ISSUE:
Whether the Physical Research Laboratory (PRL) is considered an "industry" under the Industrial Disputes Act (I.D. Act), and whether it is subject to the provisions of the Act, including the recognition of employees as "workmen"?
RULE:
An activity qualifies as "industry" if it involves collaboration between an employer and employees with the goal of producing or distributing goods or services that satisfy the needs of consumers.
Sovereign functions (such as legislative, judicial, or law enforcement activities) are exempt from being classified as "industry."
The "dominant nature test" is applied when an organization carries out a mix of activities, some of which may be exempt, but the overall nature of the activities determines whether it qualifies as an industry.