32 Palea Vs Pal 70 Scra 244

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32 PALEA vs PAL 70 scra 244

Facts: On January 4, 1956, Philippine Airline Employees Association (PALEA) whose members are regular
employees of the defendant, Philippine Airlines (PAL), entered into a CBA stipulating therein that regular
working hours of the said employees shall be on the basis of a forty-eight (48) hours a week, effective up
to January 4, 1959. Soon after the approval of RA. 1880 on June 22, 1957, providing that the legal
number of hours of labor, except for schools, courts, hospitals and health clinics shall be eight (8) hours
a day, for five (5) days a week, or a total of forty (40) hours a week, also stating that is shall also be
applicable to all laborers employed in GOCCs. A suit was then filed after PAL contended that it is not a
GOCC.

ISSUE: WON PAL is a GOCC


WON PAL employees is governed by their CBA or by RA 1880

HELD: PAL is a GOCC, considering that over 54% of the shares of stock of the PAL belongs to NDC, a
wholly owned and controlled by government.
The CBA, being in conflict with the RA 1880, the later shall prevails. PAL was ordered to comply
with RA 1880 to shorten the hours of work a week for its employees and daily wagers from 48 to 40
hours, from Monday to Friday at the rate of 8 hours a day, but if the exigency of service demand,
employees may be required to work beyond 40 hours.

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