Republic of the Philippines

SUPREME COURT
Manila
EN BANC
July 26, 1948
GR No. L-1309
SHELL COMPANY OF THE PHILIPPINE ISLANDS,
LIMITED, recurrent,
vs.
NATIONAL LABOR UNION, appeal.
Messrs. Ross, Selph, Carrascoso and Janda in
representation of the appellant.
Messrs. Paguia and Villanueva in representation of the
appeal.
BRIONES, J.:
Acting on a request from the working entity called "National
Labor Union," the Court of Industrial Relations has issued a
decision in which, among other things, the oil company "The
Shell Company of Philippine Islands, Limited" is obligated to
pay their workers who work at night (since the sun sets until
it rises the next day) an additional compensation of 50% of
their regular wages if they worked by day. It seems that the
needs comania night service a certain number of workers,
because the planes landing from abroad and often detach at
night, and is thus necessary that evening chores for the
supply of gasoline and lubricants are made, and to other
purposes. The oil company has excepcionado against that
decision hence the present petition forcertiorari for the
reversal of.
The appellant company contends and argues that not only
there is no legal provision empowering the Industrial
Relations Court to order the payment of additional workers
who work at night, but that compensation, however,
the Commonwealth Act No. 444relieve the employer of such
obligation since in the law where it is compulsory to pay
"overtime" (additional compensation) are provided, and
among such cases do not include the work at night.
Meanwhile, the working junction respondent argues that the
power is discussed as part of the broad and effective powers
to the Commonwealth Act No. 103 - the charter of the
Industrial Relations Court - the court grants; and that
the Commonwealth Act No. 444 cited has no aplication to
this case, as the same is necessarily limited scope, and
especially referring exclusively to the maximum time
allowable contidiano work in industrial establishments - day 8
hours.
Our conclusion is that the working junction respondent has
reason on his side. For a clear and comprehensive
elucidation of the points discussed, estmamos desirable,
even at the risk of prolonging this paper, transcribe relevant
legal lasdisposiciones are Articles 1, 4 and 13 of
Commonwealth Act No. 103 Helas here:
SECTION 1 The Judge: his appointment, qualifications',
compensation, tenure. - There is hereby created a Court of
Industrial Relations, Which Shall have jurisdiction over the
entire Philippines, to consider, Investigate, decides, and
settle any question, matter, dispute or controversy Arising

between, and / or Affecting, Employers and employees or

laborers , and landlords and tenants or farm-laborers, and
Regulate the relation Between them, subject to, and in
Accordance with, you the provider server de esta Act. The
Court Shall keep a record of all its proceedings and Shall be
presided over by a Judge to be appointed by the President of
the Philippines With the consent of the Commission on
Appointments of the National Assembly. The Judge of the
Court Shall hold office During good behavior until the age of
He Reaches seventy years, or incapacitated to discharge
Becomes the Duties of His office. His qualifications' Shall be
the same as provided in the Constitution Those for members
of the Supreme Court and I Shall receive an annual
compensation of ten thousand pesos and Shall be Entitled to
traveling expenses and per diems Official Duties When
performing outside of the City of Manila. The Department of
Justice Shall have executive supervision over the Court.
SEC. Strikes and lockouts 4. - The Court Shall take
cognizance for purpose of prevention, arbitration, decision
and settlement, of any industry or agricultural dispute
Causing or likely to cause a strike or lockout, expats Arising
form as regards wages, shares or compensation, hours of
work or conditions of tenancy or employment, Between
Employers and employees or laborers and landlords and
tenants Between or farm-laborers, provided That the number
of employees, laborers or tenants or farm-laborers Involved
excede thirty, and Industrial or agricultural Such dispute is
submitted to the Court by the Secretary of Labor, or by any
of the parties or Both to the controversy and certified by the
Secretary of Labor as Existing and proper to be Dealt with by
the Court for the sake of public interest. Such cases in all,
the Secretary of Labor or the party or parties Submitting the
notification disputing, Shall Clearly and Specifically state in
writing the questions to be decided. Upon the submission of
Such a controversy or question by the Secretary of Labor,
His intervention therein as Authorized by law, Shall cease.
The Court Shall, before hearing the dispute and in the
course of Such hearing, endeavor to reconcile the parties
and induce them to settle the dispute by amicable
agreement. If any agreement as to the whole or any part of
the dispute is arrived at by the parties, a memorandum of Its
terms Shall be made in writing, signed and Acknowledged by
the parties thereto before the Judge of the Court or any
official acting in His Behalf and Authorized to administer
oaths or acknowledgments, or, before a notary public. The
memorandum Shall be filed in the office of the Clerk of the
Court, and, unless otherwise ordered by the Court, Shall, as
Between the parties to the agreement, have the same effect
as, and be Deemed to be, a decision or award .

