G.R. No. L-6988 May 24, 1954
U.S.T. HOSPITAL EMPLOYEES ASSOCIATION, petitioner, vs. STO. TOMAS UNIVERSITY HOSPITAL, respondent.

FACTS

The U.S.T. Hospital Employees Association filed a petition for certiorari seeking to annul the order of dismissal issued by the Court of Industrial Relations (CIR) in its Case No. 790-V. The parties had submitted a Stipulation of Facts on February 3, 1953. On July 7, 1953, Judge Bautista dismissed the case for lack of jurisdiction, a decision upheld by the majority of the CIR (Judges Roldan, Bautista, and Jimenez Yanson) upon a motion for reconsideration, with Judges Lanting and Castillo dissenting. The petitioner contends the CIR erred in declaring it had no jurisdiction. The Stipulation of Facts established that: the petitioner is a legitimate labor organization; the respondent hospital is an institution owned by the Pontifical University of Sto. Tomas; hospital service is continuous and cannot be suspended on Sundays/holidays; the parties had a collective agreement; prior to and after the agreement, a majority of employees, including union members, worked on Sundays and holidays without additional pay; the hospital has a 140-bed pay ward and a 203-bed charity ward; the hospital did not secure a permit from the Secretary of Labor to require work on Sundays/holidays, believing hospitals are exempt from the 8-hour labor law; and night shift workers receive no premium pay. The record included a letter from the University Rector stating the hospital’s object was to provide modern facilities to charity and pay patients, with the former serving as instructional material for medical students and the latter providing funds necessary to partly finance the free wards. The CIR found the hospital is supported exclusively by the pay ward, no tuition fees from the College of Medicine go to the charity ward, the University pays for medicines of free ward patients, and the hospital’s purpose is not primarily to obtain money but to provide instruction and serve the public.

ISSUE

Whether the Court of Industrial Relations had jurisdiction over the dispute between the U.S.T. Hospital Employees Association and the Sto. Tomas University Hospital.

RULING

The Supreme Court denied the petition, upholding the CIR’s dismissal for lack of jurisdiction. The CIR’s jurisdiction is limited by its creating law. Under Commonwealth Act No. 103 , as amended, and Republic Act No. 772 , the CIR has jurisdiction over disputes arising from “industrial employment,” which is defined in RA 772 as including all employment exercised by an employer “for the purpose of gain,” except domestic service. Based on the Stipulation of Facts and the CIR’s findings, there was no allegation or proof that the Sto. Tomas University Hospital was established for the exclusive purpose of gaining profit and distributing dividends. The evidence showed it operates as a charitable institution: its pay ward revenues partly finance the free wards, it does not earn a profit from operations, and its purpose is to serve humanity and provide instruction. Therefore, the employment of the petitioner’s members in the hospital is not “industrial employment.” Consequently, the controversy is not an “industrial dispute” under the law, placing it outside the jurisdiction of the CIR, similar to domestic service disputes. The Court found no merit in the assigned error.