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[G.R.No.L21484.November29,1969.

]
THEAGRICULTURALCREDITandCOOPERATIVE
FINANCINGADMINISTRATION(ACCFA),petitioner,vs.
CONFEDERATIONOFUNIONSINGOVERNMENT
CORPORATIONSANDOFFICES(CUGCO),ACCFA
SUPERVISORS'ASSOCIATION(ASA),ACCFAWORKERS'
ASSOCIATION(AWA)andTHECOURTOFINDUSTRIAL
RELATIONS,respondents.
[G.R.No.L23605.November29,1969.]
THEAGRICULTURALCREDITADMINISTRATION(ACA),
petitioner,vs.ACCFASUPERVISORS'ASSOCIATION,ACCFA
WORKERS'ASSOCIATION,andTHECOURTOF
INDUSTRIALRELATIONS,respondents.
DeograciasE.LermaandEsmeraldoU.GuloyforpetitionerAgriculturalCreditand
CooperativeFinancingAdministration.
OfficeoftheAgrarianCounsel,DepartmentofJusticeforpetitionerAgricultural
CreditAdministration.
J.C.Espinas&AssociatesforrespondentsConfederationofUnionsinGovernment
CorporationsOffices,etal.
MarianoB.TuasonforrespondentCourtofIndustrialRelations.
SYLLABUS
1.LABORANDSOCIALLEGISLATIONS;INDUSTRIALPEACEACT;
GOVERNMENTAGENCYENGAGEDINGOVERNMENTALFUNCTIONIS
NOTWITHINTHECONTEMPLATIONOFSAIDACT;ACAISNOTBOUND
TORECOGNIZECOLLECTIVEBARGAININGPOWERSINRESPONDENT
UNIONS.ThefactthatACAwasestablished,amongothergovernmentalagencies,
toextendcreditandsimilarassistancetoagriculture,inpursuanceofthepolicyof
implementingthelandreformprogramofthegovernment,certainlyagovernmental
function,militatesquitestronglyagainsttherecognitionofcollectivebargaining
powersintherespondentUnionswithinthecontextofRepublicActNo.875,and
henceagainstthegrantoftheirbasicpetitionforcertificationelectionasproper
bargainingunits.

2.ID.;ID.;ID.;ID.;ORDEROFRESPONDENTCOURTFORCOLLECTIVE
BARGAININGMOOTANDACADEMIC.Withthereorganizationofthe
ACCFAanditsconversionintotheACAundertheLandReformCodeandinviewof
therulingastothegovernmentalcharacterofthefunctionsoftheACA,thedecision
oftherespondentCourtofIndustrialRelationsandtheresolutionenbancaffirmingit,
hasbecomemootandacademic,particularlyinsofarastheordertobargain
collectivelywiththerespondentUnionsisconcerned.
3.ID.;ID.;ID.;ID.;FRINGEBENEFITSBASEDONCOLLECTIVE
BARGAININGARENOTRECOVERABLE.WheretheOfficeofthePresident,
inalettersignedbytheExecutiveSecretary,expresseditsapprovaltothebargaining
contractbetweentheACCFAandtheemployeesprovidingfringebenefitstothelatter
"providedthesalariesandbenefitsthereinfixedarenotinconflictwithapplicable
lawsandregulations,arebelievedtobereasonableconsideringtheexigenciesofthe
serviceandthewelfareoftheemployeesandarewellwithinthefinancialabilityof
theparticularcorporationtobear,"andthepaymentofthesamebytheACCFAshows
thattheywerewithinthefinancialcapabilityoftheACCFA,theparticularcondition
imposedbytheOfficeofthePresidentwassatisfiedandthereforethereisnoreasonto
setasidethedecisionoftherespondentcourtinsofarasthefringebenefitsalready
paidareconcerned.ButsincetherespondentUnionshavenorighttothecertification
electionsoughtbythemnor,consequently,tobargaincollectivelywiththepetitioners,
nofurtherfringebenefitsmaybedemandedonthebasisofanycollectivebargaining
agreement.
4.POLITICALLAW;GOVERNMENTAGENCIES;ACA;FUNCTIONSTHEREOF
NOTSTRICTLYCONSTITUENT.TheACAisagovernmentofficeoragency
engagedingovernmental,notproprietaryfunctions.Thesefunctionsmaynotbe
strictlywhatPresidentWilsondescribedas"constituent"(asdistinguishedfrom
"ministrant"),suchasthoserelatingtothemaintenanceofpeaceandthepreventionof
crime,thoseregulatingpropertyandpropertyrights,thoserelatingtothe
administrationofjusticeandthedeterminationofpoliticaldutiesofcitizens,andthose
relatingtonationalandforeignrelations.Underthistraditionalclassification,such
constituentfunctionsareexercisedbytheStateasattributesofsovereignty,andnot
merelytopromotethewelfare,progressandprosperityofthepeopletheselatter
functionsbeingministrant,theexerciseofwhichisoptionalonthepartofthe
government.
5.ID.;FUNCTIONSOFGOVERNMENT;CONSTITUENTANDMINISTRANT
FUNCTIONS;CLASSIFICATIONUNREALISTIC.Thegrowingcomplexitiesof
modernsociety,however,haverenderedthetraditionalclassificationofthefunctions
ofgovernmentintoconstituentandministrantquiteunrealistic,nottosayobsolete.
Theareaswhichusedtobelefttoprivateenterpriseandinitiativeandwhichthe
governmentwascalledupontoenteroptionally,andonly"becauseitwasbetter
equippedtoadministerforthepublicwelfarethaninanyprivateindividualorgroup

ofindividuals,"continuetolosetheirwelldefinedboundariesandtobeabsorbed
withinactivitiesthatthegovernmentmustundertakeinitssovereigncapacityifitisto
meettheincreasingsocialchallengesofthetimes.Hereasalmosteverywhereelsethe
tendencyisundoubtedlytowardsagreatersocializationofeconomicforces.Hereof
coursethisdevelopmentwasenvisioned,indeedadoptedasanationalpolicybythe
Constitutionitselfinitsdeclarationofprincipleconcerningthepromotionofsocial
justice.
FERNANDO,J.,concurring:
1.CONSTITUTIONALLAW;FUNCTIONSOFGOVERNMENT;CONSTITUENT
MINISTRANTCLASSIFICATION;CASEOFBACANIV.NATIONAL
COCONUTCORPORATION.InBacaniv.NationalCoconutCorporation,
governmentalfunctionsareclassifiedintoconstituentandministrant.Referenceis
madeinsaidcasetothefirstofthemanypublicationsofJusticeMalcolmonthe
Philippinegovernmentadoptingtheformulationofthethenprofessor,laterPresident,
WoodrowWilsonoftheUnitedStates.TheWilsonclassificationofconstituentand
ministrantfunctionsreflectedtheprimacyofthedominantlaissezfaireconcept
carriedintothesphereofgovernment.
2.ID.;ID.;PRINCIPLEOFLAISSEZFAIRE;INFLUENCEONAMERICAN
GOVERNMENT.Theviewiswidelyacceptedthatthelaissezfaireconceptdid
influenceAmericancourtdecisionsonconstitutionallaw.Aswasexplicitlystatedby
JusticeCardozo:"Laissezfairewasnotonlyacounselofcautionwhichstatesmen
woulddowelltoheed.Itwasacategoricalimperativewhichstatesmenaswellas
judges,mustobey."Foralongtime,legislationtendingtoreduceeconomicinequality
founderedontherockthatwasthedueprocessclause,enshriningasitdidtheliberty
ofcontract.UntiltheadministrationofPresidentRoosevelt,thelaissezfaireprinciple
resultedinthecontractionofthespherewheregovernmentalentrywaspermissible.
Theobjectwastoprotectpropertyeveniftherebytheneedsofthegeneralpublic
wouldbeleftunsatisfied.Nonetheless,thesocialandeconomicforcesatworkinthe
UnitedStatestowhichthenewdealadministrationofPresidentRooseveltwasmost
responsivedidoccasion,asof1937,greaterreceptivitybytheAmericanSupreme
Courttoaphilosophylessrigidinitsobeisancetopropertyrights.Earlierlegislation
deemedoffensivetothelaissezfaireconcepthadmetadismalfate.Theirnullity
duringhisfirsttermcould,moreoftenthannot,beexpected.Atanyrate,by1943,the
UnitedStateswasreconciledtolaissezfairehavinglostitsdominance.
3.ID.;ID.;ID.;NOFULLACCEPTANCEOFPRINCIPLEINPHILIPPINE
JURISDICTION.TheinfluenceexertedbyAmericanconstitutionaldoctrines
unavoidablewhenthePhilippineswasstillunderAmericanrulenotwithstanding,an
influencethathasnotaltogethervanishedevenafterindependence,thelaissezfaire
principleneverfoundfullacceptanceinthisjurisdiction,evenduringtheperiodofits
floweringintheUnitedStates.Moreover,toeraseanydoubts,theConstitutional

