G.R. No. 128399 January 15, 1998
CAGAYAN SUGAR MILLING COMPANY, petitioner, vs. SECRETARY OF LABOR AND EMPLOYMENT, DIRECTOR RICARDO S. MARTINEZ, SR., and CARSUMCO EMPLOYEES UNION, respondents.

FACTS

On November 16, 1993, Regional Wage Order No. RO2-02 was issued, providing for an increase in the statutory minimum wage rates for workers in Region II. On September 12 and 13, 1994, DOLE labor inspectors found that petitioner Cagayan Sugar Milling Company (CARSUMCO) violated the wage order by not implementing an across-the-board salary increase for its employees. The Regional Director ruled that petitioner violated the order and ordered payment of a salary deficiency. Petitioner appealed to the Secretary of Labor. On January 6, 1995, the Regional Wage Board issued Wage Order No. RO2-02-A, amending the earlier order to explicitly provide for an across-the-board wage increase and stating the amendment was curative and retroactive to the effectivity of RO2-02. The Secretary of Labor dismissed petitioner’s appeal and affirmed the Regional Director’s order. Execution proceedings were initiated against petitioner, leading to the garnishment of its bank account and seizure of property. Petitioner filed this petition, contending the wage orders were invalid and that it complied with the original order.

ISSUE

1. Whether Wage Order No. RO2-02-A is valid despite being issued without prior public consultation/hearings and newspaper publication as required by Article 123 of the Labor Code.
2. Whether petitioner violated the original Wage Order No. RO2-02, which provided for an increase in statutory minimum wage rates, by not granting an across-the-board increase.

RULING

1. Wage Order No. RO2-02-A is NULL and VOID. The Regional Board passed it without conducting the required public hearings/consultations and without publishing it in a newspaper of general circulation, in violation of Article 123 of the Labor Code. The Board’s claim that it was merely a curative clarification of an ambiguous provision is unpersuasive, as the original Wage Order RO2-02 was clear and categorical in providing for a statutory minimum wage increase, not an across-the-board increase. The amendment changed the essence of the original order, and the lack of due process deprived employers like petitioner of the opportunity to be heard on the proposed wage increase.
2. Petitioner did NOT violate Wage Order No. RO2-02. Petitioner complied with the clear text of RO2-02, which mandated an increase in statutory minimum wage rates. It was not obligated to interpret the order as requiring an across-the-board increase, as such an interpretation is not sustained by the order’s text. The subsequent issuance of RO2-02-A to effect an across-the-board increase confirms that the original order did not provide for it.
The petition is GRANTED. The Decision of the Secretary of Labor is SET ASIDE.