Globe Mackay Cable v. National Labor Relations Commission

Summary

This case involved a dispute over the proper computation of Cost-of-Living Allowance (COLA) under Wage Order No. 6. Globe Mackay Cable and Radio Corporation computed monthly COLA by multiplying the P3.00 daily rate by 22 working days, while the FFW-Globe Mackay Employees Union argued for a 30-day computation. The Labor Arbiter sided with the company, but the NLRC reversed this decision. The Supreme Court ultimately ruled in favor of the company, holding that COLA should be computed based on 22 days since the CBA established a 5-day work week with only 22 paid days per month. The Court applied the principle that COLA is mandated only for days when basic wages are paid, and found no established employer practice requiring 30-day computation due to lack of clear administrative guidelines prior to the case.