Case Digest: Cebu Institute of Technology v. Hon. Ople, G.R. No. L-58870, April 15, 1988

 Labor Law | NLRC

  • Motions for Reconsideration and Clarification in four of these six consolidated cases decided by the Court on December 18, 1987, regarding the allocation of tuition fee increases under Presidential Decree No. 451 and the Education Act of 1982.
    • SEC. 3. Limitations. — The increase in tuition or other school fees or other charges as well as the new fees or charges authorized under the next preceding section shall be subject to the following conditions;
    • (a) That no increase in tuition or other school fees or charges shall be approved unless sixty (60%) per centum of the proceeds is allocated for increase in salaries or wages of the members of the faculty and all other employees of the school concerned, and the balance for institutional development, student assistance and extension services, and return to investments: Provided That in no case shall the return to investments exceed twelve (12%) per centum of the incremental proceeds;
  • Biscocho Case (G.R. No. 76521):
    • Clarification on the basis for computing the ten percent (10%) negotiation fee. 
    • Petitioners and Espiritu Santo Parochial School propose a 30% basis for the ten percent (10%) negotiation fee, citing it's fixed by law at 60%.
    • Respondent Faculty Association argues for a 90% basis, tied to their influence on benefits due to the demand and strike related to P.D. 451.
WoN the 30% shall be the basis for the ten percent (10%) negotiation fee. YES

The whole ninety percent (90%) economic package awarded by the National Labor Relations Commission cannot be the basis for computing the negotiation fees. The law has already provided for the minimum percentage of tuition fee increases to be allotted for teachers and other school personnel. This is mandatory and cannot be diminished although it may be increased by collective bargaining. It follows that only the amount corresponding beyond that mandated by law should be subject to negotiation fees and attorney’s fees for the simple reason that it is only this which the school employees had to bargain for. The sixty percent (60%) which is what the law grants them is not a negotiable issue.

B. This Court in its Decision affirmed the following award of the National Labor Relations Commission (NLRC):
x       x       x


(f) the School to deduct the amount equivalent to ten (10%) percent of the backwages payable to all members of the bargaining unit as negotiation fee and to deliver the same to the Union treasurer for proper disposition.

What is sought to be clarified is the term "backwages" as used in the above order. The Solicitor General holds the view that inasmuch as the NLRC Order was issued on April 14, 1986, the "backwages" would refer only to the amount corresponding to the period prior to said date.

The Court does not agree with the view taken by the Solicitor General. The term "backwages" as used in the questioned order of the former Minister of Labor apparently refers to whatever back payments will be received by the teachers and other school employees from the economic package which was ordered to be included in the collective bargaining agreement. "Backwages" do not cover only the amount corresponding to the period prior to the promulgation of the Order on April 14, 1986. Hence, the ten percent (10%) negotiation fee should be computed on the amount in excess of that portion allocated by law for increases in salaries of teachers and other school employees for the entire contract period covered by the economic package, starting school year 1985-1986 and ending school year 1987-1988.

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