Hans Case Digest Repo
Hans Case Digest Repo — Study Smart, Pass the Bar
Home/Labor Law/Week 5 - The Right to Self-Organization/Arizala v. Court of Appeals

Arizala v. Court of Appeals

Other Exclusions to the Right to Self-Organize — Government Employees (Art. 254, Labor Code; Sec. 4, E.O. No. 180)
Subject Home
16px
←Previous: San Miguel Foods, Incorporated v. San Miguel Corporation Supervisors and Exempt UnionPrevious case
Primary source ↗Next: Benguet Electric Cooperative, Inc. v. Ferrer-CallejaNext case→

On this page

  • Gist
  • Facts
  • Issue
  • Ruling
  • Ratio
  • Doctrine
  • Provisions
Primary source ↗

Title

Arizala v. Court of Appeals

Case Decision Date

G.R. Nos. 43633-34 September 14, 1990

Four supervisors at the GSIS Central Visayas Regional Office refused to resign from the rank-and-file GSIS Employees Association and were criminally convicted under the Industrial Peace Act, which made a supervisor's membership in a union of employees under him a punishable offence. While their appeals ran, the Industrial Peace Act was repealed, the criminal sanction disappeared, and by the time the case reached the Supreme Court in 1990, R.A. No. 6715 expressly allowed supervisors who were already in a rank-and-file unit to remain there. The Court acquitted them: conduct that later law permits outright cannot still be punished.

Core Doctrine

The repeal of a penal law without re-enactment and without a saving clause deprives the courts of jurisdiction to punish acts committed before the repeal — "it would be illogical for this court to attempt to sentence appellant for the offense that no longer exists." Here the point is stronger still: under R.A. No. 6715 supervisors who were already members of a rank-and-file labor organization on its effectivity are authorised to "remain therein," so the maintenance of that membership "is not only not a crime, but is explicitly allowed, under present law."

Case Digest (G.R. Nos. 43633-34)

Case DigestWeek 5 - The Right to Self-Organization

Arizala v. Court of Appeals

G.R. Nos. 43633-34 · September 14, 1990 · First Division

Other Exclusions to the Right to Self-Organize — Government Employees (Art. 254, Labor Code; Sec. 4, E.O. No. 180)

Petitioner: Pablo Arizala, Sergio Maribao, Leonardo Joven, and Felino BulandusRespondent: The Court of Appeals and the People of the Philippines
Gist

Four supervisors at the GSIS Central Visayas Regional Office refused to resign from the rank-and-file GSIS Employees Association and were criminally convicted under the Industrial Peace Act, which made a supervisor's membership in a union of employees under him a punishable offence. While their appeals ran, the Industrial Peace Act was repealed, the criminal sanction disappeared, and by the time the case reached the Supreme Court in 1990, R.A. No. 6715 expressly allowed supervisors who were already in a rank-and-file unit to remain there. The Court acquitted them: conduct that later law permits outright cannot still be punished.

Core Doctrine

The repeal of a penal law without re-enactment and without a saving clause deprives the courts of jurisdiction to punish acts committed before the repeal — "it would be illogical for this court to attempt to sentence appellant for the offense that no longer exists." Here the point is stronger still: under R.A. No. 6715 supervisors who were already members of a rank-and-file labor organization on its effectivity are authorised to "remain therein," so the maintenance of that membership "is not only not a crime, but is explicitly allowed, under present law."

Note: This is a criminal case that reaches Week 5's subject matter sideways. Its holding is about the effect of a decriminalising repeal; its value to the syllabus is the extended survey, running through R.A. No. 875, R.A. No. 2260, General Order No. 5, the 1973 Constitution, P.D. No. 442, P.D. No. 807, E.O. No. 111, the 1987 Constitution, CSC Memorandum Circular No. 6, E.O. No. 180 and R.A. No. 6715, of how the right of self-organization in the government sector has been granted, withdrawn and re-granted. Read it for that map. Two published-text defects are reproduced rather than corrected: the decision refers at different points to "Article 292," "ART. 266" and "ART. 249" of the Labor Code for the same propositions its footnotes cite differently, and it quotes "Article 250" for the provision making unfair labor practice an administrative offence while quoting "ART. 248" for the restored criminal concept; the body also prints "the Industry Peace Act" for the Industrial Peace Act, "44 every branch" for a quotation mark, "propriety function" for proprietary, and "the action of the municipal" for an incomplete phrase in the Tamayo quotation. Articles 243, 245 and 212(m) as they then stood are now Articles 253, 255 and 219(m) under DOLE Department Advisory No. 01, s. 2015.

Facts

  • Under the Industrial Peace Act§, government-owned or controlled corporations "had the duty to bargain collectively," and the Act "prohibited supervisors to become, or continue to be, members of labor organizations composed of rank-and-file employees, and prescribed criminal sanctions for breach of the prohibition."
  • The GSIS was bound by a CBA with the GSIS Employees Association containing a maintenance-of-membership clause: members "were obliged to maintain their union membership in good standing for the duration of the agreement as a condition for their continued employment." The clause is what makes this a genuine dilemma rather than obstinacy — resigning risked the job, staying risked the fine.
  • There was no dispute that all four petitioners held supervisory positions in the Central Visayas Regional Office: Pablo Arizala (Chief, Accounting Division), Sergio Maribao (Chief, Billing Section), Leonardo Joven (Assistant Chief, Accounting Division) and Felino Bulandus (Assistant Chief, Field Service and Non-Life Insurance Division), the last two acting as Division Chief in the Chief's absence.
  • Demands were made on all four to resign from the Association in view of those positions. They refused.
  • Two criminal cases followed in the City Court of Cebu — No. 5275-R against Arizala and Maribao, No. 4130-R against Joven and Bulandus — and both ended in conviction, each accused fined P500.00 with subsidiary imprisonment on insolvency.
  • On January 29, 1976 the Court of Appeals affirmed in the consolidated appeals CA-G.R. Nos. 14724-CR and 14856-CR.
  • On reconsideration they argued that the 1973 Constitution (effective January 17, 1973) and the Labor Code (effective November 1, 1974), repealing the Industrial Peace Act, had placed them within the Civil Service and dropped the criminal sanction — the appeal thus turning entirely on events after the acts charged. Reconsideration was denied.
  • Decided September 14, 1990 — fifteen years after the events and eighteen months after R.A. No. 6715 took effect.
  • On the employer's character the Court found the GSIS performs proprietary functions: a non-stock corporation with the "usual corporate powers" under C.A. No. 186 as amended by R.A. No. 660, "engaged essentially in insurance, a business that 'is not inherently or exclusively a governmental function.'"

Issue

May the petitioners' criminal liability under the Industrial Peace Act — for maintaining membership in a rank-and-file labor organization while holding supervisory positions — "be deemed to have been obliterated in virtue of subsequent legislation and the provisions of the 1973 and 1987 Constitutions"?
Secondary issue. Whether the successive changes — the Labor Code's exclusion of government employees, the 1987 Constitution's§ guarantee that "[t]he right to self-organization shall not be denied to government employees," E.O. No. 180§ and R.A. No. 6715§ — left the prohibition standing at all.
Ancillary issue. Whether unfair labor practices ceased to be crimes under the Labor Code, and whether its transitory provision saved the prosecutions.

Ruling

YES — the liability was obliterated. "The foregoing precedents dictate absolution of the appellants of the offenses imputed to them."
Secondary issue. The prohibition did not survive as a crime. "[T]he petitioners appear to be correct in their view of the disappearance from the law of the prohibition on supervisors being members of labor organizations composed of employees under their supervision," and under the Implementing Rules of R.A. No. 6715 supervisors who were members of existing labor organizations on its effectivity "were explicitly authorized to 'remain therein.'" The decisive consideration is "that the maintenance by supervisors of membership in a rank-and-file labor organization … is not only not a crime, but is explicitly allowed, under present law."
Ancillary issue. Petitioners were right that the Labor Code made unfair labor practice "merely an administrative offense" — but only for a time, since "unfair labor practices were declared to be crimes again by later amendments … effected by Batas Pambansa Blg. 70, approved on May 1, 1980." The Court did not rest the acquittal on that ground.
"WHEREFORE, the judgments of conviction in CA-G.R. No. 14724-CR and CA-G.R. No. 14856-CR, subject of the appeal, as well as those in Crim. Case No. 5275-R and Crim. Case No. 4130-R rendered by the Trial Court, are REVERSED and the accused-appellants ACQUITTED of the charges against them, with costs de officio. SO ORDERED."