SEC. 13 Character of the award. - In making an award, order

or decision, under the Provisions of section four de esta Act,
the Court Shall not be restricted to the specific relief or
Claimed Demands made by the parties to the industry or
agricultural dispute, but May include in the award , order or
decision any matter or determination Which my be Deemed
Necessary or expedient for the purpose of setting the dispute
or of agricultural or further preventative Industrial Disputes.
It is evident from the transcribed the following provisions: (a)
If a dispute between the principal and the employee or

worker, viz arises. on wage issue, the Court of Industrial

Relations has jurisdiction throughout the territory of the
Philippines to consider, investigate and resolve such
disputes, setting wages it considers fair and reasonable;(B)
that for the purposes of prevention, arbitration, decision and
settlement, the same Court of Industrial Relations also tien
jurisdiction to hear any dispute - industrial or agricultural resulting from any differences in wages, shares or
compensation, hours work, conditions of employment or
sharecropping between employers and employees or
between workers and owners and landowners or farm
workers after fulfilling certain requirements and conditions,
when he seeth that the dispute causes or may cause a
strike; (C) in the exercise of its powers specified above, the
Court of Industrial Relations is not limited, to decide the
dispute, to grant the remedy or remedies requested by the
parties to the dispute, but may include in the order or
decision fabrics or for the purpose of determining to settle
the dispute or to prevent further industrial or agricultural
disputes.
In the case we are concerned there is undoubtedly an
industrial dispunta. While the company, the Shell company,
not willing to pay their workers higher wages to night workers
back, the "NationalLabor Union", which are affiliated
workersin Shell, other wage claims for service night - 50%
more. Herein lies the dispute, industrial dispute.Now, the
Court has done ,que Industrial Relations after the
conflict under its jurisdiction? Precisely what sends the Act
No. 103 of the Commonwealth, its organic menu creation
and operation, namely, to consider, investigate and
prosecute the dispute, after resolviedola in the sense that
resolved, ie, remunerating the work night with 50% more in
wages of day. And this is perfectly legal both within the
scope of Article 1 of the Act No. 103 which empowers the
Industrial Relations Court to decide any dispute over wages
and compensation in the manner it deems reasonable and
appropriate, and within the framework of Article 4 of the Act
which authorizes the court to try and decide any suit or
industrial or agricultural dispute determine the outbreak of a
strike or tends to cause it. But still: the fact by the Industrial
Relations Trbunal in this case is also legal within the
framework of Article 13 of the Act No. 103, item that is seen
as not only empowers the court to grant the remedy
recabanlas parts, but even go beyond, that is, to grant
remedies not specifically requested, provided they are
encamienen to resolve once the dispute or to prevent the
outbreak of further disputes or strikes.
Clearly, these broad powers the proposed equip Estadose
Industrial Relations Court to the maximum possible profit and
efficiency, making it not a mere academic agency, but truly
active, dynamic and efficient - in a word, the official
machinery for excellence in formidable thorny task of
resolving industrial disputes, yagricolas of some sort,
preventing and thus avoiding these stoppages and strikes
and danan afflict not only businesses and workers, but, in
general, any community. In his concurring opinion rendered
in the authoritative case against Ang Tibay Industrial
[[ ]],
Relations Court (GR No. 46496) 1 the Magistado Laurel
has very well expressed the fundamental idea underlining
the establishment of this tribunal, with the following
pronouncement:

