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Meralco v. Quisumbing

1. The Supreme Court ruled on a case between Manila Electric Company (Meralco) and the Meralco Employees and Workers Association regarding wages, arbitral awards, and contracting out jobs. 2. The court found that any increase in electricity prices requires government approval, not just a wage increase. Both parties must balance each other's interests as well as those of the public. 3. Arbitral awards granted after a collective bargaining agreement expires shall be retroactive to a date agreed by the parties or six months after expiration if no agreement exists.

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Francis Puno
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1K views1 page

Meralco v. Quisumbing

1. The Supreme Court ruled on a case between Manila Electric Company (Meralco) and the Meralco Employees and Workers Association regarding wages, arbitral awards, and contracting out jobs. 2. The court found that any increase in electricity prices requires government approval, not just a wage increase. Both parties must balance each other's interests as well as those of the public. 3. Arbitral awards granted after a collective bargaining agreement expires shall be retroactive to a date agreed by the parties or six months after expiration if no agreement exists.

Uploaded by

Francis Puno
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Manila Electric Company, petitioner, vs. Hon.

Secretary of Labor Leonardo Quisumbing


and Meralco Employees and Workers Association, respondents,
G.R. No. 127598, February 22, 2000

Facts:

In 1999, the SC promulgated a decision directing the parties to execute a CBA providing for an
increase in wages and retroactive application of Arbitral awards. Meralco filed this petition
arguing that an increase in wages will result in higher electricity rates which will be passed to
the consumers. The union likewise asked for a reconsideration from the Court’s decision which
denied the benefit of being granted a loan to set up a cooperative. It likewise questioned the
Court’s decision which granted Meralco the right to contract out jobs without consulting the
Union.

Issues:

1. WON an increase in wages will result in higher electricity rates;


2. WON the grant of arbitral awards is retroactive;
3. WON the union may demand a loan to set up a cooperative
4. WON it is valid to contract out jobs without the need to consult the union.

Held:

1. This is a non-sequitur. Any increase in the prices of electricity requires the approval of the
appropriate government agency and does not result from a mere increase in wages.
However, collective bargaining disputes require proper balancing of the interests of the parties
to the dispute and those who might be affected by the dispute. Neither party should act
against the other or impair the interest or convenience of the public.

2. CBA arbitral awards granted after six (6) months from the expiration of the CBA, shall
retroact to such time agreed upon by the parties. Absent such agreement as to retroactivity, the
award shall retroact to the first day after the six-month period following the expiration of the
last CBA, should there be any. In the absence of a CBA, the Secretary of Labor exercising his
discretionary powers, shall determine the date of retroactivity of the arbitral awards.

3. Providing seed money to set up a cooperative is not a basic necessity such as housing loan
and a matter in which the employer has no legal obligation.

4. The employer is allowed to contract out services for six months or more. However, the
employer should at least inform its employees of its decision or modes of action to attain a
harmonious labor-management relationship. While there should be mutual consultation,
eventually hiring of workers is a valid exercise of management prerogative subject only to
special laws and agreements on the matter and the fair standards of justice.

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