Ratio

  • The Court mapped the shifting landscape before deciding anything: "[t]he legal principles governing the rights of self-organization and collective bargaining … in the government … have undergone alterations through the years."
  • R.A. No. 875 gave those "employed in proprietary functions" the rights of self-organization, bargaining and concerted activity, while forbidding those "employed in governmental functions" to strike, "[t]he reason obviously" being that their terms "were 'governed by law' and hence could not be fixed … by collective bargaining." R.A. No. 2260 carried similar provisions; General Order No. 5 (September 1972) "banned strikes in vital industries, as well as 'all rallies, demonstrations and other forms of group actions.'"
  • The Labor Code then withdrew the right wholesale, excluding "government employees, including employees of government[-]owned and/or controlled corporations" — "without distinction as to function" — and by implication excluding them from concerted activities too. P.D. No. 807 embraced every GOCC "whether performing governmental or propriety function."
  • E.O. No. 111 (December 24, 1986) "modified the general disqualification," restoring to employees of corporations under the Corporation Code the right to organize and bargain, while giving other civil servants "merely the right to form associations."
  • The 1987 Constitution went further, and E.O. No. 180§ then "defined and delineated" the right. The crucial contrast: the government employee's right "is not regarded as existing … 'for purposes of collective bargaining,' but simply 'for the furtherance and protection of their interests.'" Excluded from negotiation are "the terms and conditions of employment … that are fixed by law"§; high-level employees§ "shall not be eligible to join the organization of rank-and-file government employees."
  • R.A. No. 6715 "clarified and refined" the membership rules — supervisors ineligible for rank-and-file unions "but may join, assist or form separate labor organizations of their own."
  • On the merits the Court accepted the petitioners' premise for a period only — "[t]his was true, for a time" — then agreed with them on the point that mattered, and corrected them on unfair labor practice.
  • The grandfather rule is "the decisive consideration"§: supervisors already in a rank-and-file organization when R.A. No. 6715 took effect are authorized to "remain therein," so the conduct charged "is not only not a crime, but is explicitly allowed."
  • On that footing it applied People v. Tamayo§ — "[t]he repeal here was absolute and not a reenactment … Nor was there any saving clause … it would be illogical for this court to attempt to sentence appellant for the offense that no longer exists" — and People v. Almuete: "[t]he repeal of a penal law deprives the courts of jurisdiction to punish persons charged with a violation of the old penal law prior to its repeal."

Doctrine

Decriminalising repeal. "The repeal of a penal law deprives the courts of jurisdiction to punish persons charged with a violation of the old penal law prior to its repeal," where the repeal is absolute, without re-enactment and without a saving clause. A fortiori where the later law affirmatively permits the conduct: supervisors already in a rank-and-file organization when R.A. No. 6715 took effect may "remain therein," so such membership "is not only not a crime, but is explicitly allowed, under present law." The public-sector map: the right of self-organization is guaranteed by Art. IX-B, Sec. 2(5) of the 1987 Constitution, but under E.O. No. 180 it exists "for the furtherance and protection of their interests" rather than "for purposes of collective bargaining"; terms "fixed by law" are not negotiable; concerted activities are subject to Civil Service law; high-level employees may not join the rank-and-file organization; and Section 4§ removes the Armed Forces, police, firemen and jail guards altogether. GSIS performs proprietary functions, insurance being "not inherently or exclusively a governmental function."
Limits. The decriminalisation rule is not the general rule: where a repeal is accompanied by re-enactment, "even without a saving clause[,] [it] would not destroy criminal liability" — and the Court's own treatment of unfair labor practice illustrates the limit, Article 250 having decriminalised it and B.P. Blg. 70 re-criminalised it in 1980. The R.A. No. 6715 authorisation is transitional: it protects supervisors already inside a rank-and-file unit on its effectivity, not those joining afterwards, who remain ineligible. The public-sector framework is bounded by "with original charters" — a corporation organised under the Corporation Code falls outside E.O. No. 180 and its employees hold ordinary Labor Code rights. Note what the Court did not decide: it never ruled on the prosecution's transitory-provision argument or its separation-of-powers objection, resting entirely on Tamayo and Almuete. Renumbering: Articles 243, 245 and 212(m) as they then stood are now 253, 255 and 219(m). Verbatim caveats: the decision cites "Article 292," "ART. 266" and "ART. 249" for the same propositions, and dates E.O. No. 111 to "December 24, 1980" where it issued in 1986.

Full Digest — Recitation Format

Gist

Under the Industrial Peace Act, a supervisor's membership in a labor organization of the employees under him was not merely void — it was a crime. Four supervisors at the GSIS Central Visayas Regional Office — Pablo Arizala, Sergio Maribao, Leonardo Joven and Felino Bulandus — belonged to the rank-and-file GSIS Employees Association, whose CBA contained a maintenance-of-membership clause making continued membership a condition of their employment. Told to resign because of their supervisory positions, they refused, and were convicted in the City Court of Cebu and fined P500.00 each. The Court of Appeals affirmed. While the case moved through the courts the legal ground shifted entirely: the Labor Code repealed the Industrial Peace Act and dropped the criminal sanction, the 1973 and 1987 Constitutions and a succession of decrees redrew the right of self-organization in the government sector, and by R.A. No. 6715 supervisors already inside a rank-and-file unit were authorised to "remain therein."§ The Supreme Court acquitted all four. Conduct that the present law "explicitly allow[s]" cannot be punished, and the repeal of a penal law deprives the courts of jurisdiction to punish§ acts committed before it.

Facts

  • Under the Industrial Peace Act, government-owned or controlled corporations "had the duty to bargain collectively and were otherwise subject to the obligations and duties of employers in the private sector." The Act also "prohibited supervisors to become, or continue to be, members of labor organizations composed of rank-and-file employees, and prescribed criminal sanctions for breach of the prohibition."
  • Under that regime the Government Service Insurance System (GSIS) became bound by a collective bargaining agreement with the GSIS Employees Association, the labor organization representing the majority of its employees.
  • That agreement contained a maintenance-of-membership clause: all employees who were union members at its execution or became members afterwards "were obliged to maintain their union membership in good standing for the duration of the agreement as a condition for their continued employment in the GSIS." The clause is what makes the case a genuine dilemma rather than an obstinacy — resigning risked the job, staying risked the fine.
  • There was no dispute that the four petitioners occupied supervisory positions. Pablo Arizala was Chief of the Accounting Division and Sergio Maribao Chief of the Billing Section of that Division, in the Central Visayas Regional Office of the GSIS. Leonardo Joven was Assistant Chief of the Accounting Division, sometimes Acting Chief in the Chief's absence, and Felino Bulandus Assistant Chief of the Field Service and Non-Life Insurance Division, likewise Acting Division Chief in the Chief's absence.
  • Demands were made on all four to resign from the GSIS Employees Association in view of their supervisory positions. They refused to do so.
  • Two criminal cases for violation of the Industrial Peace Act were lodged in the City Court of Cebu — Criminal Case No. 5275-R against Arizala and Maribao, and Criminal Case No. 4130-R against Joven and Bulandus.
  • Both actions resulted in conviction in separate decisions, each accused being sentenced "to pay a fine of P500.00 or to suffer subsidiary imprisonment in case of insolvency."
  • They appealed to the Court of Appeals, Arizala and Maribao in CA-G.R. No. 14724-CR and Joven and Bulandus in CA-G.R. No. 14856-CR; the appeals were consolidated on the appellants' motion.
  • On January 29, 1976, the Court of Appeals promulgated judgment affirming the convictions of all four.
  • On reconsideration the appellants argued that when the 1973 Constitution took effect on January 17, 1973 under Proclamation No. 1104, the Arizala-Maribao case was still pending in the Court of Appeals and the Joven-Bulandus case still pending decision in the City Court of Cebu; that the 1973 Constitution and the Labor Code (effective November 1, 1974), repealing the Industrial Peace Act, placed employees of all categories in government-owned or controlled corporations within the Civil Service and made their terms and conditions "governed by the Civil Service Law, rules and regulations" and therefore no longer subject to collective bargaining; and that the criminal sanction "no longer appeared in the Labor Code." The appeal thus turned entirely on events that happened after the acts charged.
  • The Court of Appeals denied reconsideration, and the petitioners came to the Supreme Court on review on certiorari. The case was decided September 14, 1990 — some fifteen years after the events, and eighteen months after R.A. No. 6715 had taken effect.
  • On the character of the employer, the Court found that "the GSIS performs proprietary functions": it is "a non-stock corporation, managed by a Board of Trustees exercising the 'usual corporate powers'" under C.A. No. 186 as amended by R.A. No. 660, and is "engaged essentially in insurance, a business that 'is not inherently or exclusively a governmental function,... (but) is on the contrary, in essence and practice, of a private nature and interest.'"