In Commonwealth Act No. 103 , and by it, our government

no longer performs the role of mediator or intervenor but
mere That supreme arbiter of. (Emphasis added.).
The appellant argues, however, that while it is true that in
case of dispute the Court of Industrial relaciiones has, under
its organic law, the power to set wages, such power is not
absolute, but is subject to certain cortapizas and restrictions,
provided for by law, commonly known by law on the eighthour day, the Commonwealth Act No. 444, which is entirely
relevant articles transacriben below:
SECTION 1 The legal working day for any person employed
by another Shall be of not more than eight hours daily. When
the work is not continuous, the time During Which the laborer
is not working and can leave His working place and can not
rest completely Shall Be Counted.
SEC. 3 May be Performed Work beyond eight hours a day in
case of actual or impending emergencies Caused by serious
accidents, fire, flood, typhoon, earthquake, epidemic, or
other disaster or calamity in order to Prevent loss to life and
property or imminent danger to public safety; or in case
urgent work to be Performed on the machines, equipment, or
installations in order to avoid serious loss to Which the
employer would suffer Otherwise, or just some other cause
of a like nature; Such cases but in all the laborers and
employees Shall be Entitled to receive compensation for the
overtime work Performed at the same rate as wages or
salary Their regular basis, plus At least twenty-five per
centum additional.
In case of national emergency the government is empowered
to Establish Rules and Regulations for the operation of the
plants and factories and to determine the wages to be paid
the laborers.
SEC. 4 No person, firm, or corporation, or business
establishment or place of work center Shall compel an
employee or laborer to work Sundays and legal holidays
During, UNLESS I have is paid an additional sum of At least
twenty-five per centum of His regulate remuneration:
Provided however it, That This prohibition Shall not apply to
public utilities performing some public service: such as
supply supplying gas, electricity, power, water, or providing
Means of transportation or communication.
Since - argumentanlos appellant lawyers - that these items
where paying extra or additional compensation is authorized
and are alone specified namely: (a) in case of "overtime" or
work in excess of the regular hours for reasons imperiosasde
urgent reason for some disaster or accident, or to prevent or
repair lost; (B) where work on Sundays and holidays; (C) in
an emergency, and there is nothing that relates to the work
at night; then the order in question is illegal, as is not
authorized by law. "In the absence - emphasize lawyers
recurring - legislation Authorizing the payment of additional
compensation for work done at night, the Court of Industrial
Relations has no power or authority to order the petitioner
company to pay additional compensation for work done by
ITS laborers at night. Expressio unius. Where, as inthe case
at bar, the statute specifies Expressly cases where payment
of compensation May be Demanded Extra, extra
compensation be allowed in May Those cases only, and in

no others. The price provider of the Commonwealth Act No.

444 can not be enlarged by implication or otherwise.
Expressum facit cessare tacitum.
The argumentation is erroneous. The Law No. 444 does not
apply to this case, it is evident that it has a specific purpose,
namely: (a) fix the maximum 8-hour workday;(B) point out
certain exceptional cases that can authorize work outside
that day; (C) providing a bonus, which should not be less
than 25% of regular pay for "overtime" or work in excess of 8
hours.
In the case of Manila Electric, applicant-appellant, vs. The
Public Utities Employees' Association, appealed, L-1206 (45
[[ ]],
OG 1760) 2 this Court has held that the power conferred
by Article 1 of Law Commonwealth No. 103 the Court of
Industrial Relations and decide to enjuciar industrial disputes
and disputes between capital and labor, including wage
setting and compnsaciones employees and workers, has
been restricted by Article 4 of Law No Commonwealth . 444,
which while limited to 25% of salary or regular compensation
of the workers the minimum additional compensation that the
court may grant for work on Sundays and public holidays,
exempt from the payment of such additional compensation to
entities public utility providing some public services, such as
supplying gas, electricity, mortriz force, water, or provide
transportation or communication skills. Such restriction
amounts to an exception to the general power of the court to
determine, in cases of dispute, wages and compensation to
be paid by employers to employees and workers; and
inasmuch as that article 4 refers only to wages or
compensation for work during the day Sunday and public
holidays, you obviously can not refer to salary or additional
compensation for work beyond eight hours lajornada usually
conducted from early hours of the morning to last afternoon,
it is one thing to work on Sundays and days of public
holidays, and quite another night's work outside of the eighthour workdays. Applying the legal maxima "expressio unius"
may be held without fear of being wrong, a law that provides
an exception to the general provisions specified as additional
compensation for work on Sundays and days of public
holidays, excluding any another, as additional compensation
for work at night on weekdays. "Another case in Which May
This maxim is almost invariably Followed by That of Which
statute makes specific exceptions to Un certain STIs overall
price provider. wemay Here safely assume all other
exceptions That Were Intended to be excluded. " (Wabash
R. Co.vs. United States, 178 Fed, 5, 101 CCA 133,. Cella vs.
Bohlinger Commision Co., 147 Fed, 419,. 467 CCA 78;
Kunkalman vs. Gibson, Ind 171, 503.; 84 NE 985; Hering vs.
Clement, App Div 133, 293,.. 117 NY Supp 747)..
Work the Shell denoche company requires its workers tally is
not a 'overtime "in the sense in which that word is used in the
Le No. 444, but a full day's work, also 8 hours: only that
instead of done by day, it gets dark. In other words, work that
night here is not only unexceso, prolongation or "overtime"
regular work day, but other work is absolutely independent of
the day shift. So there are two shifts: the shift workers who
work day; and the shift of working at night. So it is not
strange that the legislature did not include this type of work
between cases of "overtime" mentioned in the said Act No.
444.

