Retirement

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Republic of the Philippines Department of Labor and Employment NATIONAL LABOR RELATIONS O!!ISSION S"B#RE$IONAL ARBITRATION BRAN % NO& '( Dipolo) ity

ESTRELLA $A*APA# O+ omplainant+ #,ersus# S"B#RAB ASE NO& RADIO P%ILIPPINES NET.OR/+ IN &+ ROBERT T& RI0ERA+ as OI #RPN+ and RPN D1/D+ Dipolo) ity+ thru !r& Leo imafranca+ OI Station !ana)er& Respondents& 1###############################################2 NLR ------------

COMPLAINANT’S POSITION PAPER
O!PLAINANT+ to this %onorable Labor Arbiter+ most respectfully submits her Position Paper3

PARTIES:
The complainant is ESTRELLA $A*APA O+ 44 years of a)e+ ha,in) been born on !arch 5+ 6(47+ and a resident of '57 P& Bur)os Street+ Barra+ Dipolo) ity&
PROOF 3 Anne8 9 A : ; Birth ertificate&

The a)e of the complainant is emphasi<ed because Section 5+ Article 1II of RPNE" BA and Section 5+ Article 1I of DS" BA [see Annex A] + )rants her the ri)ht to a,ail of the Optional Retirement Scheme+ ,i<3
1

“ Section 2. OPTIONAL RETIREMENT – An employee who has reached the age of fifty [50] and has rendered at least ten [10] years of service to the C !"A#$ or who has rendered at least twenty years [20] of service% re&ardless of a&e% may avail of ptional 'etirement from the C !"A#$ and shall (e paid a retirement pay in accordance)

The respondents are the follo=in)3 a& Radio Philippines Net=or>+ Inc&+ located at Broadcast ity+ Old Balara+ apitol %ills+ Diliman+ ?ue<on ity& b& RPN D1/D+ Dipolo) Leo imafranca+ OI !ana)er& ity+ thru Station

c& Robert T& Ri,era @ Officer# in# har)e+ RPN+ Inc&+ Broadcast ity+ Old Balara+ apitol %ills+ Diliman+ ?ue<on ity& The respondents are en)a)ed in the business of operatin) radio broadcastin) and2or tele,ision stations in the Philippines& RespondentsA principal office address is at Broadcast ity+ Old Balara+ apitol %ills+ Diliman+ ?ue<on ity+ =ith branches in the ,arious pro,inces& Respondents ha,e more than 4'' =or>ers& omplainant used to =or> at RPN D1/D+ Dipolo) ity+ =hose station branch mana)er is Leo imafranca& The respondents ha,e a A)reement B BAC =ith their =or>ers&
PROOF 3 Anne8 9 B : ; RPNE" BA DE"L* '6+5''(# E"NE F'+ 5'65' Anne8 : C: ; DS" BA D5''F# 5''(G

ollecti,e

Bar)ainin)

RPNE" means Radio Philippines Net=or> Employees "nion DS" means Directors and Super,isor "nion Althou)h the e8istin) RPNE" BA had already e8pired last Eune F'+ 5'65& And+ thou)h the rene=al of the BA =as
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not achie,ed+ because it =as then o,erta>en by the e,ents+ amon) others+ of the retrenchment made by the respondents+ the e8istin) BA+ ho=e,er+ is still ,alid+ as its automatic rene=al or e8tension is e8pressly pro,ided by the BA itself+ ,i<3
“ Article **+ ,--,C.+/+.$ - A0',,!,#. Section 1. ",'+ 1 - ,--,C.+/+.$ – .he provision of this A&reement shall (e effective as of 01 23ly 2004 and shall remain in f3ll force and effect 3ntil 50 23ne 2012% or 3ntil a new Collective 6ar&ainin& A&reement is concl3ded (y the parties% except the representation aspect which shall remain effective 3ntil 50 23ne 2017. xxx Section 5. ,*.,#S+ # - ,--,C.+/+.$ – +f no new a&reement is reached at the expiration of the Collective 6ar&ainin& A&reement% this A&reement shall remain in f3ll force 3p to the time a s3(se83ent a&reement is concl3ded (y the parties herein.9 [see Annex “69% p&. 70].

The old DS" BA D5''F# 5''HG is also herein adopted+ because the complainant cannot be pro,ided =ith the ne= DS" BA for year 5''(# 5'65+ =hich the respondent cannot raised a defense in absent of this document& The ran># and# file themsel,es =as pro,ided a BA rene=al Bsee Anne8 9A:C& DS" BA+ contain the same conte8t of pro,ision as to OPTIONAL RETIRE!ENT& The difference matter only on number of the Article + =hich is Article 1I+ Section 5& Effecti,ity and E8tension of Effecti,ity to remain in full force and effect+ are also herein adopted& The complainant =ill be adoptin) either the OLD DS" BA D5''F# 5''HG or the latest RPNE" BA D 5''(# 5''65 G pro,ision in the ne8t subseIuent issue of concern& But other money claims+ the complainant =ill ha,e to adopt =hat is best and beneficial + as this =ill be Iualified under substitution of the BA pro,ision& !oreo,er+ in the case of !anila Electric o&+ ,s& ?uisumbin)+ et&al&+ $&R& No& 6574(H+ Eanuary 57+ 6(((+ the Supreme ourt ruled that the principle of 9hold# o,er: must apply&+ i&e&+ in the absence of a ne= BA+ the parties must maintain the status Iuo and must continue in full force and
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effect the terms and conditions of the e8istin) a)reement until a ne= a)reement is reached& In this manner+ the la= pre,ents the e8istence of a )ap in the relationship bet=een the collecti,e bar)ainin) parties Bas cited in The Labor ode =ith omments and ases+ 0ol& II+ 7 th ed&+ 5'6'+ by &A& A<ucena+ p)& J''C& The complainant =as employed last September 6K+ 6(H'& Last October 65+ 5'65+ the complainant recei,ed a letter dated October 6+ 5'65 dismissin) her from employment effecti,e 64 No,ember 5'65& But before receipt of the said letter+ complainant already filed an application for optional retirement on the basis of the ollecti,e Bar)ainin) A)reement B BAC& omplainant =as then or had then =or>ed for more than thirty# t=o BF5C years& In 6(H'+ the complainant =as appointed as ollector2Librarian of RPN D1/D+ Dipolo) ity+ but she =as assi)ned to also =or> as its Boo>>eeper& Thence effecti,e October 6+ 5''(+ the complainant =as desi)nated as ashier and Administrati,e Officer+ =hich =as the last position she held until she =as ille)ally dismissed& %er last salary =as P5J+KKK&H' per month& The =or> schedule of the complainant =as from !onday to Lriday+ from H3'' a&m& @ 43'' p&m& B6 hour lunch brea>C&

