Question & AnswerQ&A (Commonwealth Act No. 358)
The President is authorized to immediately take over the possession and control of such public utility or business, including its equipment, properties, and records, and operate it for and on behalf of the Government for as long as necessary.
The owners are to be paid just compensation for the property and/or rights taken, with the amount fixed by competent courts through an eminent domain action initiated by the Government.
No, the Government's immediate control is not prejudiced by the pendency of such action, nor does the continuation of control exceed what is necessary for the public interest or welfare as determined by the President.
Such disputes must be promptly submitted by the Secretary of Labor to the Court of Industrial Relations, and during Government control, wages and treatment as determined by the court must be provided to employees.
Employment during this period is considered public employment for the purpose of the Act, and it is unlawful for employees to strike or refuse duties when called upon by the President.
The employer is guilty of misusing their franchise or violating their certificate of public convenience and can be ousted via quo warranto action or cancellation of their certificate by the Government.
Such persons may be fined up to six thousand pesos, imprisoned for up to six years, or both, at the court's discretion.
Violators may be fined up to two hundred pesos or imprisoned for up to six months, or both; those who induce the violation may be fined up to one thousand pesos or imprisoned up to one year, or both.
The Act appropriates two million pesos from the National Treasury, to be spent at the President's discretion, and funds shall not be recorded until released by order of the President.
The Act took effect upon its approval on August 22, 1938.