Shell Co. v. NLU G.R. No.

119205 1 of 8

Republic of the Philippines

SUPREME COURT
Manila
EN BANC
GR No. L-1309 July 26, 1948
SHELL COMPANY OF THE PHILIPPINE ISLANDS, LIMITED, recurrent,
vs.
NATIONAL LABOR UNION appeal.
Messrs. Ross, Selph, Carrascoso and Janda on behalf of the appellant.
Messrs. Paguia and Villanueva on behalf of the respondent.
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 obliged to pay His workers who work at night (since the sun goes until he gets up the next day) an
additional compensation of 50% of their regular wages if they worked by day. It seems that the comania night
service needs a certain number of workers, because the planes from abroad often come off and landing at night, and
is thus necessary that evening chores for supplying fuel and lubricants are made, and other purposes. The oil
company has excepcionado against that decision from there this writ of certiorari so that we reverse.
The appellant company claims 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 compensation, on the contrary,
the Commonwealth Act No. 444 relieve the employer of such obligation since in the law where it is compulsory
payment of "overtime" (additional compensation) are provided, and among such cases do not include the work at
night.
Meanwhile, the labor union appeal argues that the authority at issue is part of the extensive and effective powers to
the Commonwealth Act No. 103 - the charter of the Industrial Relations Court - the court grants; and that Act No.
444 cited Commonwealth has no aplication to this case, as it is necessarily limited in scope, particularly referring
exclusively to the maximum allowable time contidiano work in industrial establishments - the day of 8 hours.
Our conclusion is that the labor union has appealed the reason on your part. For clear and full elucidation of the
points discussed, we estmamos convenient, even at the risk of prolonging this paper, transcribe relevant legal
lasdisposiciones are Articles 1, 4 and 13 of the Commonwealth Act No. 103. Here they are:
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, choose, and settle any question, matter, controversy or dispute 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, esta Provisions of the 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 He Reaches the age of seventy years, or
Shell Co. v. NLU G.R. No. 119205 2 of 8

Becomes incapacitated to discharge 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 When
performing official duties outside of the City of Manila. The Department of Justice Shall Have executive
supervision over the Court.
SEC. 4. Strikes and lockouts. - The Court Shall take cognizance for purpose of prevention, arbitration, and
settlement decision, of any industry or agricultural dispute Causing or likely to cause a strike or lockout,
form Differences Arising as regards wages, shares or compensation, hours of work or conditions of tenancy
or employment, Between Employers and employees or laborers and Between landlords and tenants or farm-
laborers, provided That the number of employees, laborers or tenants or farm-laborers Involved Exceeds
thirty, and industry or agricultural Such dispute is Submitted to the Court by the Secretary of Labor, or by
any or Both of the parties 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 In all cases, the Secretary of Labor or the
party or parties Submitting the disputes, and Specifically Shall Clearly 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 of 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 , any order or decision or
determination Which my matter be Deemed Necessary or expedient for the purpose of setting the dispute or
of preventative or agricultural industry further disputes.
It is evident from the provisions transcribed the following: (a) that when a dispute between the principal and the
employee or worker, viz arises. on issue of wages, the Industrial Relations Court has jurisdiction throughout the
territory of the Philippines to consider, investigate and resolve the dispute, setting wages deemed fair and
reasonable; (B) for the purposes of prevention, arbitration decision and under the same Industrial Relations Court
also tien jurisdiction to hear any dispute - industrial and agricultural - resulting from any differences over wages,
interests or compensation, hours work, employment conditions or sharecropping between employers and
employees or workers and between owners and landowners or agricultural workers subject to compliance with
certain requirements and conditions, when he sees that the dispute causes or may cause a strike; (C) that in
exercising its powers specified above, the Industrial Relations Court 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 any matter
or for the purpose of determining settle the dispute or to prevent further industrial or agricultural disputes.
Shell Co. v. NLU G.R. No. 119205 3 of 8