CAUSE OF ACTION/RELIEFS
Last December 5H+ 5'65+ the complainant filed the instant labor case a)ainst the respondents+ raisin) as her causes of actions+ the follo=in)3 A& ILLE$AL+ "NREASONABLE "NLAIR AND RETREN %!ENT

[complainant received last October 4, 2012 a letter dated October 1, 2012 from OIC Robert T. Rivera dismissing her from service effective ovember 1!, 2012" . T%"S+ IN L"SI0E IS

T%E LAI! LOR REINSTATE!ENT .IT% BA /.A$ES&

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B& ILLE$AL AND DIS RI!INATOR* DENIAL OL OPTIONAL RETIRE!ENT PRI0ILE$ES AND BENELITS BASED ON OLLE TI0E BAR$AININ$ A$REE!ENT
[#efore receipt of the October 1, 2012 letter of OIC Robert T. Rivera, the complainant alread$ filed an application for optional retirement p%rs%ant to the provisions of the Collective #argaining &greement [C#&"" .

C& SEPARATION PA*2RETREN %!ENT PA* .IT% INTEREST& D & LABOR OPPRESSION+ DIS RI!INATION AND %ARASS!ENT& E& "NPAID BENELITS .IT% INTEREST
E&6& Sic> Lea,e Reser,ed E&5& "npaid benefits 5''6# 5''HM O,ertime Pay for 5'6' and 5'66 and other unpaid benefits& E&F& Sic> Lea,e on,ersion 5'66M Lon)e,ity Pay F rd ?uarter 5'66M th Lon)e,ity Pay J ?uarter 5'66M Educational Assistance 5'65# 6M Educational Assistance 5'65# 5M Lon)e,ity Pay 6 st ?uarter 5'65M nd Lon)e,ity Pay 5 ?uarter 5'65M and Lon)e,ity Pay F rd ?uarter 5'65&

F & S"BSTIT"TION PA* .IT% INTEREST& G & ILLE$AL DED" TIONS LRO! SALAR* .IT% INTEREST& H & S%ARE LRO! PRO0IDENT L"ND .IT% INTEREST& I & A "!"LATED 0A ATION BENELITS .IT% INTEREST& LEA0E

J& DILLERENTIAL OL 6F T% !ONT% PA*M %RIST!AS BON"S 5'65M LON$E0IT* PA* J T% ?"ARTER 5'65M SI / LEA0E ON0ERSION 5'65 .IT% INTEREST& K& ANNI0ERSAR* INTEREST& A.ARD .IT%

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L& "NPAID SALAR* .IT% INTEREST& M & ATTORNE*AS LEE& N & DA!A$ES& omplainant then prayed and sou)ht for the follo=in) reliefs3 A & REINSTATE!ENT .IT% BA /.A$ES due to ille)al+ unfair and unreasonable retrenchment& B& INE"N TION A$AINST L"RT%ER %ARASS!ENT+ DIS RI!INATION AND OPPRESSION& C& Payment of3 c.1 & OPTIONAL RETIRE!ENT PRI0ILE$ES AND BENELITS BASED ON OLLE TI0E BAR$AININ$ A$REE!ENT& c.2. SEPARATION PA*2RETREN %!ENT PA* .IT% INTEREST& c.3. "NPAID INTEREST BENELITS .IT%

&F#A& Sic> Lea,e Reser,ed #F#B& "npaid benefits 5''6# 5''HM O,ertime Pay for 5'6' and 5'66 and other unpaid benefits& #F# & Sic> Lea,e on,ersion 5'66M Lon)e,ity Pay F rd ?uarter 5'66M Lon)e,ity Pay J th ?uarter 5'66M Educational Assistance 5'65# 6M Educational Assistance 5'65# 5M Lon)e,ity Pay 6 st ?uarter 5'65M Lon)e,ity Pay 5 nd ?uarter 5'65M and Lon)e,ity Pay F rd ?uarter 5'65&

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c.4 . S"BSTIT"TION INTEREST&

