ACCFA VS CUGCO CUGC O CASE DIGEST
Facts: ACCFA was a government agency created under R.A. o. !"# amended $ts adm$n$strat$ve mac%$nery was reorgan$&ed and $ts name c%anged to Agr$cu'tura' Cred$t Adm$n$strat$ve under t%e (and Re)orm Code *R.A. o. +!,,-. On Set. ,/ #01# a co''ect$ve 2arga$n$ng agreement w%$c% was to 2e e))ect$ve )or a er$od o) one year )rom 3u'y #/ #01# was entered $nto 2y and 2etween t%e un$ons and ACCFA. ACCFA. On Octo2er +4/ #01" t%e un$ons toget%er w$t% $ts mot%er un$on/ Con)ederat$on o) Un$ons $n Government Cororat$on and o))$ces *CUGCO- )$'ed a com'a$nt w$t% t%e court o) Industr$a' re'at$ons aga$nst ACCFA ACCFA )or )or %av$ng a''eged'y comm$tted acts o) un)a$r un )a$r 'a2or ract$ce. At t%e endency o) t%e a2ove ment$oned case sec$)$ca''y on August #01+ t%e res$dent o) t%e 5%$'$$nes s$gned $nto 'aw t%e Agr$cu'tura' 'and Re)orm Code *R.A. +!,,- w%$c% among ot%er t%$ngs re6u$red Reorgan$&at$ons o) Adm$n$strat$ve 7ac%$nery o) Agr$cu'tura' Cred$t and Cooerat$ve F$nanc$ng Adm$n$strat$ve c%anged $ts name to Agr$cu'tura' cred$t Adm$n$strat$on. ACCFA Suerv$sor8s Assoc$at$on and t%e$r wor9er8s Assoc$at$on Assoc$at$on )$'ed a et$t$on )or cert$)$cat$on e'ect$on w$t% t%e court o) Industr$a' Re'at$ons ray$ng )or ec'us$ve 2arga$n$ng agents )or suerv$sors and ran9 and )$'e em'oyee s/ resect$ve'y $n ACA. ACA $n e))ect c%a''enges t%e 3ur$sd$ct$on o) Court o) Industr$a' Re'at$ons to enterta$n t%e et$t$on o) Un$ons )or cert$)$cat$on e'ect$on on ground t%at ACA $s engaged $n governmenta' )unct$ons. T%e Un$ons ;o$n $ssue on s$ng'e o$nt contend$ng ACA )orms ror$etary )unct$ons. ISSUE: Is ACCFA ACCFA *ACA- er)orm$ng governmenta' )unct$ons< RU(IG:
=es/ Under Sect$on + o) Agr$cu'tura' (and Re)orm Code. ACA esta2'$s%ed among ot%er governmenta' agenc$es to etend =es/ cred$t and s$m$'ar ass$stance to agr$cu'ture/ $n ursuance under Sect$on ". Un$ons %ave no 2arga$n$ng r$g%ts w$t% ACA E.O >? 'aced ACA under (and Re)orm 5rogram 5rogram Adm$n$strat$on and 2y v$rtue o) R.A. +!,,. T%e $m'ementat$on o) (and Re)orm 5rogram o) government $s a governmenta' )unct$on not a ror$etary )unct$on. ACA can8t ste down to dea' r$vate'y. It $s m$n$ster$a' and government )unct$ons are eerc$sed 2y t%e state as attr$2utes o) sovere$gnty and not mere'y t o romote we')are/ rogress/ and roser$ty.
ACCFA v CUGCO G.R. No. No. L-21484. November November 29, 1969. J. Makalintal Certiorari Facts: (ACCFA) was a government agency created under Republic Act o. !"#$ as amended. %ts administrative mac&inery (ACCFA) was reorgani'ed reorgani'ed and its name c&ang c&anged ed to Agricultural Agricultural Credit Administr Administration ation (ACA) under t&e and Reor Reorm m Code (Republic Act o. *!++). ,n t&e ot&er &and$ t&e ACCFA -upervisors Association (A-A) and t&e ACCFA /orkers Association (A/A)$ reerred to as t&e 0nions$ are labor organi'ations composed o t&e supervisors and t&e rank1 and1ile employees$ respectively$ in t&e ACCFA (now ACA). ,n ,ctober *2$ #34" t&e 0nions$ toget&er wit& its mot&er union$ t&e Conederation o 0nions in 5overnment Corporations and ,ices (C05C,)$ iled a complaint wit& t&e Court o %ndustrial Relations against t&e ACCFA or &aving allegedly committed acts o unair labor practice$ namely: violation o t&e collective bargaining agreement in
order to discourage t&e members o t&e 0nions in t&e e6ercise o t&eir rig&t to sel1organi'ation$ discrimination against said members in t&e matter o promotions$ and reusal to bargain. 7&e ACCFA moved to reconsider but was turned down in a resolution dated April "8$ #34* o t&e C%R en banc. 9ence t&is appeal. uring t&e pendency o t&e case$ t&e union iled a petition or certiication election wit& t&e Court o %ndustrial Relations praying t&at t&ey be certiied as t&e e6clusive bargaining agents or t&e supervisors and rank1and1ile employees$ respectively$ in t&e ACA.7rial court agreed wit& t&is move. 9owever$ t&e ACA iled or a stay o e6ecution w&ic& t&e trial court granted. %ssue: /, t&e C%R &as ;urisdiction to entertain t&e petition o t&e 0nions or certiication election given t&at t&e mot&er company (ACA) is engaged in governmental unctions 9eld: 7&e 0nions are not entitled. ecision modiied Ratio: 0nder -ection * o t&e Agricultural and Reorm Code t&e ACA was establis&ed$ among ot&er governmental agencies$ to e6tend credit and similar assistance to agriculture. According to t&e and Reorm Code$ t&e administrative mac&inery o t&e ACCFA s&all be reorgani'ed to enable it to align its activities wit& t&e re8$ and &ence against t&e grant o t&eir basic petition or certiication election as proper bargaining units. 7&e ACA is a government oice or agency engaged in governmental$ not proprietary unctions. 7&ese unctions may not be strictly w&at =resident /ilson described as ?constituent? (as distinguis&ed rom ?ministrant?)$ suc& as t&ose relating to t&e maintenance o peace and t&e prevention o crime$ t&ose regulating property and property rig&ts$ t&ose relating to t&e administration o ;ustice and t&e determination o political duties o citi'ens$ and t&ose relating to national deense and oreign relations. 0nder t&is traditional classiication$ suc& constituent unctions are e6ercised by t&e -tate as attributes o sovereignty$ and not merely to promote t&e welare$ progress and prosperity o t&e people @ t&ese letter unctions being ministrant$ &e e6ercise o w&ic& is optional on t&e part o t&e government.
