Provincial Bus Operators Association vs DOLE

Right to equal protection

DOLE Department Order No. 118-12, otherwise known as
the Rules and Regulations Governing the Employment and
Working Conditions of Drivers and Conductors in the
Public Utility Bus Transport Industry
Important rulings of SC in the case
Issues raised in case are not justiciable questions and present
no actual case or controversy nor do they have legal standing
to file such suit.
As declared at the outset, petitioners in this case do not have
standing to bring this suit. As associations, they failed to
establish who their members are and if these members
allowed them to sue on their behalf. While alleging that they
are composed of public utility bus operators who will be directly
injured by the implementation of Department Order No. 118-12
and Memorandum Circular No. 2012-001, petitioners did not
present any proof, such as board resolutions of their alleged
members or their own articles of incorporation authorizing them
to act as their members' representatives in suits involving their
members' individual rights
Right to due process
SC finds that Department Order No. 118-12 and Memorandum
Circular No. 2012-001 are not violative of due process, either
procedural or substantive. Department Order No. 118-12 and
Memorandum Circular No. 2012-001 were ​issued in the
exercise of quasi-legislative powers of the DOLE and the
LTFRB, respectively. As such, ​notice and hearing are not
required for their validity​. In any case, it is undisputed that
the ​DOLE created a Technical Working Group that
conducted several meetings and consultations with
interested sectors before promulgating Department Order
No. 118-12​. Among those invited were bus drivers, conductors,
and operators with whom ocials of the DOLE conducted
focused group discussions. The conduct of these discussions
more than complied with the requirements of procedural due
process.
In the present case, petitioners' sole claim on their equal
protection argument is that the initial implementation of
Department Order No. 118-12 in Metro Manila "is not only
discriminatory but is also prejudicial to petitioners." However,
petitioners did not even bother explaining how exactly
Department Order No. 118-12 infringed on their right to equal
protection. At any rate, the initial implementation of Department
Order No. 118-12 is not violative of the equal protection clause.
The difference in the traffic conditions in Metro Manila and in
other parts of the country presented a substantial distinction.
Department Order No. 118-12 has also been implemented in
other parts of the country.
What is the coverage of DO No. 118-12?
Based on “NWPC GUIDELINES NO. 1 (series 2012)
OPERATIONAL GUIDELINES ON DEPARTMENT ORDER
NO. 118-12” the coverage of such DO include:
“SECTION 1. Coverage. — These Guidelines shall apply to all
public utility bus owners and/or operators employing drivers
and conductors. ​Owners/operators of coaches, school,
tourist and similar buses who are holders of Certificates of
Public Convenience (CPC) issued by the Land
Transportation Franchising and Regulatory Board
(LTFRB), however, are not covered by the provisions of
these Guidelines​”

In sum, Department Order No. 118-12 and Memorandum

Circular No. 2012-001 are in the nature of social legislations to
enhance the economic status of bus drivers and conductors,
and to promote the general welfare of the riding public. They
are reasonable and are not violative of due process.

Right to non-impairment of obligations and contracts

There is no violation of such right because the relations
between capital and labor are not merely contractual as
provided in Article 1700 of the Civil Code. ​Labor contracts are
impressed with public interest and, therefore, must yield
to the common good​. Labor contracts are subject to special
laws on wages, working conditions, hours of labor, and similar
subjects. In other words, labor contracts are ​subject to the
police power of the State. ​Not only does Department Order
No. 118-12 aim to uplift the economic status of bus drivers and
conductors; it also promotes road and traffic safety