PA*

.IT%

c.5. ILLE$AL DED" TIONS LRO! SALAR* .IT% INTEREST& c.6. S%ARE LRO! PRO0IDENT L"ND .IT% INTEREST& c.7. A "!"LATED 0A ATION LEA0E BENELITS .IT% INTEREST& c. . DILLERENTIAL OL 6F T% !ONT% PA*M %RIST!AS BON"S 5'65M LON$E0IT* PA* J T% ?"ARTER 5'65M SI / LEA0E ON0ERSION 5'65 .IT% INTEREST& c.!. ANNI0ERSAR* A.ARD .IT% INTEREST& c.1" & "NPAID INTEREST& SALAR* .IT%

c.11 & ATTORNE*AS LEE& c.12 & ALL OT%ER BENELITS PRO0IDED LOR B* LA.&

DISCUSSION
A & ILLE$AL+ "NLAIR AND "NREASONABLE RETREN %!ENT [complainant received last
October 4, 2012 a letter dated October 1, 2012 from OIC Robert T. Rivera dismissing her from service effective ovember 1!, 2012" . T%"S+ IN L"SI0E

IS T%E LAI! LOR REINSTATE!ENT .IT% BA /.A$ES&

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B & ILLE$AL AND DIS RI!INATOR* DENIAL OL OPTIONAL RETIRE!ENT PRI0ILE$ES AND BENELITS BASED ON OLLE TI0E BAR$AININ$ A$REE!ENT [#efore receipt of the
October 1, 2012 letter of OIC Robert T. Rivera, the complainant alread$ filed an application for optional retirement p%rs%ant to the provisions of the Collective #argaining &greement [C#&"" .

C& SEPARATION .IT% INTEREST&

PA*2RETREN %!ENT

PA*

D & LABOR OPPRESSION+ DIS RI!INATION AND %ARASS!ENT& Bein) interrelated+ the same shall be Nointly discussed& MORE THAN THIRT#$ T%O LONG #EARS OF SER&ICE OF THE COM$ PLAINANT %HO %AS O&ERTASKED %ITH T%O JOBS/POSITIONS %ENT UNRECOGNI'ED B# THE RESPON$ DENTS. The complainant =as employed 6(H'& last September 6K+

In 6(H'+ the complainant =as appointed as ollector2Librarian of RPN D1/D+ Dipolo) ity+ but she =as assi)ned to also =or> as its Boo>>eeper& Thence effecti,e October 6+ 5''(+ the complainant =as desi)nated as ashier and %ead Administrati,e Officer+ =hich =as the last position she held until she =as ille)ally dismissed& %er last salary =as P5J+KKK&H'& The =or> schedule of the complainant =as from !onday to Lriday+ from H3'' a&m& @ 43'' p&m& B6 hour lunch brea>C& Due to the len)th of time+ the early employment records of the complainant cannot anymore be located& But there are and the len)th of ompany Eournals+ respondents+ of the other proofs of her date of employment her ser,ice& These are reflected in the =hich are deemed admissions by the len)th of complainantAs employment&
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PROOFS 3 [emphasis s3pplied] Anne8 9 B : 3 Lon)eti,ity Eournal Rundate Sept& 65+ 5'66& 9 B$1 : Ser,ice 3 Emp& No& Empl& Name o+ Estrella Date Employed "!/1 6 / 1 ! " Sept& L&

''(KH# H 3"$ "!$ 14

9 B$2 : 3 Dipolo) Radio D1/D Payroll Payslip 6(+ 5'66& ;;; ; ; ; ; ; ; ;

Anne8 9 C: 3 5'66 1mas Assistance 6 Eournal Rundate Au)& 6J+ 5'65& 9 C$1 : 3 SR No& Emp& No& L& Ser,ice F ''(KH# H 31$ "3$ 15 Empl& Name o+ Estrella E!P& Date "!/1 6 / 1 ! " Au)

9 C$2 : 3 Dipolo) Radio D1/D Payroll Payslip 67+ 5'65& ;;; ; ; ; ; ; ; ;

Anne8 9 D : 3 .a)e Allo=ance Eournal Rundate September '7+ 5'65 9 D$ 1 : 3 SR No& E!P& Date F "!/1 6 / 1 ! " 9 D$ 2 : Sep& 7+ 5'65& Emp& No& Employee Name o+ Estrella

''(KH# H

3 Dipolo) Radio D1/D Payroll Payslip

The ()*+,- ./ c.01(23*2* , 45 )01(.60)* , is emphasi<ed because Section 5+ Article 1II of the BA [see Annex A] + )rants her the ri)ht to a,ail of the Optional Retirement Scheme+ ,i<3
“ Section 2. OPTIONAL RETIREMENT – An employee who has reached the a&e of fifty [:0] and has render e d at least ten [10] years of ser ice to the !OMPAN" or #ho has render ed at least t# ent y years [$0] of ser ice % re&ardless of a&e% may avail of ptional 'etirement from the C !"A#$ and shall (e paid a retirement pay in accordance)

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DISMISSAL FROM SER&ICE. Last October J+ 5'65+ the complainant recei,ed a letter dated October 6+ 5'65 from the respondents dismissin) her from employment effecti,e 64 No,ember 5'65& PROOF 3
Anne8 9 E: 3 Letter dated October 6+ 5'65 si)ned by OI Robert T& Ri,era&

7UALIFIED TO A&AIL OF OPTIONAL RETIREMENT But before receipt of the said letter+ complainant already filed an application for optional retirement on the basis of the ollecti,e Bar)ainin) A)reement B BAC& PROOF 3
Anne8 9 F : 3 Letter dated October F+ 5'65 of the complainant Estrella $& o applyin) for optional retirement&