Conventionsawtoitthatourfundamentallawembodiesapolicyoftheresponsibility
thrustongovernmenttocopewithsocialandeconomicproblemsandanearnestand
sincerecommitmenttothepromotionofthegeneralwelfarethroughstateaction.It
wouldthusfollowthattheforceofanylegalobjectiontoregulatorymeasures
adverselyaffectingpropertyrightsortostatutesorganizingpubliccorporationsthat
mayengageincompetitionwithprivateenterprisehasbeenblunted.Unlesstherebea
clearshowingofanyinvasionofrightsguaranteedbytheConstitution,theirvalidity
isaforegoneconclusion.Nofearneedbeentertainedthatherebysphereshitherto
deemedoutsidegovernmentdomainhavebeenencroachedupon.Withourexplicit
disavowalofthe"constituentministrant"test,theghostofthelaissezfaireconceptno
longerstalksthejuridicalstage.
4.ID.;ID.;ID.;ID.;CASEOFRUBIv.PROVINCIALBOARDOFMINDORO.
Asearlyas1919,intheleadingcaseofRubiv.ProvincialBoardofMindoro,Justice
Malcolmalreadyhadoccasiontoaffirm:"Thedoctrinesoflaissezfaireandof
unrestrictedfreedomoftheindividual,asaxiomsofeconomicandpoliticaltheory,are
ofthepast.Themodernperiodhasshownawidespreadbeliefintheamplestpossible
demonstrationofgovernmentalactivity.TheCourtsunfortunatelyhavesometimes
seemedtotrailaftertheothertwobranchesoftheGovernmentinthisprogressive
march."
5.ID.;ID.;ID.;PHILOSOPHYOFPHILIPPINECONSTITUTIONANTITHETICAL
TOLAISSEZFAIRE.OurConstitutionwhichtookeffectin1935,uponthe
inaugurationoftheCommonwealthofthePhilippines,erasedwhateverdoubtsthere
mightbeontheinfluenceoflaissezfaireongovernmentalfunctions.Itsphilosophyis
antitheticaltothelaissezfaireconcept.
6.ID.;ID.;ID.;OBJECTIONTOCONSTITUENTMINISTRANT
CLASSIFICATIONNOTTOITSFORMULATION.Itmustbemadeclearthat
theobjectiontothe"constituentministrant"classificationofgovernmentalfunctions
isnottoitsformulationassuch.Fromthestandpointoflawaslogic,itisnotwithout
merit.Ithasneatnessandsymmetry.Therearehardlyanylooseends.Ithasthevirtue
ofclarity.Itmaybesaidinitsfavorlikewisethatitreflectsalltoofaithfullythe
laissezfairenotionthatgovernmentcannotextenditsoperationoutsidethe
maintenanceofpeaceandorder,protectionagainstexternalsecurity,andthe
administrationofjustice,withprivaterights,especiallysointhecaseofproperty,
beingsafeguardedandahintthatthegeneralwelfareisnottobeentirelyignored.It
mustnotbelostsightofthoughthatlogicandjuralsymmetrywhileundoubtedly
desirablearenottheprimeconsideration.Thisisespeciallysointhefieldofpublic
law.

7.ID.;ID.;ID.;BACANIDECISIONFAILSTORECOGNIZETHE
REPUDIATIONOFLAISSEZFAIRE.Itiscauseenoughforconcernifthe
objectiontotheBacanidecisionweretobepremisedonthescorealonethatperhaps
therewasfidelitytotherequirementsoflogicandjuralsymmetrycarriedtoexcess.
Whatappearsmuchmoredeplorableisthatitdidfailtorecognizethattherewasa
repudiationofthelaissezfaireconceptintheConstitution.TheConstitutionis
distinguishedpreciselybyacontraryphilosophy.Theregimeoflibertyifprovided
for,withtherealizationthatunderthethenprevalentsocialandeconomicconditions,
itmaybeattainedonlythroughagovernmentwithitssphereofactivityrangingfar
andwide,notexcludingmattershithertolefttotheoperationoffreeenterprise.As
rightfullystressedinourdecisiontoday,thegovernmentthatwehaveestablishedhas
afundamentalprinciplethepromotionofsocialjustice.
8.ID;ID.;ID.;PROMOTIONOFGENERALWELFARETHROUGHSOCIAL
JUSTICE.TheregimeoflibertycontemplatedintheConstitutionwithsocial
justiceasafundamentalprincipletoreinforcethepledgeinthepreambleofpromoting
thegeneralwelfarereflectsthetraditionalconceptsofademocraticpolityinfused
withanawarenessofthevitalandpressingneedforthegovernmenttoassumeamuch
moreactiveandvigorousroleintheconductofpublicaffairs.Theframersofour
fundamentallawwereasoneintheirstronglyheldbeliefthattherebythegraveand
seriousinfirmitythenconfrontingourbodypolitic,onthewholestillwithusnow,of
greatinequalityofwealthandmasspoverty,withthegreatbulkofourpeopleillclad,
illhoused,illfed,couldberemedied.Nothingelsethancommunaleffort,massivein
extentandearnestlyengagedin,wouldsuffice.
9.ID;ID.;ID.;STATEASANORGANIZATIONTOPROMOTEHAPPINESSOF
INDIVIDUALS.ToparaphraseLaski,withthenecessarymodificationinlinewith
suchworthyconstitutionalends,lookuponthestateasanorganizationtopromotethe
happinessofindividuals,itsauthorityasapowerboundbysubordinationtothat
purpose,libertywhiletobeviewednegativelyasabsenceofrestraintimpressedwitha
positiveaspectaswelltoassureindividualselffulfillmentintheattainmentofwhich
greaterresponsibilityisthrustongovernment;andrightsasboundarymarksdefining
areasoutsideitsdomain.FromwhichitwouldfollowasLaskisoaptlystatedthatitis
theindividual's"happinessandnotitswellbeingthatisthecriterionbywhichits
behavioristobejudged.Hisinterests,andnotitspower,setthelimitstotheauthority
itisentitledtoexercise."Wehaveundersuchatestenlargeditsfieldofcompetence.
10.ID.;ID.;ID.;CONSTRICTINGEFFECTOFBACANIDECISION
CONSIGNEDTOOBLIVION.Withthedecisionreachedbyustoday,the
governmentisfreedfromthecompulsionexertedbytheBacanidoctrineofthe
"constituentministrant"testasacriterionforthetypeofactivityinwhichitmay
engage.Itsconstrictingeffectisconsignedtooblivion.Nodoubtsormisgivingsneed
assailusthatGovernmentaleffortstopromotethepublicweal,whetherthrough
regulatorylegislationofvastscopeandamplitudeorthroughtheundertakingof

businessactivities,wouldhavetofaceasearchingandrigorousscrutiny.Itisclear
thattheirlegitimacycannotbechallengedonthegroundaloneoftheirbeingoffensive
totheimplicationsofthelaissezfaireconcept.Unlesstherebearepugnancythento
thelimitationsexpresslysetforthintheConstitutiontoprotectindividualrights,the
governmentenjoysamuchwiderlatitudeofactionastothemeansitchoosestocope
withgravesocialandeconomicproblemsthaturgentlypressforsolution.Atleast,
thatistomanifestdeferencetothephilosophyofourfundamentallaw.
DECISION
MAKALINTAL,J :
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ThesearetwoseparateappealsbycertiorarifromthedecisiondatedMarch
25,1963(G.R.No.L21484)andtheorderdatedMay21,1964(G.R.No.L
23605)asaffirmedbytheresolutionsenbanc,oftheCourtofIndustrialRelations,
inCasesNos.3450ULPand1327MC,respectively.Theparties,exceptthe
ConfederationofUnionsinGovernmentCorporationsandOffices(CUGCO),
beingpracticallythesameandtheprincipalissuesinvolvedrelated,onlyone
decisionisnowrenderedinthesetwocases.
TheAgriculturalCreditandCooperativeFinancingAdministration(ACCFA)wasa
governmentagencycreatedunderRepublicActNo.821,asamended.Its
administrativemachinerywasreorganizedanditsnamechangedtoAgricultural
CreditAdministration(ACA)undertheLandReformCode(RepublicActNo.3844).
Ontheotherhand,theACCFASupervisors'Association(ASA)andtheACCFA
Workers'Association(AWA),hereinafterreferredtoastheUnions,arelabor
organizationscomposedofthesupervisorsandtherankandfileemployees,
respectively,intheACCFA(nowACA).
G.R.No.L21484
OnSeptember4,1961acollectivebargainingagreement,whichwastobeeffective
foraperiodofone(1)yearfromJuly1,1961,wasenteredintobyandbetweenthe
UnionsandtheACCFA.Afewmonthsthereafter,theUnionsstartedprotesting
againstallegedviolationsandnonimplementationofsaidagreement.Finally,on
October25,1962theUnionsdeclaredastrike,whichwasendedwhenthestrikers
voluntarilyreturnedtoworkonNovember26,1962.
OnOctober30,1962theUnions,togetherwithitsmotherunion,theConfederationof
UnionsinGovernmentCorporationsandOffices(CUGCO),filedacomplaintwith
theCourtofIndustrialRelationsagainsttheACCFA(CaseNo.3450ULP)forhaving
allegedlycommittedactsofunfairlaborpractice,namely:violationofthecollective

bargainingagreementinordertodiscouragethemembersoftheUnionsinthe
exerciseoftheirrighttoselforganization,discriminationagainstsaidmembersinthe
matterofpromotions,andrefusaltobargain.TheACCFAdeniedthechargesand
interposedasaffirmativeandspecialdefenseslackofjurisdictionoftheCIRoverthe
case,illegalityofthebargainingcontract,expirationofsaidContractandlackof
approvalbytheofficeofthePresidentofthefringebenefitsprovidedfortherein.
Brushingasidetheforegoingdefenses,theCIRinitsdecisiondatedMarch25,1963
orderedtheACCFA:
"1.Toceaseanddesistfromcommittingfurtheractstendingto
discouragethemembersofcomplainantunionsintheexerciseoftheir
righttoselforganization;
"2.Tocomplywithandimplementtheprovisionofthe
collectivebargainingcontractexecutedonSeptember4,1961,
includingthepaymentofP30.00amonthlivingallowance;
"3.Tobargainingoodfaithandexpeditiouslywiththeherein
complainants."

TheACCFAmovedtoreconsiderbutwasturneddowninaresolutiondatedApril25,
1963oftheCIRenbanc.Thereuponitbroughtthisappealbycertiorari.
TheACCFAraisesthefollowingissuesinitspetition,towit:
"1.Whetherornottherespondentcourthasjurisdictionover
thiscase,whichinturndependsonwhetherornottheACCFA
exercisedgovernmentalorproprietaryfunctions.
2.Whetherornotthecollectivebargainingagreementbetween
thepetitionerandtherespondentunionisvalid;ifvalid,whetherornot
ithasalreadylapsed;andifnot,whetherornotits(sic)fringebenefits
arealreadyenforceable.
3.Whetherornotthereisalegaland/orfactualbasisforthe
findingoftherespondentcourtthatthepetitionerhadcommittedacts
ofunfairlaborpractice.
4.Whetherornotitiswithinthecompetenceofthecourtto
enforcethecollectivebargainingagreementbetweenthepetitionerand
therespondentunions,thesamehavingalreadyexpired."