Arguments of the Parties

A. Petitioners Arizala, Maribao, Joven and Bulandus. Their case was that subsequent legislation had erased the liability, and it rested on four premises. First, Section 1, Article XII-B of the 1973 Constitution provides that the "Civil Service embraces every branch, agency, subdivision and instrumentality of the government, including government-owned or controlled corporations." Second, Article 292 of the Labor Code repealed such parts of the Industrial Peace Act as were "not adopted as part" of the Code "either directly or by reference," and the Code did not adopt the provision conferring on employees of government corporations the right of self-organization and collective bargaining, providing instead that their terms and conditions "would thenceforth no longer be fixed by collective bargaining but 'be governed by the Civil Service Law, rules and regulations.'" Third, "[t]he specific penalty for violation of the prohibition on supervisors being members in a labor organization of employees under their supervision has disappeared." Fourth, the Code modified the concept of unfair labor practice, making it "merely as an administrative offense rather than a criminal offense." From these they drew the substantive conclusion that "it is therefore immaterial... whether supervisors are members of rank-and-file unions or not; after all, the possibility of the employer's control of the members of the union thru supervisors thus rendering collective bargaining illusory, which is the main reason for the prohibition, is no longer of any consequence."
B. Respondent People of the Philippines. The prosecution answered on two grounds. It pointed to the Labor Code's own transitory provision, that "all actions or claims accruing prior to... (its) effectivity... shall be determined in accordance with the laws in force at the time of their accrual." And it argued more broadly "that the legislature cannot generally intervene and vacate the judgment of the courts, either directly or indirectly, by the repeal of the statute under which said judgment has been rendered" — a separation-of-powers objection to letting a later statute undo a completed conviction.
C. Common Ground. It was not disputed that the petitioners held supervisory positions at the GSIS, that they were members of the rank-and-file GSIS Employees Association, that they had been asked to resign and refused, or that the Industrial Peace Act as it then stood both prohibited that membership and punished it. Nor was it disputed that the Industrial Peace Act had since been repealed and that the criminal sanction for this particular prohibition had not been carried into the Labor Code.

Issue

A. Main Issue (Topic/Subtopic-Centered). May the petitioners' criminal liability for violating the Industrial Peace Act — by maintaining membership in a rank-and-file labor organization while holding supervisory positions — "be deemed to have been obliterated in virtue of subsequent legislation and the provisions of the 1973 and 1987 Constitutions"?
B. Secondary Issues. Whether the successive changes in the law — the Labor Code's exclusion of government employees from the right to self-organize for purposes of collective bargaining, the 1987 Constitution's§ guarantee that "[t]he right to self-organization shall not be denied to government employees," E.O. No. 180§ and R.A. No. 6715§ — left the prohibition on supervisory membership in a rank-and-file union standing at all.
C. Ancillary/Incidental Issues. Whether unfair labor practices ceased to be crimes under the Labor Code; and whether the Code's transitory provision, that claims accruing before its effectivity are determined under the laws in force at their accrual, saved the prosecutions.

Ruling

Main Issue: YES, the liability was obliterated. "The foregoing precedents dictate absolution of the appellants of the offenses imputed to them." Secondary Issue: the prohibition did not survive as a crime — "[t]he petitioners appear to be correct in their view of the disappearance from the law of the prohibition on supervisors being members of labor organizations composed of employees under their supervision," the Labor Code having "allowed supervisors (if not managerial) to join rank-and-file unions," and under the Implementing Rules of R.A. No. 6715 supervisors who were members of existing labor organizations on its effectivity "were explicitly authorized to 'remain therein.'" The decisive consideration is therefore "that the maintenance by supervisors of membership in a rank-and-file labor organization even after the enactment of a statute imposing a prohibition on such membership, is not only not a crime, but is explicitly allowed, under present law." Ancillary Issue: the petitioners were right that the Labor Code made unfair labor practice "merely an administrative offense" — but only for a time, since "unfair labor practices were declared to be crimes again by later amendments of the Labor Code effected by Batas Pambansa Blg. 70, approved on May 1, 1980." The Court did not rest the acquittal on that ground.
Dispositive portion (verbatim):
"WHEREFORE, the judgments of conviction in CA-G.R. No. 14724-CR and CA-G.R. No. 14856-CR, subject of the appeal, as well as those in Crim. Case No. 5275-R and Crim. Case No. 4130-R rendered by the Trial Court, are REVERSED and the accused-appellants ACQUITTED of the charges against them, with costs de officio.
SO ORDERED."

