Citizens' League of Freeworkers vs. Abbas

No. L-21212. September 23, 1966

P- Citizens' League of Freeworkers

R- Hon. Macapanton Abbas (CFI Davao), Teofilo Geronimo and Emerita Mendez

Employer-Employee Relationship; Conditions of Employment

Facts:

The spouses Teofilo and Emerita leased the auto calesas to the Union members on a daily rental basis. The Union bargained with the spouses to recognize them as employees instead of lessees. Unable to get such bargain, the union declared a strike.

The spouses prayed for the issuance of a writ of preliminary injunction restraining the Union from interfering with its operation. CFI Davao granted the prayer. 

Meanwhile, the Union filed a complaint for unfair labor practice against the former. It also filed before the CFI Davao a motion to declare the writ of preliminary injunction void. But Judge Abbas denied said motion on the ground that there was no employer-employee relationship between the spouses and the Union drivers.

Issue:

WoN a driver under the boundary system is not an employee.

Ruling:

            No. A driver who operates under the boundary system is an "employee" of the owner of the vehicle within the meaning of the law.

            In National Labor Union v. Dinglasan, 52 O.G., No. 4, 1933, the Court rules that the employer-employee relationship existed between the owner of the jeepneys and the drivers even if the latter worked under the boundary system.

NB – There are two features sufficient to establish the relationship between the operators and the drivers from that of employer-employee, which is far from the relationship of lessor and lessee:

a.    compensation is the excess of the total amount of fares earned or collected by the drivers; and

the gasoline is for the account of the drivers.