lay-offs, or suspenslons of employees or laborers, LenanLs or farm-laborers, hours of labor, or condlLlons of Lenancy or employmenL, beLween employers and employees or laborers and beLween landlords and LenanLs or farm-laborers." SecLlon 3, on Lhe oLher hand, provldes for Lhe careful examlnaLlon LhaL Lhe Cl8 underLakes Lo arrlve aL a proper, [usL and reasonable mlnlmum wage. 2-no. SecLlon 20 of CommonwealLh AcL no. 103 prescrlbes LhaL ln Lhe hearlng, lnvesLlgaLlon and deLermlnaLlon of any quesLlon or conLroversy and ln exerclslng any duLles and power under Lhls AcL, Lhe courL shall acL accordlng Lo [usLlce and equlLy and subsLanLlal merlLs of Lhe case, wlLhouL regard Lo LechnlcallLles or legal forms. 1he naLlonal Assembly has by Lhls secLlon furnlshed a sufflclenL sLandard by whlch Lhe courL wlll be gulded ln exerclslng lLs dlscreLlon ln Lhe deLermlnaLlon of any quesLlon or conLroversy before lL, and we have already ruled LhaL Lhe dlscreLlonary power Lhus conferred ls [udlclal ln characLer and does noL lnfrlnge upon Lhe prlnclple of separaLlon of powers, Lhe prohlblLlon agalnsL Lhe delegaLlon of leglslaLlve funcLlon, and Lhe equal proLecLlon clause of Lhe ConsLlLuLlon." lurLhermore, ln Lhe case of angaslnan 1ransporLaLlon Co. vs. 1he ubllc Servlce Commlsslon, Lhe Supreme CourL made Lhe followlng observaLlon: 1he Lheory of Lhe separaLlon of powers ls deslgned by lLs orlglnaLors Lo secure acLlon and aL Lhe same Llme Lo foresLall overreacLlon whlch necessarlly resulLs from undue concenLraLlon of powers, and Lhereby obLaln efflclency and prevenL despoLlsm. 1hereby, Lhe "rule of law" was esLabllshed whlch narrows Lhe range of governmenLal acLlon and makes lL sub[ecL Lo conLrol by cerLaln legal devlces. Cne Lhlng, however, ls apparenL ln Lhe developmenL of Lhe prlnclple of separaLlon of powers and LhaL ls LhaL Lhe maxlm of !"#"$%&'( *+* ,+&"(& !"#"$%-. +- !"#"$%&% ,+&"(&%( *+* ,+&"(& !"#"$%-., has been made Lo adapL lLself Lo Lhe complexlLles of modern governmenLs, glvlng rlse Lo Lhe adopLlon, wlLhln cerLaln llmlLs, of Lhe prlnclple of "subordlnaLe leglslaLlon". Accordlngly, wlLh Lhe growlng complexlLy of modern llfe, Lhe mulLlpllcaLlon of Lhe sub[ecLs of governmenLal regulaLlon, and Lhe lncreased dlfflculLy of admlnlsLerlng Lhe laws, Lhere ls a consLanLly growlng Lendency Loward Lhe delegaLlon of greaLer powers by Lhe leglslaLure, and Loward Lhe approval of Lhe pracLlce by Lhe courLs." SubmlLLed by:Clarlce !oy u.!. San !ose AdmlnlsLraLlve Law | ALLy. 8. uemlglllo