Abc digest

Manila Electric v. Quisumbing

G.R. No. 127598 February 22, 2000

Facts:

Members of the Private respondent union were dissatisfied with the terms of a CBA with petitioner. The
parties in this case were ordered by the Sec. of Labor to execute a collective bargaining agreement (CBA)
wherein.The CBA allowed for the increase in the wages of the employees concerned. The petitioner
argues that if such increase were allowed, it would pass off such to the consumers.

Issue: W/N matters of salary are part of management prerogative

RULING: Yes. There is no need to consult the Secretary of Labor in cases involving contracting out for 6
months or more as it is part of management prerogative. However, a line must be drawn with respect to
management prerogatives on business operations per se and those which affect the rights of the
workers. Employers must see to it that that employees are properly informed of its decisions to attain
harmonious labor relations and enlighten the worker as to their rights.

The contracting out business or services is an exercise of business judgment if it is for the promotion of
efficiency and attainment of economy. Management must be motivated by good faith and contracting
out should not be done to circumvent the law. Provided there was no malice or that it was not done
arbitrarily, the courts will not interfere with the exercise of this judgment.

Manila Electric v. Quisumbing

G.R. No. 127598 February 22, 2000

Facts:

Members of the Private respondent union were dissatisfied with the terms of a CBA with petitioner. The
parties in this case were ordered by the Sec. of Labor to execute a collective bargaining agreement (CBA)
wherein.The CBA allowed for the increase in the wages of the employees concerned. The petitioner
argues that if such increase were allowed, it would pass off such to the consumers.
Issue: W/N matters of salary are part of management prerogative

RULING: Yes. There is no need to consult the Secretary of Labor in cases involving contracting out for 6
months or more as it is part of management prerogative. However, a line must be drawn with respect to
management prerogatives on business operations per se and those which affect the rights of the
workers. Employers must see to it that that employees are properly informed of its decisions to attain
harmonious labor relations and enlighten the worker as to their rights.

The contracting out business or services is an exercise of business judgment if it is for the promotion of
efficiency and attainment of economy. Management must be motivated by good faith and contracting
out should not be done to circumvent the law. Provided there was no malice or that it was not done
arbitrarily, the courts will not interfere with the exercise of this judgment.