GR 24572; (December, 1967) (Digest)
G.R. No. L-24572 December 20, 1967
THE PHILIPPINE POSTAL SAVINGS BANK and FRANCISCO V. LOPEZ, Superintendent of the Philippine Postal Savings Bank, petitioners, vs. COURT OF INDUSTRIAL RELATIONS and PHILIPPINE COMMUNICATIONS, ELECTRONICS and ELECTRICITY WORKERS FEDERATION, PCWF, respondents.
FACTS
The Philippine Communications, Electronics and Electricity Workers Federation filed a petition with the Court of Industrial Relations (CIR) to be certified as the exclusive bargaining representative of all employees of the Philippine Postal Savings Bank. The Bank moved to dismiss the petition, arguing that the CIR lacked jurisdiction because the Bank was a mere division and integral part of the Bureau of Posts, which performs governmental functions and is not subject to Republic Act No. 875 (the Industrial Peace Act). Judge Bugayong of the CIR denied the motion to dismiss and set the case for hearing on the merits. The CIR en banc denied reconsideration. The Bank and its Superintendent filed a petition for review by certiorari to set aside the CIR’s order and resolution.
ISSUE
Whether the Court of Industrial Relations has jurisdiction over the petition for certification election filed by the respondent union, which hinges on whether the employees of the Philippine Postal Savings Bank are engaged in proprietary functions (subject to RA 875) or governmental functions (not subject to RA 875).
RULING
The Supreme Court affirmed the order and resolution of the Court of Industrial Relations, holding that it has jurisdiction. The Court ruled that the Philippine Postal Savings Bank performs proprietary functions. Although it is a division of the Bureau of Posts, it operates separately, keeps distinct books of account, refunds its operational expenses from its earnings and reserve funds, retains its earnings for its own investment and benefit, and manages properties acquired for its own benefit. The Court cited Government of the Philippine Islands vs. China Banking Corporation, which held that the Bank has a personality of its own, its funds are not Insular Government funds, and debts in its favor are not debts in favor of the government. Furthermore, the right of a government employee under Section 11 of RA 875 depends on the nature of the work performed, not solely on the character of the office. Additionally, the President later certified the dispute to the CIR as affecting an industry indispensable to the national interest, and the petitioners themselves invoked the CIR’s authority by asking it to order the union members to return to work and by entering into an agreement under its auspices, thereby submitting to its jurisdiction.