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Pvta VS Cir

The CIR ruled in favor of private respondents who claimed overtime pay from PVTA for work performed beyond eight hours per day. PVTA appealed, claiming it was exempt as a government entity carrying out governmental functions. The Supreme Court rejected the traditional distinction between constituent and ministrant government functions, finding it outdated. The complexities of modern society require governments to undertake activities formerly in the private sector to meet social challenges. Upholding social justice as mandated by the Constitution means rejecting rigid classifications of government roles.

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99 views1 page

Pvta VS Cir

The CIR ruled in favor of private respondents who claimed overtime pay from PVTA for work performed beyond eight hours per day. PVTA appealed, claiming it was exempt as a government entity carrying out governmental functions. The Supreme Court rejected the traditional distinction between constituent and ministrant government functions, finding it outdated. The complexities of modern society require governments to undertake activities formerly in the private sector to meet social challenges. Upholding social justice as mandated by the Constitution means rejecting rigid classifications of government roles.

Uploaded by

Hemodialysis Simc
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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TOPIC: THE CONCEPT OF THE STATE

PVTA VS CIR
65 SCRA 416 (1975)
Ponente: Fernando, J

FACTS:
 Private respondents filed with the CIR a petition, alleging their employment relationship, the
overtime services in excess of the regular eight hours a day rendered by them, and the failure to
pay them overtime compensation in accordance with Commonwealth Act No. 444.
 Their prayer was for the differential between the amount actually paid to them and the amount
allegedly due them.
 Petitioner Philippine Virginia Tobacco Administration denied the allegations.
 The then Presiding Judge Arsenio T. Martinez of respondent Court sustained the claims of private
respondents for overtime services from December 23, 1963 up to the date the decision was
rendered on March 21, 1970, and directing petitioner to pay the same, minus what it had already
paid.
 Petitioner claims that the matter is beyond the jurisdiction of the CIR as it is exercising
governmental functions and that it is exempt from the operation of C.A. 444, invoking the doctrine
announced in the leading Agricultural Credit and Cooperative Financing Administration decision,
and the distinction between constituent and ministrant functions of governments as set forth in
Bacani v. National Coconut Corporation.

ISSUE:
 WON the traditional classification of function of government as ministrant and constituent
applicable in the case at bar.

HELD:
 No.
 The irrelevance of such a distinction considering the needs of the times was clearly pointed out by
the present Chief Justice. Under this traditional classification, such constituent functions are
exercised by the State as attributes of sovereignty, and not merely to promote the welfare, progress
and prosperity of the people – these latter functions being ministrant, the exercise of which is
optional on the part of the government.”
 Nonetheless, as he explained so persuasively: “The growing complexities of modern society,
however, have rendered this traditional classification of the functions of government quite
unrealistic, not to say obsolete. The areas which used to be left to private enterprise and initiative
and which the government was called upon to enter optionally, and only ‘because it was better
equipped to administer for the public welfare than is any private individual or group of individuals,’
continue to lose their well-defined boundaries and to be absorbed within activities that the
government must undertake in its sovereign capacity if it is to meet 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 was envisioned, indeed adopted as a national
policy, by the Constitution itself in its declaration of principle concerning the promotion of social
justice.”
 Thus was laid to rest the doctrine in Bacani v. National Coconut Corporation, based on the
Wilsonian classification of the tasks incumbent on government into constituent and ministrant in
accordance with the laissez faire principle.

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