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Virjen Vs NLRC Digest

The private respondents filed a complaint against Vir-jen Shipping for illegal dismissal and unpaid wages. Vir-jen Shipping counter-sued for breach of contract and excess wages paid. The National Seamen Board initially ruled in favor of Vir-jen Shipping, finding the seamen breached their contracts by demanding higher wages. However, the National Labor Relations Commission reversed this decision, requiring Vir-jen Shipping to pay the remaining wages and benefits. The Supreme Court then ruled in favor of Vir-jen Shipping, affirming the seamen breached their contracts and the dismissal was legal.

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Shieremell Diaz
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237 views1 page

Virjen Vs NLRC Digest

The private respondents filed a complaint against Vir-jen Shipping for illegal dismissal and unpaid wages. Vir-jen Shipping counter-sued for breach of contract and excess wages paid. The National Seamen Board initially ruled in favor of Vir-jen Shipping, finding the seamen breached their contracts by demanding higher wages. However, the National Labor Relations Commission reversed this decision, requiring Vir-jen Shipping to pay the remaining wages and benefits. The Supreme Court then ruled in favor of Vir-jen Shipping, affirming the seamen breached their contracts and the dismissal was legal.

Uploaded by

Shieremell Diaz
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Republic of the Philippines The private respondents filed a complaint for illegal

SUPREME COURT dismissal and non-payment of earned wages with the


Manila National Seamen Board.

EN BANC The Vir-jen Shipping and Marine Services Inc. in turn


filed a complaint for breach of contract and recovery of
G.R. No. L-58011 & L-58012 November 18, 1983 excess salaries and overtime pay against the private
respondents.
VIR-JEN SHIPPING AND MARINE SERVICES,
INC., petitioner, On July 2, 1980, the NSB rendered a decision declaring
vs. that the seamen breached their employment contracts
NATIONAL LABOR RELATIONS COMMISSION,
when they demanded and received from Vir-jen Shipping
ROGELIO BISULA RUBEN ARROZA JUAN
GACUTNO LEONILO ATOK, NILO CRUZ, ALVARO wages over and above their contracted rates. The
ANDRADA, NEMESIO ADUG SIMPLICIO BAUTISTA, dismissal of the seamen was declared legal and the
ROMEO ACOSTA, and JOSE ENCABO respondents. seamen were ordered suspended.

The seamen appealed the decision to the NLRC which


Facts
reversed the decision of the NSB and required the
Herein private respondents entered into a manning petitioner to pay the wages and other monetary benefits
contract with herein petitioner, engaging them to work on corresponding to the unexpired portion of the manning
board for a period of twelve (12) months. The parties contract on the ground that the termination of the
also executed a side contract, that should the vessel M/J contract by the petitioner was without valid cause. Vir-jen
Janu be required to pay ITF rates when it calls on any Shipping filed the present petition.
ITF controlled foreign port, private respondents would
return to petitioner the amounts so paid to them.
Issue:
After verification and approval of their contracts by the
NSB (NATIONAL SEAMENS BOARD), the respondents Whether or not respondents committed a breach of
boarded their vessel in Japan. manning contract for demanding an increase of 50% of
their respective wages stipulated in their NSB approved
While said vessel was on route to Australia which is an
contracts.
ITF controlled port, the master of the vessel sent a cable
to petitioner demanding for a 50% increase in their HELD
wages stated in the manning contract, and they added
that it is the best and only solution to solve the ITF Affirmative.
problem.
The supreme court lean on the findings of the NSB.
Petitioner replied, and proposed a 25% increase in the
basic pay of the complainant crew members, although it Threat is present
claimed, that it would "suffer and absorb considerable
There is no bad faith on the side contract
amount of losses."
The ruling in Wallen Philippine Shipping Inc. is not
The proposal was accepted by private respondents with
applicable in this case
certain conditions which were accepted by the
Company.

Subsequently, the petitioner sought authority from the


NSB to cancel the contracts of employment of the
Seamen, claiming that its principals had terminated their
manning agreement because of the actuations of the
respondents. The request was granted by the NSB and
soon thereafter, the Company cabled the Seamen
informing them that their contracts would be terminated
upon the vessel's arrival in Japan.

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