4. Philippine Virginia Tabaco Administration vs. CIR ( COURT OF INDUSTRIAL RELATIONS) (G.R.

No.L-32052, July 25, 1975)

Facts. Respondents filed with the Court of Industrial Relations (CIR) a petition wherein
they alleged their employment relationship with the Phil. Virginia Tobacco
Administration (PVTA), the overtime services in excess of the regular 8 hours a day
rendered by them, and the failure of PVTA to pay them overtime compensation in
accordance with the Eight-Hour Labor Law (CA No. 444). CIR found for the
respondents and directed PVTA to pay out the amount prayed for. PVTA claims that
the matter is beyond the jurisdiction of CIR as PVTA is exercising governmental
functions (and not proprietary1). Respondents predicate their objection on the
distinction between constituent2 and ministrant functions3 of the govt.

Issue. Is PVTA discharging governmental functions?

Held. Yes. The objection of respondents with its overtones of the distinction between
constituent and ministrant functions of governments is futile and irrelevant. The growing
complexities of modern society have rendered the traditional (Wilsonian)
classification4of the functions of government quite unrealistic, not to say obsolete. The
laissez faire principle, which is the basis of the old classification, is of the past. The
areas which used to be [the ministrant and thus “optional” functions of the govt] continue
to be absorbed within the activities that the govt must undertake if it is to meet the
increasing social challenges of the times. Indeed, this development is more in
consonance with the Constitution itself which adopts a national policy on social justice.
It would be then to reject this [constitutional philosophy] if the plea of PVTA that it
discharges governmental function were not heeded. That would be to retreat than to
advance.5

1
The word proprietary signifies a relationship to a proprietor or owner; of, relating to, or involving ownership. See also
proprietary interest, proprietary lease, and proprietary rights.
2
Constituent functions are those which constitute the very bonds of society and are compulsory in nature
3
Ministrant functions are those that are undertaken only by way of advancing the general interests of society and are merely
optional.
4 18
The traditional classification distinguished between 2 kinds of governmental functions: (1) constituent and (2) ministrant.
Those constituent functions include those relating to the maintenance of peace and the prevention of crime, those regulating
property and property rights, those relating to the administration of justice and the determination of political duties of citizens,
and those relating to national defense and foreign relations. The ministrant functions include those merely to promote the
welfare, progress and prosperity of the people. The constituent functions were deemed compulsory, and the ministrant
deemed optional. (PVTA v. CIR, 65 SCRA 416)
5
However, it was held that it does not necessarily follow that just because PVTA was adjudged engaged in governmental
rather than proprietary functions, then the labor controversy was beyond the jurisdiction of the CIR.
The traditional classification of governmental functions into constituent and ministrant
are now obsolete. The constitutional policy on social justice now make the traditionally
ministrant functions obligatory.