7&e growing comple6ities o modern society$ &owever$ &ave rendered t&is traditional classiication o t&e unctions o government 8$ w&ic& provides: ?-C. ##. =ro&ibition Against -trike in t&e 5overnment. @ 7&e terms and conditions o employment in t&e 5overnment$ including any political subdivision or instrumentality t&ereo$ are governed by law and it is declared to be t&e policy o t&is Act t&at employees t&erein s&all not strike or t&e purposes o securing c&anges or modiication in t&eir terms and conditions o employment. -uc& employees may belong to any labor organi'ation w&ic& does not impose t&e obligation to strike or to ;oin in strike: =rovided$ 9owever$ t&at t&is section s&all apply only to employees employed in governmental unctions o t&e 5overnment including but not limited to governmental corporations.?
Republic o t&e =&ilippines SUPREME COURT Manila BAC G.R. No. L!"#$#
November !%& "%'%
T(E )GR*CULTUR)L CRE+*T and COOPER)T*,E -*N)NC*NG )+M*N*STR)T*ON )CC-)/& petitioner$ vs. )CC-) SUPER,*SORS0 )SSOC*)T*ON& )CC-) 1OR2ERS0 )SSOC*)T*ON& and T(E COURT O*N+USTR*)L REL)T*ONS& respondents. Deogracias E. Lerma and Esmeraldo U. Guloy for petitioner Agricultural Credit and Cooperative Financing Administration. Office of the Agrarian Counsel, De partment of ustice for petitioner Agricultural Credit Administration . C. Espinas and Associates for respendents Confederation of Unions in Government Corporations Offices, et al. !ariano ". #uason for respondent Court of $ndustrial %elations. M)2)L*NT)L& J.:
7&ese are two separate appeals by certiorari rom t&e decision dated Marc& "8$ #34* (5.R. o. 1"#+!+) and t&e order dated May "#$ #34+ (5.R. o. 1"*428) as airmed by t&e resolutions en &anc $ o t&e Court o %ndustrial Relations$ in Cases os. *+8210= and #*">1MC$ respectively. 7&e parties$ e6cept t&e Conederation o 0nions in 5overnment Corporations and ,ices (C05C,)$ being practically t&e same and t&e principal issues involved related$ only one decision is now rendered in t&ese two cases. 7&e Agricultural Credit and Cooperative Fi nancing Administration (ACCFA) was a government agency created under Republic Act o. !"#$ as amended. %ts administrative mac&inery was reorgani'ed and its name c&anged to Agricultural Credit Administration (ACA) under t&e and Reorm Code (Republic Act o. *!++). ,n t&e ot&er &and$ t&e ACCFA -upervisors Association (A-A) and t&e ACCFA /orkers Association (A/A)$ &ereinater reerred to as t&e 0nions$ are labor organi'ations composed o t&e supervisors and t&e rank1and1ile employees$ respectively$ in t&e ACCFA (now ACA). G.%. 'o. L()*++ ,n -eptember +$ #34# a collective bargaining agreement$ w&ic& was to be eective or a period o one (#) year rom July #$ #34#$ was entered into by and between t&e 0nions and t&e ACCFA. A ew mont&s t&ereater$ t&e 0nions started protesting against alleged violations and non1implementation o said agreement. Finally$ on ,ctober "8$ #34" t&e 0nions declared a strike$ w&ic& was ended w&en t&e strikers voluntarily returned to work on ovember "4$ #34". ,n ,ctober *2$ #34" t&e 0nions$ toget&er wit& its mot&er union$ t&e Conederation o 0nions in 5overnment Corporations and ,ices (C05C,)$ iled a complaint wit& t&e Court o %ndustrial Relations against t&e ACCFA (Case o. *+8210=) or &aving allegedly committed acts o unair labor practice$ namely: violation o t&e collective bargaining agreement in order to discourage t&e members o t&e 0nions in t&e e6ercise o t&eir rig&t to sel1 organi'ation$ discrimination against said members in t&e matter o promotions$ and reusal to bargain. 7&e ACCFA denied t&e c&arges and interposed as airmative and special deenses lack o ;urisdiction o t&e C%R over t&e case$ illegality o t&e bargaining contract$ e6piration o said contract and lack o approval by t&e oice o t&e =resident o t&e ringe beneits provided or t&erein. Brus&ing aside t&e oregoing deenses$ t&e C%R in its decision dated Marc& "8$ #34* ordered t&e ACCFA: #. 7o cease and desist rom committing urt&er acts tending to discourage t&e members o complainant unions in t&e e6ercise o t&eir rig&t to sel1organi'ation ". 7o comply wit& and implement t&e provision o t&e collective bargaining contract e6ecuted on -eptember +$ #34#$ including t&e payment o =*2.22 a mont& living allowance *. 7o bargain in good ait& and e6peditiously wit& t&e &erein complainants. 7&e ACCFA moved to reconsider but was turned down in a resolution dated April "8$ #34* o t&e C%R en &anc . 7&ereupon it broug&t t&is appeal by certiorari . 7&e ACCFA raises t&e ollowing issues in its petition$ to wit: #. /&et&er or not t&e respondent court & as ;urisdiction over t&is case$ w&ic& in turn depends on w&et&er or not ACCFA e6ercised governmental or proprietary unctions. ". /&et&er or not t&e collective bargaini ng agreement between t&e petitioner and t&e respondent union is valid i valid$ w&et&er or not it &as already lapsed and i not$ w&et&er or not its (sic) ringe beneits are already enorceable. *. /&et&er or not t&ere is a legal andDor actual basis or t&e inding o t&e respondent court t&at t&e petitioner &ad committed acts o unair labor practice. +. /&et&er or not it is wit&in t&e competence o t&e court to enorce t&e collective bargaining agreement between t&e petitioner and t&e respondent unions$ t&e same &aving already e6pired.