Ratio

  • The Court set out the shifting statutory landscape before deciding anything, observing that "[t]he legal principles governing the rights of self-organization and collective bargaining of rank-and-file employees in the government — particularly as regards supervisory, and high level or managerial employees — have undergone alterations through the years."
  • Under R.A. No. 875§, persons "employed in proprietary functions of the Government, including but not limited to governmental corporations," had the rights of self-organization, collective bargaining and concerted activity; those "employed in governmental functions" were forbidden to strike or to join organizations imposing a duty to strike, "[t]he reason obviously" being that "the terms and conditions of their employment were 'governed by law' and hence could not be fixed, altered or otherwise modified by collective bargaining."
  • R.A. No. 2260, the Civil Service Act of 1959, carried "[s]imilar provisions," embracing government corporations within the civil service and barring those in governmental functions from unions imposing a duty to strike, while leaving those in proprietary functions free; and General Order No. 5, one of the first martial-law issuances in September 1972, "banned strikes in vital industries, as well as 'all rallies, demonstrations and other forms of group actions.'"
  • The Labor Code then "'exempted' government employees from the right to self-organization for purposes of collective bargaining," listing among those excluded "government employees, including employees of government[-]owned and/or controlled corporations," alongside security guards, managerial employees, and employees of non-profit religious, charitable, medical and educational institutions.
  • The Court flagged the resulting conflict: under the Civil Service Act persons in proprietary functions "could legitimately bargain... and corollarily engage in strikes," while under the Labor Code and its rules government employees "without distinction as to function" were excluded — "exempted (excluded is the better term)" — and "by implication, excluded as well from the right to engage in concerted activities."
  • P.D. No. 807, the Civil Service Decree, then described the civil service as embracing "every government owned or controlled corporation whether performing governmental or propriety function," the effect being "seemingly to prohibit government employees (including those 'employed in proprietary functions of the Government') to 'strike for the purpose of securing changes of their terms and conditions of employment.'"
  • E.O. No. 111 (December 24, 1986) "modified the general disqualification," granting employees "of government corporations established under the Corporation Code... the right to organize and to bargain collectively with their respective employers," while giving all "other employees in the civil service... merely the right to form associations for purposes not contrary to law."
  • The 1987 Constitution went further, declaring that "the right to self organization shall not be denied to government employees"§ and guaranteeing "the rights of all workers to self-organization, collective bargaining and negotiations, and peaceful concerted activities, including the right to strike in accordance with law."
  • E.O. No. 180§ then "defined and delineated" that right, and the Court drew the crucial contrast: a private-sector employee's right includes bargaining and concerted activity, but the government employee's right "is not regarded as existing or available for 'purposes of collective bargaining,' but simply 'for the furtherance and protection of their interests'" — so "the right of Government employees to deal and negotiate with their respective employers is not quite as extensive as that of private employees." Excluded from negotiation are "the terms and conditions of employment... that are fixed by law"§, and concerted activities "must be exercised in accordance with law." High-level employees§ "shall not be eligible to join the organization of rank-and-file government employees."
  • R.A. No. 6715 "clarified and refined" the membership rules, organising unions either "for purposes of negotiation," open to rank-and-file only, or "for furtherance and protection" of members' rights — supervisory employees being ineligible for the former "but may join, assist or form separate labor organizations of their own."
  • Turning to the merits, the Court accepted the petitioners' premise for a period only: "[t]his was true, for a time," since under the Labor Code and P.D. No. 807 government employees "were indeed precluded from bargaining as regards terms and conditions of employment because these were set by law." But "EO 111 restored the right to organize and to negotiate and bargain of employees of 'government corporations established under the Corporation Code.' And EO 180, and apparently RA 6715, too, granted to all government employees the right of collective bargaining or negotiation except as regards those terms of their employment which were fixed by law."
  • It then agreed with the petitioners on the point that mattered: they "appear to be correct in their view of the disappearance from the law of the prohibition on supervisors being members of labor organizations composed of employees under their supervision," the Labor Code having "allowed supervisors (if not managerial) to join rank-and-file unions."
  • The Court corrected them on unfair labor practice, however: although Article 250 of the Labor Code had indeed made it "merely... an administrative offense rather than a criminal offense," "unfair labor practices were declared to be crimes again by later amendments... effected by Batas Pambansa Blg. 70, approved on May 1, 1980," under which they "are not only violations of the civil rights of both labor and management but are also offenses against the State."
  • "[T]he decisive consideration" is therefore the grandfather rule§: "at present, supervisors who were already members of a rank-and-file labor organization at the time of the effectivity of R.A. No. 6715, are authorized to 'remain therein'" — so that the conduct charged "is not only not a crime, but is explicitly allowed, under present law."
  • On that footing the Court applied People v. Tamayo§, where a conviction under a municipal ordinance repealed during the appeal was set aside: "[t]he repeal here was absolute and not a reenactment and repeal by implication. Nor was there any saving clause... and it would be illogical for this court to attempt to sentence appellant for the offense that no longer exists."
  • People v. Almuete was "[t]o the same effect and in even more unmistakable language," holding that to prosecute conduct the later law no longer denounces "would be repugnant or abhorrent to the policy and spirit of that Code and would subvert the manifest legislative intent," and that "[t]he repeal of a penal law deprives the courts of jurisdiction to punish persons charged with a violation of the old penal law prior to its repeal."
  • On the strength of those precedents — and without separately taking up the prosecution's transitory-provision and separation-of-powers arguments — the Court concluded that they "dictate absolution of the appellants of the offenses imputed to them."

Doctrine

B. Doctrines/Rules/Principles. "The repeal of a penal law deprives the courts of jurisdiction to punish persons charged with a violation of the old penal law prior to its repeal," where the repeal is absolute, without re-enactment and without a saving clause — "it would be illogical for this court to attempt to sentence appellant for the offense that no longer exists." A fortiori where the later law affirmatively permits the conduct: supervisors already in a rank-and-file labor organization when R.A. No. 6715 took effect may "remain therein," so such membership "is not only not a crime, but is explicitly allowed, under present law." On the substantive map: the government employee's right of self-organization is guaranteed by Article IX-B, Section 2(5) of the 1987 Constitution, but under E.O. No. 180 it exists "for the furtherance and protection of their interests" rather than "for purposes of collective bargaining"; terms and conditions "fixed by law" are not negotiable; concerted activities and strikes are subject to Civil Service law and rules; high-level employees — policy-making, managerial, or highly confidential — may not join the rank-and-file organization; and Section 4§ removes the Armed Forces, police officers, policemen, firemen and jail guards from the framework altogether. GSIS performs proprietary functions, insurance being "not inherently or exclusively a governmental function."
C. Distinctions/Limitations/Qualifications. The decriminalisation rule is not the general rule: where a repeal is accompanied by re-enactment, "even without a saving clause[,] [it] would not destroy criminal liability." The Court's own treatment of unfair labor practice illustrates the limit — Article 250 decriminalised it, and B.P. Blg. 70 re-criminalised it in 1980, so the petitioners' fourth premise, though correct when made, had ceased to be true. The R.A. No. 6715 authorisation is transitional: it protects supervisors already inside a rank-and-file unit on its effectivity, not supervisors joining one afterwards, who remain ineligible under Article 245. The public-sector framework is bounded by the phrase "with original charters": a government corporation organised under the Corporation Code falls outside E.O. No. 180 and its employees hold ordinary Labor Code rights, which is what E.O. No. 111 had restored. And note what the Court did not decide — it never ruled on the prosecution's transitory-provision argument or on its separation-of-powers objection, resting instead entirely on Tamayo and Almuete.
D. Topic/Subtopic Integration (Mandatory). Classified INCIDENTAL, and the reason is worth being precise about. The syllabus files this case under item 4, "Other exclusions to the right to self-organize," alongside Section 4 of E.O. No. 180; but the disposition rests on a rule of criminal law — the effect of a decriminalising repeal — and not on the application of any exclusion to these petitioners. Indeed the Court's conclusion is that the exclusion no longer reached them. What makes the case indispensable to the subtopic is its middle: a decade-by-decade survey of how the government-sector right to self-organize was granted under R.A. No. 875 to proprietary-function employees, withdrawn wholesale by the Labor Code, restored in part by E.O. No. 111, constitutionalised by Article IX-B, Section 2(5), and then delimited by E.O. No. 180 as a right "for the furtherance and protection of their interests" rather than for collective bargaining. Read beside Benguet Electric Cooperative v. Calleja and ICMC v. Calleja, the three cases in item 4 mark out the exclusions that arise from who the employer is — a cooperative owned by its workers, an immune international organization, and the State itself — as against items 1 to 3, which exclude by reference to what the employee does or knows.

Separate Opinions

None. The Decision, penned by Justice Narvasa, was concurred in by Justices Cruz, Gancayco, Griño-Aquino, and Medialdea.

Cited Laws & Provisions

Every statute, rule, and issuance the decision turns on — the text as written, and the work it does in this case.

Special Law

Section 3, Industrial Peace Act

Employees' Right to Self-Organization — and the supervisor prohibition

Republic Act No. 875 (effective 17 January 1953)

Section 3. Employees' Right to Self-Organization. — Employees shall have the right to self-organization and to form, join or assist labor organizations of their own choosing for the purpose collective bargaining through representatives of their own choosing and to engage in concerted activities for the purpose of collective bargaining and other mutual aid or protection. Individuals employed as supervisors shall not be eligible for membership in a labor organization of employees under their supervision but may form separate organizations of their own.

A "supervisor" was defined by Section 2(k) of the same Act as one "having authority in the interest of an employer to hire, transfer, suspend, lay-off, recall, discharge, assign, recommend, or discipline other employees, or responsibly to direct them, and to adjust their grievance or effectively to recommend such acts if, in connection with the foregoing, the exercise of such authority is not merely routinary or clerical in nature but requires the use of independent judgment." The Act was repealed by the Labor Code (P.D. No. 442), effective 1 November 1974.

Why it is cited here

This is the provision the four petitioners were criminally convicted of violating, and the point students most often miss is that this prohibition once carried a penal sanction: the Act "prescribed criminal sanctions for breach of the prohibition," and each accused was sentenced "to pay a fine of P500.00 or to suffer subsidiary imprisonment in case of insolvency."