G.R.No.L23605
Duringthependencyoftheabovementionedcase(G.R.No.L21484),specificallyon
August8,1963,thePresidentofthePhilippinessignedintolawtheAgriculturalLand
ReformCode(RepublicActNo.3844),whichamongotherthingsrequiredthe

reorganizationoftheadministrativemachineryoftheAgriculturalCreditand
CooperativeFinancingAdministration(ACCFA)andchangeditsnameto
AgriculturalCreditAdministration(ACA).OnMarch17,1964theACCFA
Supervisors'AssociationandtheACCFAWorkers'Associationfiledapetitionfor
certificationelectionwiththeCourtofIndustrialRelations(CaseNo.1327MC)
prayingthattheybecertifiedastheexclusivebargainingagentsforthesupervisors
andrankandfileemployees,respectively,intheACA.ThetrialCourtinitsorder
datedMarch30,1964directedtheManagerorOfficerinChargeoftheACAtoallow
thepostingofsaidorder"fortheinformationofallemployeesandworkersthereof,"
andtoanswerthepetition.Incompliancetherewith,theACA,whileadmittingmost
oftheallegationsinthepetition,deniedthattheUnionsrepresentedthemajorityof
thesupervisorsandrankandfileworkers,respectively,intheACA.Itfurtheralleged
thatthepetitionwaspremature,thattheACAwasnottheproperpartytobenotified
andtoanswerthepetition,andthattheemployeesandsupervisorscouldnotlawfully
becomemembersoftheUnions,norberepresentedbythem.However,inajoint
manifestationoftheUnionsdatedMay7,1964,withtheconformityoftheACA
AdministratorandoftheAgrarianCounselinhiscapacityassuchandascounselfor
theNationalLandReformCouncil,itwasagreed"thattheunionpetitionersinthis
caserepresentthemajorityoftheemployeesintheirrespectivebargainingunits"and
thatonlythelegalissuesraisedwouldbesubmittedfortheresolutionofthetrial
Court.
FindingtheremaininggroundsforACA'soppositiontothepetitiontobewithout
merit,thetrialCourtinitsorderdatedMay21,1964certified"theACCFAWorkers'
AssociationandtheACCFASupervisors'Associationasthesoleandexclusive
bargainingrepresentativesoftherankandfileemployeesandsupervisors,
respectively,oftheAgriculturalCreditAdministration."Saidorderwasaffirmedby
theCIRenbancinitsresolutiondatedAugust24,1964.

OnOctober2,1964theACAfiledinthisCourtapetitionforcertiorariwithurgent
motiontostaytheCIRorderofMay21,1964.InaresolutiondatedOctober6,1964,
thisCourtdismissedthepetitionfor'lackofadequateallegations,"butthedismissal
waslaterreconsideredwhentheACAcompliedwiththeformalrequirementstatedin
saidresolution.Asprayedfor,thisCourtorderedtheCIRtostaytheexecutionofits
orderofMay21,1964.
Inthisappeal,theACAineffectchallengesthejurisdictionoftheCIRtoentertainthe
petitionoftheUnionsforcertificationelectiononthegroundthatit(ACA)isengaged
ingovernmentalfunctions.TheUnionsjointheissueonthissinglepoint,contending
thattheACAperformsproprietaryfunctions.

UnderSection3oftheAgriculturalLandReformCodetheACAwasestablished,
amongothergovernmentalagencies,1toextendcreditandsimilarassistanceto
agriculture,inpursuanceofthepolicyenunciatedinSection2asfollows:
"SEC.2.DeclarationofPolicy.ItisthepolicyoftheState:
(1)Toestablishownercultivatorshipsandtheeconomicfamily
sizefarmasthebasisofPhilippineagricultureand,asaconsequence,
divertlandlordcapitalinagriculturetoindustrialdevelopment;
(2)Toachieveadignifiedexistenceforthesmallfarmersfree
fromperniciousinstitutionalrestraintsandpractices;
(3)Tocreateatrulyviablesocialandeconomicstructurein
agricultureconducivetogreaterproductivityandhigherfarmincomes;
(4)Toapplyalllaborlawsequallyandwithoutdiscrimination
tobothindustrialandagriculturalwageearners;
(5)Toprovideamorevigorousandsystematicland
resettlementprogramandpubliclanddistribution;and
(6)Tomakethesmallfarmersmoreindependent,selfreliant
andresponsiblecitizens,andasourceofgenuinestrengthinour
democraticsociety.

Theimplementationofthepolicythusenunciated,insofarastheroleoftheACA
thereinisconcerned,isspelledoutinSections110to118,inclusive,oftheLand
ReformCode.Section110providesthat"theadministrativemachineryoftheACCFA
shallbereorganizedtoenableittoalignitsactivitieswiththerequirementsand
objectiveofthisCodeandshallbeknownastheAgriculturalCreditAdministration."
UnderSection112thesumofP150,000,000wasappropriatedoutofnationalfundsto
financetheadditionalcreditfunctionsoftheACAasaresultofthelandreform
programlaiddownintheCode.Section103grantstheACAtheprivilegeof
rediscountingwiththeCentralBank,theDevelopmentBankofthePhilippinesandthe
PhilippineNationalBank.Section105directstheloaningactivitiesoftheACA"to
stimulatethedevelopmentoffarmers'cooperatives,"includingthose"relatingtothe
productionandmarketingofagriculturalproductsandthoseformedtomanageand/or
own,onacooperativebasis,servicesandfacilities,suchasirrigationandtransport
systems,establishedtosupportproductionand/ormarketingofagricultureproducts."
Section106dealswiththeextensionbyACAofcredittosmallfarmersinorderto
stimulateagriculturalproduction.Sections107to112laydowncertainguidelinesto
befollowedinconnectionwiththegrantingofloans,suchassecurity,interestand
supervisionofcredit.Sections113to118,inclusive,investtheACAwithcertain
rightsandpowersnotaccordedtonongovernmentalentities,thus:

"SEC.113.AuditingofOperations.Fortheeffective
supervisionoffarmers'cooperatives,theheadoftheAgricultural
CreditAdministrationshallhavethepowertoaudittheiroperations,
recordsandbooksofaccountandtoissuesubpoenaandsubpoena
ducestecumtocompeltheattendanceofwitnessesandtheproduction
ofbooks,documentsandrecordsintheconductofsuchauditorofany
inquiryintotheiraffairs.Anypersonwho,withoutlawfulcause,fails
toobeysuchsubpoenaorsubpoenaducestecumshall,upon
applicationoftheheadofAgriculturalCreditAdministrationwiththe
propercourt,beliabletopunishmentforcontemptinthemanner
providedbylawandifheisanofficeroftheAssociation,to
suspensionorremovalfromoffice.
SEC.114.ProsecutionofOfficials.TheAgriculturalCredit
Administration,throughtheappropriateprovincialorcityfiscal,shall
havethepowertofileandprosecuteanyandallactionswhichitmay
haveagainstanyandallofficialsoremployeesoffarmers'
cooperativesarisingfrommisfeasanceormalfeasanceinoffice.
SEC.115.FreeNotarialService.Anyjusticeofthepeace,in
hiscapacityasnotaryexofficio,shallunderservicefreeofchargeto
anypersonapplyingforaloanunderthisCodeeitherinadministering
theoathorintheacknowledgementofinstrumentsrelatingtosuch
loan.
Sec.116.FreeRegistrationofDeeds.Anyregisterofdeeds
shallacceptforregistration,freeofchargeanyinstrumentrelativetoa
loanmadeunderthisCode.
SEC.117.WritingoffUnsecuredandOutstandingLoans.
SubjecttotheapprovalofthePresidentuponrecommendationofthe
AuditorGeneral,theAgriculturalCreditAdministrationmaywriteoff
fromitsbooks,unsecuredandoutstandingloansandaccounts
receivablewhichmaybecomeuncollectiblebyreasonofthedeathor
disappearanceofthedebtor,shouldtherebenovisiblemeansof
collectingthesameintheforeseeablefuture,orwherethedebtorhas
beenverifiedtohavenoincomeorpropertywhatsoeverwithwhichto
effectpayment.Inallcases,thewritingoffshallbeafterfiveyears
fromthedatethedebtordefaults.
SEC.118.ExemptionfromDuties,TaxesandLevies.The
AgriculturalCreditAdministrationisherebyexemptedfromthe
paymentofallduties,taxes,levies,andfees,includingdocketand
sheriff'sfees,ofwhatevernatureorkind,intheperformanceofits
functionsandintheexerciseofitspowershereunder."

Thepowertoaudittheoperationsoffarmers'cooperativesandotherwiseinquireinto
theiraffairs,asgivenbySection113,isinthenatureofthevisitorialpowerofthe

sovereign,whichonlyagovernmentagencyspeciallydelegatedtodosobythe
Congressmaylegallyexercise,
OnMarch19,1964ExecutiveOrderNo.75waspromulgated.Itisentitled:
"RenderinginFullForceandEffectthePlanofReorganizationProposedbythe
SpecialCommitteeonReorganizationofAgenciesforLandReformforthe
AdministrativeMachineryoftheAgriculturalLandReformCode,"andcontainsthe
followingpertinentprovisions:
"Section3.TheLandReformProjectAdministration2shallbe
consideredasingleorganizationandthepersonnelcomplementofthe
memberagenciesincludingthelegalofficersoftheOfficeofthe
AgrarianCounselwhichshallprovidelegalservicestotheLRPAshall
beregardedasonepersonnelpoolfromwhichtherequirementsofthe
operationsshallbedrawnandsubjectonlytothecivilservicelaws,
rulesandregulations,personsfromoneagencymaybefreelyassigned
topositionsinanotheragencywithintheLRPAwhentheinterestof
theservicesodemands.
"Section4.TheLandReformProjectAdministrationshallbe
consideredasoneorganizationwithrespecttothestandardizationof
jobdescriptionspositionclassificationandwageandsalarystructures
totheendthatpositionsinvolvingthesameorequivalent
qualificationsandequalresponsibilitiesandeffortshallhavethesame
remuneration.
"Section5.TheCivilServicelaws,rulesandregulationswith
respecttopromotions,particularlyintheconsiderationofpersonnext
inrank,shallbemadeapplicabletotheLandReformProject
Administrationasasingleagencysothatqualifiedindividualsinone
memberagencymustbeconsideredinconsideringpromotiontohigher
positionsinanothermemberagency."

