6 - Arizala V CA

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ARIZALA v.

CA
G.R. Nos. 43633-34
Narvasa, J.

FACTS:

During the existence of the Industrial Peace Act, the GSIS became bound by a
collective bargaining agreement executed between the entity and the labor
organization representing the majority of its employees, the GSIS Employees
Association. The CBA contained a maintenance-of-membership clause which
provides that all employees who, at the time of the execution of said agreement,
were members of the union or became members thereafter, were obliged to
maintain their union membership in good standing for the duration of the
agreement as a condition for their continued employment in the GSIS. Under the
said Act, GOCC’s had the duty to bargain collectively. Also, supervisors are
prohibited from being members of labor organizations composed of rank-and-file
employees.

Petitioners Arizala, Maribao, Joven, and Bulandus were employees occupying


supervisory positions in the GSIS. Arizala and Maribao were the Chief of the
Accounting Division, and the Billing Section of said Division, whereas the latter
two were the Assistant Chief of the said division and the Assistant Chief of the
Field Service and Non-Life Insurance Division. They were made to resign from
the labor union as they were occupying supervisory positions. As they refused to
do so, criminal cases for violation of the said Act were filed against them to which
they were convicted. According to petitioners, the 1973 Constitution took effect
pending the resolution of their cases, and that as the provisions of the said
Constitution, and subsequently the Labor Code, repealed the Industrial Peace
Act. The same provides that the employees in GOCC’s are now within the Civil
Service, and that the terms and conditions of their employment are to be
governed by the Civil Service Law, and hence, they should no longer be
prosecuted as they are not anymore within the coverage of the Industrial Peace
Act.

ISSUE: w/n the petitioners’ criminal liability is deemed extinguished by reason of


subsequent legislation and the provisions of the 1973 and the 1987 Constitutions

HELD:
YES. It is true that previously, both under the Labor Code and PD 807 (Civil
Service Decree of the Philippines), government employees were precluded from
bargaining as regards terms and conditions of employment. But EO 111,
amending certain provisions of the Labor Code, restored the right to organize
and to negotiate and bargain of employees of government corporations
established under the Corporation Code. EO 180, providing guidelines for the
exercise of the right to organize of government employees, and RA 6715, again
further amending the Labor Code, granted to all government employees the right
of collective bargaining or negotiation EXCEPT as regards those terms of their
employment which were fixed by law. The Labor Code allowed supervisors, not
otherwise managerial, to join rank-and-file unions. As the law prohibiting
supervisors from joining labor organizations composed of employees under their
supervision was repealed during the pendency of the petitioners’ criminal case,
their act ceased to be a criminal act but became legal. Therefore, the Court
should have dismissed the proceedings, as the penal laws pose a more
favorable attitude towards the accused in relation to statutes that have been
repealed. Where the offense ceases to be criminal, prosecution cannot be had.

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