Case Summary (G.R. No. 80767)
Initial Labor Proceedings
The employees filed an illegal-transfer complaint on November 13, 1984, later amended (February 22, 1985) to allege illegal dismissal and unfair labor practice. The Labor Arbiter dismissed the complaint on July 31, 1985 for lack of merit.
NLRC Decision and BSP’s Certiorari Petition
On February 27, 1987, the NLRC set aside the Arbiter’s ruling, concluding the employees were illegally dismissed and ordering their reinstatement with full backwages. BSP sought certiorari before the Supreme Court, challenging NLRC jurisdiction.
Core Issue: BSP’s Status under the Civil Service
The dispositive question was whether BSP is a “government-owned or controlled corporation with original charter” and thus part of the Civil Service under Article IX-B(2)(1) of the 1987 Constitution. BSP contended it is purely private and non-governmental; the Solicitor General and Government Corporate Counsel maintained it is a public or quasi-public corporation subject to government control.
Statutory and Constitutional Framework
– Article IX-B(2)(1), 1987 Constitution: Civil Service embraces all agencies, including GOCCs with original charters.
– P.D. No. 2029, Sec. 2: Defines GOCC as a chartered corporation with at least majority government ownership or control.
– Administrative Code of 1987: Classifies BSP as an attached agency of the Department of Education, Culture and Sports; defines “instrumentality” and “chartered institution.”
Analysis of BSP’s Public Character
- Functions: Statutorily mandated to foster youth virtue and patriotism, echoing constitutional State policy (Art. II, Sec. 13, 1987 Constitution).
- Governance: National Executive Board includes seven Cabinet Secretaries and appointments subject to confirmation by the President (“Chief Scout”), evidencing substantial government participation.
- Charter and Powers: Created by special law as a “public corporation,” endowed with corporate powers akin to private entities but with statutory provisions for government donations and oversight.
- Funding and Oversight: Operates on membership dues and property rentals; not audited by the Commission on Audit but expressly authorized to receive government contributions.
Conclusion on Civil Service Coverage and Jurisdiction
Given BSP’s statutory designation as a public corporation, substantial government control over its governi
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Facts of the Case
- Private respondents Esquerra, Malaborbor, Misa, Evangelista and Garcia were rank-and-file employees of the Boy Scouts of the Philippines (BSP) stationed at the Makiling camp.
- On 19 October 1984, the BSP Secretary-General issued Special Orders transferring each respondent to the BSP Land Grant in Asuncion, Davao del Norte effective 20 November 1984.
- Respondents appealed to the BSP National President on 4 November 1984 and attended a pre-transfer briefing on 6 November 1984, where they were assured no diminution of salary and grant of a one-month relocation allowance.
- The respondents refused to comply with the transfer orders and on 13 November 1984 filed a complaint for illegal transfer with the Ministry of Labor and Employment, Sub-Regional Arbitration Branch IV, San Pablo City.
- On 21 November 1984, BSP issued a memorandum charging them with insubordination; further memoranda warned of administrative charges up to termination.
- In late January 1985, BSP imposed a five-day suspension; on 12 February 1985 it issued Special Order terminating respondents’ services effective 15 February 1985.
- On 22 February 1985, respondents amended their complaint to include illegal dismissal and unfair labor practice charges.
Procedural History
- Labor Arbiter dismissed respondents’ complaint for lack of merit in a decision dated 31 July 1985.
- Respondents appealed to the National Labor Relations Commission (NLRC).
- On 27 February 1987, the NLRC reversed the Labor Arbiter and ordered BSP to reinstate respondents with full backwages and benefits.
- BSP petitioned the Supreme Court for certiorari to annul both the NLRC’s 27 February 1987 Decision and its 16 October 1987 Resolution.
Issue
- Whether the Boy Scouts of the Philippines is a government-owned or controlled corporation (GCC) under Article IX-B(2)(1) of the 1987 Constitution, thereby rendering its employees part of the Civil Service and depriving the NLRC of jurisdiction over their dismissal complain