Tuesday, October 03, 2006 High court lifts freeze order on rollback of pay of power firm's employees
THE Supreme Court (SC) has revoked the writ of preliminary injunction issued by the Court of Appeals (CA) in 2003 against the Department of Budget and Management (DBP) and the National Power Corporation (Napocor) board from rolling back the salaries of the employees of the state-owned power firm who were receiving more than two-step increments.
In an en banc decision penned by Chief Justice Artemio Panganiban, the high court unanimously reversed the Nov. 25, 2003 decision of the appellate court which upheld the writ of preliminary injunction issued by the Quezon City Regional Trial Court (RTC) enjoining the Napocor from implementing its Board Resolution No. 2002-81 issued on July 24, 2002.
The SC declared that the injunction was not properly issued and insisted that the power firm has no vested right to the suspended step increments.
"In the present case, because the validity of their implementation was fundamentally assailed, the step increments enjoyed by the Napocor employees could not have ripened into vested rights. In brief, it is seriously contended that, because they were granted without the required DBM approval, no vested rights to the step increments could have been acquired," the SC ruled.
The high court said a vested right is one that is "absolute, complete and unconditional; to its exercise, no obstacle exists; and it is immediate and perfect in itself and not dependent upon any contingency."
It junked the argument of the employees that they have legal rights to the step increments under Republic Act (RA) 6395 (Revised Charter of the Napocor).
Under the law, the NPC board was empowered to fix the compensation and benefits of its employees and to grant step increments based on Memorandum Order No. 198 issued by then President Fidel Ramos and on RA 7468 (otherwise known as the Electric Power Crisis Act of 1993).
On the other hand, the DBM contended that such provision has already by superseded by Section 16 of RA 6758, which mandates the DBM's review and approval of Napocor Board Resolution No. 2001-113 and Circular No.
2001-51.
"From the foregoing conflicting claims of the parties, it is obvious that the right claimed by respondent as its basis for asking for injunctive relief is far from clear. Thus a finding that the applicant for preliminary injunction may suffer damage not capable of pecuniary estimation does not suffice to support an injunction, when it appears that the right to be protected is unclear or is seriously disputed," the SC said.
The assailed resolution revised the implementation of Napocor Board Resolution No. 2001-113 and Circular 2001-51 issued on July 1, 2001.
Board Resolution No, 2001-113 granted a step increment to all qualified NPC officials and employees who have been in their position for three years effective 1999 while Circular 2001-51 provides for its implementing rules and regulations.
The NPC Board, however, issued Resolution No. 2002-81 after former budget secretary Emilia Boncodin wrote former Napocor president Jesus Alcordo informing him that his request for clearance to implement Resolution No. 2001-113 cannot be given due course for lack of legal basis.
The resolution ordered a rollback of basic monthly salary for Napocor personnel who have been recipients of the step increase due to length of service in their present position in excess of the two steps increment.
Boncodin said the grant step increment is considered an additional benefit under different name since the power firm has already been granting seniority pay based on the length of service as provided by the Collective Negotiation Agreement (CNA).
She further noted that the step increment is not applicable to the salary plan of Napocor considering its higher salary rates.
Aside from these, Boncodin said the government would have to shell out P84 million with the implementation of the increase.
In granting the petition of the National Power Corporation Employees Consolidated Union (NECU) for the issuance of a writ of preliminary injunction, the Quezon City RTC and the CA agreed that "grave and irreparable damage would be inflicted on the employees" if the preliminary injunction is not issued.
The employees further said they have acquired vested right for the step increment following the issuance of Board Resolution 2001-113 and 2001-51 and that its suspension constitutes "salary diminution."
The SC directed the QC RTC to immediately proceed with the trial on the merits of the case and to decide with dispatch. (ECV/Sunnex)
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