CENTRAL BANK (now BSP) EMPLOYEES ASSOCIATION, INC vs. BSP and the EXEC TI!

E SECRETARY Summary: A provision of law declared as valid became subsequently unconstitutional, due to its continued operation violates the equal protection of the law, after enactment of subsequent laws. R.A. No.7652 the New !entral "an# Act$ provision %ection &5 c', Article ((, initially declared valid, was subsequently declared unconstitutional after the enactment of amendments to the charter of seven 7' other )overnment financial institutions *+(s', which constitutes discrimination of the ran# and file employees of the "%,. "a#ts$ R.A. No. 7653 (the New Central Bank Act) was enacted n !""3#that re$laced the old Central Bank o% the &h l $$ nes. 'n ())!# almost e *ht (+) years a%ter ts enactment# the Central Bank (now BS&) ,m$loyees Assoc at on# 'nc.# % led a $et t on %or $roh - t on a*a nst BS& and the ,.ecut /e Secretary# to restra n res$ondents %rom %urther m$lement n* the last proviso n Sect on !5(c)# Art cle '' o% R.A. No. 7653# on the *round that t s unconst tut onal n / olat on o% the e0ual $rotect on clause. ,.cer$t o% the $ro/ s on Art cle ''# Sect on !5c o% R.A. No.7653: Sect on !5. ,.erc se o% Author ty 1 'n the e.erc se o% ts author ty# the 2onetary Board shall 3.... 333&ro/ ded# howe/er that the com$ensat on and wa*e structure o% em$loyees whose $os t ons %all under salary *rade !" and -elow shall -e n accordance w th the rates $rescr -ed under R.A. 675+. 4he proviso makes an unconst tut onal cut -etween two classes o% em$loyees n the BS&# (!) the BS& o%% cers or those e.em$ted %rom the co/era*e o% the Salary Standard 5at on 6aw (SS6) (e.em$t class)7 and (() the rank8and8% le (Salary 9rade :S9; !" and -elow)# or those not e.em$ted %rom the co/era*e o% the SS6 (non8e.em$t class). 't s contended that th s class % cat on s <a class c case o% class le* slat on#< alle*edly not -ased on su-stant al d st nct ons wh ch make real d %%erences# -ut solely on the S9 o% the BS& $ersonnel=s $os t on. &et t oner also cla ms that t s not *ermane to the $ur$oses o% Sect on !5(c)# Art cle '' o% R.A. No. 7653# the most m$ortant o% wh ch s to esta-l sh $ro%ess onal sm and e.cellence at all le/els n the BS&. &et t oner cla ms that the class % cat on s not reasona-le -ut ar- trary and ca$r c ous# and / olates the e0ual $rotect on clause o% the Const tut on. Iss%e$ >hether or not the last $ara*ra$h o% Sect on !5(c)# Art cle '' o% R.A. No. 7653<# / olates the e0ual $rotect on clause as $rotected -y the Const tut on. &e'd$ "()st R%'(n*$ ?es. @nder the $resent standards o% e0ual $rotect on# the sa d $ro/ s on o% R.A. 7653 s /al d. 4he 0uest oned $ro/ so showed the class % cat on created the Aur s$rudent al standards %or e0ual $rotect on on ts %ace and n ts o$erat on -ears no const tut onal n% rm t es. All that s re0u red o% a /al d class % cat on s that t -e reasona-le# wh ch means that the class % cat on should -e -ased on su-stant al d st nct ons wh ch makes real d %%erences# that t must -e *ermane to the $ur$ose o% the law# that t must not -e l m ted to e. st n* cond t ons only7 and that t must a$$ly e0ually to each mem-er o% the class. 't s clear that the e.em$t on o% o%% cers (S9 () and a-o/e) %rom the SS6 was ntended to address the BS&Bs lack o% com$et t /eness n terms o% attract n* com$etent o%% cers and e.ecut /es.

S%+se,%ent'- R%'(n*$ No. Art cle '' Sect on !5c o% R.A. No.7653 was an unconst tut onal $ro/ s on. The ena#t.ent o/ s%+se,%ent 'aws e.em$t n* all other rank8and8% le em$loyees o% 9C's (9S'S# 6DB# DB&# and SSS# and three other 9C') %rom the SS6# n !""5 to ())E# renders the cont nued a$$l cat on o% the challen*ed $ro/ s on a / olat on o% the e0ual $rotect on clause. A stat%te at one t(.e .a- +e#o.e vo(d at anothe) t(.e +e#a%se o/ a'te)ed #()#%.stan#es. It v(o'ates the e,%a' 0)ote#t(on #'a%se. 4he challen*ed proviso o$erates on the -as s o% the salary *rade or o%% cer8em$loyee status. 't s ak n to a d st nct on -ased on econom c class and status# w th the h *her *rades as rec $ ents o% a -ene% t s$ec % cally w thheld %rom the lower *rades. F%% cers o% the BS& now rece /e h *her com$ensat on $acka*es that are com$et t /e w th the ndustry# wh le the $oorer# low8salar ed em$loyees are l m ted to the rates $rescr -ed -y the SS6. 4he m$l cat ons are 0u te d stur- n*: BS& rank8and8% le em$loyees are $a d the str ctly re* mented rates o% the SS6 wh le em$loyees h *her n rank 8 $ossess n* h *her and -etter educat on and o$$ortun t es %or career ad/ancement 8 are * /en h *her com$ensat on $acka*es to ent ce them to stay.