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National Sugar Refineries Corp. (NASUREFCO). vs. NLRC, NBSR Supervisory Union GR. No.

101761 March 24, 1993 Facts: Nasurefco is a GOCC which operated 3 refineries in Bukidnon, Iloilo, and Batangas The Batangas refinery was privatized on April 11, 1992 pursuant to Proc. 50 Private respondent, NBSR Supervisory Union, represents the former supervisors of the Nasurefco Batangas. On June 1, 1998, petitioner implemented a Job Evaluation Program (JEP) affecting all employees, to rationalize the duties and functions of all positions, reestablish levels of responsibility, and recognize both wage and operational structures. Prior to the JEP, the members of the Union were treated in the same manner as rankand-file employees. As such, they used to be paid overtime, rest day, and holiday pay. With the implementation of the JEP, they were reclassified as managerial staff for purposes of compensation. Two years thereafter, the members of the Union filed a complaint for non-payment of overtime, restday and holiday pay allegedly in violation of Article 100 of Labor Code. (Executive Labor Arbiter ruled in favor of the Union the long practice of paying for overtime, restday and holiday pay has ripened into a contractual obligation, the special allowance of P100. in lieu thereof amounts to a diminution of benefits.) (NLRC 3rd Div. affirmed they are not managerial employees as defined under Art. 212(m)) In this petition for certiorari, the Petitioner contends that in terms of entitlement to the questioned benefits, although the private respondents, as supervisors, may not be occupying managerial positions, there are clearly members of the managerial staff because they meet all the conditions prescribed by law. Issues: w/n supervisory employees should be considered as officers or members of the managerial staff and hence not entitled to overtime rest day and holiday pay Held: YES, they are considered as occupying managerial positions; as such, exempt from coverage of Art. 82 and not entitled to overtime, rest day, and holiday pay This is one instance when the nomenclature of the position does not correspond the nature of their functions. A perusal of the Job Value Contribution Statements of the union members reveals that these supervisory employees are under the direct supervision of their respective department superintendents and that they generally assist the latter in planning, organizing, staffing, directing, controlling communication and in making decisions in attaining the companys goals and objective. Moreover, they are responsible for the effective and efficient operation of their respective departments. It is apparent that the members of the Union discharge duties and responsibilities which qualify them as officers or members of the managerial staff. o Primary duty consists of the performance of work directly related to management policies of the employers o Customarily and regularly exercise discretion and independent judgment o Regularly and directly assist the managerial employees o Execute, under general supervision, work along specialized/technical lines o Execute, under general supervision, special assignments and tasks o Do not devote more than 20% of their hours worked in a work-week to activities which are not directly and clearly related to the performance of their work (Section 2, Rule 1, Book II of Implementing Rule of Labor Code.)