The question which, in our judgment, determine is whether

among the general powers of the Court of Industrial
Relations who are admitted without dipusta, consider this the
night the day as a full day's work; that of estimating it as
more burdensome than the day by day; and accordingly, to
provide and direct that remunerated with 50% over the
regular day wages. Our answer is yes: this is between the
general powers of the Court of Industrial Relations. If this
court has, in cases of dispute, the power to set wages as it
deems fair and reasonable for the work day, there's no
reason it should not have the same power with respect to the
wages of night; work is as the one and the other. And
regarding appreciation wing that night work is heavier and
cumbersome than the day and therefore deserves greater
remuneration, there is no motivospara revoke or alter. There
is no possible argument against the universal fact that
regular, normal, ordinary work is to day, and night work is
exceptional and justified only by certain unavoidable reasons
imperatively. For something mankind has trabajado siempre
dia.
Reasons of hygiene, medicine, morality, culture, sociology,
establish together the work of Nocho has many drawbacks,
as there is no choice but to do so it is only fair that were paid
better than usual to compensate certain hasa point the
worker from such drawbacks. Undoubtedly night work not
only in the long run affects the health of the worker, but this
deprives certain things that make relatively pleasant life, like,
viz., A full, uninterrupted rest and certain moments of solace
leisure or spiritual and cultural expansion that might have
after work in the evening and during the early evening
hours. It is said that the workers can unwind from the day
after working all night; but perhaps you can give the rest of
the body one day and one full restorative tonic effect can
only provide natural sleep at night? It is said also that some
prefer to work at night under our scorching weather, thus
avoiding the heat of the day. We fear, however, that this is
better spoken than praticado. We believe that from time
immemorial the universal rule is that the night man trabja
more by necessity than irremediable pleasant convenience.
To the vulgar, universal review, we must add the
opinionpericial, the specialist approach. Meet the writers and
experts strongly militates in favor of the thesis that night work
is harder and expensive work that day, so considered with
disgust and compelling marked accordingly capitalistic
managers to establish a higher level wages as an incentive
for workers to accept. They could cite virias authorities but
not overextend this paper we choose only some transcriber,
namely:
. . . Then, it must be remembered distinctly unphysiological
That it is to turn the night into day and deprive the body of
the beneficial effects of sunshine. The human organism This
procedure revolts against. Added to artificial lighting are
reversed and unnatural times of eating, resting, and
sleeping. Much of the inferiority of Nightwork can doubtless
be traced to the failure of the workers to secure proper rest
and sleep, by day. Because of the Inability or lack of
opportunity to sleep, nightworkers Often spend days in
performing domestic Their Duties, joining the family in the
midday meal, 'tinkering about the place', watching the
baseball game, attending the theater or taking a ride in the
car. It is not strange That nightworkers outstretch to be less
efficient than dayworkers and lose more time. . . (The