The rationale for the prohibition is worth stating because the petitioners' argument attacked it directly. A supervisor sitting inside the rank-and-file union gives the employer a channel of influence over the very body that is supposed to face it across the table — as the Court puts it, "the possibility of the employer's control of the members of the union thru supervisors thus rendering collective bargaining illusory, which is the main reason for the prohibition." The petitioners argued that once government employees lost the power to bargain at all, this reason evaporated: there was no bargaining left for a supervisor's presence to make illusory.

Note also what made their position awkward. The GSIS collective bargaining agreement contained a maintenance-of-membership clause, so the petitioners were obliged to keep up their union membership "as a condition for their continued employment." The statute made membership a crime; the CBA made resignation a ground for dismissal. Demands were made on all four to resign; they refused; two criminal cases followed.

Compare Filoil Refinery Corporation v. Filoil Supervisory & Confidential Employees Association, decided in 1972 on the same section. There the second sentence was read as a grant — supervisors "may form separate organizations of their own." Here the same sentence is read as a prohibition backed by a fine. Both readings are correct; the sentence does both things, and which half is in issue depends on where the supervisor tries to go.

DOLE Issuance

Sections 1-2, E.O. No. 180

Coverage; the right of government employees to organize

Executive Order No. 180 (effective 1 June 1987)

Sec. 1. This Executive Order applies to all employees of all branches, subdivisions, instrumentalities, and agencies, of the Government, including government-owned or controlled corporations with original charters. For this purpose, employees, covered by this Executive Order shall be referred to as "government employees".

Sec. 2. All government employees can form, join or assist employees' organizations of their own choosing for the furtherance and protection of their interests. They can also form, in conjunction with appropriate government authorities, labor-management committees, works councils and other forms of workers' participation schemes to achieve the same objectives.

Why it is cited here

Two phrases in these sections do almost all the work in the modern law of public-sector self-organization, and both are easy to read past.

The first is "with original charters" in Section 1. It marks the dividing line the 1987 Constitution draws in Article IX-B, Section 2(1): a corporation created by a special charter is in the civil service and lives under E.O. No. 180; a corporation organised under the Corporation Code is not, and its employees are ordinary Labor Code employees with full bargaining rights. GSIS has an original charter, which is why the Court's survey ends where it does — and why E.O. No. 111 had earlier restored the right to organise and bargain specifically to "employees of government corporations established under the Corporation Code."

The second is "for the furtherance and protection of their interests" in Section 2 — the phrase that is not "for purposes of collective bargaining." The Court draws the contrast expressly: a private-sector employee's right of self-organization "admittedly includes the right to deal and negotiate with their respective employers in order to fix the terms and conditions of employment and also, to engage in concerted activities... such as strikes, picketing, boycotts," whereas the government employee's right "is not regarded as existing or available for 'purposes of collective bargaining,' but simply 'for the furtherance and protection of their interests.'" In short: "the right of Government employees to deal and negotiate with their respective employers is not quite as extensive as that of private employees."

Read the two sections together and the public-sector right emerges as organization without full bargaining — real, constitutionally guaranteed, and narrower in what it can be used for.

DOLE Issuance

Section 3, E.O. No. 180

High-level employees ineligible to join rank-and-file organizations

Executive Order No. 180 (effective 1 June 1987)

Sec. 3. High-level employees whose functions are normally considered as policy-making or managerial or whose duties are of a highly confidential nature shall not be eligible to join the organization of rank-and-file government employees.

The implementing rules define a high level employee as one "whose functions are normally considered policy determining, managerial or one whose duties are highly confidential in nature," a managerial function being "the exercise of powers such as: 1. To effectively recommend such managerial actions; 2. To formulate or execute management policies and decisions; or 3. To hire, transfer, suspend, lay off, recall, dismiss, assign or discipline employees."

Why it is cited here

This is the public-sector counterpart of Article 245, and the parallel is close enough to be worth setting out side by side. In the private sector, managerial employees may join nothing and supervisory employees may join only a union of their own. In the public sector, "high-level employees" may not join "the organization of rank-and-file government employees."

But notice the three differences, because they are examinable. First, the public-sector category is a single composite — policy-making or managerial or highly confidential — where the Labor Code keeps managerial, supervisory and (by implication) confidential employees in separate boxes. Second, confidentiality is written into the text here, whereas in the private sector it arrives only through the doctrine of necessary implication that Sugbuanon applies. Third, the definition of a managerial function in the implementing rules opens with "[t]o effectively recommend such managerial actions" — language that in Article 212(m) describes a supervisory employee. The public-sector "high level" category therefore sweeps in people the Labor Code would classify as supervisors.

That last point is exactly the petitioners' situation. Arizala was Chief of the Accounting Division and Maribao Chief of its Billing Section; Joven and Bulandus were Assistant Chiefs (and sometimes Acting Chiefs) of the Accounting Division and of the Field Service and Non-Life Insurance Division. Under the Industrial Peace Act they were supervisors, forbidden the rank-and-file union on pain of a fine. Under E.O. No. 180 the question would be whether they are "high-level," which is a different test with a different scope.

DOLE Issuance

Section 4, E.O. No. 180

Employees to whom the Executive Order does not apply

Executive Order No. 180 (effective 1 June 1987)

Sec. 4. The Executive Order shall not apply to the members of the Armed Forces of the Philippines, including police officers, policemen, firemen and jail guards.

Why it is cited here

The Week 5 syllabus lists this section by name under "Other exclusions to the right to self-organize," and it is the most categorical exclusion in the whole week — worth contrasting with everything around it.

Every other exclusion in this part of the syllabus is functional or relational. Managerial employees are excluded for the powers they hold; confidential employees for what they know; cooperative members for what they own; employees of international organizations because of the immunity their employer enjoys. This one is neither. It excludes four named services outright, by status, whatever the individual soldier or jail guard does.

Two features of the drafting repay attention. First, it is an exclusion from the Executive Order, not merely from a particular organization — Section 3 says a high-level employee may not join the rank-and-file organization, while Section 4 says the entire framework does not apply. Second, its subjects are the services that carry arms or hold custody, and the reason is the obvious one: the disruption of these functions cannot be tolerated as a bargaining lever at all. The exclusion is thus about the nature of the public function, in the same way that the pre-1987 rule distinguished "governmental" from "proprietary" functions — which is precisely the distinction that decides where GSIS sits.

Nothing in Arizala turns on Section 4; the petitioners were insurance-system employees, not uniformed personnel. It is set out here because the syllabus pairs the section with this case and because it completes the map of who is left outside the public-sector framework.

DOLE Issuance

Sections 13-14, E.O. No. 180

What may be negotiated; concerted activities and strikes

Executive Order No. 180 (effective 1 June 1987)

Sec. 13. Terms and conditions of employment or improvements thereof, except those that are fixed by law, may be the subject of negotiations between duly recognized employees' organizations and appropriate government authorities.

Sec. 14. The Civil Service laws and rules governing concerted activities and strikes in the government service shall be observed, subject to any legislation that may be enacted by Congress.

The implementing rules put the strike prohibition in terms: since the "terms and conditions of employment in the government, including any political subdivision or instrumentality thereof and government-owned and controlled corporations with original charters are governed by law, the employees therein shall not strike for the purpose of securing changes thereof." CSC Memorandum Circular No. 6, issued 21 April 1987, likewise enjoined "all government officers and employees from staging strikes, demonstrations, mass leaves, walk-outs and other forms of mass action which will result in temporary stoppage or disruption of public services."

Why it is cited here

These two sections carry the premise on which the whole public-sector regime rests, and it is a single idea repeated in every statute the Court surveys: terms and conditions of government employment are fixed by law, and what law fixes, bargaining cannot alter.

Section 13 states the rule as a permission with a carve-out — everything except what is fixed by law may be negotiated. That carve-out is far larger than it looks, because salaries, benefits, ranks and tenure in the civil service are all set by statute. What remains negotiable is the residue.