Theimplementationofthelandreformprogramofthegovernmentaccordingto
RepublicActNo.3844ismostcertainlyagovernmental,notaproprietary,function;
andforthatpurposeExecutiveOrderNo.75hasplacedtheACAundertheLand
Reform.ProjectAdministration,togetherwiththeothermemberagencies,the
personnelcomplementofallofwhichareplacedinonesinglepoolandmade
availableforassignmentfromoneagencytoanother,subjectonlytoCivilService
laws,rulesandregulations,positionclassificationandwagestructures.
TheappointingauthorityinrespectoftheofficialsandemployeesoftheACAisthe
PresidentofthePhilippines,asstatedina1stindorsementbyhisofficetothe
ChairmanoftheNationalReformCouncildatedMay22,1964,asfollows:
"AppointmentsofofficialsandemployeesoftheNationalLand
ReformCouncilanditsagenciesmaybemadeonlybythePresident,

pursuanttotheprovisionsofSection79(D)oftheRevised
AdministrativeCode.Inaccordancewiththepolicyandpractice,such
appointmentsshouldbepreparedforthesignatureoftheExecutive
Secretary,'ByAuthorityofthePresident'."3

WhentheAgriculturalReformCodewasbeingconsideredbytheCongress,thenature
oftheACAwasthesubjectofthefollowingexpositionontheSenatefloor:
"SenatorTolentino:..."TheACAisnotgoingtobeaprofit
makinginstitution.Itissupposedtobeapublicserviceofthe
governmenttothelesseesandfarmerownersofthelandsthatmaybe
boughtafterexpropriationfromowners.Itisthegovernmentherethat
isthelender.Thegovernmentshouldnotexactahigherinterestthan
whatwearetellingaprivatelandownernowinhisrelationtohis
tenantsifwegivetotheirfarmersahigherrateofinterest..."(pp.17
&18,SenateJournalNo.16,July3,1963).
"Thereasonisobvious,topinpointresponsibilityformany
lossesinthegovernment,inordertoavoidirresponsiblelendingof
governmentmoneytopinpointresponsibilityformanylosses..."
"SenatorManglapus:"...Butassumingthathypothesis,thatis
thereasonwhyweareappropriatingP150,000,000.00forthe
AgriculturalCreditAdministrationwhichwillgotointensifiedcredit
operationsonthebarriolevel..."(p.3,SenateJournalNo.7).

"Thatitisthereasonwhyweareprovidingforthe
expansionoftheACCFAandtheweedingoutofthe
cooperativeactivityoftheACCFAandturningthisovertothe
AgriculturalProductivityCommission,sothattheAgricultural
CreditAdministrationwillconcentrateentirelyonthe
facilitationofcreditonthebarriolevelwiththemassive
supportof150millionprovidedbythegovernment...."(pp.4
&5ofSenateJournalNo.7,July3,1963).
"...Butbyreleasingthemfromthissituation,wefeel
thatweareputtingtheminamuchbetterconditionthanthatin
whichtheyarefoundbyprovidingthemwithabusinesslike
wayofobtainingcredit,notdependingonapaternalistic
systembutonewhichisbusinesslikethatistosay,a
governmentoffice,whichonthebarriolevelwillprovidethem
thatcreditdirectly..."(p.40,SenateJournalNo.7,July3,
1963)(italicssupplied).

Theconsiderationssetforthabovemilitatequitestronglyagainsttherecognitionof
collectivebargainingpowersintherespondentUnionswithinthecontextofRepublic

ActNo.875,andhenceagainstthegrantoftheirbasicpetitionforcertification
electionasproperbargainingunits.TheACAisagovernmentofficeoragency
engagedingovernmental,notproprietaryfunctions.Thesefunctionsmaynotbe
strictlywhatPresidentWilsondescribedas"constituent"(asdistinguishedfrom
"ministrant"),4suchasthoserelatingtothemaintenanceofpeaceandtheprevention
ofcrime,thoseregulatingpropertyandpropertyrights,thoserelatingtothe
administrationofjusticeandthedeterminationofpoliticaldutiesofcitizens,andthose
relatingtonationaldefenseandforeignrelations.Underthistraditionalclassification,
suchconstituentfunctionsareexercisedbytheStateasattributesofsovereignty,and
notmerelytopromotethewelfare,progressandprosperityofthepeoplethese
letterfunctionsbeingministrant,heexerciseofwhichisoptionalonthepartofthe
government.
Thegrowingcomplexitiesofmodernsociety,however,haverenderedthistraditional
classificationofthefunctionsofgovernmentquiteunrealistic,nottosayobsolete.The
areaswhichusedtobelefttoprivateenterpriseandinitiativeandwhichthe
governmentwascalledupontoenteroptionally,andonly"becauseitwasbetter
equippedtoadministerforthepublicwelfarethanisanyprivateindividualorgroup
ofindividuals."5continuetolosetheirwelldefinedboundariesandtobeabsorbed
withinactivitiesthatthegovernmentmustundertakeinitssovereigncapacityifitisto
meettheincreasingsocialchallengesofthetimes.Hereasalmosteverywhereelsethe
tendencyisundoubtedlytowardsagreatersocializationofeconomicforces.Hereof
coursethisdevelopmentwasenvisioned,indeedadoptedasanationalpolicy,bythe
Constitutionitselfinitsdeclarationofprincipleconcerningthepromotionofsocial
justice.
ItwasinfurtheranceofsuchpolicythattheLandReformCodewasenactedandthe
variousagencies,theACAamongthem,establishedtocarryoutitspurposes.There
canbenodisputeastothefactthatthelandreformprogramcontemplatedinthesaid
Codeisbeyondthecapabilitiesofanyprivateenterprisetotranslateintoreality.Itisa
purelygovernmentalfunction,nolessthan,say,theestablishmentandmaintenanceof
publicschoolsandpublichospitals.Andwhen,asidefromthegovernmental
objectivesoftheACA,gearedastheyaretotheimplementationofthelandreform
programoftheState,thelawitselfdeclaresthattheACAisagovernmentoffice,with
theformulationofpolicies,plansandprogramsvestednolongerinaBoardof
Governors,asinthecaseoftheACCFA,butintheNationalLandReformCouncil,
itselfagovernmentinstrumentality;andthatitspersonnelaresubjecttoCivilService
lawsandtorulesofstandardizationwithrespecttopositionsandsalaries,anyvestige
ofdoubtastothegovernmentalcharacterofitsfunctionsdisappears.
Inviewoftheforegoingpremises,weholdthattherespondentUnionsarenotentitled
tothecertificationelectionsoughtintheCourtbelow.Suchcertificationisadmittedly
forpurposesofbargaininginbehalfoftheemployeeswithrespecttotermsand
conditionsofemployment,includingtherighttostrikeasacoerciveeconomic

weapon,asinfactthesaidunionsdidstrikein1962againsttheACCFA(G.R.No.L
21824).6ThisiscontrarytoSection11ofRepublicActNo.875,whichprovides:
"SEC.11.ProhibitionAgainstStrikeintheGovernment.The
termsandconditionsofemploymentintheGovernment,includingany
politicalsubdivisionorinstrumentalitythereof,aregovernedbylaw
anditisdeclaredtobethepolicyofthisActthatemployeestherein
shallnotstrikeforthepurposesofsecuringchangesormodificationin
theirtermsandconditionsofemployment.Suchemployeesmay
belongtoanylabororganizationwhichdoesnotimposetheobligation
tostrikeortojoininstrike:Provided,However,thatthissectionshall
applyonlytoemployeesemployedingovernmentalfunctionsofthe
Governmentincludingbutnotlimitedtogovernmentalcorporations."7

WiththereorganizationoftheACCFAanditsconversionintotheACAunderthe
LandReformCodeandinviewofourrulingastothegovernmentalcharacterofthe
functionsoftheACA,thedecisionoftherespondentCourtdatedMarch25,1963,and
theresolutionenbancaffirmingit,intheunfairlaborpracticecasefiledbythe
ACCFA,whichdecisionisthesubjectofthepresentreviewinG.R.No.L21484,has
becomemootandacademic,particularlyinsofarastheordertobargaincollectively
withtherespondentUnionsisconcerned.
Whatremainstoberesolvedisthequestionoffringebenefitsprovidedforinthe
collectivebargainingcontractofSeptember4,1961.ThepositionoftheACCFAin
thisregardisthatthesaidfringebenefitshavenotbecomeenforceablebecausethe
conditionthattheyshouldfirstbeapprovedbytheOfficeofthePresidenthasnot
beencompliedwith.TheUnions,ontheotherhand,contendthatnosuchcondition
existedinthebargainingcontract,andtherespondentCourtupheldthiscontentionin
itsdecision.
ItistobenotedthatunderSection3,ArticleXIV,oftheagreement,thesame"shall
notbecomeeffectiveunlessanduntilthesameisdulyratifiedbytheBoardof
GovernorsoftheAdministration."Suchapprovalwasgivenevenbeforetheformal
executionoftheagreement,byvirtueof"ResolutionNo.67,RegularMeetingNo.7,
FY196061,heldonAugust17,1961,"butwiththeprovisothat"thefringebenefits
containedthereinshalltakeeffectonlyifapprovedbytheofficeofthePresident."The
conditionis,therefore,deemedtobeincorporatedintotheagreementbyreference.
OnOctober23,1962theOfficeofthePresident,inalettersignedbytheExecutive
Secretary,expresseditsapprovalofthebargainingcontract"providedthesalariesand
benefitsthereinfixedarenotinconflictwithapplicablelawsandregulations,are
believedtobereasonableconsideringtheexigenciesoftheserviceandthewelfareof
theemployees,andarewellwithinthefinancialabilityoftheparticularcorporationto
bear."

OnJuly1,1963theACCFAmanagementandtheUnionsenteredintoanagreement
fortheimplementationofthedecisionoftherespondentCourtconcerningthefringe
benefits,thus:
"Inthemeantime,onlyCostofLivingAdjustment,Longevity
Pay,andNightDifferentialBenefitsaccruingfromJuly1,1961to
June30,1963shallbepaidtoallemployeesentitledthereto,inthe
followingmanner:
A)ThesumofP180,000shallbesetasideforthepaymentof:
1)NightdifferentialbenefitsforSecurityGuards.
2)CostofLivingAdjustmentandLongevityPay.
3)TheunpaidbalancedueemployeesonItemA(1)and
(2)thisparagraphshallbepaidinmonthly
installmentsasfinancespermitbutnotbeyond
December20,1963.
3.AllbenefitsaccruingafterJuly1,1963,shallbeallowedto
accumulatebutpayableonlyafterallbenefitsaccruinguptoJune30,
1963,asperCIRdecisionhereinabovereferredtoshallhavebeen
settledinfull;provided,however,thatcommencingJuly1,1963and
foraperiodofonlytwo(2)monthsthereafter(duringwhichperiodthe
ACCFAandtheUnionsshallnegotiateanewCollectiveBargaining
Agreement)theprovisionsoftheSeptember4,1961Collective
BargainingAgreementshallbetemporarilysuspended,exceptasto
CostofLivingAdjustmentand"political"ornoneconomicprivileges
andbenefitsthereunder."