The basis of the complainant in a,ailin) of the optional retirement =as Section 5+ Article 1II of the BA [see Annex 6] + =hich pro,ides3
“ Section 2. OPTIONAL RETIREMENT – An employee who has reached the a&e of fifty [:0] and has rendered at least ten [10] years of service to the C !"A#$ or who has rendered at least twenty years [20] of service% re&ardless of a&e% may avail of ptional 'etirement from the C !"A#$ and shall (e paid a retirement pay in accordance with the followin& sched3le;
10 years service 1: years service 20 years service 2: years (3t less than 1: years (3t less than 20 years (3t less than 2: years or service and a(ove < 7= days per year of < >5 days per year of < ?= days per year of < =5 days per year of service

!oreover% the C !"A#$ shall also &rant a [email protected] A1/A#C, e83ivalent to .,# ",'C,#. [10A] of the covered employeeBs retirement pay on the followin& conditions;
a. 'etirement date shall (e set within one [1] year 3pon receipt of the 10A cash advanceC remainin& (alance

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to (e paid on the scheme m3t3ally accepta(le to the employee and mana&ement. (. S3(Dect to availa(ility of f3nds.9

Both in a)e+ and in terms of the len)th of ser,ice+ complainant =as already Iualified to a,ail of the Optional Retirement Scheme& omputed from date of employment to date of application for optional retirement =hich =as on October F+ 5'65+ complainant =as then or had then =or>ed for ,-38,6$ ,9. [%$] 6)285 2*: ,9)* , 6$ 53; [$&] days [4< 1>< =0 3p to cto(er
12% 2012].

But computed from date of employment to date of dismissal by the respondents =hich =as effecti,e on 64 No,ember 5'6F+ complainant =as then or had then =or>ed /.8 ,-38,6$ ,9. [%$] 6)285< .*) [1] 0.*,- 2*: ,-38,6 [%0] :265 [4< 1>< =0 3p to #ovem(er 1:% 2012]. omplainant =as thus already in her retirable a)e+ or retirable based on her len)th of ser,ice+ =hen she =as dismissed& Is this dependent on the a,ailability of fundsO The first para)raph of Section 5+ Article 1II of RPNE" BA [see Annex 6] is ,ery e8plicit that it is NOT DEPENDENT on the a,ailability of funds& There is no Iualification& So+ none should be read+ under the basic principle of la=3 9 inclusio unios est exclusio alterius :& It is only the second para)raph of the said Section 5+ Article 1II of the BA related to the )rant of a cash ad,ance eIui,alent to 6'P of the employeeAs retirement pay =hich is subNect to the a,ailability of funds& Besides+ the respondents ha,e to establish that its fla) ship main office in Broadcast ity =ith =orld=ide and nation=ide tele,ision broadcast business DRPN#(G+ no= become SOLAR Net=or> and the ,arious--------pro,incial stations located in different parts of the country indeed ha,e no funds or sufficient assets and properties+ or that it cannot produce such income in its on)oin) operations to pay for the retirement benefits of the complainant& It should thus be emphasi<ed that respondents are still operatin) and )oin) on =ith the usual business today and

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ha,e still se,eral assets+ in the form of cash for its daily sales and income from all its e8istin) business endea,ors+ buildin)s+ properties+ and other stoc>s+ to pro,ide and )rant retirement benefits to an employee =ho has spent almost all of her life in the ser,ice of the respondents&

THE DISMISSAL/RETRENCHMENT MADE B# THE RESPONDENTS %AS ILLEGAL/UNLA%FUL In terminatin) the complainant+ OI Robert T& Ri,era stated in his letter dated October 6+ 5'65 [see Annex E] + as follo=s3
“1 cto(er% 2012

02? ". 63r&os Street 1ipolo& City S3(Dect; 'ed3ction of "ersonnel 1ear !s. Co; As yo3 were aware% the Company contin3es to inc3r serio3s (3siness and financial losses. .he (enefits of employees remain 3npaid despite efforts to improve the operations of the Company. 6ased on its filed 2011 -inancial Statements alone% the Company has s3ffered financial losses of more than "hp 120 !% increasin& the capital deficiency to more than "hp26. .he fore&oin& has led mana&ement to review its or&aniEation to recover its dire financial sit3ation. Fe have contin3o3sly looGed into how to improve efficiency and optimiEe o3r reco3rses. !3ch as we have exerted all efforts to maintain to o3r c3rrent (3siness operations. .his move serio3sly into acco3nt the CompanyBs financial sit3ation and the lon& term s3rvival of the Company. After caref3l eval3ation% the Company is constrained to maGe the diffic3lt decision of red3cin& its personnel on the &ro3nd of retrenchment d3e to serio3s (3siness losses 3nder Article 2=5 of the Ha(or Code. Fe re&ret to inform yo3 that yo3 are amon& those that have (een considered for retrenchment. $o3r employment with the Company shall contin3e and remain effective only 3ntil 1: #ovem(er 2012. Fhile an employer is exempt from payin& separation pay in case of serio3s (3siness losses% mana&ement% after d3e consideration and despite the lacG of internal f3nds to s3pport the same% has decided to extend separation pay. !ana&ement shall also settle any of yo3r 3npaid (enefits. A preliminary comp3tation of yo3r separation pay%

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incl3din& any 3npaid (enefits% is attached for yo3r reference. .he comp3tation is still s3(Dect to revision to incl3de ded3ction of applica(le income taxes. 13rin& the period prior to the effectivity of yo3r separation% yo3 are advised not to report for worG to &ive yo3 the opport3nity to seeG other employment (3t yo3 will contin3e to receive yo3r salaries. .he Company% however% may call on yo3 anytime for proper t3rn< over of worG and pendin& assi&nments. Intil 1: #ovem(er 2012% yo3 shall remain to (e an employee and as s3ch% yo3 shall not commit acts preD3dicial to the Company or violate its policies. $o3 may sec3re yo3r personal (elon&in&s (efore the close of (3siness today. -or any 83estions% yo3 may coordinate with the office of the 3ndersi&ned at this contact n3m(er J020 451< =>1=. Fe taGe the opport3nity to express o3r profo3nd &ratit3de for yo3r inval3a(le services. Sincerely yo3rs% RA'IO P(ILIPPINE) NET*OR+, IN!6y; RO.ERT T- RI/ERA fficer< in Char&e

