Ruga V. NLRC G.R. Nos. 7265461. January 22, 1990

Ruga V.
NLRC
G.R. Nos. 7265461. January 22, 1990
The petitioners were the fishermen crew members of 7/B Sandyman II, one of
several fishing vessels owned and operated by private respondent De Guzman
Fishing Enterprises which is primarily engaged in the fishing business with port and
office at Camaligan, Camarines Sur. Petitioners rendered service aboard said fishing
vessel in various capacities, as follows:
Alipio Ruga and Jose Parma, patron/pilot Eladio Calderon, chief engineer Laurente
Bautu, second engineer Jaime Barbin, master fisherman pond fisherman Philip
Cervantes and Eleuterio Barbin, fishermen.
For services rendered in the conduct of private respondents regular business of
trawl fishing, petitioners were paid on percentage commission basis in cash by
one Mrs. Pilar de Guzman, cashier of private respondent. As agreed upon, they
received thirteen percent (13%) of the proceeds of the sale of the fish catch if the
total proceeds exceeded the cost of crude oil consumed during the fishing trip,
otherwise, they received ten percent (10%) of the total proceeds of the sale. The
patron/pilot, chief engineer and master fisherman received a minimum income of
P350.00 per week while the assistant engineer, second fisherman, and fisherman
winchman received a minimum income of P260.00 per week.
On September 11, 1983 upon arrival at the fishing port, petitioners were told by
Jorge de Guzman, president of private respondent, to proceed to the police station
at Camaligan, Camarines Sur, for investigation on the report that they sold some of
their fish catch at mid sea to the prejudice of private respondent. Petitioners denied
the charge claiming that the same was a countermove to their having formed a
labor union and becoming members of Defender of Industrial Agricultural Labor
Organizations and General Workers Union (DIALOGWU) on September 3, 1983. On
September 22, 1983, petitioners individually filed their complaints for illegal
dismissal and nonpayment of 13th month pay, emergency cost of living allowance
and service incentive pay, with the then Ministry (now Department) of Labor and
Employment, Regional Arbitration Branch No. V, Legaspi City, Albay. On October 24,
1983, private respondent, thru its operations manager, Conrado S. de Guzman,
submitted its position paper denying the employeremployee relationship between
private respondent and petitioners on the theory that private respondent and
petitioners were engaged in a joint venture.
Issue: WON there exists employer-employee relationship
Held: YES
In determining the existence of an employer employee relationship, the elements
that are generally considered are the following (a) the selection and engagement of
the employee (b) The payment of wages (c) The power of dismissal And (d) the
employers power to control the employee with respect to the means and methods
by which the work is to be accomplished. The employment relation arises from
contract of hire, express or implied. In the absence of hiring, no actual employer
employee relation could exist.
Petitioner Alipio Ruga was hired on September 29, 1974 as patron/captain of the
fishing vessel Eladio Calderon started as a mechanic on April 16, 1968 until he was
promoted as chief engineer of the fishing vessel Jose Parma was employed on
September 29, 1974 as assistant engineer Jaime Barbin started as a pilot of the
motor boat until he was transferred as a master fisherman to the fishing vessel 7/B
Sandyman II Philip Cervantes was hired as winchman on August 1, 1972 while
Eleuterio Barbin was hired as winchman on April 15, 1976.
Aside from performing activities usually necessary and desirable in the business of
private respondent, it must be noted that petitioners received compensation on a
percentage commission based on the gross sale of the fishcatch, i.e. 13% of the
proceeds of the sale if the total proceeds exceeded the cost of the crude oil
consumed during the fishing trip, otherwise only 10% of the proceeds of the sale.
Such compensation falls within the scope and meaning of the term wage as
defined under Article 97(f) of the Labor Code.
Furthermore, the fact that on mere suspicion based on the reports that petitioners
allegedly sold their fishcatch at midsea without the knowledge and consent of
private respondent, petitioners were unjustifiably not allowed to board the fishing
vessel on September 11, 1983 to resume their activities without giving them the
opportunity to air their side on the accusation against them unmistakably reveals
the disciplinary power exercised by private respondent over them and the
corresponding sanction imposed in case of violation of any of its rules and
regulations.
The conduct of the fishing operations was undisputably shown by the testimony of
Alipio Ruga, the patron/pilot of 7/B Sandyman II, to be under the control and
supervision of private respondents operations manager. Matters dealing on the
fixing of the schedule of the fishing trip and the time to return to the fishing port
were shown to be the prerogative of private respondent. While performing the
fishing operations, petitioners received instructions via a single side band radio from
private respondents operations manager who called the patron/pilot in the
morning. They are told to report their activities, their position, and the number of
tubes of fish catch in one day. Clearly thus, the conduct of the fishing operations
was monitored by private respondent thru the patron/pilot of 7/B Sandyman II who
is responsible for disseminating the instructions to the crew members.

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