Management of Labor Relations, by Watkins & Dodd, page

524).
Nightwork. - Nightwork've Gained a measure of prominence
in the modern system industry in Connection with continuous
industries, That is, industries in the nature of Which makes it
the Processes Necessary to keep machinery and equipment
in constant operation. Even in continuous industries the
tendency is definitely in the direction of FOUR shifts of 6
hours each, With provision for an automatic change of shift
for all workers at Stated intervals. Some discussion has
taken place with regard to the lengths of the period any
workers Should be allowed to REMAIN on the night shift. A
weekly change of shifts is common, specially where three or
four shifts are in operation; in other cases the change is
made fortnightly or monthly; in still other instances, no
alternation is provided for, the remaining workers on day permanently or Nightwork, except where temporary changes
are made individually for convenience.
There is sharp difference of feedback Concerning the relative
Merits of These systems. Advocates of the change of shifts
weekly contend That the strain of Nightwork and the difficulty
of getting adequate sleep during the day make it unwise for
workers to REMAIN on the "graveyard" shift for more than a
week at a time. Opponents That Repeated urges changes
make it more Difficult to settle down to Either That kind of
shift and after the first week Nightwork Becomes less trying
to sleep while the abitur Increases by day. Workers
Themselves react in various ways to the different
systems. This much, however it, is Un certain: Few persons
react favorably to Nightwork, Whether the shift be continuous
or alternating. Outside of continuous industries, Nightwork
can scarcely be justified, and, even in in Original, it presents
serious Disadvantages Which Must Be Recognized in
planing for Industrial efficiency, stabilization of the working
force, the promotion of industry good-will, and the
conservation of the health and vitality of the workers.
Nightwork can not be Regarded as desirable, from the point
of Either view of the employer or of the wage earner. It is
uneconomical UNLESS overhead costs are unusually
heavy. Frequently the scale of wages is higher as an
inducement to employees to accept employment on the night
shift, and the rate of production is Generally
lower. (Management of Labor Relations, by Watkins & Dodd,
pp 522-524,. Emphasis ours.)
. . . The lack of sunlight Tends to produce anemia and
tuberculosis and to predispose to other ills. Nightwork Brings
Increased liability to eyestrain and accident. Serious moral
dangers are there also likely to result from the necessity of
traveling the streets alone at night, and from the interference
with the normal home life. From an economic point of view,,
Moreover, the Investigations Showed That Nightwork was
unprofitable, being inferior to day work Both in quality and in
quantity. Wherever it HAD Been Abolished, in the long run
Both the efficiency of the management and of the workers
was raised. Furthermore, it was found That Nightwork laws
are a valuable aid in enforcing acts fixing the maximum
period of employment. (Principles of Labor Legislation, by
Commons and Andrews, 4th Revised Edition, p. 142)

