G.R. No. L-58494 – 256 Phil. 475 – 175 SCRA 26 – Mercantile Law – Corporation Law – Jurisdiction over GOCCs and their subsidiaries in labor cases
In December 1977, a Christmas party was held for the employees of Philippine National Oil Company – Energy Development Corporation (PNOC-EDC). In said event, one Vicente Ellelina, employee of PNOC-EDC, tried to grab an armalite rifle from a constabulary officer after he was denied to receive a raffle prize because he lost his winning ticket. For the commission of said crime, PNOC-EDC sought the dismissal of Ellelina. The Ministry of Labor and Employment (MOLE) did not give clearance to Ellelina’s dismissal. This was affirmed by then Minister of Labor, Vicente Leogardo.
PNOC-EDC assailed the jurisdiction of MOLE as it alleged that PNOC-EDC as a subsidiary of the Philippine National Oil Company (PNOC), a government owned or controlled corporation, is likewise a GOCC hence it should be the Civil Service Commission (CSC) that should have jurisdiction.
ISSUE: Whether or not the PNOC-EDC is correct.
HELD: No. It is true that PNOC is a GOCC and that PNOC-EDC, being a subsidiary of PNOC, is likewise a GOCC. It is also true that under the 1973 Constitution, all GOCCs are under the jurisdiction of the CSC. However, the 1987 Constitution change all this as it now provides:
The Civil Service embraces all branches, subdivisions, instrumentalities and agencies of the Government, including government-owned or controlled corporations with original charters. (Article IX-B, Section 2 [1]) [emphasis supplied]
Hence, the above provision sets the rule that the mere fact that a corporation is a GOCC does not automatically place it under the CSC. Under this provision, the test in determining whether a GOCC is subject to the Civil Service Law is the manner of its creation such that government corporations created by special charter are subject to its provisions while those incorporated under the general Corporation Law are not within its coverage.
In the case at bar, PNOC-EDC, even though it is a GOCC, was incorporated under the general Corporation Law – it does not have its own charter, hence, it is under the jurisdiction of the MOLE.
