BENJAMIN C. JUCO, vs.

NATIONAL LABOR RELATIONS COMMISSION and NATIONAL

HOUSING CORPORATION.

G.R. No. 98107. August 18, 1997

Facts: This is a petition for certiorari to set aside the Decision of the National Labor Relations
Commission (NLRC) dated March 14, 1991, which reversed the Decision dated May 21, 1990 of
Labor Arbiter Manuel R. Caday, on the ground of lack of jurisdiction. Petitioner Benjamin C.
Juco was dismissed from service as a Project Manager of National Housing Corporation for
having been implicated in a crime of theft and/or malversation of public funds.He filed a
complaint with NLRC but the complaint was dismissed on the ground that the NLRC had no
jurisdiction over the case on Sept, 1977. On January 6, 1989, petitioner filed with the Civil
Service Commission a complaint for illegal dismissal, with preliminary mandatory injunction,
then ,complaint dismissed for lack of jurisdiction as well. On June 1, 1990, respondent NHC filed
its appeal before the NLRC and on March 14, 1991, the NLRC promulgated a decision which
reversed the decision of Labor Arbiter Manuel R. Caday on the ground of lack of jurisdiction.

Issue: Whether or not NHC is under the scope of civil service?

Held: No, NHC is not within the jurisdiction of CSC.

Under Article IX, Section 2 (1) of the 1987 Constitution provides:
The civil service embraces all branches, subdivisions, instrumentalities and agencies of the government,
including government owned and controlled corporations with original charters.
From the aforequoted constitutional provision, it is clear that respondent NHC is not within the scope of
the civil service and is therefore beyond the jurisdiction of this board. Moreover, it is pertinent to state
that the 1987 Constitution was ratified and became effective on February 2, 1987.
The National Housing Corporation is a government owned corporation organized in 1959 in
accordance with Executive Order No. 399, otherwise known as the Uniform Charter of
Government Corporation, dated January 1, 1959. Its shares of stock are and have been one
hundred percent (100%) owned by the Government from its incorporation under Act 1459, the
former corporation law. The government entities that own its shares of stock are the
Government Service Insurance System, the Social Security System, the Development Bank of
the Philippines, the National Investment and Development Corporation and the Peoples
Homesite and Housing Corporation.Considering the fact that the NHA had been incorporated
under act 1459, the former corporation law, it is but correct to say that it is a government-owned
or controlled corporation whose employees are subject to the provisions of the Labor Code. This
observation is reiterated in recent case of Trade Union of the Philippines and Allied Services
(TUPAS) v. National Housing Corporation, where we held that the NHA is now within the
jurisdiction of the Department of Labor and Employment, it being a government-owned and/or
controlled corporation without an original charter. Furthermore, we also held that the workers or
employees of the NHC (now NHA) undoubtedly have the right to form unions or employees
organization and that there is no impediment to the holding of a certification election among
them as they are covered by the Labor Code.Thus, the NLRC erred in dismissing petitioners
complaint for lack of jurisdiction because the rule now is that the Civil Service now covers only
government-owned or controlled corporations with original charters.Having been incorporated
under the Corporation Law, its relations with its personnel are governed by the Labor Code and
come under the jurisdiction of the National Labor Relations Commission.