G.R. No. L-10943 and L-10944, December 28, 1957.
THE ANGAT RIVER IRRIGATION SYSTEM and VICENTE R. CRUZ, Supervising Project Engineer, petitioners, vs. ANGAT RIVER WORKERS’ UNION (PLUM) and THE COURT OF INDUSTRIAL RELATIONS, respondents.

FACTS

The Angat River Irrigation System is a Division or Section of the Bureau of Public Works, with its appropriations included in the yearly General Appropriations Act. In G.R. No. L-10943, the Acting Prosecutor of the Court of Industrial Relations (CIR) filed an unfair labor practice complaint (Case No. 814-ULP) on behalf of the Angat River Workers’ Union against the System and its supervising engineer. The complaint alleged interference with the right to self-organization, discriminatory practices, and refusal to bargain collectively, citing specific incidents including the demotion of one employee and the dismissal of three union officers. In G.R. No. L-10944, the Union filed a petition for certification as the majority union (Case No. 313-MC). The petitioners moved to dismiss the complaint, arguing that the Angat River Irrigation System, as a government instrumentality, cannot be sued without its consent. The CIR deferred action on the motion to dismiss until after the presentation of evidence. The petitioners’ motion for reconsideration was denied, prompting them to file the present action for prohibition. This Court issued a preliminary injunction restraining the CIR from enforcing its order and proceeding with the hearing.

ISSUE

1. Whether government employees may validly organize into a union and demand that the Government enter into collective bargaining agreements.
2. Whether the Court of Industrial Relations acquired jurisdiction over the petitioners in the unfair labor practice and certification election cases.

RULING

1. On the right to organize and bargain collectively: Government employees engaged in governmental functions may belong to a labor organization that does not impose the obligation to strike, as provided under Section 11 of the Industrial Peace Act ( Republic Act No. 875 ). However, they cannot demand that the Government enter into collective bargaining agreements. The terms and conditions of their employment are governed by law, not by collective bargaining. The Angat River Irrigation System performs a governmental function, as it involves the use and appropriation of public waters pursuant to a duty imposed by the Constitution and statutes (the Irrigation Act). Therefore, its employees are covered by this rule and cannot compel collective bargaining.
2. On the jurisdiction of the CIR: The Court of Industrial Relations did not acquire jurisdiction over the petitioners. The Angat River Irrigation System is an instrumentality of the Government performing governmental functions. The fundamental principle of state immunity from suit applies; the State cannot be sued without its consent. The unfair labor practice complaint and the certification election petition are effectively suits against the State, and no such consent has been given. The preliminary injunction is made permanent, and the CIR is prohibited from taking further action in the mentioned cases.