IGNORING THE MORE THAN 32 #EARS OF COMPLAINANT4S SER&ICE %ITH THE RESPONDENTS. GROSS INSENSITI&IT# OF THE EMPLO#ER TO THE %ORKER. At the outset+ the letter of OI Ri,era appears to see> sympathy on the purported company losses as basis for its decision to retrench2dismiss the complainant& But then+ the dismissal of an employee should not merely ta>e into consideration the purported pli)ht of the company& The company is mandated to also loo> into the ad,erse effect of such action on the employee& As held by the Supreme ourt in LA$NITON ,s& NLR + $&R& No& HKFF(+ Lebruary 4+ 6((F+ the =or>ers should “(e
treated # . as s3(ordinates (3t with respect and fairness% if not affection and &ratit3de that is d3e to an ,KIAH "A'.#,'9% viE;

“ .he worGers are the lifeline of any co3ntryLs economy. .hey represent the h3man element%
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the (rains and the (rawn in the transformation of reso3rces% nat3ral and capital% into &oods and services to satisfy the needs of society. witho3t worGers% capital cannot (e translated into wealth. capital% (y itself% is worthless% and technolo&y is nothin& witho3t the worGers to operate it. .he prod3ction process (ecomes meanin&less witho3t the worGers to exec3te it. And commodities and &oods are of no val3e witho3t the worGers to (3y and cons3me them. .he days are now &one when worGers were at the mercy of the employer and co3ld (e dismissed for the flimsiest of reasons or even for no reason at all. .he tyrannical employer is an anachronism in this enli&htened era. .he employees today% once defenseless and often oppressed% have fo3nd new stren&th in the protection of the law and the pro3d realiEation that they perform a S$!6+ .+C ' H, with the employer in their common enterprise. As s3ch% they m3st (e treated # . as s3(ordinates (3t with respect and fairness% if not affection and &ratit3de that is d3e to an ,KIAH "A'.#,'.9

In this case+ the respondents ne,er considered the complainant as its eIual partner+ because they totally i)nored the fact that the complainant had been in their employ for 0.8) ,-2* ,-38,6$ ,9. =32> 6)285 + and =as 2(8)2:6 55 6)285 ./ 2+) + =ell# =ithin the optional retirement a)e as pro,ided for under Section 5+ Article 1II of the BA [see Annex 6]% and almost nearin) the a)e of si8ty years as pro,ided for under Article 5H7+ of PD No& JJ5 as amended by R&A& No& 7KJ6+ =hich pro,ides3
MArt. 2=?. Retirement . < Any employee may (e retired 3pon reachin& the retirement a&e esta(lished in the collective (ar&ainin& a&reement or other applica(le employment contract. M+n case of retirement% the employee shall (e entitled to receive s3ch retirement (enefits as he may have earned 3nder existin& laws and any collective (ar&ainin& a&reement and other a&reements; "rovided% however% that an employeeLs retirement (enefits 3nder any collective (ar&ainin& and other a&reements shall not (e less than those provided herein. M+n the a(sence of a retirement plan or a&reement providin& for retirement (enefits of

14

employees in the esta(lishment% an employee 3pon reachin& the a&e of sixty J>0N years or more% (3t not (eyond sixty< five J>:N years which is here(y declared the comp3lsory retirement a&e% who has served at least five J:N years in the said esta(lishment% may retire and shall (e entitled to retirement pay e83ivalent to at least one< half J1O2N month salary for every year of service% a fraction of at least six J>N months (ein& considered as one whole year. MInless the parties provide for (roader incl3sions% the term one< half J1O2N month salary shall mean fifteen J1:N days pl3s one< twelfth J1O12N of the 15th month pay and the cash e83ivalent of not more than five J:N days of service incentive leaves. M'etail% service and a&ric3lt3ral esta(lishments or operations employin& not more than J10N employees or worGers are exempted from the covera&e of this provision. M/iolation of this provision is here(y declared 3nlawf3l and s3(Dect to the penal provisions provided 3nder Article 2== of this Code.M

The Retirement pay payable under Article 5H7+ as amended+ is APART from the retirement benefit claimable by the Iualified employee under the Social Security La=& This has to be so because R&A& 7KJ6 in its Section 5 states that 9Nothin) in this Act shall depri,e any employee of benefits to =hich he may be entitled under e8istin) la= or company policies or practices&:B The LABOR ODE .ith omments And ases+ 0olume II+ 7 th Edition+ p)& (J5+ by &A&AQ" ENAC& %ad the respondents heeded the ad,ice of the %i)h ourt in the La)niton case+ supra + they could ha,e accommodated the application for optional retirement of the complainant& Aquino vs. Otis Elevator Company, G.R.No. 8765 3 , Fe ruary !!, !""#, an employee can claim retirement benefits and separation pay simultaneously& THE LABOR CODE + .ith omments and ases+ th 'ol%me II, ( )dition p)& (JJ by &A& AQ" ENA& It is important at the outset to note the distinction bet=een separation pay and retirement benefits&