In the case we are concerned there is undoubtedly an industrial dispunta. While the company, the company Shell, is
not willing to pay their workers higher wages night the 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, what has made the Court of Industrial Relations, after the conflict subject to its jurisdiction?
Precisely what rules the Act No. 103 Commonwealth charter of its creation and operation, namely: consider,
investigate and prosecute the dispute, after resolviedola in the sense that resolved, ie remunerating work night with
50% more than the wages of day. And this is perfectly legal both within the scope of Article 1 of the Act No. 103
empowers the Court of Industrial Relations to decide any dispute over wages and compensation in the way it
deems reasonable and appropriate, and within the framework of Article 4 of the Act which authorizes the court to
try and decide any litigation or industrial or agricultural controversy determine the outbreak of a strike or tends to
cause it. But still: what was done by the Industrial Relations Trbunal in this case is also legal within the framework
of Article 13 of the Act No. 103, article, as is seen, not only empowers the court to grant the remedy recabanlas
parts, but even go beyond, that is not specifically requested to grant remedies, provided they are encamienen to
resolve once the dispute or to prevent the outbreak of further disputes or strikes.
It is evident that these broad powers the proposed equipping Estadose Industrial Relations Court to the maximum
possible utility and effectiveness, making it not a simple academic agency, but truly active, dynamic and efficient -
in short, the official machinery for excellence in the formidable and thorny task of resolving industrial disputes,
yagricolas of some sort, preventing and thereby avoiding such stoppages and strikes that afflict and hurt not only
businesses and workers but, in general, any community. In his concurring opinion issued in the case of Ang
authoritative Tibay v Court of Industrial Relations (RG No. 46496), the Magistado Laurel had rightly expressed the
fundamental idea that emphasizes the creation of the court, with the following statement:
In Commonwealth Act No. 103, and by it, our government no longer performs the role of mediator or
intervenor but mere That of supreme arbiter. (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 and cortapizas
restrictions, provided in the law commonly known law on the eight hours 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 rest completely Shall Not 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 a serious loss Which Otherwise the
employer would suffer, or some other just 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
Their wages or salary regularly, 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.
Shell Co. v. NLU G.R. No. 119205 4 of 8

SEC. 4. No person, firm, or corporation, or business establishment or place of work Shall center compel an
employee or laborer to work During Sundays and legal holidays, UNLESS I have is paid an additional sum
of at Least twenty-five per centum of His Regular remuneration: Provided however, That prohibition esta
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 recurring lawyers - that in these articles where the payment of extra compensation or
additional authorized and are alone, namely specified: (a) in case of "overtime" or work in excess of the regular
hours for reasons imperiosasde urgency because of some disaster or accident, or to avoid losses or repair; (B) in the
case of work on Sundays and holidays; (C) emergency, and nothing that refers to night work; then the order in
question is illegal because it is not authorized by law. "In the absence - stress 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, EXPRESSLY statute specifies the cases Where
payment of additional compensation May be Demanded, additional compensation May be allowed in Those cases
only, and in no others. The Provisions of the Commonwealth Act No. 444 can not be enlarged by implication or
otherwise. Expressum facit cessare tacitum.
The argument is erroneous. Law No. 444 is not applicable to this case, it is evident that it has a specific purpose,
namely: (a) fix the maximum 8-hour working day; (B) identify certain exceptional cases you can authorize work
outside the working day; (C) provide a bonus, which should not be less than 25% of regular salary for the
"overtime" or work in excess of 8 hours.
In the case of Manila Electric, applicant-appellant against Utities The Public Employees' Association, appeal, L-
1206 (45 Off. Gaz., 1760), this Court has held that the power conferred by Article 1 of the law Commonwealth No.
103 the Industrial Relations Court to decide enjuciar and industrial disputes and disputes between capital and labor,
including that of setting wages and compnsaciones of employees and workers, has been restricted by Article 4 of
Law No Commonwealth . 444, at the same time limited to 25% of salary or regular compensation of workers the
minimum additional compensation that the court may grant for work on Sundays and public holidays, exempted
from the payment of such additional compensation to entities public utility providing a public service, such as
supplying gas, electricity, mortriz power, water, or provide transportation or communication skills. Such restriction
becomes an exception to the general power of the court to fix, in cases of dispute, wages and compensation to be
paid by employers to employees and workers; and inasmuch as that Article 4 relates only to salary or compensation
for work during the day Sunday and public holidays, it obviously can not refer to additional salary or compensation
for work beyond eight hours lajornada are usually made from first hours of the morning to late in the evening, it is
one thing to work on days Sunday and public holidays, and quite another night's work outside of the eight-hour
working days. Applying the legal maximum "expressio unius," it can be sustained without fear of being wrong, that
a law provides an exception to the general provisions specified as additional compensation for work days Sunday
and public holidays, excluding any another, as additional compensation for work at night on weekdays. "Another
case in Which May esta maxim almost invariably Followed by statute Which Is That Makes Certain of specific
exceptions to STI General provisions. Here wemay safely assume all other exceptions That Were Intended to be
excluded. " (Wabash R. Co.vs. United States, 178 Fed 5, 101 CCA 133;. Cella Commision Co. vs. Bohlinger, Fed
147, 419,. 78 CCA 467; Kunkalman vs. Gibson, Ind 171, 503.; 84 NE 985; Hering vs. Clement App Div 133, 293,..
117 NY 747 Supp.).
Shell Co. v. NLU G.R. No. 119205 5 of 8