G.%. 'o. L()-/0 uring t&e pendency o t&e above mentioned case (5.R. o. 1"#+!+)$ speciically on August !$ #34*$ t&e =resident o t&e =&ilippines signed into l aw t&e Agricultural and Reorm Code (Republic Act o. *!++)$ w&ic& among ot&er t&ings re$ #34+ t&e ACCFA -upervisors Association and t&e ACCFA /orkers Association iled a petition or certiication election wit& t&e Court o %ndustrial Relations (Case o. #*">1MC) praying t&at t&ey be certiied as t&e e6clusive bargaining agents or t&e supervisors and rank1and1ile e mployees$ respectively$ in t&e ACA. 7&e trial Court in its order dated Marc& *2$ #34+ directed t&e Manager or ,icer1in1C&arge o t&e ACA to allow t&e posting o said order ?or t&e inormation o all employees and workers t&ereo$? and to answer t&e petition. %n compliance t&erewit&$ t&e ACA$ w&ile admitting most o t&e allegations in t&e petition$ denied t&at t&e 0nions represented t&e ma;ority o t&e supervisors and rank1and1ile workers$ respectively$ in t&e ACA. %t urt&er alleged t&at t&e petition was premature$ t&at t&e ACA was not t&e proper party to be notiied and to answer t&e petition$ and t&at t&e employees and supervisors could not lawully become members o t&e 0nions$ nor be represented by t&em. 9owever$ in a ;oint maniestation o t&e 0nions dated May >$ #34+$ wit& t&e conormity o t&e ACA Administrator and o t&e Agrarian Counsel in &is capacity as suc& and as counsel or t&e ational and Reorm Council$ it was agreed ?t&at t&e union petitioners in t&is case represent t&e ma;ority o t&e employees in t&eir respective bargaining units? and t&at only t&e legal issues raised would be submitted or t&e resolution o t&e trial Court. Finding t&e remaining grounds or ACAs opposition to t&e petition to be wit&out merit$ t&e trial Court in its order dated May "#$ #34+ certiied ?t&e ACCFA /orkers Association and t&e ACCFA -upervisors Association as t&e sole and e6clusive bargaining representatives o t&e rank1and1ile employees and supervisors$ respectively$ o t&e Agricultural Credit Administration.? -aid order was airmed by t&e C%R en &anc in its resolution dated August "+$ #34+. ,n ,ctober "$ #34+ t&e ACA iled in t&is Court a petition or certiorari wit& urgent motion to stay t&e C%R order o May "#$ #34+. %n a resolution dated ,ctober 4$ #34+$ t&is Court dismissed t&e petition or ?lack o ade
7&e implementation o t&e policy t&us enu nciated$ insoar as t&e role o t&e ACA t&erein is concerned$ is spelled out in -ections ##2 to ##!$ inclusive$ o t&e and Reorm Code. -ection ##2 provides t&at ?t&e administrative mac&inery o t&e ACCFA s&all be reorgani'ed to enable it to align its activities wit& t&e re to ##" lay down certain guidelines to be ollowed in connection wit& t&e granting o loans$ suc& as security$ interest and supervision o credit. -ections ##* to ##!$ inclusive$ invest t&e ACA wit& certain rig&ts and powers not accorded to non1governmental entities$ t&us: -C. ##*. Auditing of Operations. @ For t&e eective supervision o armers cooperatives$ t&e &ead o t&e Agricultural Credit Administration s&all &ave t&e power to audit t&eir operations$ records and books o account and to issue subpoena and subpoena duces tecum to compel t&e attendance o witnesses and t&e production o books$ documents and records in t&e conduct o suc& audit or o an y in. 3riting(off Unsecured and Outstanding Loans. @ -ub;ect to t&e approval o t&e =resident upon recommendation o t&e Auditor 5eneral$ t&e Agricultural Credit Administration may write1o rom its books$ unsecured and outstanding loans and accounts receivable w&ic& may become uncollectible by reason o t&e deat& or disappearance o t&e debtor$ s&ould t&ere be no visible means o collecting t&e same in t&e oreseeable uture$ or w&ere t&e debtor &as been veriied to &ave no income or property w&atsoever wit& w&ic& to eect payment. %n all cases$ t&e writing1o s&all be ater ive years rom t&e date t&e debtor deaults. -C. ##!. E4emption from Duties, #a4es and Levies. @ 7&e Agricultural Credit Administration is &ereby e6empted rom t&e payment o all duties$ ta6es$ levies$ and ees$ including docket and s&eris ees$ o w&atever nature or kind$ in t&e p erormance o its unctions and in t&e e6ercise o its powers &ereunder. 7&e power to audit t&e operations o armers cooperatives and ot&erwise in8 was promulgated. %t is entitled: ?Rendering in Full Force and ect t&e =lan o Reorgani'ation =roposed by t&e -pecial Committee on Reorgani'ation o Agencies or and Reorm or t&e Administrative Mac&inery o t&e Agricultural and Reorm Code$? and contains t&e ollowing pertinent provisions: -ection *. 7&e and Reorm =ro;ect Administration" s&all be considered a single organi'ation and t&e personnel complement o t&e member agencies including t&e legal oicers o t&e ,ice o t&e Agrarian