OnJuly24,1963theACCFABoardofGovernorsratifiedtheagreementthusentered
into,pursuanttotheprovisionthereofrequiringsuchratification,butwiththeexpress
qualificationthatthesamewas"withoutprejudicetothependingappealinthe
SupremeCourt...inCaseNo.3450ULP."Thepaymentofthefringebenefitsagreed
upon,toourmind,showsthatthesamewerewithinthefinancialcapabilityofthe
ACCFAthen,andhencejustifiestheconclusionthatthisparticularconditionimposed
bytheOfficeofthePresidentinitsapprovalofthebargainingcontractwassatisfied.
Wehold,therefore,thatinsofarasthefringebenefitsalreadypaidareconcerned,there
isnoreasontosetasidethedecisionoftherespondentCourt,butthatsincethe
respondentUnionshavenorighttothecertificationelectionsoughtbythemnor,
consequently,tobargaincollectivelywiththepetitioner,nofurtherfringebenefits
maybedemandedonthebasisofanycollectivebargainingagreement.
Thedecisionsandordersappealedfromaresetasideand/ormodifiedinaccordance
withtheforegoingpronouncements.Nocosts.

Concepcion,C.J.,Reyes,J.B.L.,Dizon,Sanchez,Castro,TeehankeeandBarredo,JJ.,
concur.
Zaldivar,J.,concursintheresult.

SeparateOpinions
FERNANDO,J.,concurring:

ThedecisionreachedbythisCourtsoablygivenexpressionintheopinion
ofJusticeMakalintal,characterizedwithvigor,clarityandprecision,represents
whatformeisacleartendencynottobenecessarilyboundbyourprevious
pronouncementsonwhatactivitiespartakeofanaturethatisgovernmental. 1Of
evengreatersignificance,thereisadefiniterejectionofthe"constituent
ministrant"criterionofgovernmentalfunctions,followedinBacaniv.National
CoconutCorporation.2Thatindeediscauseforgratification.Formeatleast,there
isagainfulladherencetothebasicphilosophyoftheConstitutionastothe
extensiveandvastpowerlodgedinourgovernmenttocopewiththesocialand
economicproblemsthatevennowsorelybesetus.Thereisthereforefull
concurrenceonmyparttotheopinionoftheCourt,distinguishedbyitshigh
qualityofjuristiccraftsmanship.Ifeelhoweverthatthematterisofsuchvital
importancethataseparateconcurringopinionisnotinappropriate.Itwillalso
servetogiveexpressiontomyview,whichisthatoftheCourtlikewise,thatour
decisiontodaydoesnotpassupontherightsoflaboremployedininstrumentalities
ofthestatedischarginggovernmentalfunctions.
1.IntheaboveBacanidecision,governmentalfunctionsareclassifiedintoconstituent
andministrant."Theformerarethosewhichconstitutetheverybondsofsocietyand
arecompulsoryinnature;thelatterarethosethatareundertakenonlybywayof
advancingthegeneralinterestsofsociety,andaremerelyoptional.PresidentWilson
enumeratestheconstituentfunctionsasfollows:'(1)Thekeepingoforderand
providingfortheprotectionofpersonsandpropertyfromviolenceandrobbery.(2)
Thefixingofthelegalrelationsbetweenmanandwifeandbetweenparentsand
children.(3)Theregulationoftheholding,transmission,andinterchangeofproperty,
andthedeterminationofitsliabilitiesfordebtorforcrime.(4)Thedeterminationof
contractrightsbetweenindividuals.(5)Thedefinitionandpunishmentofcrime.(6)
Theadministrationofjusticeincivilcases.(7)Thedeterminationofthepolitical
duties,privileges,andrelationsofcitizens.(8)Dealingsofthestatewithforeign
powers:thepreservationofthestatefromexternaldangerorencroachmentandthe
advancementofitsinternationalinterests.'"3

Theministrantfunctionswerethenenumerated,followedbyastatementofthebasis
thatwouldjustifyengaginginsuchactivities.Thus:"Themostimportantofthe
ministrantfunctionsare:publicworks,publiceducation,publiccharity,healthand
safetyregulations,andregulationsoftradeandindustry.Theprinciplesdetermining
whetherornotagovernmentshallexercisecertainoftheseoptionalfunctionsare:(1)
thatagovernmentshoulddoforthepublicwelfarethosethingswhichprivatecapital
wouldnotnaturallyundertakeand(2)thatagovernmentshoulddothesethingswhich
byitsverynatureitisbetterequippedtoadministerforthepublicwelfarethanisany
privateindividualorgroupofindividuals."4
ReferenceismadeintheBacanidecisiontothefirstofthemanypublicationsof
JusticeMalcolmonthePhilippinegovernment,whichappearedin1916,5adoptingthe
formulationofthethenProfessor,laterPresident,WoodrowWilsonoftheUnited
States,inatextbookonpoliticalsciencethefirsteditionofwhichwaspublishedin
1898.TheWilsonclassificationreflectedtheprimacyofthedominantlaissezfaire
conceptcarriedintothesphereofgovernment.
AmostspiriteddefenseofsuchaviewwasgivenbyformerPresidentHadleyofYale
inaseriesofthreelecturesdeliveredatOxfordUniversityin1914.Accordingto
PresidentHadley:"Ishallbeginwithapropositionwhichmaysoundsomewhat
startling,butwhichIbelievetobeliterallytrue.ThewholeAmericanpoliticaland
socialsystemisbasedonindustrialpropertyright,farmorecompletelythanhasever
beenthecaseinanyEuropeancountry.IneverynationofEuropetherehasbeena
certainamountoftraditionaloppositionbetweenthegovernmentandtheindustrial
classes.IntheUnitedStatesnosuchtraditionexists.InthepubliclawofEuropean
communitiesindustrialfreeholdingisacomparativelyrecentdevelopment.Inthe
UnitedStates,onthecontrary,industrialfreeholdingisthefoundationonwhichthe
wholesocialorderhasbeenestablishedandbuiltup."6
Theviewiswidelyacceptedthatsuchafundamentalpostulatedidinfluence
Americancourtdecisionsonconstitutionallaw.AswasexplicitlystatedbyJustice
Cardozo,speakingofthatera:"Laissezfairewasnotonlyacounselofcautionwhich
statesmenwoulddowelltoheed.Itwasacategoricalimperativewhichstatesmenas
wellasjudges,mustobey."7Foralongtime,legislationtendingtoreduceeconomic
inequalityfounderedontherockthatwasthedueprocessclause,enshriningasitdid
thelibertyofcontract.Tociteonlyoneinstance,thelimitationofemploymentin
bakeriestosixtyhoursaweekandtenhoursadayunderaNewYorkstatutewas
strickendownforbeingtaintedwithadueprocessobjectioninLochnerv.NewYork.
8ItprovokedoneofthemostvigorousdissentsofJusticeHolmes,whowasopposed
totheviewthattheUnitedStatesConstitutiondidembodylaissezfaire.Thus:
"Generalpropositionsdonotdecideconcretecases.Thedecisionwilldependona
judgmentorintuitionmoresubtlethananyarticulatemajorpremise.ButIthinkthat
thepropositionjuststated,ifitisaccepted,willcarryusfartowardtheend.Every
opiniontendstobecomealaw.Ithinkthattheword'liberty,'inthe14thAmendment,

ispervertedwhenitisheldtopreventthenaturaloutcomeofadominantopinion,
unlessitcanbesaidthatarationalandfairmannecessarilywouldadmitthatthe
statuteproposedwouldinfringefundamentalprinciplesastheyhavebeenunderstood
bythetraditionsofourpeopleandourlaw.Itdoesnotneedresearchtoshowthatno
suchsweepingcondemnationcanbepasseduponthestatutebeforeus.Areasonable
manmightthinkitapropermeasureonthescoreofhealth.MenwhomIcertainly
couldnotpronounceunreasonablewouldupholditasafirstinstallmentofageneral
regulationofthehoursofwork.Whetherinthelatteraspectitwouldbeopentothe
chargeofinequalityIthinkitunnecessarytodiscuss."Itwasnotuntil1908,inMuller
v.Oregon,9thattheAmericanSupremeCourtheldvalidatenhourmaximumfor
womenworkersinlaundriesandnotuntil1917inBuntingv.Oregon10thatsucha
regulatorytenhourlawappliedtomenandwomenpassedtheconstitutionaltest.
Similarly,statelegislationfixingminimumwageswasdeemedoffensivetothedue
processclauseina1923decisioninAdkinsv.Children'sHospital.11Onlyin1937,
intheleadingcaseofWestCoastHotelv.Parrish,12wastheAdkinscaseoverruled
andaminimumwagelawNewYorkstatuteupheld.Thesameunsympatheticattitude
arisingfromthelaissezfaireconceptwasmanifestindecisionsduringsuchperiod,
therebeingthefinelyspundistinctionsintheWolffPackingCo.v.CourtofIndustrial
Relations13decision,astowhencertainbusinessescouldbeclassifiedasaffected
withpublicinteresttojustifystateregulationastoprices.Afterelevenyears,in1934,
inNebbiav.NewYork,14theairofunrealitywassweptawaybythisexplicit
pronouncementfromtheUnitedStatesSupremeCourt:"Thephrase'affectedwitha
publicinterest'can,inthenatureofthings,meannomorethanthatanindustry,for
adequatereason,issubjecttocontrolforthepublicgood."
ItisthusapparentthatuntiltheadministrationofPresidentRoosevelt,thelaissez
faireprincipleresultedinthecontractionofthespherewheregovernmentalentrywas
permissible.Theobjectwastoprotectpropertyeveniftherebytheneedsofthe
generalpublicwouldbeleftunsatisfied.Thiswasemphaticallyputforthinaworkof
formerAttorneyGeneral,laterJustice,Jackson,citinganopinionofJudgeVan
Orsdel.Thus:"Itshouldberememberedthatofthethreefundamentalprinciples
whichunderliegovernment,andforwhichgovernmentexists,theprotectionoflife,
liberty,andproperty,thechiefoftheseisproperty..."15Theaboveexcerptfrom
JudgeVanOrsdelformspartofhisopinioninChildren'sHospitalv.Adkins,when
decidedbytheCircuitCourtofAppeals.16
Nonetheless,thesocialandeconomicforcesatworkintheUnitedStatestowhichthe
newdealadministrationofPresidentRooseveltwasmostresponsivedidoccasion,as
of1937,greaterreceptivitybytheAmericanSupremeCourttoaphilosophylessrigid
initsobeisancetopropertyrights.Earlierlegislationdeemedoffensivetothelaissez
faireconcepthadmetadismalfate.Theirnullityduringhisfirsttermcould,more
oftenthannot,beexpected.17