Section 14 handles the sanction side, and the Court traces the same premise through it: the right to strike is conceded "like their counterparts in the private sector," but "the executive order is quick to add that those activities must be exercised in accordance with law," subject to "Civil Service Law and rules" and to "any legislation that may be enacted by Congress" — and the implementing rules then supply the prohibition outright.

The petitioners built their acquittal argument on this premise, and the Court agreed with them for a period: because terms were fixed by law, "government employees, including those in government-owned or controlled corporations, were indeed precluded from bargaining," and so the reason for barring supervisors from the rank-and-file union had lapsed. What the Court would not accept is that the position stayed that way. E.O. No. 111 "restored the right to organize and to negotiate and bargain of employees of 'government corporations established under the Corporation Code,'" and E.O. No. 180 and R.A. No. 6715 "granted to all government employees the right of collective bargaining or negotiation except as regards those terms of their employment which were fixed by law."

Constitution

Article IX-B, Section 2(5), 1987 Constitution

The right to self-organization shall not be denied to government employees

1987 Constitution, Article IX-B (Constitutional Commissions — Civil Service Commission)

The right to self-organization shall not be denied to government employees.

Section 2(1) of the same Article supplies the boundary the sentence operates within: "The civil service embraces all branches, subdivisions, instrumentalities, and agencies of the Government, including government-owned or controlled corporations with original charters." Read with Article XIII, Section 3, which guarantees "the rights of all workers to self-organization, collective bargaining and negotiations, and peaceful concerted activities, including the right to strike in accordance with law."

Why it is cited here

One sentence, and it settles what a half-century of statutes had left unsettled. Under the Industrial Peace Act, employees in proprietary government functions could organise and bargain while those in governmental functions could not. Under the Labor Code as originally enacted, government employees were excluded across the board "without distinction as to function" — which the Court notes created "[s]ome inconsistency... between the Labor Code and the Civil Service Act of 1959." P.D. No. 807 then extended the civil service to every government corporation "whether performing governmental or propriety function." The right came and went depending on which statute was being read.

This clause ends that oscillation by fixing the right at constitutional level, where no decree or code can withdraw it. What it does not do is say for what purposes the right may be exercised — and that silence is where E.O. No. 180 operates, granting organization "for the furtherance and protection of their interests" rather than "for purposes of collective bargaining."

The pairing to remember for an exam is this: Article IX-B, Section 2(5) guarantees that government employees may organise; Article XIII, Section 3 adds bargaining and the right to strike but qualifies the latter "in accordance with law"; and E.O. No. 180 with its implementing rules supplies the law, which forbids striking to change terms that statute has fixed. The right is real, constitutionally secured, and narrower in its uses than its private-sector counterpart.

Jurisprudence

Effect of a decriminalising repeal

The repeal of a penal law deprives the courts of jurisdiction to punish

People v. Tamayo, 61 Phil. 225 (1935); People v. Almuete, 69 SCRA 410 (1976); People v. Adillo, L-23785 (1975)

The repeal here was absolute and not a reenactment and repeal by implication. Nor was there any saving clause. The legislative intent as shown by the action of the municipal is that such conduct, formerly denounced, is no longer deemed criminal, and it would be illogical for this court to attempt to sentence appellant for the offense that no longer exists.

The passage is quoted from People v. Tamayo as the decision reproduces it, including the incomplete phrase "the action of the municipal" — presumably "the municipal council" or "the municipal board" in the original report.

Why it is cited here

This is the rule that actually decides the case, and it is worth separating carefully from the general rule it qualifies.

The general rule, from U.S. v. Cuna and Wing v. United States, is that "in the Philippines repeal of a criminal act by its reenactment, even without a saving clause[,] would not destroy criminal liability." That covers the ordinary situation in which a legislature re-enacts an offence in new words. Tamayo carves out the situation where the repeal is absolute, with no re-enactment and no saving clause, so that the conduct "is no longer deemed criminal" — and there "not a single sentence in either de[ci]sion indicates that there was any desire to hold that a person could be prosecuted[,] convicted, and punished for acts no longer criminal."

Almuete puts it in "even more unmistakable language," and states the consequence in jurisdictional terms: "[t]he repeal of a penal law deprives the courts of jurisdiction to punish persons charged with a violation of the old penal law prior to its repeal." It also supplies the test the Court applies here — legislative intent inferred from what the new law does. In Almuete the Code of Agrarian Reforms had not re-enacted the penal section and had abolished share tenancy, "which is the basis for penalizing clandestine pre-reaping and pre-threshing"; to prosecute would be "repugnant or abhorrent to the policy and spirit of that Code."

The facts here go one step beyond both precedents, and the Court says so. It is not merely that the penalty vanished when the Labor Code repealed the Industrial Peace Act; it is that under the implementing rules of R.A. No. 6715 supervisors who were members of existing labor organizations on its effectivity are authorised to "remain therein." So "the maintenance by supervisors of membership in a rank-and-file labor organization even after the enactment of a statute imposing a prohibition on such membership, is not only not a crime, but is explicitly allowed, under present law." Where Tamayo and Almuete involved conduct that became lawful, this involves conduct that became expressly protected.

Labor Code

Article 245, Labor Code (as amended by R.A. No. 6715)

Supervisory employees — separate organizations, and the grandfather rule

R.A. No. 6715, effective 21 March 1989, further amending the Labor Code

supervisory employees who are included in an existing rank-and-file bargaining unit, upon the effectivity of Republic Act No. 6715 shall remain in that unit ...

The quoted words are from the Rules Implementing R.A. No. 6715, as the decision reproduces them, not from the article itself. Article 245 — now Article 255 under DOLE Department Advisory No. 01, series of 2015 — provides that supervisory employees "shall not be eligible for membership in a labor organization of the rank-and-file employees but may join, assist or form separate labor organizations of their own," and Article 212(m) defines a managerial employee as "one who is vested with powers or prerogatives to lay down and execute[] management policies and/or to hire, transfer, suspend, lay-off, recall, discharge, assign or discipline employees."

Why it is cited here

The Court calls this "[t]he decisive consideration," and it is the sentence to carry away from the case: "at present, supervisors who were already members of a rank-and-file labor organization at the time of the effectivity of R.A. No. 6715, are authorized to 'remain therein.'"

This is a grandfather clause, and it is worth understanding why a statute that otherwise keeps supervisors out of rank-and-file unions would contain one. R.A. No. 6715 reorganised union membership around purpose: unions "for purposes of negotiation," open to rank-and-file only, and unions "for furtherance and protection" of members' rights, which is what supervisors may form. Applied strictly and immediately, that reorganisation would have expelled sitting members from units they had belonged to for years and disrupted existing bargaining relationships. The transitional rule avoids that by freezing existing memberships in place.

For these petitioners the clause is not merely transitional but exculpatory. They were supervisors who had maintained membership in the GSIS Employees Association — a rank-and-file union — and were fined for it. The very conduct is what the implementing rules now authorise. Hence the Court's formulation that it is "not only not a crime, but is explicitly allowed."

Keep the general rule and the exception distinct, though. Article 245 still bars supervisors from rank-and-file unions going forward; what the rules protect is the pre-existing membership of those already inside a unit when R.A. No. 6715 took effect. A supervisor joining a rank-and-file union today is in a different position entirely — no longer a criminal one, but not a permitted one either.

Study digest — refer to the full text of the decision for accuracy. https://lawphil.net/judjuris/juri1990/sep1990/gr_43633_1990.html

Cited laws & provisions

Section 3, Industrial Peace Act

Special Law

Employees' Right to Self-Organization — and the supervisor prohibition

Republic Act No. 875 (effective 17 January 1953)

Section 3. Employees' Right to Self-Organization. — Employees shall have the right to self-organization and to form, join or assist labor organizations of their own choosing for the purpose collective bargaining through representatives of their own choosing and to engage in concerted activities for the purpose of collective bargaining and other mutual aid or protection. Individuals employed as supervisors shall not be eligible for membership in a labor organization of employees under their supervision but may form separate organizations of their own.