Counsel w&ic& s&all provide legal services to t&e R=A s&all be regarded as one personnel pool rom w&ic& t&e re8 &as placed t&e ACA under t&e and Reorm =ro;ect Administration toget&er wit& t&e ot&er member agencies$ t&e personnel complement o all o w&ic& are placed in one single pool and made available or assignment rom one agency to anot&er$ sub;ect only to Civil -ervice laws$ rules and regulations$ position classiication and wage structures. 7&e appointing aut&ority in respect o t&e oicials and employees o t&e ACA is t&e =resident o t&e =&ilippines$ as stated in a #st indorsement by &is oice to t&e C&airman o t&e ational Reorm Council dated May ""$ #34+$ as ollows: Appointments o oicials and employees o t&e ational and Reorm Council and its agencies may be made only by t&e =resident$ pursuant to t&e provisions o -ection >3() o t&e Revised Administrative Code. %n accordance wit& t&e policy and pr actice$ suc& appointments s&ould be prepared or t&e signature o t&e 6ecutive -ecretary$ ?By Aut&ority ot&e =resident?. * /&en t&e Agricultural Reorm Code was being considered by t&e Congress$ t&e nature o t&e ACA was t&e sub;ect o t&e ollowing e6position on t&e -enate loor: -enator 7olentino: . . . . ?7&e ACA is not going to be a proit making institution. %t is supposed to be a public service o t&e government to t&e lessees and armer1owners o t&e lands t&at may be boug&t ater e6propriation rom owners. %t is t&e government &ere t&at is t&e lender. 7&e government s&ould not e6act a &ig&er interest t&an w&at we are telling a private landowner now in &is relation to &is tenants i we give to t&eir armers a &ig&er rate o interest . . . .? (pp. #> E #!$ -enate Journal o. #4$ July *$ #34*) 7&e reason is obvious$ to pi npoint responsibility or many losses in t&e g overnment$ in order to avoid irresponsible lending o government money @ to pinpoint responsibility or many losses . . . . -enator Manglapus: ?. . . But assuming t&at &ypot&esis$ t&at is t&e reason w&y we are appropriating =#82$222$222.22 or t&e Agricultural Credit Administration w&ic& will go to intensiied credit operations on t&e barrio level . . .? (p. *$ -enate Journal o. >). 7&at it is t&e reason w&y we are providing or t&e e6pansion o t&e ACCFA and t&e weeding out o t&e cooperative activity o t&e ACCFA and turning t&is over to t&e Agricultural =roductivity Commission$ so t&at t&e Agricultural Credit Administration will concentrate entirely on t&e acilitation o credit on t&e barrio level wit& t&e massive support o #82 million provided by t&e government. . . . (pp. + E 8 o -enate Journal o. >$ July *$ #34*) . . . But by releasing t&em rom t&is situation$ we eel t&at we are putting t&em in a muc& better condition t&an t&at in w&ic& t&ey are ound by providing t&em wit& a business1like way o obtaining credit$ not depending on a paternalistic system but one w&ic& is business1like @ t&at is to say$ a government oice$ w&ic& on t&e barrio level will provide t&em t&at credit directly . . . . (p. +2$ -enate Journal o. >$ July *$ #34*) (emp&asis supplied).
7&e considerations set ort& above militate 8$ and &ence against t&e grant o t&eir basic p etition or certiication election as proper bargaining units. 7&e ACA is a government oice or agency engaged in governmental$ not proprietary unctions. 7&ese unctions may not be strictly w&at =resident /ilson described as ?constituent? (as distinguis&ed rom ?ministrant?)$ + suc& as t&ose relating to t&e maintenance o peace and t&e prevention o crime$ t&ose regulating property and property rig&ts$ t&ose relating to t&e administration o ;ustice and t&e determination o political duties o citi'ens$ and t&ose relating to national deense and oreign relations. 0nder t&is traditional classiication$ suc& constituent unctions are e6ercised by t&e -tate as attributes o sovereignty$ and not merely to promote t&e welare$ progress and prosperity o t&e people @ t&ese letter unctions being ministrant &e e6ercise o w&ic& is optional on t&e part o t&e government. 7&e growing comple6ities o modern society$ &owever$ &ave rendered t&is traditional classiication o t&e unctions o government 8$ w&ic& provides: -C. ##. 1rohi&ition Against 2tri5e in the Government @ 7&e terms and conditions o employment in t&e 5overnment$ including any political subdivision or instrumentality t&ereo$ are governed by law and it is declared to be t&e policy o t&is Act t&at employees t&erein s&all not strike or t&e purposes o securing c&anges or modiication in t&eir terms and conditions o employment. -uc& employees may belong to any labor organi'ation w&ic& does not i mpose t&e obligation to strike or to ;oin in strike: =rovided$ 9owever$ t&at t&is section s&all apply only to employees employed in governmental unctions o t&e 5 overnment including but not limited to governmental corporations. > /it& t&e reorgani'ation o t&e ACCFA and its conversion into t&e ACA under t&e and Reorm Code and in view o our ruling as to t&e governmental c&aracter o t&e unctions o t&e ACA$ t&e decision o t&e respondent Court dated Marc& "8$ #34*$ and t&e resolution en banc airming it$ in t&e unair labor practice case iled by t&e ACCFA$ w&ic& decision is t&e sub;ect o t&e present review in 5. R. o. 1"#+!+$ &as become moot and academic$ particularly insoar as t&e order to bargain collectively wit& t&e respondent 0nions is concerned. /&at remains to be resolved is t&e
