G.R. No. 129049, August 6, 1999
BALTAZAR G. CAMPOREDONDO, petitioner, vs. NATIONAL LABOR RELATIONS COMMISSION (NLRC), Fifth Division, Cagayan de Oro City, THE PHILIPPINE NATIONAL RED CROSS (PNRC), represented by GOVERNOR ROMEO C. ESPINO and DR. CELSO SAMSON, respondent.

FACTS

Petitioner Baltazar G. Camporedondo was employed with the Philippine National Red Cross (PNRC) since 1980 and served as the administrator of its Surigao del Norte Chapter until December 15, 1995. In July 1995, a PNRC field auditor found petitioner short in his accounts in the total sum of P109,000.00. On November 21, 1995, the PNRC Secretary General required petitioner to restitute within 72 hours the total sum of P135,927.78 representing cash shortage, technical shortage, and unremitted collections. On December 15, 1995, petitioner applied for early retirement. He later requested a re-audit, which was denied. On May 28, 1996, petitioner filed a complaint for illegal dismissal, damages, and underpayment of wages against the PNRC before the National Labor Relations Commission (NLRC). The PNRC moved to dismiss the complaint for lack of jurisdiction, arguing it is a government corporation whose employees are members of the Government Service Insurance System (GSIS) and covered by the Civil Service Law. The Labor Arbiter dismissed the complaint, a decision affirmed by the NLRC. Petitioner elevated the case to the Supreme Court.

ISSUE

Whether the Philippine National Red Cross (PNRC) is a government-owned and controlled corporation, such that its employees are under the jurisdiction of the Civil Service Commission and not the labor tribunals, in a complaint for illegal dismissal.

RULING

The Supreme Court ruled that the Philippine National Red Cross (PNRC) is a government-owned and controlled corporation with an original charter under Republic Act No. 95, as amended. The Court applied the test that corporations created by special charter for the exercise of a public function are government corporations. Consequently, its employees are under the jurisdiction of the Civil Service Commission and are compulsory members of the GSIS. The Court held that the PNRC was not “impliedly converted to a private corporation” by amendments to its charter granting it certain authorities and exemptions. The Court emphasized that paid staff of the PNRC are government employees and that Red Cross service demands utmost good faith. Since petitioner was a government employee, the labor tribunals had no jurisdiction over his complaint for illegal dismissal. The petition was dismissed and the NLRC ruling was affirmed.