15

S)1282 ,3.* 126 is reIuired in the cases enumerated in Article 5HF and 5HJ of the Labor ode+ =hich include retrenchment+ and is computed at least one month salary or at the rate of one# half month salary for e,ery year of ser,ice+ =hiche,er is hi)her& .e ha,e held that it is a statutory ri)ht desi)ned to pro,ide the employee =ith the =here=ithal durin) the period that he is loo>in) for another employment & D?uotin) Santos ,s&NLR + 64J S RA 6KK+ 675&G On the other hand+ 8),38)0 )* , ?)*)/3,5 + are intended to help the employee enNoy the remainin) years of his life+ lessenin) the burden of =orryin) for his financial support+ and are a form of re=ard for his loyalty and ser,ice to the employer&D?uotin) La)inlin ,s& . + 64( S RA (6+ ((G& Recallin) decisions in BLTB o& ,s& ourt of Appeals+ 76 S RA J7' B6(7KC and "ni,ersity of the East ,s& "E Laculty Association D$&R&No& 7J''7+ Euly F6+ 6(H7G+ the ourt concluded3
%) [email protected]) c28)/A((6 );203*) : ,-) 8)c.8:< 2*: 128,3cA(28(6 ,-) C.(()c,[email protected]) B28+23*3*+ A+8)) 0 ) * , 2*: ,-) R),38) 0 ) * , P(2*< 2*: [email protected]) /.A*: *. 51)c3/3c 18.-3?3,3.* 2+23*5, ,-) 1260 ) * , ./ ?.,- ?)*)/3,5 ,. ,-) )01(.6) ) .

&*%ino vs. Otis )levator Compan$, +.R. o. ,(-!., /ebr%ar$ 11, 1002, the ourtAs e8amination of the BA ma>e the follo=in) obser,ation and ad,ice3
T-) C.A8, /))(5 ,-2, 3/ ,-) [email protected], ) 8)51.*:)* , 8)2((6 3*,)*:): ,. 02B) ,-) 5)1282 ,3 .* 126 2*: ,-) 8),38) 0 ) * , ?)*)/3 ,5 0A,A2((6 );c([email protected]) < 3, 5-.A(: [email protected]) 5.A+-, 3*c(A53.* ./ ,-) c.88)51.*:3*+ [email protected]* 3* ,-) R),38) 0 ) * , P(2* 2*: C.(()c,[email protected]) B28+23*3*+ A+8)) 0 ) * , 5. 25 ,. 8)[email protected]) 2(( 1.553?() 20?3+A3 , 6 8)+28:3*+ ,-35 02, , ) 8 . %) 026 18)5A0 ) ,-2, ,-) c.A*5)( ./ ,-) 8)51.*:)* , c.012*6 925 2928 ) ./ ,-) 18)@23(3*+ :.c,83*) )0?.:3): 3* ,-) c25)5 )28(3)8 c3,):. K*.93*+ ,-35< -) 5-.A(: [email protected]) 02:) 3, 2 1.3*, ,. c2,)+.83c2((6 [email protected]:) 3* ,-) R),38) 0 ) * , P(2* 2*: ,-) CBA ,-2, 2* )01(.6)) 9-. -2: 8)c)[email protected]): 5)1282 ,3 .* 126 9.A(: *. (.*+)8 ?) )*,3,(): ,. 8),38) 0 ) * , ?)*)/3 ,5. O8 ,. 1A, 3, 0.8) 1(23*(6< c.(()c,3.* ./ 8),38 ) 0 ) * , ?)*)/3 ,5 925 18.-3?3 , ): 3/ ,-) )01(.6)) -2: 2(8)2:6 8)c)[email protected]): 5)1282 ,3 .* 126 &

$%e petitioners are not plea&in' (or 'enerosity ut &eman&in' t%eir ri'%ts. $%ese ri'%ts are em o&ie& in t%e Colle)tive *ar'ainin' A'reemen t , +%i)% +as t%e result o( ne'otia tions
16

et+ e e n t%e )ompany an& t%e employees . S)1282 ,3.* P26 is a statutory ri)ht of the complainant+ reIuired in Articles 5HF and 5HJ of the Labor ode+ and become mandatory obli)ation on the part of employer respondent&B AIuino et al& ,s& NLR and Otis Ele,ator ompany + $&R&No& H7K4F+ Leb& 66+ 6((5&C R),38) 0) * , B)*)/3,5 are contractual ri)ht of the complainant embodied in the ollecti,e Bar)ainin) A)remment& Thou)h+ this is not mandated by la=+ li>e that of the Separation Pay+ the result of the ne)otiations bet=een the company and the employees under the ollecti,e Bar)ainin) A)reement )i,e rise of complainantAs demandable ri)ht that calls for a )rant or bounty that must be )i,en as a sort of re=ard for ha,in) rendered satisfactory ser,ice to the company respondent&B AIuino et al& ,s& NLR and Otis ompany+ $&R&No& H7K4F+ Leb& 66+ 6((5&C A)ain+ complainant hereto asserts that she =as already in her retirable a)e+ or =as already retirable based on her len)th of ser,ice+ =hen she =as dismissed2retrenched& There is none in the pro,ision of the e8istin) BA =hich says receipt of one benefit Dpayment of separation benefitsG e8cludes the other Dpayment of retirement benefitsG& So then+ di,er)ent interpretations and disharmonious liti)ation =ould not arise& BAIuino et al&,s&NLR and Otis Ele,ator ompany+ $&R&No& H7K4F+ Lebruary 66+ 6((5C DISMISSAL TO A&OID RETIREMENT BENEFITS If it is =ron) to ostensibly retire an employee =ho actually is retrenched+ it is li>e=ise =ron)+ and probably more reprehensible+ to dismiss an employee to a,oid payin) his retirement benefit& BT%E LABOR ODE+ .ith omments and ases+ 0olume II+ 7 th Edition+ 5'6'+ p)&(JH by &A&AQ" ENA&C In a 6(H6 case+ the Supreme ourt said that a company should e8ercise caution and care in dealin) =ith its employees to pre,ent suspicion that its dismissal of an employee is only a scheme to e,ade its responsibility of )rantin) retirement benefits& In the case at bar+ it should not ha,e =aited until petitioner employee applied for retirement to ha,e ta>en ad,erse action a)ainst him for a cause it had