%t is to be listed t&at under -ection *$ Article %G$ o t&e agreement$ t&e same ?s&all not become eective unless and until t&e same is duly ratiied by t&e Board o 5overnors o t&e Administration.? -uc& approval was given even beore t&e ormal e6ecution o t&e agreement$ by virtue o ?Resolution o. 4>$ Regular Meeting o. >$ FH #34214#$ &eld on August #>$ #34#$? but wit& t&e proviso t&at ?t&e ringe b eneits contained t&erein s&all take eect only i approved by t&e oice o t&e =resident.? 7&e condition is$ t&ereore$ deemed to be incorporated into t&e agreement by reerence. ,n ,ctober "*$ #34" t&e ,ice o t&e =resident$ in a letter signed by t&e 6ecutive -ecretary$ e6pressed its approval o t&e bargaining contract ?provided t&e salaries and beneits t&erein i6ed are not in conlict wit& applicable laws and regulations$ are believed to be reasonable considering t&e e6igencies o t&e service and t&e welare o t&e employees$ and are well wit&in t&e inancial ability o t&e particular corporation to bear.? ,n July #$ #34* t&e ACCFA management and t&e 0nions entered into an agreement or t&e implementation o t&e decision o t&e respondent Court concerning t&e ringe beneits$ t&us: %n t&e meantime$ only Cost o iving Ad;ustment$ ongevity =ay$ and ig&t ierential Beneits accruing rom July #$ #34# to June *2$ #34* s&all be paid to all employees entitled t&ereto$ in t&e ollowing manner: A) 7&e sum o =#!2$222 s&all be set aside or t&e payment o: #) ig&t dierential beneits or -ecurity 5uards. ") Cost o iving Ad;ustment and ongevity =ay. *) 7&e unpaid balance due employees on %tem A (#) and (") t&is paragrap& s&all be paid in mont&ly installments as inances permit but not beyond ecember "2$ #34*. *. All beneits accruing ater July #$ #34*$ s&all be allo wed to accumulate but payable only ater a ll beneits accruing up to June *2$ #34*$ as per C%R decision &ereinabove reerred to s&all &ave been settled in ull provided$ &owever$ t&at commencing July #$ #34* and or a period o only two (") mont&s t&ereater (during w&ic& period t&e ACCFA and t&e 0nions s&all negotiate a new Collective Bargaining Agreement) t&e provisions o t&e -eptember +$ #34# Collective Bargaining Agreement s&all be temporarily suspended$ e6cept as to Cost o iving Ad;ustment and ?political? or non1economic privileges and beneits t&ereunder. ,n July "+$ #34* t&e ACCFA Board o 5overnors ratiied t&e agreement t&us entered into$ pursuant to t&e provision t&ereo re
Separate Opinions
-ERN)N+O& J., concurring: 7&e decision reac&ed by t&is Co urt so ably given e6pression in t&e opinion o Justice Makalintal$ c&aracteri'ed wit& vigor$ clarity and precision$ represents w&at or me is a clear tendency not to be necessarily bound by our previous pronouncements on w&at activities partake o a nature t&at is governmental. # , even greater signiicance$ t&ere is a deinite re;ection o t&e ?constituent1ministrant? criterion o governmental unctions$ ollowed in Bacani v. ational Coconut Corporation." 7&at indeed is cause or gratiication. For me at least$ t&ere is again ull ad&erence to t&e basic p&ilosop&y o t&e Constitution as to t&e e6tensive and vast power lodged in our government to cope wit& t&e social and economic problems t&at even now sorely beset us. 7&ere is t&ereore ull concurrence on my part to t&e opinion o t&e Court$ distinguis&ed by its &ig& ) 7&e determination o t&e political duties$ privileges$ and relations o citi'ens. (!) ealings o t&e state wit& oreign powers: t&e preservation o t&e state rom e6ternal danger or encroac&ment and t&e advancement o its international interests. ? * 7&e ministrant unctions were t&en enumerated$ ollowed by a statement o t&e basis t&at would ;ustiy engaging in suc& activities. 7&us: ?7&e most important o t&e ministrant unctions are: public works$ public e ducation$ public c&arity$ &ealt& and saety regulations$ and regulations o trade and industry. 7&e principles determining w&et&er or not a government s&all e6ercise certain o t&ese optional unctions are: (#) t&at a government s&ould do or t&e public welare t&ose t&ings w&ic& private capital would not naturally undertake and (") t&at a government s&ould do t&ese t&ings w&ic& by its very nature it is better e For a long time$ legislation tending to reduce economic ine
t&e end. very opinion tends to become a law. % t&ink t&at t&e word liberty$ in t&e #+t& Amendment$ is perverted w&en it is &eld to prevent t&e natural outcome o a dominant opinion$ unless it can be said t&at a rational and air man necessarily would admit t&at t&e statute proposed would inringe undamental principles as t&ey &ave been understood by t&e traditions o our people and our law. %t does not need researc& to s&ow t&at no suc& sweeping condemnation can be passed upon t&e statute beore us. A reasonable man mig&t t&ink it a proper measure on t&e score o &ealt&. Men w&om % certainly could not pronounce unreasonable would up&old it as a irst installment o a general regulation o t&e &ours o work. /&et&er in t&e latter aspect it would be open to t&e c&arge o ine in "unting v. Oregon#2 t&at suc& a regulatory ten1&our law applied to men and women passed t&e constitutional test. -imilarly$ state legislation i6ing minimum wages was deemed oensive to t&e due process clause in a #3"* decision in Ad5ins v. Children8s 9ospital .## ,nly in #3*>$ in t&e leading case o 3est Coast 9otel v. 1arrish$#" was t&e Adkins case overruled and a minimum wage law ew Hork statute up&eld. 7&e same unsympat&etic attitude arising rom t&e laisse'1aire concept was maniest in decisions during suc& period$ t&ere being t&e inely1spun distinctions in t&e 3olff 1ac5ing Co. v. Court of $ndustrial %elations #* decision$ as to w&en certain busi nesses could be classiied as aected wit& public interest to ;ustiy state regulation as to prices. Ater eleven years$ in #3*+$ i n 'e&&ia v. 