Asamatteroffact,evenearlier,in1935,ProfessorCokerofYale,speakingasa
historian,couldalreadydiscernacontrarydrift.Eventhenhecouldassertthatthe
rangeofgovernmentalactivityintheUnitedStateshadindeedexpanded.According
tohim:"Thusbothliberalsandconservativesapprovewideandvariedgovernmental
intervention;thelattercondemningit,itistrue,whentheformerproposeit,but
endorsingit,afterithasbecomeafixedpartofthestatusquo,assobeneficialinits
effectsthatnomoreofitisneeded.Ourhistoryforthelasthalfcenturyshowsthat
eachimportantgovernmentalinterventionwehaveadoptedhasbeencalledsocialistic
orcommunisticbycontemporaryconservatives,andhaslaterbeenapprovedby
equallyconservativemenwhonowacceptitbothforitsprovedbenefitsandforthe
worthytraditionsithascometorepresent.Bothliberalandconservativesupportersof
ourlargescalebusinessunderprivateownershipadvocateorconcedetheamounts
andkindsofgovernmentallimitationandaidwhichtheyregardasnecessarytomake
thesystemworkefficientlyandhumanely.Soonerorlater,theyarewillingtohave
governmentinterveneforthepurposeofpreventingthesystemfrombeingtoo
oppressivetothemassesofthepeople,protectingitfromitsselfdestructiveerrors,
andcomingtoitshelpinotherwayswhenitappearsnottobeabletotakecareof
itself."18

Atanyrate,by1943,theUnitedStateswasreconciledtolaissezfairehavinglostits
dominance.InthelanguageofJusticeJacksonintheleadingcaseofWestVirginia
StateBoardofEducationv.Barnette:19"Wemusttransplanttheserightstoasoilin
whichthelaissezfaireconceptorprincipleofnoninterferencehaswitheredatleastas
toeconomicaffairs,andsocialadvancementsareincreasinglysoughtthroughcloser
integrationofsocietyandthroughexpandedandstrengthenedgovernmentalcontrols."
2.TheinfluenceexertedbyAmericanconstitutionaldoctrinesunavoidablewhenthe
PhilippineswasstillunderAmericanrulenotwithstanding,aninfluencethathasnot
altogethervanishedevenafterindependence,thelaissezfaireprincipleneverfound
fullacceptanceinthisjurisdiction,evenduringtheperiodofitsfullfloweringinthe
UnitedStates.Moreover,toeraseanydoubts,theConstitutionalConventionsawtoit
thatourfundamentallawembodiesapolicyoftheresponsibilitythrustongovernment
tocopewithsocialandeconomicproblemsandanearnestandsincerecommitmentto
thepromotionofthegeneralwelfarethroughstateaction.Itwouldthusfollowthatthe
forceofanylegalobjectiontoregulatorymeasuresadverselyaffectingpropertyrights
ortostatutesorganizingpubliccorporationsthatmayengageincompetitionwith
privateenterprisehasbeenblunted.Unlesstherebeaclearshowingofanyinvasionof
rightsguaranteedbytheConstitution,theirvalidityisaforegoneconclusion.Nofear
needbeentertainedthattherebysphereshithertodeemedoutsidegovernmentdomain
havebeenenchroachedupon.Withourexplicitdisavowalofthe"constituent
ministrant"test,theghostofthelaissezfaireconceptnolongerstalksthejuridical
stage.

Asearlyas1919,intheleadingcaseofRubiv.ProvincialBoardofMindoro,20
JusticeMalcolmalreadyhadoccasiontoaffirm:"Thedoctrinesoflaissezfaireandof
unrestrictedfreedomoftheindividual,asaxiomsofeconomicandpoliticaltheory,are
ofthepast.Themodernperiodhasshownawidespreadbeliefintheamplestpossible
demonstrationofgovernmentalactivity.TheCourtsunfortunatelyhavesometimes
seemedtotrailaftertheothertwobranchesoftheGovernmentinthisprogressive
march."
ItwastobeexpectedthenthatwhenhespokefortheCourtinGovernmentofthe
PhilippineIslandsv.Springer,21a1927decision,hefoundnothingobjectionablein
thegovernmentitselforganizingandinvestingpublicfundsinsuchcorporationsas
theNationalCoalCo.,thePhil.NationalBank,theNationalPetroleumCo.,the
NationalDevelopmentCo.,theNationalCementCo.andtheNationalIronCo.There
wasnotevenahintthattherebythelaissezfaireconceptwasnothonoredatall.Itis
truethatJusticeMalcolmconcurredwiththemajorityinPeoplev.Pomar,22a1924
opinion,whichheldinvalidunderthedueprocessclauseaprovisionprovidingfor
maternityleavewithpaythirtydaysbeforeandthirtydaysafterconfinement.Itcould
bethathehadnootherchoiceasthePhilippineswasthenundertheUnitedStates,and
onlyrecentlytheyearbefore,theabovecitedcaseofAdkinsv.Children'sHospital,
23inlinewiththelaissezfaireprinciple,didholdthatastatuteprovidingfor
minimumwageswasconstitutionallyinfirmonthesameground.
Ourconstitutionwhichtookeffectin1935,upontheinaugurationofthe
CommonwealthofthePhilippines,erasedwhateverdoubtstheremightbeonthat
score.Itsphilosophyisantitheticaltothelaissezfaireconcept.Delegate,later
President,ManuelRoxas,oneoftheleadingmembersoftheConstitutional
Convention,inanswerpreciselytoanobjectionofDelegateJoseReyesofSorsogon,
whonotedthe"vastextensionsinthesphereofgovernmentalfunctions"andthe
"almostunlimitedpowertointerfereintheaffairsofindustryandagricultureaswell
astocompetewithexistingbusiness"as"reflectionsofthefascinationexertedby[the
then]currenttendencies"inotherjurisdictions,24spokethus:"Myansweristhatthis
constitutionhasadefiniteandwelldefinedphilosophy,notonlypoliticalbutsocial
andeconomic.Aconstitutionthatin1776orin1789wassufficientintheUnited
States,consideringtheproblemstheyhadatthattime,maynotnowbesufficientwith
thegrowingandeverwideningcomplexitiesofsocialandeconomicproblemsand
relations.IftheUnitedStatesofAmericaweretocallaconstitutionalconvention
todaytodraftaconstitutionfortheUnitedStates,doesanyonedoubtthatinthe
provisionsofthatconstitutiontherewillbefounddefinitedeclarationsofpolicyasto
economictendencies;thattherewillbematterswhicharenecessaryinaccordance
withtheexperienceoftheAmericanpeopleduringtheseyearswhenvast
organizationsofcapitalandtradehavesucceededtoacertaindegreetocontrolthelife
anddestinyoftheAmericanpeople?Ifinthisconstitutionthegentlemanwillfind
declarationsofeconomicpolicy,theyaretherebecausetheyarenecessaryto
safeguardtheinterestsandwelfareoftheFilipinopeoplebecausewebelievethatthe

dayshavecomewheninselfdefense,anationmayprovideinitsconstitutionthose
safeguards,thepatrimony,thefreedomtogrow,thefreedomtodevelopnational
aspirationsandnationalinterests,nottobehamperedbytheartificialboundaries
whichaconstitutionalprovisionautomaticallyimposes."25
DelegateRoxascontinuedfurther:"Thegovernmentisthecreatureofthepeopleand
thegovernmentexercisesitspowersandfunctionsinaccordancewiththewilland
purposesofthepeople.Thatisthefirstprinciple,themostimportantoneunderlying
thisdocument.Second,thegovernmentestablishedinthisdocumentis,initsform,in
ouropinion,themostadaptedtoprevailingconditions,circumstancesandthepolitical
outlookoftheFilipinopeople.Rizalsaid,'Everypeoplehasthekindofgovernment
thattheydeserve.'Thatisjustanotherformofexpressingtheprincipleinpolitics
enunciatedbytheFrenchphilosopherswhentheysaid:'Everypeoplehastherightto
establishtheformofgovernmentwhichtheybelieveismostconducivetotheir
welfareandtheirliberty.'Whyhavewepreferredthegovernmentthatisestablishedin
thisdraft?Becauseitisthegovernmentwithwhichwearefamiliar.Itistheformof
governmentfundamentallysuchasitexiststoday;becauseitistheonlykindof
governmentthatourpeopleunderstand;itisthekindofgovernmentwehavefoundto
beinconsonancewithourexperience,withthenecessarymodification,capableof
permittingafairplayofsocialforcesandallowingthepeopletoconducttheaffairsof
thatgovernment."26
Oneofthemostprominentdelegates,aleadingintellectual,formerPresidentRafael
PalmaoftheUniversityofthePhilippines,stressedasafundamentalprincipleinthe
draftoftheConstitutionthelimitationontherighttoproperty.Hepointedoutthatthe
thenprevailingviewallowedtheaccumulationofwealthinonefamilydowntothe
lastremotedescendant,resultinginagravedisequilibriumandbringinginitswake
extrememiserysidebysidewithconspicuousluxury.Hedidinviteattentiontothe
fewmillionairesatoneextremewiththevastmassesofFilipinosdeprivedofthe
necessitiesoflifeattheother.HeaskedtheConventionwhethertheFilipinopeople
couldlongremainindifferenttosuchadeplorablesituation.Forhimtospeakofa
democracyundersuchcircumstanceswouldbenothingbutanillusion.Hewouldthus
emphasizetheurgentneedtoremedythegravesocialinjusticethathadproducedsuch
widespreadimpoverishment,thusrecognizingthevitalroleofgovernmentinthis
sphere.27
Anotherdelegate,TomasConfessorofIloilo,wasquiteemphaticinhisassertionfor
theneedofasocialjusticeprovisionwhichisadeparturefromthelaissezfaire
principle.Thus:"TakethecaseofthetenancysysteminthePhilippines.Youhavea
tenant.Therearehundredsofthousandsoftenantsworkingdayinanddayout,
cultivatingthefieldsoftheirlandlords.Heputsallhistime,allhisenergy,thelabor
andtheassistanceofhiswifeandchildren,incultivatingapieceofgroundforhis
landlordbutwhenthetimecomesforthepartitionoftheproductsofhistoilwhat
happens?Ifheproduces25cavanesofrice,hegetsonlyperhapsfiveandthetwenty

