8/20/2021 PVTA vs. CIR Case Digest - G.R.

No L-32052 - JULY 25, 1975 - Legal Assassins

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PHILIPPINE VIRGINIA TOBACCO ADMINISTRATION, petitioner,

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vs.

COURT OF INDUSTRIAL RELATIONS, et al., respondents.

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G.R. No L-32052

JULY 25, 1975

FACTS:
Recent Posts
Private respondents filed with the CIR a petition, alleging their
Aglipay vs. Ruiz
employment relationship, the overtime services in excess of the
regular eight hours a day rendered by them, and the failure to pay In Re: Garcia
them overtime compensation in accordance with Commonwealth Gonzales vs. Hechanova
Act No. 444. Their prayer was for the differential between the
Limjoco vs. Estate of Fragante
amount actually paid to them and the amount allegedly due them.
Petitioner Philippine Virginia Tobacco Administration denied the Moy Ya Lim Yao vs.
allegations. The then Presiding Judge Arsenio T. Martinez of Commissoner of Immigration

respondent Court sustained the claims of private respondents for

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8/20/2021 PVTA vs. CIR Case Digest - G.R. No L-32052 - JULY 25, 1975 - Legal Assassins

overtime services from December 23, 1963 up to the date the Categories
decision was rendered on March 21, 1970, and directing petitioner
to pay the same, minus what it had already paid. Petitioner claims Audio Codals
that the matter is beyond the jurisdiction of the CIR as it is
Audio Lectures
exercising governmental functions and that it is exempt from the
operation of C.A. 444, invoking the doctrine announced in the Case Digest

leading Agricultural Credit and Cooperative Financing Civil Law

Administration decision, and the distinction between constituent
Civil Procedure
and ministrant functions of governments as set forth in Bacani v.
Commercial Law
National Coconut Corporation.

Constitution

Corporation Code
ISSUE:
Corporation Law
WON the traditional classification of function of government as
Criminal Law
ministrant and constituent applicable in the case at bar.

Criminal Procedure

Evidence
HELD:
Insurance Law
No. The irrelevance of such a distinction considering the needs of
Judicial Ethics
the times was clearly pointed out by the present Chief Justice.
Under this traditional classification, such constituent functions are Labor Law

exercised by the State as attributes of sovereignty, and not merely Labor Relations
to promote the welfare, progress and prosperity of the people –
Labor Standards
these latter functions being ministrant, the exercise of which is
Legal Ethics
optional on the part of the government.”
Negotiable Instruments
Nonetheless, as he explained so persuasively: “The growing
Persons and Family Relations
complexities of modern society, however, have rendered this
traditional classification of the functions of government quite Political Law
unrealistic, not to say obsolete. The areas which used to be left to Property
private enterprise and initiative and which the government was
Remedial Law
called upon to enter optionally, and only ‘because it was better
equipped to administer for the public welfare than is any private Rules of Court

individual or group of individuals,’ continue to lose their well- Special Proceedings

defined boundaries and to be absorbed within activities that the
Taxation Law
government must undertake in its sovereign capacity if it is to meet
Wills and Succession
the increasing social challenges of the times. Here as almost
everywhere else, the tendency is undoubtedly towards a greater
socialization of economic forces. Here of course this development
Archives
was envisioned, indeed adopted as a national policy, by the
Constitution itself in its declaration of principle concerning the
July 2020
promotion of social justice.”
June 2020

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8/20/2021 PVTA vs. CIR Case Digest - G.R. No L-32052 - JULY 25, 1975 - Legal Assassins

Thus was laid to rest the doctrine in Bacani v. National Coconut June 2018
Corporation, based on the Wilsonian classification of the tasks
July 2017
incumbent on government into constituent and ministrant in
accordance with the laissez faire principle. June 2017

WHEREFORE, the appealed Order of March 21, 1970 and the

Resolution of respondent Court, denying a motion for Recent Comments
reconsideration are hereby affirmed.
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