International School Alliance of Educators v. Quisimbing [G.R. No. 128845, June 1, 2000]

FACTS: The school had two kinds of employees the local-hire and the foreign-hire. The foreign-hire teachers were given an added 25% in their salary and some benefits like transportation and housing, shipping costs, etc. These were given based on two things; dislocation and limited tenure. The added compensation was the school’s way of remaining competitive on an international level of attracting competent teachers. The local-hire teachers, part of the union contested the difference; a deadlock resulted so the teachers went on strike. The acting secretary of DOLE assumed jurisdiction and said that there was a valid discrimination so the teachers cannot ask for equal protection. He said that “equal pay for equal work” does not apply in this case.


ISSUE: Whether or not there is discrimination in terms of wages.


HELD: The Court ruled that there was discrimination. It is public policy and also an international principle that inequality and discrimination are abhorred. All the more in the workplace where relations between capital and labor are often skewed in favor of capital are inequality and discrimination all the more reprehensible. Discrimination in terms of wages is frowned upon by the Labor Code. The principle “equal pay for equal work” should pay in this case. Persons who work with substantial equal qualifications, skill, effort and responsibility, under similar conditions, should be paid similar salaries. It is the policy of the State to provide equal pay for substantially equal work and to base differences in pay upon substantive differences in duties and responsibilities and qualification requirements of the positions. If an employee is paid less it is upon the employer to explain why the employee is treated differently. Dislocation and limited tenure cannot serve as adequate or valid bases for the difference in the salary rates. The other benefits are enough to make up for these two factors. There is no reasonable distinction between the work of a local-hire and a foreign-hire that will justify the difference.

The foreign-hires cannot join the bargaining unit nor do they belong to the same bargaining unit. The factors in determining the appropriate bargaining unit are (1) will of the employees; (2)affinity and unity of the employees’ interests; (4) prior collective bargaining history; and, (4) similarity of employment status.