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Article IX. B. CSC, Section 2.

GOCCs under Corporation Code - (Par.1, GOCCs without charter


BLISS V. CALLEJO and created under Corporation Code)

FACTS: Labor Code but by the Civil Service Law, rules and
Petitioner, a duly registered union, filed a petition for regulations
certification election of Bliss Development Corporation o Its employees therefore are prohibited to join or
(BDC) with the DOLE-NCR form labor organizations
Med-Arbiter Napoleon v. Fernando dismissed petition for Petitioner union appealed with Bureau of Labor Relations
lack of jurisdiction stating that majority of BDCs stocks is In the meantime, President Cory issued EO 180,
owned by Human Settlement Development Corporation extending to government employees the right to
(HSDC), a GOCC organize and bargain collectively
Portions of the Order: o Sec. 1 This EO applies to all employees of all
o A GOCC is a stock or non-stock corporation whether branches, subdivisions, instrumentalities, and agencies
performing government or proprietary functions, of the government, including GOCCs with original
which is directly chartered by special law or if charters
organized under the corporation law is owned or o Government employees organizations shall register
controlled by the government or subsidiary with the Civil Service Commission and the DOLE,
corporation, to the extent of at least majority of its application shall be filed with BLR
outstanding capital stock or of its outstanding voting
stock ISSUE:
o Majority of shares of BDC are owned by HSDC, a Whether Bliss Development Corporation is subject to Civil
wholly government owned corporation, hence, BDC Service Laws, rules and regulations NO
is a GOCC whose employees are governed not by the Whether BDCEU is covered by EO 180 and must register
under Section 7 as a precondition for filing a petition for
certification election, Therefore, BDC is subject to Civil
Service laws, rules, and regulations NO

HELD: The general law under which a private corporation may


Granted Director of Labor Relations is hereby directed be formed or organized is the Corporation Code, the
to give due course of petitioners application for requirements of which must be complied with by those
certification eletion wishing to incorporate
Section 1 of EO180 expressly limits its application to On the other hand, a government corporation is normally
only GOCCs with original charter created by special law, referred to often as a CHARTER
Hence, Callejas order requiring petitioner union to BDC is a government-owned corporation created under
register in accordance with Section 17 of EO 180 is the Corporation Law
without legal basis It is without a charter, governed by the Labor Code, and
Med-Arbiter sustained invocation of the National Housing not by the Civil Service Law
Corporation v. Juco ruled that inclusion of GOCCs HENCE, EO180 does not apply to it
within the embrace of the civil service shows a deliberate
effort of the framers of the 1973 Constitution to plug an Public respondent Calleja committed grave abuse of
earlier loopholw which allowed GOCCs to avoid the full discretion in ordering petition to register under Section 7
consequences of all encompassing coverage of the civil of EO180 as a precondition for filing a petition for
service system certification election
o However, rulig of NHC v. Juco lost its applicability
with the advent of the 1987 Constitution

A corporation is created by operation of law


It acquires judicial personality either by special law or a
general law

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