17

already >no=led)e of& BReyes ,s+ Phil& Duplicators+ Inc&+ 6'( S RA JH( B6(H6C&C The herein complainat filed her application for optional retirement prior to the receipt of retrenchment order& [Annex
“ 0 9 ; Hetter dated cto(er 5% 2012 of the complainant ,strella 0. Co applyin& for optional retirement] .

ILLEGAL< UNFAIR< AND UNREASONABLE RETRENCHMENT LIMITATION ON THE PO%ER OF AN EMPLO#ER TO DISMISS ITS EMPLO#EES AS AN ECERCISE OF MANAGEMENT PREROGATI&ES. ARBITRAR#< DISCRIMINATOR# AND DESPOTIC MANNER OF DISMISSAL. NO GUIDELINE %AS FOLLO%ED IN CHOOSING %HO %ILL BE RETRENCHED. The respondents in this case may ha,e thou)ht that it =as enou)h that the dismissal of an employee should fall under the )rounds laid do=n under Article 5H5 and 5HF of the Labor ode of the Philippines& But this is =ron) because the dismissal must also be 93,-.A , 2?A5) ./ :35c8),3.* .8 ,-2, 3, 0A5, *., ?) :.*) 3* 2* 28?3,82 86 2*: :)51.,3c 02**)8 & Thus+ as held by the Supreme ourt3

“.he power to dismiss is a normal mana&ement prero&ative of an employer. An employer% &enerally% can dismiss or lay< off its employees for D3st or a3thoriEe ca3se en3merated 3nder

18

Article 2=2 and 2=5 of the Ha(or Code. @owever% the ri&ht of an employer to freely dischar&e his employee is s3(Dect to re&3lation (y the State% (asically in the exercise of itLs paramo3nt police power. .his is so (eca3se the preservation of the lives of its citiEens is the (asic d3ty of the State% more vital than the preservation of corporate profits. J!anila ,lectric Company vs. #H'C% 0.'. #o. ?=?>5% 23ly 12% 14=4N. .he dismissal of an employee m3st (e done with D3st or a3thoriEed ca3se and witho3t a(3se of discretion. +t m3st # . (e done in an ar(itrary or despotic manner. .o hold otherwise wo3ld render n3&atory the sec3rity of ten3re cla3se enshrined in the Constit3tion J,smalin vs. #H'C% 0.'. #o. >?==0% Septem(er 1:% 14=4N.

The complainant in this case shall pro,e that the retrenchment =as done =ith abuse of discretion and in an arbitrary and despotic manner&

RETRENCHMENT DEFINED The Supreme ourt defines RETREN %!ENT as the termination of employment initiated by the employer+ throu)h no fault of the employee and =ithout preNudice to the latter+ and resorted by mana)ement durin) periods of IND"STRIAL RE ESSION+ IND"STRIAL DEPRESSION or SEASONAL LL" T"ATIONS or durin) L"LLS O ASSIONED B* LA / OL ORDERS+ S%ORTA$E OL !ATERIALS+ ON0ERSION OL T%E PLANT LOR A NE. PROD" TION PRO$RA! or OL A"TO!ATION& JSe(3&3ero et. al.% vs. #H'C% 27= SC'A :52 J144:N &

RE7UIREMENTS FOR A &ALID RETRENCHMENT The reIuirements for ,alid retrenchment =hich must be pro,ed by clear and con,incin) e,idence are enunciated in the case of Asian Alcohol orporation ,s& NLR + $&R& No& 6F66'H+ !arch 54+ 6(((+ ,i<3
“ J1N that the retrenchment is reasona(ly necessary and liGely to prevent (3siness losses which% if already inc3rred% are not merely de minimis % (3t s3(stantial% serio3s% act3al and real% or if only expected% are reasona(ly imminent as
19

perceived o(Dectively and in &ood faith (y the employer [ Banana Growers Collective at Puyod Farms v.
NLRC, G.R. No. 11395 , !uly 31, 199"# $rendline %m&loyees 'ssociation()out*ern P*ili&&ines Federation o+ La,or v. NLRC, -"- )CR' 1"-, 1"9 .199"/# 0ic*ico v. NLRC, -"3 )CR' 13 .199"/# Lo&e2 )u3ar Cor&oration v. Federation o+ Free 4or5ers, 1 9 )CR' 1"9, 1 6 .1997/# 'nino, et al. v. NLRC, et al., G.R. No. 1-3--6, 8ay -1, 199 9 C

