Puerto Rico Labor Relations Board v. Executive House, Inc.

91 P.R. 775
Supreme Court of Puerto Rico·Decided February 26, 1965·No. No. JRT-64-3·Published

Opinion

Mr. Justice Rigau

delivered the opinion of the Court.

This is a case in which the Labor Relations Board filed a petition pursuant to § 9(2) (c) of the Labor Relations Act, No. 130 of May 8, 1945, as amended, 29 L.P.R.A. § 70(2) (c), urging us to enforce an arbitration award. On November 1, 1962, the Union of Workers of the Gastronomic Industry (Independent), on behalf of certain employees (croupiers) of the Condado Hotel Casino, entered into a new collective agreement with said employer. The former agreement had expired in April 1962. The new agreement would govern for two years. Article VIII, paragraph 1, of the new agreement reads as follows:

[777] “Every employee covered hereunder shall be entitled to regular vacation with full pay to be tendered upon commencement of the enjoyment thereof, at the rate of one and one fourth (1%) days for each month of service, save in case of suspension or leave without pay for more than two weeks. He shall also be entitled to one additional day of vacation for each year of services rendered up to a maximum of five additional days. The employee shall enjoy his vacation uninterruptedly, and it shall be granted in such a way as not to interfere with the normal functions of the Casino, to which end the employer shall establish the corresponding turns; Provided, that the employer shall notify the employee at least fifteen (15) days in advance of the date on which his vacation will commence. The employee shall have no right to vacation until he has accumulated same for one year. By written agreement between the employer and the employee, it may be accumulated for more than one year but never more than two.” (Italics ours.)

The former agreement did not contain a clause of a similar nature.

As a result of discrepancies on the interpretation to be placed upon some of the clauses of the agreement, the Union and the Employer submitted to arbitration two questions, one of which has given rise to the present petition.1 The submission agreement subscribed by the parties, insofar as the question at issue is concerned, reads as follows:

“To determine whether the words ‘shall also be entitled to one additional day of vacation for each year of services rendered up to a maximum of five additional days,’ employed in Article VIII, paragraph 1, of the present collective agreement, mean that the employees of the Condado Hotel Casino shall be entitled to that right retroactively or prospectively.” (Italics ours.)

[778] The arbitrator’s decision was adverse to the employer in ruling that the workers’ right to vacation, as contemplated in the agreement, had retroactive effect. The employer refused to abide by this part of the award, and as a result of its refusal the Board resorts to us urging that we enforce the same.

As grounds of opposition to our enforcing the award in question, the employer alleges as follows: (1) the retroac-tivity to which the award refers — and the clause object of arbitration — is the effective date of the new agreement, and does not include consideration of the years of services rendered prior to' the effectiveness of the new agreement for'the purpose of computing the “additional days” to be included in the vacation to be granted to every employee; and (2) the award is void because it is the product of an insufficient submission, wherefore the employer is not bound to abide by it. Both contentions are without merit.

Regarding the first question raised, the employer concedes that the arbitrator’s interpretation on retroactivity is correct, but it attributes a different scope to the award in making the “additional days” to which an employee is entitled to depend on the years of services rendered only as of the effective date of the new agreement. In his award issued on October 18, 1963, the arbitrator says in that connection the following:

“To begin with, we must ask ourselves the following question: Of the employees covered by the existing collective agreement, who are entitled to one additional day of vacation up to a maximum of five additional days? According to the italicized phrase [he refers to the phrase ‘services rendered’’], the employees covered by the collective agreement who have rendered services are entitled to that additional day. In other words, they are also entitled to one additional day of vacation for each year of services rendered, and if they have not rendered any, as they render them. It would be a different thing if the clause in question read for services which may be ren[779] dered. In that case the intention would have prospective character only. But that is not the reality under the context copied. When the contracting parties inserted in the provision under consideration the phrase ‘for each year of services rendered,’ it is logical that they referred to the services already rendered in the past, in addition to those which may be rendered in the future.”

By way of illustration, the arbitrator gives us an example which makes his interpretation concrete and clear. It is this:

“Employee X commenced to work for the Hotel on October 1, 1960. On October 1, 1968, he completed three years of services rendered to the Hotel. According to the first paragraph, Article VIII, entitled Vacation, of the existing collective agreement, employee X is entitled thereunder to a 15-day vacation, which provision already existed since the former agreements; but in addition to those 15 days he is also entitled to three additional days of vacation, computed at the rate of one additional day for each of the three years of services rendered as of October 1, 1960. In other words, for the reasons stated the retroactivity applies in this cáse, but hereaftér, namely, October 1, 1963, if employee X continues in the service of the Hotel, he shall be entitled to one additional day of vacation as of October 1, 1964, and if he works from October 1, 1964 to October 1, 1965, he acquires under this agreement the right to one additional day of vacation. Thereafter he is not entitled to any more additional days of vacation, in the light of the present agreement. That is to say, the prospectiveness in the case of employee X would apply as of October 1, 1963.”

Free access — add to your briefcase to read the full text and ask questions with AI

Puerto Rico Labor Relations Board v. Executive House, Inc., 91 P.R. 775 (prsupreme 1965).

91 P.R. 775 (Puerto Rico Labor Relations Board v. Executive House, Inc.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Republic Steel Corp. v. Maddox
379 U.S. 650 (Supreme Court, 1965)