goestothelandlord.Nowcanhegotocourt?Hasheachancetogotocourtinorder
tosecurehisjustshareoftheproductsofhistoil?No.Underourpresentregimeof
law,underourpresentregimeofjustice,youdonotgivethattothepoortenant.
Gentlemen,yougototheCagayanValleyandseetheconditionunderwhichthose
poorfarmersarebeingexploiteddayinanddayout.Cantheygotocourtunderour
presentregimeofjustice,ofliberty,ordemocracy?Theotherday,workmenwereshot
bythepolicejustbecausetheywantedtoincreaseortheydesiredthattheirwagesbe
increasedfromthirtycentavosadaytofortyorfiftycentavos.Isitnecessarytospill
humanbloodjusttosecureanincreaseoftencentavosinthedailywagesofan
ordinarylaborer?Andyetunderourpresentregimeofsocialjustice,libertyand
democracy,thesethingsarehappening;thesethings,Isay,arehappening.Arethose
peoplegettinganyjustice?No.Theycannotgetjusticenowfromourcourts.Forthis
reason,Isayitisnecessarythatweinsert'socialjustice'hereandthatsocialjustice
mustbeestablishedbylaw.Properlegalprovisions,properlegalfacilitiesmustbe
providedinorderthattherebearegimenotofjusticealone,becausewehavethatnow
andweareseeingtheoppressionarisingfromsucharegime.Consequently,wemust
emphasizetheterm'socialjustice'."28

DelegateVentenillaofPangasinanreflectedtheattitudeoftheConventionastowhy
laissezfairewasnolongeracceptable.Afterspeakingoftimeshavingchanged,he
proceeded:"Sincethennewproblemshavearisen.Thespiritualmissionof
governmenthasdescendedtothelevelofthematerial.Thenitsfunctionwasprimarily
tosoothetheachingspirit.Now,itappears,itmustalsoappeasehunger.Nowthatwe
mayreadhistorybackwards,weknowforinstance,thattheoldtheoryof'laissez
faire'hasdegeneratedinto'bigbusinessaffairs'whicharegraduallydevouringthe
rightsofthepeoplethesamerightsintendedtobeguardedandprotectedbythe
systemofconstitutionalguaranties.Oh,iftheFatherswerenowalivetoseethe
changesthatthecenturieshavewroughtinourlife!Theymightcontemplatethesad
spectacleoforganizedexploitationgreedilydevouringthepreviousrightsofthe
individual.Theymightalsobeholdthegradualdisintegrationofsociety,thefast
disappearanceofthebourgeoisthemiddleclass,thebackboneofthenationand
theconsequentdriftingoftheclassestowardtheoppositeextremestheveryrich
andtheverypoor."29
ShortlyaftertheestablishmentoftheCommonwealth,thethenJusticeJoseP.Laurel,
himselfoneoftheforemostdelegatesoftheConstitutionalConvention,ina
concurringopinion,laterquotedwithapprovalintheleadingcaseofAntamok
GoldfieldsMiningCo.v.CourtofIndustrialRelations,30decidedin1940,explained
clearlytheneedfortherepudiationofthelaissezfairedoctrine.Thus:"Itshouldbe
observedattheoutsetthatourConstitutionwasadoptedinthemidstofsurging
unpurestanddissatisfactionresultingfromeconomicandsocialdistresswhichwas
threateningthestabilityofgovernmentstheworldover.Alivetothesocialand

economicforcesatwork,theframersofourConstitutionboldlymettheproblemsand
difficultieswhichfacedthemandendeavoredtocrystallize,withmoreorlessfidelity,
thepolitical,socialandeconomicpropositionsoftheirage,andthistheydid,withthe
consciousnessthatthepoliticalandphilosophicalaphorismoftheirgenerationwill,in
thelanguageofagreatjurist,'bedoubtedbythenextandperhapsentirelydiscarded
bythethird.'...Embodyingthespiritofthepresentepoch,generalprovisionswere
insertedintheConstitutionwhichareintendedtobringabouttheneededsocialand
economicequilibriumbetweencomponentelementsofsocietythroughtheapplication
ofwhatmaybetermedasthejustitiacommunisadvocatedbyGrotiusandLeibnits
manyyearsagotobesecuredthroughthecounterbalancingofeconomicandsocial
forcesandopportunitieswhichshouldberegulated,ifnotcontrolled,bytheStateor
placed,asitwere,incustodiasocietatis.'Thepromotionofsocialjusticetoinsurethe
wellbeingandeconomicsecurityofallthepeople'wasthusinsertedasvitalprinciple
inourConstitution...."31Inthecourseofsuchconcurringopinionandafternoting
thechangesthathavetakenplacestressingthatthepolicyoflaissezfairehadindeed
givenwaytotheassumptionbythegovernmentoftherighttointervenealthough
qualifiedbythephrase"tosomeextent",hemadeclearthatthedoctrineinPeoplev.
Pomarnolongerretain,"itsvirtualityasalivingprinciple."32
3.Itmustbemadeclearthattheobjectiontothe"constituentministrant"classification
ofgovernmentalfunctionsisnottoitsformulationassuch.Fromthestandpointoflaw
aslogic,itisnotwithoutmerit.Ithasneatnessandsymmetry.Therearehardlyany
looseends.Ithasthevirtueofclarity.Itmaybesaidinitsfavorlikewisethatit
reflectsalltoofaithfullythelaissezfairenotionthatgovernmentcannotextendits
operationoutsidethemaintenanceofpeaceandorder,protectionagainstexternal
security,andtheadministrationofjustice,withprivaterights,especiallysointhecase
ofproperty,beingsafeguardedandahintthatthegeneralwelfareisnottobeentirely
ignored.
Itmustnotbelostsightofthoughthatlogicandjuralsymmetrywhileundoubtedly
desirablearenottheprimeconsideration.Thisisespeciallysointhefieldofpublic
law.WhatwassaidbyHolmes,almostninedecadesago,carrygreaterconviction
now."Thelifeofthelawhasnotbeenlogic;ithasbeenexperience.Thefelt
necessitiesofthetime,theprevalentmoralandpoliticaltheories,intuitionsofpublic
policyavowedorunconscious,eventheprejudiceswhichjudgessharewiththeir
fellowmen,havehadagooddealmoretodothanthesyllogismindeterminingthe
rulesbywhichmenshouldbegoverned."33Thentoo,therewasthewarningofGeny
citedbyCardozothatunduestressorlogicmayresultinconfiningtheentiresystem
ofpositivelaw,"withinalimitednumberoflogicalcategories,predeterminedin
essence,immovableinbasis,governedbyinflexibledogmas,"thusrenderingit
incapableofrespondingtotheevervariedandchangingexigenciesoflife.34
ItiscauseenoughforconcerniftheobjectiontotheBacanidecisionweretobe
premisedonthescorealonethatperhapstherewasfidelitytotherequirementsof

logicandjuralsymmetrycarriedtoexcess.Whatappearstomemuchmoredeplorable
isthatitdidfailtorecognizethattherewasarepudiationofthelaissezfaireconcept
intheConstitution.Aswassetforthintheprecedingpages,theConstitutionis
distinguishedpreciselybyacontraryphilosophy.Theregimeoflibertyifprovided
for,withtherealizationthatunderthethenprevalentsocialandeconomicconditions,
itmaybeattainedonlythroughagovernmentwithitssphereofactivityrangingfar
andwide,notexcludingmattershithertolefttotheoperationoffreeenterprise.As
rightfullystressedinourdecisiontodayinlinewithwhatwasearlierexpressedby
JusticeLaurel,thegovernmentthatwehaveestablishedhasasafundamental
principlethepromotionofsocialjustice.35Thesamejuristgaveitacomprehensive
andenduringdefinitionas"thepromotionofthewelfareofallthepeople,the
adoptionbythegovernmentofmeasurescalculatedtoinsureeconomicstabilityofall
thecomponentelementsofsociety,throughthemaintenanceofapropereconomic
andsocialequilibriumintheinterrelationsofthemembersofthecommunity,
constitutionally,throughtheadoptionofmeasureslegallyjustifiable,orextra
constitutionally,throughtheexerciseofpowersunderlyingtheexistenceofall
governmentsinthetimehonoredprincipleofsaluspopuliestsupremalex."36
Thereisthusfromthesamedistinguishedpen,thistimewritingfortheCourt,a
reiterationoftheviewofthelaissezfairedoctrinebeingrepugnanttothefundamental
law.Itmustbeaddedthoughthatthereferencetoextraconstitutionalmeasuresbeing
allowablemustbeunderstoodinthesensethatthereisnoinfringementofspecific
constitutionalguarantees.Otherwise,thejudiciarywillbehardputtosustaintheir
validityifchallengedinanappropriatelegalproceeding.
TheregimeoflibertycontemplatedintheConstitutionwithsocialjusticeasa
fundamentalprincipletoreinforcethepledgeinthepreambleofpromotingthe
generalwelfarereflectstraditionalconceptsofademocraticpolicyinfusedwithan
awarenessofthevitalandpressingneedforthegovernmenttoassumeamuchmore
activeandvigorousroleintheconductofpublicaffairs.Theframersofour
fundamentallawwereasoneintheirstronglyheldbeliefthattherebythegraveand
seriousinfirmitythenconfrontingourbodypolitic,onthewholestillwithusnow,of
greatinequalityofwealthandmasspoverty,withthegreatbulkofourpeopleillclad,
illhoused,illfed,couldberemedied.Nothingelsethancommunaleffort,massivein
extentandearnestlyengagedin,wouldsuffice.
ToparaphraseLaski,withthenecessarymodificationinlinewithsuchworthy
constitutionalends,welookuponthestateasanorganizationtopromotethe
happinessofindividuals,itsauthorityasapowerboundbysubordinationtothat
purpose,libertywhiletobeviewednegativelyasabsenceofrestraintimpressedwitha
positiveaspectaswelltoassureindividualselffulfillmentintheattainmentofwhich
greaterresponsibilityisthrustongovernment;andrightsasboundarymarksdefining
areasoutsideitsdomain.37FromwhichitwouldfollowasLaskisoaptlystatedthat
itistheindividual's"happinessandnotitswellbeing[thatis]thecriterionbywhich