A "supervisor" was defined by Section 2(k) of the same Act as one "having authority in the interest of an employer to hire, transfer, suspend, lay-off, recall, discharge, assign, recommend, or discipline other employees, or responsibly to direct them, and to adjust their grievance or effectively to recommend such acts if, in connection with the foregoing, the exercise of such authority is not merely routinary or clerical in nature but requires the use of independent judgment." The Act was repealed by the Labor Code (P.D. No. 442), effective 1 November 1974.

Why it is cited here

This is the provision the four petitioners were criminally convicted of violating, and the point students most often miss is that this prohibition once carried a penal sanction: the Act "prescribed criminal sanctions for breach of the prohibition," and each accused was sentenced "to pay a fine of P500.00 or to suffer subsidiary imprisonment in case of insolvency."

The rationale for the prohibition is worth stating because the petitioners' argument attacked it directly. A supervisor sitting inside the rank-and-file union gives the employer a channel of influence over the very body that is supposed to face it across the table — as the Court puts it, "the possibility of the employer's control of the members of the union thru supervisors thus rendering collective bargaining illusory, which is the main reason for the prohibition." The petitioners argued that once government employees lost the power to bargain at all, this reason evaporated: there was no bargaining left for a supervisor's presence to make illusory.

Note also what made their position awkward. The GSIS collective bargaining agreement contained a maintenance-of-membership clause, so the petitioners were obliged to keep up their union membership "as a condition for their continued employment." The statute made membership a crime; the CBA made resignation a ground for dismissal. Demands were made on all four to resign; they refused; two criminal cases followed.

Compare Filoil Refinery Corporation v. Filoil Supervisory & Confidential Employees Association, decided in 1972 on the same section. There the second sentence was read as a grant — supervisors "may form separate organizations of their own." Here the same sentence is read as a prohibition backed by a fine. Both readings are correct; the sentence does both things, and which half is in issue depends on where the supervisor tries to go.

Full entry below ↓

Sections 1-2, E.O. No. 180

DOLE Issuance

Coverage; the right of government employees to organize

Executive Order No. 180 (effective 1 June 1987)

Sec. 1. This Executive Order applies to all employees of all branches, subdivisions, instrumentalities, and agencies, of the Government, including government-owned or controlled corporations with original charters. For this purpose, employees, covered by this Executive Order shall be referred to as "government employees".

Sec. 2. All government employees can form, join or assist employees' organizations of their own choosing for the furtherance and protection of their interests. They can also form, in conjunction with appropriate government authorities, labor-management committees, works councils and other forms of workers' participation schemes to achieve the same objectives.

Why it is cited here

Two phrases in these sections do almost all the work in the modern law of public-sector self-organization, and both are easy to read past.

The first is "with original charters" in Section 1. It marks the dividing line the 1987 Constitution draws in Article IX-B, Section 2(1): a corporation created by a special charter is in the civil service and lives under E.O. No. 180; a corporation organised under the Corporation Code is not, and its employees are ordinary Labor Code employees with full bargaining rights. GSIS has an original charter, which is why the Court's survey ends where it does — and why E.O. No. 111 had earlier restored the right to organise and bargain specifically to "employees of government corporations established under the Corporation Code."

The second is "for the furtherance and protection of their interests" in Section 2 — the phrase that is not "for purposes of collective bargaining." The Court draws the contrast expressly: a private-sector employee's right of self-organization "admittedly includes the right to deal and negotiate with their respective employers in order to fix the terms and conditions of employment and also, to engage in concerted activities... such as strikes, picketing, boycotts," whereas the government employee's right "is not regarded as existing or available for 'purposes of collective bargaining,' but simply 'for the furtherance and protection of their interests.'" In short: "the right of Government employees to deal and negotiate with their respective employers is not quite as extensive as that of private employees."

Read the two sections together and the public-sector right emerges as organization without full bargaining — real, constitutionally guaranteed, and narrower in what it can be used for.

Full entry below ↓

Section 3, E.O. No. 180

DOLE Issuance

High-level employees ineligible to join rank-and-file organizations

Executive Order No. 180 (effective 1 June 1987)

Sec. 3. High-level employees whose functions are normally considered as policy-making or managerial or whose duties are of a highly confidential nature shall not be eligible to join the organization of rank-and-file government employees.

The implementing rules define a high level employee as one "whose functions are normally considered policy determining, managerial or one whose duties are highly confidential in nature," a managerial function being "the exercise of powers such as: 1. To effectively recommend such managerial actions; 2. To formulate or execute management policies and decisions; or 3. To hire, transfer, suspend, lay off, recall, dismiss, assign or discipline employees."

Why it is cited here

This is the public-sector counterpart of Article 245, and the parallel is close enough to be worth setting out side by side. In the private sector, managerial employees may join nothing and supervisory employees may join only a union of their own. In the public sector, "high-level employees" may not join "the organization of rank-and-file government employees."

But notice the three differences, because they are examinable. First, the public-sector category is a single composite — policy-making or managerial or highly confidential — where the Labor Code keeps managerial, supervisory and (by implication) confidential employees in separate boxes. Second, confidentiality is written into the text here, whereas in the private sector it arrives only through the doctrine of necessary implication that Sugbuanon applies. Third, the definition of a managerial function in the implementing rules opens with "[t]o effectively recommend such managerial actions" — language that in Article 212(m) describes a supervisory employee. The public-sector "high level" category therefore sweeps in people the Labor Code would classify as supervisors.

That last point is exactly the petitioners' situation. Arizala was Chief of the Accounting Division and Maribao Chief of its Billing Section; Joven and Bulandus were Assistant Chiefs (and sometimes Acting Chiefs) of the Accounting Division and of the Field Service and Non-Life Insurance Division. Under the Industrial Peace Act they were supervisors, forbidden the rank-and-file union on pain of a fine. Under E.O. No. 180 the question would be whether they are "high-level," which is a different test with a different scope.

Full entry below ↓

Section 4, E.O. No. 180

DOLE Issuance

Employees to whom the Executive Order does not apply

Executive Order No. 180 (effective 1 June 1987)

Sec. 4. The Executive Order shall not apply to the members of the Armed Forces of the Philippines, including police officers, policemen, firemen and jail guards.

Why it is cited here

The Week 5 syllabus lists this section by name under "Other exclusions to the right to self-organize," and it is the most categorical exclusion in the whole week — worth contrasting with everything around it.

Every other exclusion in this part of the syllabus is functional or relational. Managerial employees are excluded for the powers they hold; confidential employees for what they know; cooperative members for what they own; employees of international organizations because of the immunity their employer enjoys. This one is neither. It excludes four named services outright, by status, whatever the individual soldier or jail guard does.

Two features of the drafting repay attention. First, it is an exclusion from the Executive Order, not merely from a particular organization — Section 3 says a high-level employee may not join the rank-and-file organization, while Section 4 says the entire framework does not apply. Second, its subjects are the services that carry arms or hold custody, and the reason is the obvious one: the disruption of these functions cannot be tolerated as a bargaining lever at all. The exclusion is thus about the nature of the public function, in the same way that the pre-1987 rule distinguished "governmental" from "proprietary" functions — which is precisely the distinction that decides where GSIS sits.

Nothing in Arizala turns on Section 4; the petitioners were insurance-system employees, not uniformed personnel. It is set out here because the syllabus pairs the section with this case and because it completes the map of who is left outside the public-sector framework.

Full entry below ↓

Sections 13-14, E.O. No. 180

DOLE Issuance

What may be negotiated; concerted activities and strikes

Executive Order No. 180 (effective 1 June 1987)

Sec. 13. Terms and conditions of employment or improvements thereof, except those that are fixed by law, may be the subject of negotiations between duly recognized employees' organizations and appropriate government authorities.

Sec. 14. The Civil Service laws and rules governing concerted activities and strikes in the government service shall be observed, subject to any legislation that may be enacted by Congress.

The implementing rules put the strike prohibition in terms: since the "terms and conditions of employment in the government, including any political subdivision or instrumentality thereof and government-owned and controlled corporations with original charters are governed by law, the employees therein shall not strike for the purpose of securing changes thereof." CSC Memorandum Circular No. 6, issued 21 April 1987, likewise enjoined "all government officers and employees from staging strikes, demonstrations, mass leaves, walk-outs and other forms of mass action which will result in temporary stoppage or disruption of public services."

