Central Bank Employees Association v. BSP 2004 digest

G.R. No. 148208

December 15, 2004

CENTRAL BANK (now Bango !en"ra# ng $%#%&%na' E)$L*+EE! A!!*CAT*N, NC., petitioner, vs. BANGK* !ENTRAL NG $L$NA! an- "e E/ECTE !ECRETAR+,  respondents. $no. 3., ac"' On July 3, 1993, R.A. No. 7653 (the New Centrl !n" A#t$ too" e%%e#t. &t 'olished the old Centrl !n" o% the hilippines, nd #reted  new !). !). On June *, +1, l-ost e%g" 6ear' a7"er  the  the e%%e#tivity o% R.A. No. 7653, petitioner Centrl !n" (now !)$ -ployees Asso#ition, Asso#ition, &n#., %iled  petition %or prohi'ition /inst !) nd the 0e#utive )e#retry o% the O%%i#e o% the resident, to restrin respondents %ro- %urther i-ple-entin/ the lst proviso lst  proviso in )e#tion 15(#$, Arti#le Arti#le && o% R.A. No. 7653, on the /round tht it is un#onstitutionl.  Arti#le &&, &&, )e#tion 15(#$ o% o% R.A. No. No. 7653 provides )e#tion 15. Exercise of Authority  2  2 &n the e0er#ise o% its uthority, the onetry !ord shll  (c) establish a human resource management system which shall govern the selection, hiring, appointment, transfer,  promotion, or dismissal of all personnel. Such system shall aim to establish professionalism and excellence at all  levels of the Bango Sentral in accordance with sound principles of management.  A compensation structure, based on !ob evaluation studies and wage surveys and sub!ect to the Board"s approval, shal shalll be inst instit itut uted ed as an inte integr gral al comp compon onen entt of the the Bang Bango o Sent Sentra ral"l"s s huma human n reso resour urce ce deve develo lopm pmen ent  t   program# $rovided, %hat %hat the &onetary Board shall mae its own system conform as closely as possible with the  principles provided for under 'epublic Act o. *+ -Salary Standardiation Act/.Prov Act/.Provided ided,, however, however, That  compensation and wage structure of employees whose positions fall under salary grade 19 and below shall  be in accordance with the rates prescribed under Republic Act No. !"#. -emphasis !"#. -emphasis supplied/ 

4he "r'" o7 &e"%"%oner' ca##enge  is tht the 'ove proviso 'ove proviso -"es  -"es n ncon'"%""%ona# c" 'etween two #lsses o% e-ployees in the !), vi  (1$ the !) o77%cer' or o77%cer'  or those e0e-pted %ro- the #over/e o%  the )lry )tndrdition w ())$ (e0e-pt #lss$ nd (+$ the ran9an-97%#e  ()lry 8rde )8: 19 nd 'elow$, or those not e0e-pted %ro- the #over/e o% the )) (non2e0e-pt #lss$. &t is #ontended tht this #lssi%i#tion is ; #lssi# #se o% #lss le/isltion,; lle/edly not 'sed on su'stntil distin#tions whi#h -"e rel di%%eren#es, 'ut solely on the )8 o% the !) personneludi#il to so-e +99? rn"2 nd @%ile !) e-ployees. Respondent on the other hnd #ontends tht the provision does not violte the e=ul prote#tion #luse, provided tht it is #onstrued to/ether to/ether with other other provisions provisions o% the s-e lw su#h s the %is#l %is#l nd d-inistr d-inistrtive tive utono-yB utono-yB o% the !n/"o )entrl nd the -ndte o% its -onetry 'ord. 'ord. 4he )oli#itor )oli#itor 8enerl, 8enerl, s #ounsel o% the 0e#utive )e#retry de%ends the provision, tht the #lssi%i#tion o% e-ployees is 'sed on rel nd #tul di%%erentition nd it dheres to the poli#y o% RA 7653 to est'lish pro%essionlis- nd e0#ellen#e within the !) su'>e#t to previlin/ lws nd poli#ies o% the /overn-ent.B

''e hether ''e hether or not the #ontended proviso i% RA 7653 violtes the e=ul prote#tion o% lws, hen#e un#onstitutionl. ;e#- ;e#- Des the proviso is un#onstitutionl s it operte on the slry /rde or the o%%i#er e-ployee sttus, it distin/uishes 'etween e#ono-i# #lss nd sttus with the hi/her slry /rde re#ipients re o% /reter  'ene%it 'ove the lw thn those o% -ndted 'y the )lry )tndrdition A#t. O%%i#ers o% the !) re#eive hi/her w/es tht those o% rn"2nd2%ile e-ployees 'e#use the %or-er re not #overed 'y the slry stndrdition #t s provided 'y the proviso.

&n the #se t 'r, the #hllen/ed proviso opertes on the 'sis o% the slry /rde or o%%i#er2e-ployee sttus. &t is "in to  distin#tion 'sed on e#ono-i# #lss nd sttus, with the hi/her /rdes s re#ipients o%  'ene%it spe#i%i#lly withheld %ro- the lower /rdes. O%%i#ers o% the !) now re#eive hi/her  #o-penstion p#"/es tht re #o-petitive with the industry, while the poorer, low2slried e-ployees re li-ited to the rtes pres#ri'ed 'y the )). 4he i-pli#tions re =uite distur'in/ !) rn"2nd2%ile e-ployees re pid the stri#tly re/i-ented rtes o% the )) while e-ployees hi/her in rn" 2 possessin/ hi/her nd 'etter edu#tion nd opportunities %or #reer dvn#e-ent 2 re /iven hi/her #o-penstion p#"/es to enti#e the- to sty. Considerin/ tht ->ority, i% not ll, the rn"2nd2%ile e-ployees #onsist o% people whose sttus nd rn" in li%e re less nd li-ited, espe#illy in ter-s o% >o' -r"et'ility, it is they 2 nd not the o%%i#ers 2 who hve the rel e#ono-i# nd %inn#il need %or the d>ust-ent 4his is in ##ord with the poli#y o% the Constitution ;to %ree the people %ro- poverty, provide de=ute so#il servi#es, e0tend to the-  de#ent stndrd o% livin/, nd i-prove the =ulity o% li%e %or ll.; 1* Any #t o%  Con/ress tht runs #ounter to this #onstitutionl desideratum deserves stri#t s#rutiny 'y this Court 'e%ore it #n pss -uster. 4o 'e sure, the !) rn"2nd2%ile e-ployees -erit /reter #on#ern %ro- this Court. 4hey represent the -ore i-potent rn"2nd2%ile /overn-ent e-ployees who, unli"e e-ployees in the privte se#tor, hve no spe#i%i# ri/ht to or/nie s  #olle#tive 'r/inin/ unit nd ne/otite %or 'etter ter-s nd #onditions o%  e-ploy-ent, nor the power to hold  stri"e to protest un%ir l'or pr#ti#es. Not only re they i-potent s  l'or unit, 'ut their e%%i##y to lo''y in Con/ress is l-ost nil s R.A. No. 7653 e%%e#tively isolted the%ro- the other 8E& rn"2nd2%ile in #o-penstion. 4hese !) rn"2nd2%ile e-ployees represent the politi#lly powerless nd they should not 'e #o-pelled to see"  politi#l solution to their une=ul nd ini=uitous tret-ent. &ndeed, they hve wited %or -ny yers %or the le/islture to #t. 4hey #nnot 'e s"ed to wit so-e -ore %or dis#ri-intion #nnot 'e /iven ny witin/ ti-e. Fnless the e=ul prote#tion #luse o% the Constitution is  -ere pltitude, it is the Court