Title
Trade Unions of the Philippines and Allied Services vs. National Housing Corp.
Case
G.R. No. L-49677
Decision Date
May 4, 1989
NHC employees, covered by Labor Code, have the right to organize and hold certification elections, affirmed by the Supreme Court.

Case Digest (G.R. No. L-49677)
Expanded Legal Reasoning Model

Facts:

  • Background
    • Expansion of public‐sector employment and rising unionism, with employees seeking meaningful participation in management and employment relations.
    • Respondent National Housing Corporation (NHC) organized in 1959 under Executive Order No. 399; 100% government‐owned (GSIS, SSS, DBP, NIDC, PHHC).
  • Union Petition and Administrative Proceedings
    • July 13, 1977: Trade Unions of the Philippines and Allied Services (TUPAS) chapter in NHC files petition with Department of Labor Regional Office No. IV to hold a certification election, claiming majority support among NHC employees.
    • November 7, 1977: Med‐arbiter Eusebio M. Jimenez dismisses petition, ruling GOC employees are prohibited from collective bargaining under Section 1, Rule II, Book V of the Labor Code IRR.
    • BLR Case No. A-984-77 (R04-MED-1090-77): Director Carmelo C. Noriel reverses the dismissal and orders a certification election.
    • November 21, 1978: Officer-in-Charge Virgilio S.J. Sy (Bureau of Labor Relations) grants NHC’s motion for reconsideration, sets aside the election order.
    • TUPAS files special civil action for certiorari before the Supreme Court, challenging the OIC Sy resolution.
  • Constitutional and Statutory Context
    • 1973 Constitution: Civil service “embraces every branch, agency, subdivision and instrumentality of the government, including government‐owned or controlled corporations.”
    • 1987 Constitution: Civil service covers only GOCs with original (legislative) charters; subsidiaries under general corporation law fall under the Labor Code.
    • Prior SC rulings:
      • National Housing Corporation vs. Juco, 134 SCRA 172 (1985) – applied 1973 Constitution.
      • National Service Corporation case (G.R. No. 69870, Nov. 29, 1988) – clarified 1987 constitutional scope.
    • Statutory provisions:
      • Labor Code Article 244 (as amended by EO 111) – grants GOC employees under the Corporation Code the right to organize and bargain collectively.
      • Labor Code Articles 255–259 and Omnibus IRR Rules V–VII – procedures for certification elections in organized and unorganized establishments.
      • Executive Order No. 180 (Civil Service Commission) Sections 9–12 – governs determination of sole and exclusive representative for civil service employees in GOCs with original charters.

Issues:

  • Constitutional and Statutory Coverage
    • Whether NHC employees, as government‐owned corporation staff, enjoy the constitutional right to self‐organization and collective bargaining.
    • Whether the 1987 Constitution limits civil service coverage to GOCs with original charters, rendering NHC employees subject to the Labor Code.
  • Applicability of Certification Election Rules
    • Which statutory regime governs the holding of a certification election for NHC employees (Labor Code vs. Civil Service rules under EO 180).
    • Whether the Bureau of Labor Relations has jurisdiction to order and conduct such an election.
  • Validity of the OIC Sy Resolution
    • Legality of the November 21, 1978 resolution setting aside the BLR order.
    • Appropriateness of certiorari relief to compel conduct of a certification election.

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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