Case Summary (G.R. No. L-49677)
Key Dates
• January 1, 1951: EO No. 399 issued (Uniform Charter of Government Corporations).
• 1959: Incorporation of NHC under general Corporation Code.
• July 13, 1977: TUPAS petitions for a certification election before DOLE Regional Office IV.
• November 7, 1977: Order of dismissal by med-arbiter Jimenez.
• Late 1977–1978: BLR director reverses; OIC Sy sets aside reversal on reconsideration (November 21, 1978).
• May 4, 1989: Supreme Court decision applying the 1987 Constitution.
Applicable Law
• 1987 Constitution
– Art. III, Sec. 8: Right to form unions in public and private sectors.
– Art. XIII, Sec. 3(2): Guarantee of collective bargaining and peaceful concerted activities, including right to strike.
– Art. IX-B, Sec. 2(5): Right to self-organization not denied to government employees.
• Labor Code, as amended by EO No. 111, Art. 244: Right of employees in government corporations under the Corporation Code to organize and bargain collectively.
• Labor Code Arts. 255–259 and Omnibus Implementing Rules (Book V, Rules V–VII): Procedures for certification elections in organized and unorganized establishments.
• EO No. 180, Ch. IV, Secs. 9–12: Certification election for civil servants and GOCCs with original charters.
Factual and Procedural Background
TUPAS asserted majority representation among NHC’s rank-and-file employees and sought a DOLE-supervised certification election. The med-arbiter dismissed the petition, citing a Labor Code rule barring collective bargaining in GOCCs. On appeal, BLR Director Noriel reversed, ordering an election; respondent NHC’s motion for reconsideration led OIC Sy to set aside that order. TUPAS then filed a special civil action for certiorari before the Supreme Court.
Constitutional and Statutory Coverage of NHC Employees
Under the 1987 Constitution, all workers—public and private—enjoy the right to self-organization and collective bargaining. The civil service definition was narrowed to GOCCs with original charters, excluding those organized under general corporate law. NHC, lacking an original charter, falls under Labor Code coverage rather than civil service regulations. Consequently, its employees retain the full labor rights provided by the Constitution and the Labor Code.
Right to Certification Election
Article 244 of the Labor Code explicitly grants employees of government corporations under the
...continue readingCase Syllabus (G.R. No. L-49677)
Background
- The National Housing Corporation (NHC) was organized in 1959 under Executive Order No. 399 (Uniform Charter of Government Corporations).
- Since incorporation under former Act 459, its capital stock has been 100% government-owned, with shares held by GSIS, SSS, DBP, NIDC, and the People’s Homesite and Housing Corporation.
- Petitioner Trade Unions of the Philippines and Allied Services (TUPAS) is a bona fide labor organization with a chapter at NHC.
Pertinent Facts
- July 13, 1977: TUPAS filed a petition for a certification election with DOLE Regional Office No. IV, claiming it represented a majority of NHC employees.
- November 7, 1977: Med-arbiter Eusebio M. Jimenez dismissed the petition, holding that employees of government-owned or controlled corporations are prohibited from collective-bargaining activities under Section 1, Rule II, Book V of the Implementing Rules of the Labor Code.
- BLR Case No. A-984-77: Director Carmelo C. Noriel reversed the dismissal and ordered a certification election.
- November 21, 1978: Officer-in-Charge Virgilio Sy granted NHC’s motion for reconsideration and set aside the BLR order.
- TUPAS then filed the present special civil action for certiorari to annul the Officer-in-Charge’s resolution and compel the conduct of the election.
Procedural History
- Trial Court (Med-Arbiter): Dismissal of petition for lack of authority to hold election.
- Bureau of Labor Relations (Director Noriel): Reversal, ordering election.
- Bureau of Labor Relations (OIC Sy): Resolution annulling the election orde