7 Cbea V Bsp.docx

CENTRAL BANK EMPLOYEES ASSOCIATION vs. BANGKO SENTRAL NG PILIPINAS G.R. No. 148208; December 15, 2004 PUNO, J. DOCTRINE: Equal protection clause does not demand absolute equality but it requires that all persons shall be treated alike, under like circumstances and conditions both as to privileges conferred and liabilities enforced. Favoritism and undue preference cannot be allowed. FACTS: The Central Bank (now BSP) Employees Association Inc, filed a Petition for Prohibition against BSP and the Executive Secretary of the Office of the President, to restrain respondents from further implementing the last proviso in Section 15 (c), Article II of RA No 7653, on the ground that it is unconstitutional. It provides 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 RA No 6758. Respondent contends that the provision does not violate the equal protection clause and can stand the constitutional test, provided it is construed in harmony with other provisions of the same law, such as fiscal and administrative autonomy of BSP

ISSUE: Whether or not the last paragraph of Section 15 (c), Article II of RA No 7653, runs afoul of the constitutional mandate that “No person shall be … denied equal protection of the laws”

RULING: Unconstitutional. the challenged proviso operates on the basis of the salary grade or officer-employee status. It is akin to a distinction based on economic class and status, Considering that majority, if not all, the rank-and-file employees consist of people whose status and rank in life are less and limited, especially in terms of job marketability, it is they - and not the officers - who have the real economic and financial need for the adjustment This is in accord with the policy of the Constitution "to free the people from poverty, provide adequate social services, extend to them a decent standard of living, and improve the quality of life for all. Any act of Congress that runs counter to this constitutional desideratum deserves strict scrutiny by this Court before it can pass muster. The BSP rank-and-file employees merit greater concern from this Court. These BSP rankand-file employees represent the politically powerless and they should not be compelled to seek a political solution to their unequal and iniquitous treatment