DEMIGILLO VS TIDCORP (G.R. NO.

168613 MARCH 5, 2013)

FACTS
On February 12, 1998, the Philippine Export and Foreign Loan Guarantee
underwent a name change and became known as the Trade and Investment
Development Corporation of the Philippines (TIDCORP), as outlined in Republic Act No.
8494, titled "An Act Further Amending Presidential Decree No. 1080, As Amended, by
Reorganizing And Renaming the Philippine Export and Foreign Loan Guarantee
Corporation, Expanding Its Primary Purpose, and for Other Purposes." Republic Act No.
8494 brought about structural changes within TIDCORP, which included the issuance of
new appointments. Rosario Manalang-Demigillo (Demigillo), the petitioner, received a
permanent appointment as a Senior Vice President (PG 15) and was assigned to the
Legal and Corporate Services Department (LCSD) of TIDCORP. However, her
performance was consistently rated as 'poor' in two consecutive evaluations, leading to
her removal from the TIDCORP's workforce.

ISSUE

Whether or not the reorganization is valid resulting to Demigillo’s reassignment valid.

HELD
Yes. Under the circumstances, when the members of the Board of Directors
effected the assailed 2002 reorganization, they were acting as the responsible members
of the Board of Directors of TIDCORP constituted pursuant to Presidential Decree No.
1080, as amended by Republic Act No. 8494, not as the alter egos of the President. We
cannot stretch the application of a doctrine that already delegates an enormous amount
of power. Also, it is settled that the delegation of power is not to be lightly inferred.

The extensive consultations and close coordination efforts yielded a comprehensive

reorganization plan for TIDCORP, encompassing a new organizational structure,
position classification, staffing pattern, qualification standards, and rules and regulations
for implementing the reorganization. The plan also included separation incentive
packages and a clear timetable for its implementation. This reorganization was deemed
to be within legal boundaries and was prompted by the perceived necessity to align the
agency with the evolving times.
Given that the 2002 reorganization was determined to be valid and conducted in
accordance with Republic Act No. 8494, there are no legal or practical grounds to
reinstate Demigillo to her former role as Senior Vice President in the LCSD. The
reorganization plan had abolished the LCSD and introduced a completely different
setup, including a new staffing pattern where Demigillo would assume the position of
heading the RCMSS as a Senior Vice President of TIDCORP. Consequently, reinstating
her as Senior Vice President in the LCSD became legally and physically unfeasible.

Demigillo's argument that she was specifically appointed to the position of Senior Vice
President in the LCSD lacked factual support. Records indicated that her permanent
appointment solely pertained to the position of Senior Vice President without specifying
her role within the LCSD. Therefore, her reassignment to the RCMSS did not represent
a demotion in rank and status, as she retained the same rank of Senior Vice President
with an accompanying increase in pay grade.

Furthermore, her assignment to the RCMSS did not violate Demigillo's security of
tenure, as protected by Republic Act No. 6656. Previous legal precedents have upheld
reassignments in the Civil Service resulting from valid reorganizations. Additionally, her
claim that her reassignment was invalid due to a reduction in rank, status, or salary was
unfounded. On the contrary, she was reappointed as a Senior Vice President, and her
position was even upgraded to Pay Grade 16, Step 4, Level II, mirroring her previous
role in various aspects.