Title
Bautista vs. Civil Service Commission
Case
G.R. No. 185215
Decision Date
Jul 22, 2010
Petitioner contested her appointment as BEO II, claiming demotion, but the Court ruled no demotion occurred as her salary grade increased and duties remained unchanged; DBP's reorganization was valid.

Case Summary (G.R. No. 38256)

Factual Antecedents

Bautista was initially appointed as Chief of Division at DBP on June 1, 1978, and was later promoted to Technical Assistant on December 1, 1982. Following a reorganization initiated by then-President Corazon C. Aquino's Executive Order No. 81 on December 3, 1986, Bautista was temporarily appointed as Account Officer in January 1987. This appointment was made permanent by November 1988 but was subject to the ongoing reorganization and CSC approval. The implementation of Republic Act No. 6758 (RA 6758), which took effect on July 1, 1989, led to a restructuring of position titles and salary grades at DBP. On February 15, 1991, Bautista was appointed as BEO II with a salary grade increase from SG-20 to SG-24.

Proceedings before DBP and the Department of Budget and Management

Bautista contested her appointment as BEO II through a letter dated March 23, 1993, asserting that her salary grade had dropped from SG-25 (as she claimed) to SG-24, constituting a demotion. The DBM investigated and dismissed her complaint, asserting that her previous position was rightly categorized as SG-20 under the GFIs Index of Occupational Services. Bautista further appealed to the CSC but experienced delays and a lack of responsiveness regarding her complaints.

Proceedings before the Civil Service Commission

Bautista’s appeal to the CSC was eventually responded to by DBP, which asserted that her appointment was valid and aligned with the reorganization efforts as prescribed by law. On April 16, 2007, the CSC concluded that Bautista's appointment involved no demotion but rather an increase in her salary grade and that she had delayed her complaint unduly, invoking the equitable doctrine of laches.

Proceedings before the Court of Appeals

The Court of Appeals overturned the CSC's position on laches, indicating that Bautista had timely protested her appointment soon after its effectuation, countering the CSC's view that she had slept on her rights. However, it upheld that her appointment as BEO II indeed did not reflect a demotion and was part of a valid reorganization process that promoted administrative efficiency.

Issues Presented

Bautista raised the following issues: whether her appointment represented a demotion in rank and salary, and whether the reorganization of DBP was indeed valid and executed in good faith.

Petitioner’s Arguments

Bautista maintained that her appointment to BEO II constituted a demotion based on her claim of having held an account officer position at SG-25 before the reorganization. She argued that the reorganization failed to enhance efficiency and led to decreased morale among employees who were not reappointed to their original roles.

Respondents' Arguments

DBP countered that the reorganization was conducted in good faith and that Bautista had not demonstrated that she previously held an Account Officer position at SG-25. They maintained that all positions had been properly aligned with the GFIs Index of Occupational Services and that her new appointment reflected an enhancement in her rank and responsibilities.

Court’s Ruling

The Supreme Court affirmed the CA’s decision, ruling that Bautista’s appointment did not amount to a demotion. The Court noted that a valid reorganization under Philippine law allows for cha

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