Central Bank Employees Association Inc. vs. Bangko Sentral ng Pilipinas GR 14828! 1" #ecem$er 24 P%no &'()
*AC+S)
On 3 July 1993, RA 7653 (the New Central Bank Act) took effect !t a"ol#$he% the ol% Central Bank of the &h#l#''#ne$, an% create% a new B& On June *++1, alo$t year$ after the effect#-#ty of RA 7653, the Central Bank (now B&) .'loyee$ A$$oc#at#on, !nc, f#le% a 'et#t#on for 'roh#"#t#on a/a#n$t B& an% the .0ecut#-e ecretary of the Off#ce of the &re$#%ent, to re$tra#n the Ban/ko entral n/ &#l#'#na$ an% the .0ecut#-e ecretary fro further #'leent#n/ the la$t 'ro-#$o #n ect#on 15(c), Art#cle !! of RA 7653, on the /roun% that #t #$ uncon$t#tut#onal
Art#cle !!, !!, ect#on 15(c) of RA 7653 (.0erc#$e (.0erc#$e of Author#ty Author#ty)) 'ro-#%e$ that ,In t-e eercise o/ its a%t-ority! t-e 0onetary Boar s-all ... &c( esta$lis- a -%man reso reso%r %rce ce mana manage geme ment nt syst system em -ic -ic- s-al s-alll gov govern ern t-e t-e sele select ctio ion! n! -iri -iring ng!! appoin appointmen tment! t! trans/e trans/er! r! promot promotion ion!! or ismis ismissal sal o/ all personn personnel. el. S%cS%c- system system s-all aim to esta$lisesta$lis- pro/essionalism pro/essionalism an ecellence ecellence at all levels o/ t-e Bangko Sentral in accorance it- so%n principles o/ management. A compensation str%ct%re! $ase on 3o$ eval%ation st%ies an age s%rveys an s%$3ect to t-e Boars approval! s-all $e instit%te as an integral component o/ t-e Bangko Sentrals -%man reso%rce evelopment program) Provie! +-at t-e 0onetary Boar Boar s-al s-alll make make its its on on syst system em con/ con/or orm m as clos closel ely y as poss possi$ i$le le itit- t-e t-e principles provie /or %ner Rep%$lic Act 5o. 67"8 Salary Stanari9ation Act:. Provie! Provie! -oever! -oever! +-at compensation compensation an age str%ct%re o/ employees employees -ose positions /all %ner salary grae 1; an $elo s-all $e in accorance it- t-e rates prescri$e %ner Rep%$lic Act 5o. 67"8.,
2he A$$oc#at#on alle/e$ that the 'ro-#$o ake$ an uncon$t#tut#onal cut "etween two cla$$e$ of e'loyee$ #n the B&, -# (1) the B& off#cer$ or tho$e e0e'te% fro the
co-era/e of the alary tan%ar%#at#on 4aw (4) (e0e't cla$$) an% (*) the rankan% f#le (alary ra%e 8 19 an% "elow), or tho$e not e0e'te% fro the co-era/e of the 4 (none0e't cla$$) !t #$ conten%e% that th#$ cla$$#f#cat#on #$ :a cla$$#c ca$e of cla$$ le/#$lat#on,; alle/e%ly not "a$e% on $u"$tant#al %#$t#nct#on$ wh#ch ake real %#fference$, "ut $olely on the of the B& 'er$onnel<$ 'o$#t#on
!n $u, petitioner posits that the cla$$#f#cat#on #$ not rea$ona"le "ut ar"#trary an% ca'r#c#ou$, an% -#olate$ the e=ual 'rotect#on clau$e of the Con$t#tut#on &et#t#oner al$o $tre$$e$ (a) that RA No 7653 ha$ a $e'ara"#l#ty clau$e, wh#ch w#ll allow the %eclarat#on of the uncon$t#tut#onal#ty of the proviso #n =ue$t#on w#thout affect#n/ the other 'ro-#$#on$ an% (") the ur/ency an% 'ro'r#ety of the 'et#t#on, a$ $oe 2!;;4 BSP rank