'e: ;or5 $#+ t&e air o unreality was swept away by t&is e6plicit pronouncement rom t&e 0nited -tates -upreme Court: ?7&e p&rase aected wit& a public interest can$ in t&e nature o t&ings$ mean no more t&an t&at an industry$ or ade$ greater receptivity by t&e American -upreme Court to a p&ilosop&y less rigid in its obeisance to property rig&ts. arlier legislation deemed oensive to t&e laisse6( faire concept &ad met a dismal ate. 7&eir nullity during &is irst term could$ more oten t&an not$ be e6pected. #> As a matter o act$ even earlier$ in #3*8$ =roessor Coker o Hale$ speaking as a &istorian$ could already discern a contrary drit. ven t&en &e could assert t&at t&e range o governmental activity in t&e 0nited -tates &ad indeed e6panded. According to &im: ?7&us bot& liberals and conservatives approve wide and varied governmental intervention t&e latter condemning it$ it is true$ w&en t&e ormer propose it$ but endorsing it$ ater it &as become a i6ed part o t&e status
policy o t&e responsibility t&rust on government to cope wit& social and economic problems an d an earnest and sincere commitment to t&e promotion o t&e general welare t&roug& state action. %t would t&us ollow t&at t&e orce o any legal ob;ection to regulatory measures adversely aecting property rig&ts or to statutes organi'ing public corporations t&at may engage in competition wit& private enterprise &as been blunted. 0nless t&ere be a clear s&owing o any invasion o rig&ts g uaranteed by t&e Constitution$ t&eir validity is a oregone conclusion. o ear need be entertained t&at t&ereby sp&eres &it&erto deemed outside government domain &ave been enc&roac&ed upon. /it& our e6plicit disavowal o t&e ?constituent1ministrant? test$ t&e g&ost o t&e laisse6(faire concept no longer stalks t&e ;uridical stage. As early as #3#3$ in t&e leading case o Rubi G. =rovincial Board o Mindoro$ "2 Justice Malcolm already &ad occasion to airm: ?7&e doctrines o laisse6(faire and o unrestricted reedom o t&e i ndividual$ as a6ioms o economic and political t&eory$ are o t&e past. 7&e modern period &as s&own a widespread belie in t&e amplest possible demonstration o governmental activity. 7&e Courts unortunately &ave sometimes seemed to trail ater t&e ot&er two branc&es o t&e 5overnment in t&is progressive marc&.? %t was to be e6pected t&en t&at w&en &e spoke or t&e Court in Government of the 1hilippine $slands v. 2pringer $"# a #3"> decision$ &e ound not&ing ob;ectionable in t&e government itsel organi'ing and investing public unds in suc& corporations as t&e ational Coal Co.$ t&e =&il. ational Bank$ t&e ational =etroleum Co.$ t&e ational evelopment Co.$ t&e ational Cement Co. and t&e ational %ron Co. 7&ere was not even a &int t&at t&ereby t&e laisse6(faire concept was not &onored at a ll. %t is true t&at Justice Malcolm concurred wit& t&e ma;ority in 1eople v. 1omar $"" a #3"+ opinion$ w&ic& &eld invalid under t&e due process clause a provision providing or maternity leave wit& pay t&irty days beore and t&irty days ater coninement. %t could be t&at &e &ad no ot&er c&oice as t&e =&ilippines was t&en under t&e 0nited -tates$ and only recently t&e year beore$ t&e above1cited case o Ad5ins v. Children8s 9ospital $"* in line wit& t&e laisse6(faire principle$ did &old t&at a statute providing or minimum wages was constitutionally inirm on t&e same ground. ,ur constitution w&ic& took eect in #3*8$ upon t&e in auguration o t&e Commonwealt& o t&e =&ilippines$ erased w&atever doubts t&ere mig&t be on t&at score. %ts p &ilosop&y is antit&etical to t&e laisse6(faire concept. elegate$ later =resident$ Manuel Ro6as$ one o t&e leading members o t&e Constitutional Convention$ in answer precisely to an ob;ection o elegate Jose Reyes o -orsogon$ w&o noted t&e ?vast e6tensions in t&e sp&ere o governmental unctions? and t&e ?almost unlimited power to interere in t&e aairs o industry and agriculture as well as to compete wit& e6isting business? as ?relections o t&e ascination e6erted by It&e t&en current tendencies? in ot&er ;urisdictions$"+ spoke t&us: ?My answer is t&at t&is constitution &as a deinite and well deined p&ilosop&y$ not only political but social and economic. A constitution t&at in #>>4 or in #>!3 was suicient in t&e 0nited -tates$ considering t&e problems t&ey &ad at t&at time$ may not now be suicient wit& t&e growing and ever1widening comple6ities o social and economic problems and relations. % t&e 0nited -tates o America were to call a constitutional convention today to drat a constitution or t&e 0nited -tates$ does any one doubt t&at in t&e provisions o t&at constitution t&ere will be ound deinite declarations o policy as to economic tendencies t&at t&ere will be matters w&ic& are necessary in accordance wit& t&e e6perience o t&e American people during t&ese years w&en vast organi'ations o capital and trade &ave succeeded to a certain degree to control t&e lie and destiny o t&e American peopleK % in t&is constitution t&e gentleman will ind declarations o economic policy$ t&ey are t&ere because t&ey are necessary to saeguard t&e interests and welare o t&e Filipino people because we believe t&at t&e days &ave come w&en in sel1deense$ a nation may provide in its constitution t&ose saeguards$ t&e patrimony$ t&e reedom to grow$ t&e reedom to develop national aspirations and national interests$ not to be &ered by t&e artiicial boundaries w&ic& a constitutional provision automatically imposes.? "8 elegate Ro6as continued urt&er: ?7&e government is t&e creature o t&e people and t&e government e6ercises its powers and unctions in accordance wit& t&e will and purposes o t&e people. 