JD 5 0 2: O B L I GA T IO N S a n d C O N T RA C T S w i t h S A LE S

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TS PI , I N C. V. TS PO C E MP L OY EES ’ UN I O N
[ GR N O . 16 3 4 19 , 1 3 F E BRU A RY 20 08 ]
P o ne nt e: V E L A SC O J R ., J .

FACTS:
T SP I C o r p or a t io n e n t e re d i nt o a C o l le c t i ve Ba rg a i n i n g A g re e me n t (C B A )
w i t h th e c o r po ra t i o n U n i o n fo r t h e i nc r eas e o f s a la r y f o r t h e latt e r’s m em b e rs
fo r t h e y e ar 2 00 0 t o 2 0 02 s t a rt i ng f ro m J a n u a ry 2 00 0. T hus , t h e s a la r y
i n c re a s e w a s ef f e ct i ve o n J a n ua ry 1, 20 0 0.
L at e r i n O ct ob e r of 2 0 00, t h e R e g i o n a l T r ip a rt it e W ag e a nd P r od uct i on
B oa r d ra is e d t he d a i ly m i ni m um w a g e f ro m P 2 2 3 .5 0 t o P 2 5 0. 0 0 s t a rt i ng
N ov e mb e r 1, 2 00 0.
C o nf o rm a bl y, t h e w ag es of t h e 1 7 p ro b a ti on a ry e mp l oy e es w e r e
i n c re a s e d t o P 2 50. 0 0, a n d be ca m e re g u l ar e m pl o ye es an d re ce iv e d a n ot he r
10% i nc rea s e i n s a l a r y. I n J a n ua r y 2 0 0 1, T SP I C i m p le m e n te d t he n e w w ag e
rat es as ma n da te d b y t he C BA . A s a r es u l t, t h e n in e (9 ) em p l o ye es w h o w e r e
s e n i o r t o t he 17 rec e nt l y r eg u l a ri ze d em p lo ye es , r ec ei v ed l es s e r w ag es .
O n J a nu a ry 19 , 2 00 1, T SP IC ’s H um a n R es o u rc es D e pa rt me nt n o t i f ie d t h e
24 e m pl oy e es w h o a re p ri v a t e res p o nd e nt s f o r t h e c as e at b ar t h at du e t o an
er ro r i n t h e a ut o ma t e d pa yro ll s ys t e m t h ey w er e o v e r pa i d a n d t h e
ov e rp a y m e nt w o u l d b e de du c t ed f ro m t h e i r s al a ri es s t a rt i n g Fe b ru a ry 2 001.
T h e U n io n, o n t he ot he r h a n d , a s s ert e d t ha t t he r e w as no e r ro r a n d t h e
d ed uc t i on o f t he a l l eg e d o v er p a y m en t c o ns t i t ut e d di m i n ut i o n o f pa y.

IS S UE:
W he th e r t he a l le g e d o v e rp a y m e nt c o n s tit u tes d i m in ut io n o f pa y as
al l eg e d by t h e U n i o n .

H E LD : YE S
P urs ua n t t o t h e C o ll ec t iv e B a rg a i n i n g A gr e em e n t e nt e r e d i nt o by t h e
T SP I a n d t he TS P O C E m pl o ye es U n i o n is b i n d i ng u po n t h e pa rt i es a n d b e
act ed i n s t ri ct c o m p l ia n c e t h e r ew it h. T h e C B A i n t h is c as e i s t h e la w be tw e en
t h e pa rt ie s – em p l o y er s a n d t h ei r e mp l o ye es .
T h er e f o r e, t h e r e w a s n o o ve r p a y me n t w h en t he r e w as an i n c r eas e i n
s al a ry f o r t h e m em b ers o f t h e u n i o n s i m ult a ne o us w it h t h e i n c re as e o f
m in i mu m w a ge f o r wo rk e rs i n t he Na t i o na l C a p ita l Re g io n. T h e C B A s h o u l d b e
co mp l i ed w it h an d t h at t h e s e n io r e mp l oy ee s w h o w e re f i rs t p ro m ot ed as
re gu l ar e m p lo ye es s h a l l be e nt it l ed t o a n in cr e a s e i n t h e ir s al a ri es an d t h e
s am e w i th l o w e r ra n k w o rk ers .

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