#'leentat#on of $uch aount$ to lack of ?ur#$%#ct#on an% (*) #t ha$ no a''eal nor any other 'la#n, $'ee%y an% a%e=uate ree%y #n the or%#nary cour$e e0ce't throu/h th#$ 'et#t#on for 'roh#"#t#on, wh#ch th#$ Court $houl% take co/n#ance of, con$#%er#n/ the tran$cen%ental #'ortance of the le/al #$$ue #n-ol-e%
Iss%e)
@hether or not the rankan%f#le e'loyee$ of the B& are un%uly %#$cr##nate% u'on "y e0e't#n/ B& off#cer$ ( *+ an% a"o-e) fro the alary tan%ar%#at#on 4aw thu$ -#olate$ the e=ual 'rotect#on of law clau$e
=el)
No !t #$ $ettle% #n con$t#tut#onal law that the e=ual 'rotect#on clau$e %oe$ not 're-ent the 4e/#$lature fro e$ta"l#$h#n/ cla$$e$ of #n%#-#%ual$ or o"?ect$ u'on wh#ch %#fferent rule$ $hall o'erate $o lon/ a$ the cla$$#f#cat#on #$ not unrea$ona"le Con/re$$ #$ allowe% a w#%e leeway #n 'ro-#%#n/ for a -al#% cla$$#f#cat#on 2he e=ual 'rotect#on clau$e #$ not #nfr#n/e% "y le/#$lat#on wh#ch a''l#e$ only to tho$e 'er$on$ fall#n/ w#th#n a $'ec#f#e% cla$$ !f the /rou'#n/$ are character#e% "y $u"$tant#al %#$t#nct#on$ that ake real %#fference$, one cla$$ ay "e treate% an% re/ulate% %#fferently fro another 2he cla$$#f#cat#on u$t al$o "e /erane to the 'ur'o$e of the
law an% u$t a''ly to all tho$e "elon/#n/ to the $ae cla$$ 2he e0e't#on of off#cer$ ( *+ an% a"o-e) fro the 4 wa$ #nten%e% to a%%re$$ the B&<$ lack of co'et#t#-ene$$ #n ter$ of attract#n/ co'etent off#cer$ an% e0ecut#-e$ !t wa$ not #nten%e% to %#$cr##nate a/a#n$t the rankan%f#le !f the en%re$ult %#% #n fact lea% to a %#$'ar#ty of treatent "etween the off#cer$ an% the rankan%f#le #n ter$ of $alar#e$ an% "enef#t$, the %#$cr##nat#on or %#$t#nct#on ha$ a rat#onal "a$#$ an% #$ not 'al'a"ly, 'urely, an% ent#rely ar"#trary #n the le/#$lat#-e $en$e
=oever! -ile RA 76"> starte as a vali meas%re ell it-in t-e legislat%res poer! t-e enactment o/ s%$se?%ent las eempting all rank
+-e concept o/ relative constit%tionality< 2he con$t#tut#onal#ty of a $tatute cannot, #n e-ery #n$tance, "e %eter#ne% "y a ere co'ar#$on of #t$ 'ro-#$#on$ w#th a''l#ca"le 'ro-#$#on$ of the Con$t#tut#on, $#nce the $tatute ay "e con$t#tut#onally -al#% a$ a''l#e% to one $et of fact$ an% #n-al#% #n #t$ a''l#cat#on to another A $tatute -al#% at one t#e ay "ecoe -o#% at another t#e "ecau$e of altere circ%mstances. 2hu$, #f a $tatute #n #t$ 'ract#cal o'erat#on "ecoe$ ar"#trary or conf#$catory, #t$ -al#%#ty, e-en thou/h aff#re% "y a forer a%?u%#cat#on, #$ o'en to #n=u#ry an% #n-e$t#/at#on #n the l#/ht of c-ange conitions
After the new B& charter wa$ enacte% #n 1993, Con/re$$ al$o un%ertook the aen%ent of the charter$ of the 4an% Bank of the &h#l#''#ne$ (4B&, w#th RA 79+7 81995), oc#al ecur#ty y$te (, w#th RA ** 81997), all Bu$#ne$$ uarantee an% #nance Cor'orat#on (BC, w#th RA *9 81997), o-ernent er-#ce !n$urance y$te (!, w#th RA *91 81997), e-elo'ent Bank of the &h#l#''#ne$ (B&, w#th RA 5*3 8199), Doe uaranty Cor'orat#on (DC, w#th RA 763 8*+++), an% &h#l#''#ne e'o$#t !n$urance Cor'orat#on (&!C, w#th RA 93+* 8*++E) 2hu$, 11 year$ after the aen%ent of the B& charter, the rankan%f#le of 7 other !$ were /rante% the e0e't#on that wa$ $'ec#f#cally %en#e% to the rankan%f#le of the B& .-en the ecur#t#e$ an% .0chan/e Co#$$#on (.C) wa$ /rante% the $ae "lanket e0e't#on fro the 4 #n *+++ 2he 'r#or -#ew on the con$t#tut#onal#ty of RA 7653 wa$ conf#ne% to an e-aluat#on of #t$ cla$$#f#cat#on "etween the rankan%f#le an% the off#cer$