7&at is t&e irst principle$ t&e most important one underlying t&is document. -econd$ t&e government establis&ed in t&is document is$ in its orm$ in our opinion$ t&e most adapted to prevailing conditions$ circumstances and t&e political outlook o t&e Filip ino people. Ri'al said$ very people &as t&e kind o government t&at t&ey deserve. 7&at is ;ust anot&er orm o e6pressing t&e principle in politics enunciated by t&e Frenc& p&ilosop&ers w&en t&ey said: very pe ople &as t&e rig&t to establis& t&e orm o government w&ic& t&ey believe is most conducive to t&eir welare and t&eir liberty. /&y &ave we preerred t&e government t&at is establis&ed in t&is dr atK Because it is t&e government wit& w&ic& we are amiliar. %t is t&e orm o government undamentally suc& as it e6ists today because it is t&e only kind o government t&at our people understand it is t&e kind o government we &ave ound to be in consonance wit& our e6perience$ wit& t&e necessary modiication$ capable o permitting a air play o social orces and allowing t&e people to conduct t&e aairs o t&at government.? "4
,ne o t&e most prominent delegates$ a l eading intellectual$ ormer =resident Raael =alma o t&e 0niversity o t&e =&ilippines$ stressed as a undamental principle in t&e drat o t&e Constitution t&e limitation on t&e rig&t to property. 9e pointed out t&at t&e t&en prevailing view allowed t&e accumulation o wealt& in one amily down to t&e last remote descendant$ resulting in a grave dise Anot&er delegate$ 7omas Conesor o %loilo$ was
p&rase ?to some e6tent?$ &e made clear t&at t&e doctrine in 1eople v. 1omar no longer retain$ ?its virtuality as a living principle.?*" *. %t must be made clear t&at t&e ob;ection to t&e ?constituent1ministrant? classiication o governmental unctions is not to its ormulation as suc&. From t&e standpoint o law as logic$ it is not wit&out merit. %t &as neatness and symmetry. 7&ere are &ardly any loose ends. %t &as t&e virtue o clarity. %t may be said in its avor likewise t&at it relects all1too1ait&ully t&e laisse6(faire notion t&at government cannot e6tend its operation ou tside t&e maintenance o peace and order$ protection against e6ternal security$ and t&e administration o ;ustice$ wit& private rig&ts$ especially so in t&e case o property$ being saeguarded and a &int t&at t&e general welare is not to be entirely ignored. %t must not be lost sig&t o t&oug& t&at logic and ;ural symmetry w&ile undoubtedly desirable are not t&e prime consideration. 7&is is especially so in t&e ield o public law. /&at was said by 9olmes$ almost nine decades ago$ carry greater conviction now. ?7&e lie o t&e law &as not been logic it &as been e6perience. 7&e elt necessities o t&e time$ t&e prevalent moral and political t&eories$ intuitions o public policy avowed or unconscious$ even t&e pre;udices w&ic& ;udges s&are wit& t&eir ellow1men$ &ave &ad a good deal more to do t&an t&e syllogism in determining t&e rules by w&ic& men s&ould be governed.? ** 7&en too$ t&ere was t&e war ning o 5eny cited by Cardo'o t&at undue stress or logic may result in conining t&e entire system o positive l aw$ ?wit&in a limited number o logical categories$ predetermined in essence$ immovable in basis$ governed by inle6ible dogmas$? t&us rendering it incapable o responding to t&e ever varied and c&anging e6igencies o lie. *+$ %t is cause enoug& or concern i t&e ob;ection to t&e Bacani decision were to be premised on t&e score alone t&at per&aps t&ere was idelity to t&e re From w&ic& it would ollow as aski so aptly stated t&at it is t&e individuals ?&appiness and not its well1being It&at is t&e criterion b y w&ic& its be&avior Iis to be ;udged. 9is interests$ and not its power$ set t&e limits to t&e aut&ority it Iis entitled to e6ercise.? *! /e &ave under suc& a test enlarged its ield o competence. +. / it& t&e decision reac&ed by us today$ t&e government is reed rom t&e
compulsion e6erted by t&e Bacani doctrine o t&e ?constituent1ministrant? test as a criterion or t&e type o activity in w&ic& it may engage. %ts constricting eect is consigned to oblivion. o doubts or misgivings need assail us t&at governmental eorts to promote t&e public weal$ w&et&er t&roug& regulatory legislation o vast scope and amplitude or t&roug& t&e undertaking o business activities$ would &ave to ace a searc&ing and rigorous scrutiny. %t is clear t&at t&eir legitimacy cannot be c&allenged on t&e ground alone o t&eir being oensive to t&e implications o t&e laisse6(faire concept. 0nless t&ere be a repugnancy t&en to t&e limitations e6pressly set ort& in t&e Constitution to protect individual rig&ts$ t&e government en;oys a muc& wider latitude o action as to t&e means it c&ooses to cope wit& grave social and economic problems t&at urgently press or solution. For me$ at least$ t&at is to maniest deerence to t&e p&ilosop&y o our undamental law. 9ence my ull concurrence$ as announced at t&e outset. 8. 7&e opinion o Justice Makalintal contains t&is ootnote: ?%t must be stated$ &owever$ t&at we do not &ere decide t&e
-ootnotes and Aut&ority$ and Bank$ Agricultural =roductivity Commission ,ice o t&e Agrarian Counsel.
