G.R. No. L-12222; May 28, 1958
University of San Agustin, petitioner, vs. Court of Industrial Relations, et al., respondents.

FACTS

The Philippine Association of College and University Professors filed a complaint for unfair labor practice against the University of San Agustin before the Court of Industrial Relations (CIR). The University, an educational institution organized as a religious non-stock corporation for religious and educational purposes (not for profit or gain), filed an answer denying the charge and disputing the CIR’s jurisdiction over the parties and subject matter. It argued that college professors are not “industrial” employees, the association is not a legitimate labor organization under the relevant laws, and the University is not an “industrial” enterprise, citing prior cases (U.S.T. Hospital Employees Association vs. Sto. Tomas University Hospital and San Beda College vs. Court of Industrial Relations). During trial, the University also raised the lack of a required preliminary investigation. The hearing examiner proceeded with the trial. Subsequently, Judge Jose S. Bautista issued an order dated January 2, 1957, holding that while the trial could not proceed without a preliminary investigation, the CIR had jurisdiction over the controversy because industrial employment was not a basic criterion for its jurisdiction in unfair labor practice charges. The order directed the case be endorsed to the Prosecution Division for preliminary investigation. This order was affirmed by the CIR en banc on March 5, 1957. The University petitioned for review of these orders.

ISSUE

Whether the Court of Industrial Relations has jurisdiction over a complaint for unfair labor practice involving a non-stock, non-profit educational institution (University of San Agustin) and its professors, given that the institution is not established for profit or gain and is not an industrial enterprise.

RULING

The Supreme Court ruled that the Court of Industrial Relations has NO jurisdiction. Applying the doctrine established in Boy Scouts of the Philippines vs. Juliana V. Araos, the Court held that labor legislation, including Republic Act No. 875 (the Industrial Peace Act) regarding unfair labor practices, was intended to apply only to industrial employment and to govern relations between employers engaged in industry and occupations for profit or gain and their industrial employees. It does not apply to entities organized and operated not for profit but for elevated purposes such as education. Consequently, the provisions on unfair labor practice do not govern the relationship between the petitioner University and the members of the respondent association. The order and resolution of the CIR dated January 2, 1957, and March 5, 1957, were set aside. Costs were imposed on the respondent association.