of the B&, foun% rea$ona"le "ecau$e there were $u"$tant#al %#$t#nct#on$ that a%e real %#fference$ "etween the two cla$$e$
2he $u"$e=uent enactent$, howe-er, con$t#tute $#/n#f#cant chan/e$ #n c#rcu$tance that con$#%era"ly alter the rea$ona"#l#ty of the cont#nue% o'erat#on of the la$t 'ro-#$o of ect#on 15(c), Art#cle !! of RA 7653, there"y e0'o$#n/ the 'ro-#$o to ore $er#ou$ $crut#ny 2h#$ t#e, the $crut#ny relate$ to the con$t#tut#onal#ty of the cla$$#f#cat#on al"e#t a%e #n%#rectly a$ a con$e=uence of the 'a$$a/e of e#/ht other law$ "etween the rankan%f#le of the B& an% the $e-en other !$ 2he cla$$#f#cat#on u$t not only "e rea$ona"le, "ut u$t al$o a''ly e=ually to all e"er$ of the cla$$
2he 'ro-#$o ay "e fa#r on #t$ face an% #'art#al #n a''earance "ut #t cannot "e /ro$$ly %#$cr##natory #n #t$ o'erat#on, $o a$ 'ract#cally to ake un?u$t %#$t#nct#on$ "etween 'er$on$ who are w#thout %#fference$ 2he %#$'ar#ty of treatent "etween B& rankan% f#le an% the rankan%f#le of the other $e-en !$ %ef#n#tely "ear$ the un#$taka"le "a%/e of #n-#%#ou$ %#$cr##nat#on no one can, w#th can%or an% fa#rne$$, %eny the %#$cr##natory character of the $u"$e=uent "lanket an% total e0e't#on of the $e-en other !$ fro the 4 when $uch wa$ w#thhel% fro the B& Al#ke$ are "e#n/ treate% a$ unal#ke$ w#thout any rat#onal "a$#$
2he e=ual 'rotect#on clau$e %oe$ not %ean% a"$olute e=ual#ty "ut #t re=u#re$ that all 'er$on$ $hall "e treate% al#ke, un%er l#ke c#rcu$tance$ an% con%#t#on$ "oth a$ to 'r#-#le/e$ conferre% an% l#a"#l#t#e$ enforce% a-or#t#$ an% un%ue 'reference cannot "e allowe% or the 'r#nc#'le #$ that e=ual 'rotect#on an% $ecur#ty $hall "e /#-en to e-ery 'er$on un%er c#rcu$tance$ wh#ch, #f not #%ent#cal, are analo/ou$ !f law "e looke% u'on #n ter$ of "ur%en or char/e$, tho$e that fall w#th#n a cla$$ $houl% "e treate% #n the $ae fa$h#on whate-er re$tr#ct#on$ ca$t on $oe #n the /rou' #$ e=ually "#n%#n/ on the re$t
!n l#/ht of the lack of real an% $u"$tant#al %#$t#nct#on$ that woul% ?u$t#fy the une=ual treatent "etween the rankan%f#le of B& fro the $e-en other !$, #t #$ clear that the enactent of the $e-en $u"$e=uent charter$ ha$ ren%ere% the cont#nue% a''l#cat#on of the challen/e% 'ro-#$o anathea to the e=ual 'rotect#on of the law, an% the $ae
$houl% "e %eclare% a$ an outlaw 2he twot#er analy$#$ a%e #n the ca$e, an% #t$ conclu$#on of uncon$t#tut#onal#ty "y $u"$e=uent o'erat#on, are #n ca%ence an% #n con$onance w#th the 'ro/re$$#-e tren% of other ?ur#$%#ct#on$ an% #n #nternat#onal law 2here $houl% "e no he$#tat#on #n u$#n/ the e=ual 'rotect#on clau$e a$ a a?or cutt#n/ e%/e to el##nate e-ery conce#-a"le #rrat#onal %#$cr##nat#on #n our $oc#ety !n%ee%, the $oc#al ?u$t#ce #'erat#-e$ #n the Con$t#tut#on, cou'le% w#th the $'ec#al $tatu$ an% 'rotect#on affor%e% to la"or, co'el th#$ a''roach