Special regulation of Nightwork for adult men is a

Comparatively
recent
development. Some
European
countries country ADOPTED have special laws Placing
Limitations on hours of Nightwork for men, and others
prohibit
Such
work
except
in
continuous
Processes. (Principles of Labor Legislation, 4th Revised
Edition by Common & Andrews, p. 147)
Nightwork have almost invariably Been Looked upon with
disfavor by students of the problem Because of the
excessive strain Involved, Especially for women and young
persons, the large amount of lost time consequent upon
exhaustion of the workers, the additional strain upon
Responsibility and the executive staff , the tendency of
excessively fatigued workers to "keep going" on artificial
stimulants, the overall curtailment of time for rest, leisure,
and culture improvement, and the fact That night workers,
although precluded to an Extent day from the activities of life,
do Attempt to enter into activities in Original, With resultant
impairment of physical well-being. It is not contended, of
course, Nightwork That Could Be Abolished in the
continuous-process industries, but it is possible to put upon a
Three- Such industries or four-shifts basis, and to prohibit
Nightwork for women and children. (Labor's Progress and
Problems, Vol. I, p. 464, by Professors Millis and
Montgomery.)
Nightwork. - Civilized peoples are beginning to Recognize
the fact That except in cases of necessity or in periods of
great emergency, Nightwork is socially undesirable. Under
our modern industry system, however it, you Nightwork
Greatly aided the production of commodities, and has offered
Preferred a significant method of cutting down the everincrease increasing overhead costs of industry. This result
has led to believe That Employers Such work is Necessary
and profitable. Here again one meets a conflict of economic
and social interests. Under These Circumstances it is
Necessary to discover Whether you Nightwork deleterious
effects upon the health of laborers and Tends to reduce the
ultimate supply of efficient labor. If it can adversely Proved
That Nightwork Affects Both the quality and quantity of
productive labor, ITS Undoubtedly Discontinuance will be
sanctioned by Employers. From a social point of view, even
a high degree of efficiency relativamente in night operations
must be forfeited if it is Purchased with rapid exhaustion of
the health and energy of the workers. From an economic
point of view, Nightwork May be Necessary if the employer is
to meet the demand for His product, or if I have to Maintain is
his market in the face of mounting Variable increase
increasing competition or production costs.
Industrial experience has shown That the possession of
extra-ordinary physical strength and self-monitoring
Facilitates the reversal of the ordinary routine of work day
and night rest, With the little or no unfavorable effect on
health and efficiency. Unusual vitality and self-control
however it, are not common possessions. It has-been found
That The most serious obstacle to a reversal of the routine is
the lack of self-discipline. Many night workers enter into the
multitude numerous day activities of life That PRECLUDE
sleep, and continue to do Their Attempt to work at
night. Evidence recogida by the British Health of Munition
Workers' Committee places permanent night workers,

Whether on the basis of Judged output or loss of time, in a

very unfavorable positions as Compared with day workers.
Systems of Nightwork Differ. There is the continuous system,
in Which employees work by night and do not Attend the
establishment at all by day, and the discontinuous system, in
Which the workers change to turn the day at regular
intervals, Usually every other week. There are, of course,
minor variations in systems in Original, Depending upon the
nature of the industry and the wishes of management. Such
bodies as the British Health Munition Workers' Committee
have Given us valuable conclusions Concerning the effect of
Nightwork.Continuous Nightwork is definitely less productive
than the discontinuous system.The output of the continuous
day shift does not make up for this loss in production.
There is,, Moreover, a marked difference Between the rates
of output of night and day shifts on the discontinuous plan. In
each case Investigated the inferiority of night work was
definitely established. This inferiority is evidently the result of
the night worker's failure to secure proper Amounts of sleep
and rest during the day.The system of continuous shifts,
Especially for women, is Regarded as undesirable by all
investigators. Women on continuous Nightwork are likely to
perform domestic Duties, and added strain Undoubtedly This
accounts for the poorer results of Industrial Their
activities. The tendency to devote to amusement and other
things That should be the time spent in rest and sleep is as
common Certainly Among Men Among women as workers
and accounts for the loss of Largely efficiency and time on
the part of Both sexes in Nightwork.
The case against Nightwork, then, May be said to rest upon
several grounds. In the first place, there are the injurious
effects of permanent remotely Nightwork Manifested in the
later years of the worker's life. Importance Of more
immediate to the average worker is the disarrangement of
His social life, treats including the recreational activities of
His leisure hours and the ordinary associations of regular
family relations. From an economic point of view, is to be
discouraged Nightwork Because of Its adverse effect upon
efficiency and output. A moral argument against Nightwork in
the case of women Is that the night shift forces the workers
to go to and from the factory in darkness. Recent
experiences of industrial nations have added much to the
evidence against the continuation of Nightwork, except in
extraordinary
Circumstances
and
unavoidable
emergencies. The immediate prohibition of Nightwork for all
laborers is hardly practicable; ITS Discontinuance in the case
of women employees is unquestionably desirable. 'The night
was made for rest and sleep and not for work' is a common
saying Among wage-earning people, and many of them
dream of Industrial an order in Which there will be no night
shift. (Labor Problems, 3rd Edition, p. 325-328, by Watkins &
Dodd.).
On merits of the above, the appeal is denied certiorari filed
and the Court Of Industrial Reclaciones confirmed, with costs
to appellant by. So it is ordered.