itsbehavior[is]tobejudged.Hisinterests,andnotitspower,setthelimitstothe
authorityit[is]entitledtoexercise."38Wehaveundersuchatestenlargeditsfieldof
competence.
4.Withthedecisionreachedbyustoday,thegovernmentisfreedfromthecompulsion
exertedbytheBacanidoctrineofthe"constituentministrant"testasacriterionforthe
typeofactivityinwhichitmayengage.Itsconstrictingeffectisconsignedto
oblivion.Nodoubtsormisgivingsneedassailusthatgovernmentaleffortstopromote
thepublicweal,whetherthroughregulatorylegislationofvastscopeandamplitudeor
throughtheundertakingofbusinessactivities,wouldhavetofaceasearchingand
rigorousscrutiny.Itisclearthattheirlegitimacycannotbechallengedontheground
aloneoftheirbeingoffensivetotheimplicationsofthelaissezfaireconcept.Unless
therebearepugnancythentothelimitationsexpresslysetforthintheConstitutionto
protectindividualrights,thegovernmentenjoysamuchwiderlatitudeofactionasto
themeansitchoosestocopewithgravesocialandeconomicproblemsthaturgently
pressforsolution.Forme,atleast,thatistomanifestdeferencetothephilosophyof
ourfundamentallaw.Hencemyfullconcurrence,asannouncedattheoutset.

5.TheopinionofJusticeMakalintalcontainsthisfootnote:"Itmustbestated,
however,thatwedonotheredecidethequestionnotatissueinthiscaseof
whetherornotalabororganizationcomposedemployeesdischarginggovernmental
functions,whichisallowedunderthelegalprovisionjustquoted,providedsuch
organizationdoesnotimposetheobligationtostrikeortojoininstrike,maypetition
foracertificationelectionandcompeltheemployertobargaincollectivelywithitfor
purposesotherthantosecurechangesorconditionsinthetermsandconditionsof
employment."
Withsuchanaffirmationastothescopeofourdecisiontherebeingnoholdingonthe
vexingquestionoftheeffectsontherightsoflaborinviewoftheconclusionreached
thatthefunctionengagedinisgovernmentalincharacter,Iaminfullagreement.The
answertosuchavitalquerymustawaitanotherday.
Footnotes

1.LandAuthority,LandBank,AgriculturalProductivityCommission;Officeofthe
AgrarianCounsel.
2.TheLandReformProjectAdministrationistheorganizationthroughwhichthefield
operationsofmemberagencies(ofwhichtheACAisone)shallbeundertakenby
theirrespectivepersonnelunderaunifiedadministration.(Section2ofArticle1,
ExecutiveOrderNo.75).
3.Section79(D)oftheRevisedAdministrativeCodeprovidesinpart:"TheDepartment
Head,upontherecommendationoftheChiefofbureausorofficeconcerned,shall

appointallsubordinateofficersandemployeeswhoseappointmentisnotexpressly
vestedbylawinthePresidentofthePhilippines,..."
4.Bacanivs.NationalCoconutCorporation,G.R.No.L9657,Nov.29,1956,53O.G.p.
2800.
5.Malcolm,TheGovernmentofthePhilippines,pp.1920;Bacanivs.NationalCoconut
Corporation,supra.
6.Itmustbestated,however,thatwedonotheredecidethequestionnotatissueinthis
caseofwhetherornotalabororganizationcomposedofemployeesdischarging
governmentalfunctions,whichisallowedunderthelegalprovisionjustquoted
providedsuchorganizationdoesnotimposetheobligationtostrikeortojoinin
strike,maypetitionforacertificationelectionandcompeltheemployertobargain
collectivelywithitforpurposesotherthantosecurechangesormodificationsinthe
termsandconditionsoftheiremployment.Withal,itmaynotbeamisstoobserve,
albeitobiter,thattherighttoorganizethusallowedwouldbemeaninglessunless
thereisacorrelativerightonthepartoftheorganizationtoberecognizedasthe
properrepresentativeoftheemployeesandtobargainintheirbehalfinrelationto
mattersoutsidethelimitationsimposedbythestatute,suchasthoseprovidedforin
Section28(b)ofRepublicActNo.2260,concerningcomplaintsandgrievancesof
theemployees.
7.ReenactedinSec.28(c)oftheCivilServiceActof1959,R.A.No.2260.
1.NationalCoalCo.v.Collector,46Phil.583(1924),Gov't.ofP.I.v.Springer,50Phil.
259(1927);Govt.ofP.I.v.ChinaBankingCorp.,54Phil.845(1930);Association
CooperativadeCreditoAgricoladeMiagaov.Monteclaro,74Phil.281(1943);
AbadSantosv.AuditorGeneral,79Phil.190;(1947);NationalAirportsCorp.v.
Teodoro,91Phil.203(1952),GSISv.Castillo,98Phil.876(1956);Price
StabilizationCorp.,102Phil.515(1957);BoyScoutsofPhil.vAraos,102Phil.
1080(1958);NaricWorker'sUnionv.Alvendia,107Phil.404(1360);GSIS
EmployeesAsso.v.Alvendia,L15614,May30,1960;NationalDev.Co.v.
Tobias,7SCRA692(1963);SSSEmployeesAsso.v.Soriano,7SCRA1016
(1963);PALEmployees'Asso.v.Phil.Airlines,Inc.,11SCRA387(1964);Nawasa
v.NWSAConsolidatedUnions,11SCRA766(1964);Phil.Mfg.Co.v.Manila
PortService,16SCRA95(1966)andPhil.PostalSavingsBankv.Court,21SCRA
1330(1967).
2.100Phil.468(1956).
3.Ibid.,p.472.
4.Ibid.
5.Malcolm,TheGovernmentofPhilippineIslands.

6.TheConstitutionalPositionofthePropertyOwnerin2SelectedEssaysonConstitutional
Law,p.2(1938).
7.Cardozo,TheNatureofJudicialProcess,p.77(1921).
8.198US45(1905).
9.208US412.
10.243US426.
11.261US525.AgaintherewasavigorousdissentfromHolmes.
12.300US379.
13.262US522.
14.291US502.
15.Jackson,StruggleforJudicialSupremacy,p.74,(1941).
16.284Fed.613(1922).
17.AswasstatedintheaboveworkofJackson:"Butinjustthreeyears,beginningwiththe
October1933term,theCourtrefusedtorecognizethepowerofCongressintwelve
cases.Fiveofthesetwelvedecisionsoccurredduringasingleyear:thatis,the
October1935term;fourofthefive,byasharplydividedcourt."Jackson,op.cit.p.
41.
18.2SelectedEssaysonConstitutionalLaw,op.cit.,p.27.
19.319US624.
20.39Phil.660,717718.
21.50Phil.259.
22.46Phil.440.
23.261US525.
24.IIIProceedingsofthePhilippineConstitutionalConvention,Laureled.,pp.173174
(1966).
25.Ibid.,pp.177178.
26.Ibid.,p.178.

27.Cf.Ibid.,pp.227228.ToquotefromDelegatePalma:"Unodelosprincipios
constitucionaleseselreferentealalimitaciondelapropiedadindividual.Porquse
valimitarlaadquisicindelapropiedad.Eseesotrodelosprejuiciosy
preocupacionesquetenemosnosotros,cuandoenrealidadelmundoestsufiendo
actualmenteporcausadelasteoriasantiguassobrelapropiedad.Yahedichoaqui,
onossienotraparte,quelanocinactualsobrepropiedadeslavinculacion
perpetuadetodoslosbienesquesepuedenacumularporunafamilia,hastael
ultimodesusmasremotosdescendientes,haproducidoeseenormedesnivelde
riquesaquesenotaentodaspartesdelmundo,laextremamiseriaalladodel
extremolujo.Unadocenadaenormesmillonarios,alladodemillonesymillonesde
seresdesprovistosdelomselementalyrudimentario,parasatisfacerlas
necesidadesordinarias.Yque?Vamosapermanecerindiferentesantesqueante
nuestrapropiasituacion?Hablamostantodedemocracia,deprosperidadparael
grannumerohacemosalgoafavordeesegrannumeroqueconstituyelafuerzadela
nacion?Novamossiquieraadedicarunmomentodenuestraatencionalagran
injusticiasocialquesuponeelresultadodeunaextremamiseriaydeunlujo
extremo?FuHenryGeorgeelprimeroquellamolaatencindelmundosobreeste
problema.Todalabendicindenuestracivilizacin,lasenormesconquistasqueel
mundoharealizadoenelordencientifico,hantendidosolamenteaproducirla
felicidaddeunospocosylamiseriadelasgrandesmuchedumbres.Creoqueeste
problemaesdignodeatencinentodaspartesdelmundo,yamenosquenosotros
pongamoslasmedidasquehandeatajarlospeligrosdefuturo,nuestrasociedad
estarsiempresujetaalasalarmasquepuedanproducirlasmuchedumbres
hambrientasydeseosasdesupropiobienestar."
28.Ibid.,pp.293294.
29.Ibid.,I,Laureled.,pp.471472.
30.70Phil.340.
31.Ibid.,pp.356357.
32.Ibid.,p.360.
33.Holmes,TheCommonLaw,p.1(1881).
34.Cardozo,op.cit.,p.47.
35.Art.II,Sec.5,Constitution.
36.Calalangv.Williams,70Phil.726,734735(1940).
37.Laski,TheStateinTheoryandPractice,p.35(1935).
38.Ibid.,atp.36.

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