Why it is cited here

These two sections carry the premise on which the whole public-sector regime rests, and it is a single idea repeated in every statute the Court surveys: terms and conditions of government employment are fixed by law, and what law fixes, bargaining cannot alter.

Section 13 states the rule as a permission with a carve-out — everything except what is fixed by law may be negotiated. That carve-out is far larger than it looks, because salaries, benefits, ranks and tenure in the civil service are all set by statute. What remains negotiable is the residue.

Section 14 handles the sanction side, and the Court traces the same premise through it: the right to strike is conceded "like their counterparts in the private sector," but "the executive order is quick to add that those activities must be exercised in accordance with law," subject to "Civil Service Law and rules" and to "any legislation that may be enacted by Congress" — and the implementing rules then supply the prohibition outright.

The petitioners built their acquittal argument on this premise, and the Court agreed with them for a period: because terms were fixed by law, "government employees, including those in government-owned or controlled corporations, were indeed precluded from bargaining," and so the reason for barring supervisors from the rank-and-file union had lapsed. What the Court would not accept is that the position stayed that way. E.O. No. 111 "restored the right to organize and to negotiate and bargain of employees of 'government corporations established under the Corporation Code,'" and E.O. No. 180 and R.A. No. 6715 "granted to all government employees the right of collective bargaining or negotiation except as regards those terms of their employment which were fixed by law."

Full entry below ↓

Article IX-B, Section 2(5), 1987 Constitution

Constitution

The right to self-organization shall not be denied to government employees

1987 Constitution, Article IX-B (Constitutional Commissions — Civil Service Commission)

The right to self-organization shall not be denied to government employees.

Section 2(1) of the same Article supplies the boundary the sentence operates within: "The civil service embraces all branches, subdivisions, instrumentalities, and agencies of the Government, including government-owned or controlled corporations with original charters." Read with Article XIII, Section 3, which guarantees "the rights of all workers to self-organization, collective bargaining and negotiations, and peaceful concerted activities, including the right to strike in accordance with law."

Why it is cited here

One sentence, and it settles what a half-century of statutes had left unsettled. Under the Industrial Peace Act, employees in proprietary government functions could organise and bargain while those in governmental functions could not. Under the Labor Code as originally enacted, government employees were excluded across the board "without distinction as to function" — which the Court notes created "[s]ome inconsistency... between the Labor Code and the Civil Service Act of 1959." P.D. No. 807 then extended the civil service to every government corporation "whether performing governmental or propriety function." The right came and went depending on which statute was being read.

This clause ends that oscillation by fixing the right at constitutional level, where no decree or code can withdraw it. What it does not do is say for what purposes the right may be exercised — and that silence is where E.O. No. 180 operates, granting organization "for the furtherance and protection of their interests" rather than "for purposes of collective bargaining."

The pairing to remember for an exam is this: Article IX-B, Section 2(5) guarantees that government employees may organise; Article XIII, Section 3 adds bargaining and the right to strike but qualifies the latter "in accordance with law"; and E.O. No. 180 with its implementing rules supplies the law, which forbids striking to change terms that statute has fixed. The right is real, constitutionally secured, and narrower in its uses than its private-sector counterpart.

Full entry below ↓

Effect of a decriminalising repeal

Jurisprudence

The repeal of a penal law deprives the courts of jurisdiction to punish

People v. Tamayo, 61 Phil. 225 (1935); People v. Almuete, 69 SCRA 410 (1976); People v. Adillo, L-23785 (1975)

The repeal here was absolute and not a reenactment and repeal by implication. Nor was there any saving clause. The legislative intent as shown by the action of the municipal is that such conduct, formerly denounced, is no longer deemed criminal, and it would be illogical for this court to attempt to sentence appellant for the offense that no longer exists.

The passage is quoted from People v. Tamayo as the decision reproduces it, including the incomplete phrase "the action of the municipal" — presumably "the municipal council" or "the municipal board" in the original report.

Why it is cited here

This is the rule that actually decides the case, and it is worth separating carefully from the general rule it qualifies.

The general rule, from U.S. v. Cuna and Wing v. United States, is that "in the Philippines repeal of a criminal act by its reenactment, even without a saving clause[,] would not destroy criminal liability." That covers the ordinary situation in which a legislature re-enacts an offence in new words. Tamayo carves out the situation where the repeal is absolute, with no re-enactment and no saving clause, so that the conduct "is no longer deemed criminal" — and there "not a single sentence in either de[ci]sion indicates that there was any desire to hold that a person could be prosecuted[,] convicted, and punished for acts no longer criminal."

Almuete puts it in "even more unmistakable language," and states the consequence in jurisdictional terms: "[t]he repeal of a penal law deprives the courts of jurisdiction to punish persons charged with a violation of the old penal law prior to its repeal." It also supplies the test the Court applies here — legislative intent inferred from what the new law does. In Almuete the Code of Agrarian Reforms had not re-enacted the penal section and had abolished share tenancy, "which is the basis for penalizing clandestine pre-reaping and pre-threshing"; to prosecute would be "repugnant or abhorrent to the policy and spirit of that Code."

The facts here go one step beyond both precedents, and the Court says so. It is not merely that the penalty vanished when the Labor Code repealed the Industrial Peace Act; it is that under the implementing rules of R.A. No. 6715 supervisors who were members of existing labor organizations on its effectivity are authorised to "remain therein." So "the maintenance by supervisors of membership in a rank-and-file labor organization even after the enactment of a statute imposing a prohibition on such membership, is not only not a crime, but is explicitly allowed, under present law." Where Tamayo and Almuete involved conduct that became lawful, this involves conduct that became expressly protected.

Full entry below ↓

Article 245, Labor Code (as amended by R.A. No. 6715)

Labor Code

Supervisory employees — separate organizations, and the grandfather rule

R.A. No. 6715, effective 21 March 1989, further amending the Labor Code

supervisory employees who are included in an existing rank-and-file bargaining unit, upon the effectivity of Republic Act No. 6715 shall remain in that unit ...

The quoted words are from the Rules Implementing R.A. No. 6715, as the decision reproduces them, not from the article itself. Article 245 — now Article 255 under DOLE Department Advisory No. 01, series of 2015 — provides that supervisory employees "shall not be eligible for membership in a labor organization of the rank-and-file employees but may join, assist or form separate labor organizations of their own," and Article 212(m) defines a managerial employee as "one who is vested with powers or prerogatives to lay down and execute[] management policies and/or to hire, transfer, suspend, lay-off, recall, discharge, assign or discipline employees."

Why it is cited here

The Court calls this "[t]he decisive consideration," and it is the sentence to carry away from the case: "at present, supervisors who were already members of a rank-and-file labor organization at the time of the effectivity of R.A. No. 6715, are authorized to 'remain therein.'"

This is a grandfather clause, and it is worth understanding why a statute that otherwise keeps supervisors out of rank-and-file unions would contain one. R.A. No. 6715 reorganised union membership around purpose: unions "for purposes of negotiation," open to rank-and-file only, and unions "for furtherance and protection" of members' rights, which is what supervisors may form. Applied strictly and immediately, that reorganisation would have expelled sitting members from units they had belonged to for years and disrupted existing bargaining relationships. The transitional rule avoids that by freezing existing memberships in place.

For these petitioners the clause is not merely transitional but exculpatory. They were supervisors who had maintained membership in the GSIS Employees Association — a rank-and-file union — and were fined for it. The very conduct is what the implementing rules now authorise. Hence the Court's formulation that it is "not only not a crime, but is explicitly allowed."

Keep the general rule and the exception distinct, though. Article 245 still bars supervisors from rank-and-file unions going forward; what the rules protect is the pre-existing membership of those already inside a unit when R.A. No. 6715 took effect. A supervisor joining a rank-and-file union today is in a different position entirely — no longer a criminal one, but not a permitted one either.

Full entry below ↓