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Trade Unions of the Philippines

and Allied Services v. National

Housing Corporation
4 May 1988

NHC was organized in 1959 in accordance with E.O 399 dated 1
January 1951.
The stocks of are 100% owned by the government since its
incorporation by way of Act 459 and divided among GSIS, SSS, DBP,
Peoples Homesite and Housing Corporation as well as
TUPAS is a legitimate labor organization with a chapter in NHC.
TUPAS filed a petition to Regional Office no. 4 of the Dept. of Labor
to conduct a certificate election
Med-arbiter Eusebio M. Jimenez dismissed the petitionn in an order
dated 7 November 1977 on the ground that the NHC, being a

Government owned and/or controlled corporation, its

workers/ employees are prevented to form, join or assist
any labor organization for purposes of collective
bargaining. pursuant to Sec. 1 Rule 11 Book 5 of the
Rules and Regulations implementing the Labor Code.
Tupas appealed to the bureau of Labor Relations.
Dir. Carmelo C. Noriel of said office reversed the order of
dismissal and ordered the holding of the certification
OIC Vergilio S.J Sy set Noriels reversal aside upon the
motion for reconsideration of the NHC.

WON Tupas may hold certification elections

The Court stated a prior decision concerning a case of
illegal dismissal between the same respondent and
other government owned corporations governed by Civil
Service Laws, rules and regulations. It held that to
allow subsidiary corporations to be excluded from Civil
Service Laws would be a circumvention of the provisions
of the 1973 Constitution.
It furthered, however, that such interpretation is not
anymore applicable with the 1987 Constitution because
of the phrase with original charters.

The court is of the opinion that the right to form unions

belong to both government and private employees
pursuant to Art. IX B Sec. 2(5) as reinforced by Art. XIII
Sec. 3 of the Constitution.
It explains that the government is the biggest employer
in the country and in a sense is a repository of national
sovereignty. The terms and conditions between the
above-mentioned employer-employee relationships
terms and conditions are set forth through the Civil
Service Commission.
As a general rule, majority of the countries have public
service unions. Said public service unions become a
forum for professional and self-development and do not

The NHC is a government owned/controlled without any

original charter. Original charters or legislative charters
are acts of Congress through special laws and not
general Legislation.
The aforementioned constitutional provisions are
supplemented with the Statutory Implementation of Art.
244 of the Labor Code on the right to organize and
bargain collectively.
The case is not moot because of the lack of supervening
factual events. However, Statutory developments have
rendered academic the distinction on being governed by
the Labor Code or the provisions on Civil Service. Such
statutory developments pertain to Art. 255-259 of the
Labor Code and E.O. 180 Chapter 4 Secs. 9-12 for civil

SSS Employees Association v CA

28 July 1989

SSSEA went on strike after SSS failed to act on the
unions demands on (1) the implementation of the old
SSSEA-SSS collective bargaining agreement on checkoff of union duties (2)payment of overtime pay and
night differential pay and holiday pay (3) conversion of
temporary or contractual employees within 6 months or
more of service into regular and permanent employees
(4) their entitlement to the same salaries, allowances
and benefits given to other regular employees of the
SSS and (5) payment of the childrens allowance of
P30.00 after the SSS deducted certain amounts from

SSS filed a complaint for damages and a preliminary

injunction on account of the illegal strike and the
barricading of entrances into the building preventing
non-participating members from going to work and
hindering SSS members from transacting their
respective businesses.
The strikers were ordered to return to work. Upon the
petitioners refusal, said complaint was file to enjoin the
strike so that the strikers may return to work and
petitioners be held liable for damages.
Subsequent proceeding occurred, the court issued a
TRO enjoining petitioners from staging another strike.
Petitioners contest that the RTC had no jurisdiction to
hear the case since jurisdiction lies with the DOLE or the

SSS contends that employees of SSS are covered by

civil service laws, rules and, regulations not the Labor
Code. As such, they do not have the right to strike.
Since jurisdiction does not lay with the NLRC or the
DOLE, the RTC may enjoin the employees from striking
CA held that being government employees, SSS
employees are not allowed to strike and that RTC had

WON SSS employees have the right to strike
WON the RTC has jurisdiction

Art. XIII sec. 31 of the Constitution expressly provides
that the State shall guarantee the right of all workers
negotiations, and peaceful concerted activities including
the right to strike in accordance with law.
However, the sub article on the civil Service
Commission [Art. IX (B) Sec. 2(1) and (50)] is silent on
the said issue as it only mentions the right to
organization. Art. III sec.8 also furthers that the right to
form unions belong to employees from both the public
and private sectors.

Quoting Commissioner Lerum, xxx it does not mean

that because they have the right to organize, they also
have the right to strike. xxx everyone will remember
that in the bill of rights there is a provision that the right
to form associations or societies whose purpose is not
contrary to the law shall not be abridged. Now, then, if
the purpose of the state is to prohibit the strikes coming
from employees exercising government functions that
could be done because the moment that is prohibited,
then the union which will go on strike will be an illegal
union. xxx
Said quote also made reference to R.A 875 which was
repealed by the Labor Code expressly banning strikes
by government employees including instrumentalities

No similar provision may be found in the Labor Code.

E.O. 180 was issued which provided guidelines for the
exercise of the right to organize of government
employees. Sec. 14 thereof provides that the Civil
Service Laws and rules governing concerted activities
and strikes in the government shall be observed,
subject to any legislation that may be enacted in
congress. in connection with memorandum circular no.
6 providing administrative sanctions for strikes by
government employees resulting in temporary stoppage
or disruption of public service. At present, government
employees are not allowed to strike absent legislation
allowing them to do so.
SSS employees are covered by the prohibition by virtue

Government employees may then petition congress

through their unions for any unresolved grievances to
be referred to the Public Sector- Labor Management
Council. Such is the proper recourse without resorting to
a walkout or temporary stoppages.