GR L 2009; (April, 1949) (Digest)
G.R. No. L-2009; April 30, 1949
SUNRIPE COCONUT PRODUCTS CO., INC., petitioner, vs. THE COURT OF INDUSTRIAL RELATIONS and SUNSHINE COCONUT WORKERS’ UNION (CLO), respondents.
FACTS
The petitioner, Sunripe Coconut Products Co., Inc., appealed a decision of the Court of Industrial Relations (CIR) which held that the “parers” and “shellers” working for the company under the pakiao (piece-work) system are its laborers entitled to twelve days of sick leave. The petitioner contended that these workers are independent contractors and not employees or laborers.
ISSUE
Whether the “parers” and “shellers” working under the pakiao system are employees of the company or independent contractors.
RULING
The Supreme Court affirmed the CIR’s decision, ruling that the “parers” and “shellers” are employees. The Court held that the determination of whether a worker is an employee or an independent contractor involves a factual inquiry, and the CIR’s factual finding on this matter is binding. The CIR considered economic facts such as the workers being under some degree of control or supervision, forming stable groups, depending on the work for their livelihood, and working alongside undisputed employees in the company’s factory. The Court also noted that being piece-workers under the pakiao system does not exclude them from the coverage of labor laws, as Commonwealth Act No. 103 expressly provides for laborers paid by piece-work. The Court emphasized that in cases involving industrial disputes, a wide latitude should be given to the CIR to achieve the purposes of its organic law.
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