The work denoche the Shell company requires its workers tally is not a 'overtime "in the sense that this word is
used in the Le No. 444, but a full day's work, also of 8 hours: only that, rather than done in a day, it gets dark. In
other words, night work that is 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
turn of those who work at night. So it is not strange that the legislature did not include this type of work between
cases of "overtime" indicated in the aforementioned law No. 444.
The question that, in our view, determine is whether among the general powers of the Court of Industrial Relations
who are admitted without dipusta, consider this the day night as a full day's work; of estimating it as more
burdensome than the day by day; and consequently to provide and arrange to be remunerated with 50% more than
regular wages daytime. Our answer is yes: this is between the general powers of the Court of Industrial Relations.
If the court has, in cases of dispute, the power to set wages it deems fair and reasonable for the work day, there is
no reason why it must not have the same power over wages night; so work is the one and the other. And as
appreciation wing that night work is heavier and cumbersome than the day and therefore deserve higher pay, there
is no motivospara revoke or alter. There is no possible argument against universal fact that regular, normal,
ordinary work is the day, and night work is very exceptional and justified only by certain unavoidable imperative
reasons. For something humanity has trabajadosiempre of day.
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 is only fair to remunerated better than usual to compensate certain
hasa the workers' point of such drawbacks. Undoubtedly night work not only in the long run affects the health of
workers, but this deprives him of certain things that make relatively pleasant life, like, viz., A full and uninterrupted
rest and some moments of solace , entertainment or spiritual and cultural expansion that could have after work in
the evening and during the first hours of the night. It is said that the workers can rest during the day after working
all night; but it may perhaps the rest of the body one day give him full tonic and restorative effect that can only
provide the 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 man trabja night irremediable more by necessity than pleasant convenience.
The vulgar, universal opinion, we must add the opinionpericial, the specialist criterion. The opinion of writers and
experts strongly militates in favor of the theory that night work is harder and onerous work that day, considered for
this with strong disgust and consequently compelling the capitalistic managers to establish a higher level of wages
as an incentive for workers to accept it. Virias authorities could be cited, but not to overextend this paper we
choose transcriber only a few, namely:
. . . Then, It Must Be Remembered That it is distinctly unphysiological to turn the night into day and
deprive the body of the beneficial effects of sunshine. The human organism Revolts against esta procedure.
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 inability or the lack of opportunity to sleep, nightworkers Their Often spend days in
performing domestic 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 Tend to be
less efficient than dayworkers and lose more time. . . (The Management of Labor Relations, by Watkins &
Dodd, page 524).
Shell Co. v. NLU G.R. No. 119205 6 of 8