#
7&e and Reorm =ro;ect Administration is t&e organi'ation t&roug& w&ic& t&e ield operations o member agencies (o w&ic& t&e ACA is one) s&all be undertaken by t&eir respective personnel under a uniied administration. (-ection " o Article #$ 6ecutive ,rder o. >8) "
-ection >3 () o t&e Revised Administrative Code provides in part: ?7&e epartment 9ead$ upon t&e recommendation o t&e C&ie o bureaus or oice concerned$ s&all appoint all subordinate oicers and employees w&ose appointment is not e6pressly vested by l aw in t&e =resident o t&e =&ilippines. . . . .? *
Bacani vs. ational Coconut Corporation$ 5.R. o. 1348>$ ov. "3$ #384$ 8* ,.5. p. "!22.
+
Malcolm$ 7&e 5overnment o t&e =&ilippines$ pp. # 31"2 Bacani vs. ational Coconut Corporation$ supra.
8
%t must be stated$ &owever$ t&at we do not &ere decide t&e
Reenacted in -ec. "! (c) o t&e Civil -ervice Act o #383$ R.A. o. ""42.
>
-ERN)N+O& 3.& C,C0RR%5:
ational Coal Co. v. Collector$ +4 =&il. 8!* (#3"+) 5ovt. o =.%. v. -pringer$ 82 =&il. "83 (#3">) 5ovt. o =.%. v. C&ina Banking Corp.$ 8+ =&il. !+8 (#3*2) Association Cooperativa de Credito Agricola de Miagao v. Monteclaro$ >+ =&il. "!# (#3+*) Abad -antos v. Auditor 5eneral$ >3 =&il. #32 (#3+>) ational Airports Corp. v. 7eodoro$ 3# =&il. "2* (#38") 5-%- v. Castillo$ 3! =&il. !>4 (#384) =rice -tabili'ation Corp.$ #2" =&il. 8#8 (#38>) Boy -couts o =&il. v. Araos$ #2" =&il. #2!2 (#38!) aric /orkers 0nion v. Alvendia$ #2> =&il. +2+ (#342) 5-%- mployees Asso. v. Alvendia$ 1#84#+$ May *2$ #342 ational ev. Co. v. 7obias$ > -CRA 43" (#34*) --- mployees Asso. v. -oriano$ > -CRA #2#4 (#34*) =A mployees Asso. v. =&il. Airlines$ %nc.$ ## -CRA *!> (#34+) awasa v. /-A Consolidated 0nions$ ## -CRA >44 (#34+) =&il. Mg. Co. v. Manila =ort -ervice$ #4 -CRA 38 (#344) and =&il. =ostal -avings Bank v. Court$ "# -CRA #**2 (#34>). #
#22 =&il. +4! (#384).
"
*
$&id .$ p. +>".
+
$&id .
Malcolm$ 7&e 5overnment o =&ilippine %slands.
8
7&e Constitutional =osition o t&e =roperty ,wner in " -elected ssays on Constitutional a w$ p. " (#3*!).
4
Cardo'o$ 7&e ature o Judicial =rocess$ p. >> (#3"#).
>
#3! 0- +8 (#328).
!
"2! 0- +#".
3
#2
"+* 0- +"4.
"4# 0s 8"8. Again t&ere was a vigorous dissent rom 9olmes.
##
#"
*22 0- *>3.
#*
"4" 0- 8"".
#+
"3# 0- 82".
#8
Jackson$ -truggle or Judicial -upremacy$ p. >+$ (#3+#).
#4
"!+ Fed. 4#* (#3"").
As was stated in t&e above work o Jackson: ?But in ;ust t&ree years$ beginning wit& t&e ,ctober #3** term$ t&e Court reused to recogni'e t&e power o Congress in twelve cases. Five o t&ese twelve decisions occurred during a single year: t&at is$ t&e ,ctober #3*8 term our o t&e ive$ by a s&arply divided court.? Jackson$ op. cit. p. +#.. #>
#!
" -elected ssays on Constitutional aw$ op$ cit.$ p. ">.
#3
*#3 0- 4"+.
"2
*3 =&il. 442$ >#>1>#!.
"#
82 =&il. "83.
""
+4 =&il. ++2.
"*
"4# 0- 8"8.
"+
%%% =roceedings o t&e =&ilippine Constitutional Convention$ aurel ed.$ pp. #>*1#>+ (#344).
"8
$&id .$ pp. #>>1#>!.
"4
$&id .$ p. #>!.
C. $&id .$ pp. "">1""!. 7o
"!
$&id.$ pp. "3*1"3+.
"3
$&id.$ %$ aurel ed.$ pp. +>#1+>".
*2
>2 =&il. *+2.
*#
$&id .$ pp. *841*8>.
*"
$&id .$ p. *42.
**
9olmes$ 7&e Common aw$ p. # (#!!#).
*+
Cardo'o$ op. cit.$ p. +>.
*8
Art. %%$ -ec. 8$ Constitution.
*4
Calalang v. /illiams$ >2 =&il. >"4$ >*+1>*8 (#3+2).
*>
aski$ 7&e -tate in 7&eory and =ractice$ p. *8 (#3*8).
*!
$&id .$ at p. *4.
