G.R. No. 80887 September 30, 1994
BLISS DEVELOPMENT CORPORATION EMPLOYEES UNION (BDCEU)-SENTRO NG DEMOKRATIKONG MANGGAGAWA (SDM), petitioner, vs. HON. PURA FERRER CALLEJA and BLISS DEVELOPMENT CORPORATION, respondents.

FACTS

On October 10, 1986, petitioner Bliss Development Corporation Employees Union (BDCEU)-SDM, a duly registered labor union, filed a petition for certification election with the Department of Labor, National Capital Region, for the employees of private respondent Bliss Development Corporation (BDC). The Med-Arbiter dismissed the petition on January 26, 1987, for lack of jurisdiction, ruling that BDC is a government-owned corporation subject to Civil Service laws because the majority of its stocks are owned by the Human Settlement Development Corporation (HSDC), a wholly-owned government corporation, citing P.D. No. 2029 and the Supreme Court ruling in National Housing Corporation vs. Juco. Petitioner appealed to the Bureau of Labor Relations. Meanwhile, on June 1, 1987, Executive Order No. 180 was issued, extending to government employees the right to organize. On August 7, 1987, Director Pura Ferrer-Calleja of the Bureau of Labor Relations dismissed the appeal, stating that E.O. No. 180 rendered the Med-Arbiter’s order academic. However, she ordered the petitioner to register in accordance with Section 7 of E.O. No. 180 as a precondition for refiling the petition, dismissing the case without prejudice. Petitioner filed the instant petition to annul the Director’s Order, arguing that it is not covered by E.O. No. 180.

ISSUE

The primary issue is whether Bliss Development Corporation (BDC) is a government-owned or controlled corporation subject to Civil Service laws, rules and regulations. A corollary issue is whether petitioner is covered by Executive Order No. 180 and must register under Section 7 thereof as a precondition for filing a petition for certification election.

RULING

The Supreme Court GRANTED the petition. It ruled that BDC is a government-owned corporation created under the Corporation Law (the general corporation law) and is without an original charter. Under the 1987 Constitution, the Civil Service embraces government-owned or controlled corporations with original charter; by clear implication, it does not include those organized under the general corporation law. Consequently, BDC is governed by the Labor Code and not by the Civil Service Law. Therefore, Executive Order No. 180, which by its Section 1 applies only to “government-owned or controlled corporations with original charters,” does not apply to BDC or its employees. The public respondent committed grave abuse of discretion in ordering petitioner to register under Section 7 of E.O. No. 180 as a precondition. The order of public respondent dated August 7, 1987 was SET ASIDE, and the Director of Labor Relations was directed to give due course to petitioner’s application for certification election.