Nightwork. - Nightwork've Gained a measure of prominence in the modern industry system in Connection
with continuous industries, That Is, Which industries in the nature of the Processes Makes it 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 Stated at intervals. Some discussion has taken place with regard to the lengths of the period
Should any workers 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 - Nightwork
or permanently, except Where temporary Changes are made individually for convenience.
There is sharp difference of opinion 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 urged Repeated Changes That make it more difficult to settle down to Either That kind of
shift and after the first week Nightwork Becomes less while trying to sleep the Ability Increases by day.
Workers Themselves react in various ways to the different systems. This much, however, Is 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 these, You 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, Either from the point of view of the employer or of the wage
earner. It is uneconomical UNLESS are unusually heavy overhead costs. 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 ordinary
home life. From an economic point of view,, Moreover, the investigations Showed That Nightwork was
unprofitable, Being lower 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 Nightwork That 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 Have ADOPTED special laws Placing limitations on hours of Nightwork for men, and others
prohibit Such work except in Processes continuous. (Principles of Labor Legislation, 4th Revised Edition
by Common & Andrews, p. 147.)
Nightwork have almost invariably Been With disfavor Looked upon 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, and the additional strain upon the executive staff
Responsibility , 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, to an
Shell Co. v. NLU G.R. No. 119205 7 of 8

extent, Although precluded from the activities of day life, do Attempt to enter into These activities, 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 Such industries upon a Three- 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 That the fact except in cases of necessity or in
periods of great emergency, Nightwork is socially undesirable. Under our modern industry system,
however, has Nightwork Greatly aided the production of commodities, and have Offered a significant
method of cutting down the ever-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 Nightwork has deleterious effects
upon the health of laborers and Tends to reduce the ultimate supply of efficient work. If it can adversely
PROVED That Nightwork Affects Both the quality and quantity of productive labor, ITS discontinuance
will undoubtedly be sanctioned by Employers. From a social point of view, even to Relatively high degree
of efficiency 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 is to Maintain his market in the face of mounting Variable
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-monitoring, however, are not common possessions.
That it has-been found The most serious obstacle to a reversal of the routine is the lack of self-discipline.
Many night workers Numerous enter into the activities of sleep PRECLUDE That day life, and continue to
Attempt to do Their Work at night. Evidence Gathered by the British Health of Munition Workers'
Committee places permanent night workers, Whether Judged on the basis of 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 These
systems, 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 esta loss in production.
There is,, Moreover, a marked difference Between the rates of output of night and day shifts on the
discontinuous plan. Investigated In each case 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 Investigators Regarded by all as
undesirable. Women on continuous Nightwork are likely to perform domestic duties, and added strain esta
undoubtedly accounts for the Poorer results of Industrial Their activities. The tendency to devote to
amusement and other things the time That Should be spent in rest and sleep is as common Certainly Among
Men Among women as workers and accounts Largely for the loss of efficiency and time on the part of Both
Shell Co. v. NLU G.R. No. 119205 8 of 8

Sexes in Nightwork.
The case against Nightwork, then a, 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, Including the
recreational activities of His leisure hours and the ordinary associations of regular family relations. From an
economic point of view, Nightwork is to be discouraged 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 nations unavailable Industrial added much
to the evidence against the continuation of Nightwork, except in extraordinary and unavoidable
emergencies Circumstances. 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, pp. 325-328, by
Watkins & Dodd.).
In merits of the above, the appeal is denied certiorari filed and the Court of Industrial Reclaciones confirmed, with
costs of a recurring charge. So it is ordered.
Paras, Pres. Acting Fair, Paul, Perfect, Bengzon, Padilla and Tuason, JJ., Concur.