A'ro'o$ the $'ec#al 'rotect#on affor%e% to la"or un%er our Con$t#tut#on an% #nternat#onal law, #t ha$ "een hel% #n !nternat#onal chool All#ance of .%ucator$ - Fu#$u"#n/ that :'u"l#c 'ol#cy a"hor$ #ne=ual#ty an% %#$cr##nat#on #$ "eyon% content#on Our Con$t#tut#on an% law$ reflect the 'ol#cy a/a#n$t the$e e-#l$ 2he Con$t#tut#on #n the Art#cle on oc#al Ju$t#ce an% Duan R#/ht$ e0hort$ Con/re$$ to G/#-e h#/he$t 'r#or#ty to the enactent of ea$ure$ that 'rotect an% enhance the r#/ht of all 'eo'le to huan %#/n#ty, re%uce $oc#al, econo#c, an% 'ol#t#cal #ne=ual#t#e$< 2he -ery "roa% Art#cle 19 of the C#-#l Co%e re=u#re$ e-ery 'er$on, G#n the e0erc#$e of h#$ r#/ht$ an% #n the 'erforance of h#$ %ut#e$, 8to act w#th ?u$t#ce, /#-e e-eryone h#$ %ue, an% o"$er-e hone$ty an% /oo% fa#th<
!nternat#onal law, wh#ch $'r#n/$ fro /eneral 'r#nc#'le$ of law, l#kew#$e 'ro$cr#"e$ %#$cr##nat#on eneral 'r#nc#'le$ of law #nclu%e 'r#nc#'le$ of e=u#ty, #e, the /eneral 'r#nc#'le$ of fa#rne$$ an% ?u$t#ce, "a$e% on the te$t of what #$ rea$ona"le 2he Hn#-er$al eclarat#on of Duan R#/ht$, the !nternat#onal Co-enant on .cono#c, oc#al, an% Cultural R#/ht$, the !nternat#onal Con-ent#on on the .l##nat#on of All or$ of Rac#al #$cr##nat#on, the Con-ent#on a/a#n$t #$cr##nat#on #n .%ucat#on, the Con-ent#on (No 111) Concern#n/ #$cr##nat#on #n Re$'ect of .'loyent an% Occu'at#on all e"o%y the /eneral 'r#nc#'le a/a#n$t %#$cr##nat#on, the -ery ant#the$#$ of fa#rne$$ an% ?u$t#ce
2he &h#l#''#ne$, throu/h #t$ Con$t#tut#on, ha$ #ncor'orate% th#$ 'r#nc#'le a$ 'art of #t$ nat#onal law$ 2he B& rankan%f#le e'loyee$ er#t /reater concern fro the u'ree Court 2hey re're$ent the ore #'otent rankan%f#le /o-ernent e'loyee$ who, unl#ke e'loyee$ #n the 'r#-ate $ector, ha-e no $'ec#f#c r#/ht to or/an#e a$ a collect#-e "ar/a#n#n/ un#t an% ne/ot#ate for "etter ter$ an% con%#t#on$ of e'loyent, nor the 'ower to hol% a $tr#ke to 'rote$t unfa#r la"or 'ract#ce$ Not only are they #'otent a$ a la"or un#t, "ut the#r eff#cacy to lo""y #n Con/re$$ #$ alo$t n#l a$ RA 7653
effect#-ely #$olate% the fro the other ! rankan%f#le #n co'en$at#on 2he$e B& rankan%f#le e'loyee$ re're$ent the 'ol#t#cally 'owerle$$ an% they $houl% not "e co'elle% to $eek a 'ol#t#cal $olut#on to the#r une=ual an% #n#=u#tou$ treatent !n%ee%, they ha-e wa#te% for any year$ for the le/#$lature to act 2hey cannot "e a$ke% to wa#t $oe ore for %#$cr##nat#on cannot "e /#-en any wa#t#n/ t#e Hnle$$ the e=ual 'rotect#on clau$e of the Con$t#tut#on #$ a ere 'lat#tu%e, #t #$ the Court<$ %uty to $a-e the fro rea$onle$$ %#$cr##nat#on
+-%s! t-e contin%e operation an implementation o/ t-e last proviso o/ Section 1"&c(! Article II o/ Rep%$lic Act 76"> as eclare %nconstit%tional