J2N that the employer served written notice (oth to the employees and to the 1epartment of Ha(or and ,mployment at least one month prior to the intended date of retrenchment :)e,u3uero,et.
al., vs. NLRC, G.R. No. 115391, )e&tem,er -", 1995# 0nion o+ Fili&ino 4or5ers .0F4/ v. NLRC, --1 )CR' -6", -"9 .1993/# Fuentes v. NLRC, G.R. No.11771", !anuary -, 199"# $rendline %m&loyees 'ssociation()out*ern P*ili&&ines Federation o+ La,or v. NLRC, -"- )CR' 1"-, 1"9 .199"/# Ca++co ;nternational Limited v. <++ice o+ t*e 8inister(8inistry o+ La,or = %m&loyment, -1)CR' 351, 35" .199-/# Radio Communications o+ t*e P*ili&&ines, ;nc. v. NLRC, -17 )CR' ---, --5 .199-/9 ;

J5N that the employer pays the retrenched employees separation pay e83ivalent to one J1N month pay or at least one< half J1O2N month pay for every year of service% whichever is hi&her :)e,u3uero,et. al., vs. NLRC, G.R. No. 115391, )e&tem,er -",
1995# 0nion o+ Fili&ino 4or5ers .0F4/ v. NLRC, --1 )CR' -6", -"9 .1993/# Fuentes v. NLRC, G.R. No.11771", !anuary -, 199"# $rendline %m&loyees 'ssociation()out*ern P*ili&&ines Federation o+ La,or v. NLRC, -"- )CR' 1"-, 1"9 .199"/# Ca++co ;nternational Limited v. <++ice o+ t*e 8inister(8inistry o+ La,or = %m&loyment, -1- )CR' 351, 35" .199-/9 C

J7N that the employer exercises its prero&ative to retrench employees +# 0 1 [email protected] for the advancement of its interest and # . . 1,-,A. ' C+'CI!/,#. [email protected], ,!"H $,,S '[email protected] . S,CI'+.$ - .,#I', [ >ela Cru2 v. NLRC , -6 )CR'
15 , 16"(16 .199"/# Ca++co ;nternational Limited v. <++ice o+ t*e 8inister(8inistry o+ La,or = %m&loyment, -1- )CR' 351, 35" .199-/9 C and%

J:N that the employer 3sed -A+' A#1 ',AS #A6H, C'+.,'+A :Radio Communications o+ t*e
P*ili&&ines, ;nc. v. NLRC, -17 )CR' ---, --5 .199-/# Ru,,erworld .P*ils./, ;nc. v. NLRC, 1"5 )CR' 157, 15" .19 9/# )omerville )tainless )teel Cor&oration v. NLRC, et al, G.R. No. 1-5 ", 8arc* 11, 199 9 in ascertainin& who wo3ld (e

dismissed and who wo3ld (e retained amon& the employees% s3ch as S.A.IS [i.e.% whether they are .,!" 'A'$% CASIAH% ',0IHA' ' !A#A0,'+AH ,!"H $,,S]% ,--+C+,#C$% S,#+ '+.$ :'siaworld Pu,lis*in3 ?ouse, ;nc. v. <&le, 15)CR' -19, --5 .19 "9 % "@$S+CAH -+.#,SS% A0,% A#1 -+#A#C+AH @A'[email protected]+" :>uay v. Court o+ ;ndustrial Relations, 1-- )CR' 31, 39( 17 .19 3/9 for certain worGers.

20

RETRENCHMENT BASED ON SPECULATI&E LOSSES CAN$ NOT BE COUNTENANCED It is almost an infle8ible rule that employers =ho contemplate terminatin) the ser,ices of their =or>ers cannot be so arbitrary and ruthless as to find flimsy e8cuses for their decisions& This must be so considerin) that the dismissal of an employee from =or> in,ol,es not only the loss of his position but more important his means of li,elihood& Applyin) this ca,eat to the case at bar+ it is incumbent upon the employer before puttin) into effect any retrenchment process on its =or>force to sho= by con,incin) e,idence that it =as bein) .RE /ED by serious financial problems& By simply statin) its state of insol,ency or its I!PENDIN$ DOO! =ill not be sufficient& Doin) so =ould render the security of tenure of =or>ers and employees ILL"SOR*& Any employer desirous of riddin) itself of employees could then easily do so =ithout need to adduce proof in support of its action& .E ANNOT O"NTENAN E T%ISR Security of tenure is a ri)ht )uaranteed to employees and =or>ers by the onstitution and should not be denied ON T%E BASIS OL !ERE SPE "LATION [;N>;N< @). NLRC., 1" )CR' 16 .19 9/9. Tested a)ainst the reIuirements set in the Asian Alcohol case+ supra + the retrenchment made by the respondents =as ille)al& RE7UIREMENT NO. 1
1 213 That the retr e nch4 e n t is reasona 5ly necessary and li6ely to 7re e n t 58siness losses #hich, if alrea dy inc8rre d, are not 4erely de minimis , 58t s85stan tial, serio8s, act8al and real, or if only e97ecte d, are reasona5ly i44ine n t as 7ercei e d o5:ecti ely and in good faith 5y the e47loyer -

"ntil no=+ no documentary e,idence =as presented by the respondents to the complainant to Nustify the retrenchment& .orst+ =hile claimin) to incur business losses+ the company continued its practice of )rantin) fat bonuses to its e8ecuti,e officers& Lor this purpose+ the complainant is reIuestin) and prayin) that the 8)51.*:)* ,5 ?) :38)c,): ,. 18)5)*, 2*: /A8*35- ,-) H.*.82?() A8?3,)8 93,- 2

21

c.16 ./ ,-) :.cA0)* ,5 5-.93*+ ,-) ?.*A5 [email protected])* ,. 3,5 );)cA,[email protected]) .//3c)85.

DOCUMENTAR# PROOFS NECESSAR# FOR &ALID RETRENCHMENT DUE TO LOSSES As held by the Supreme ourt in Asian Alcohol orporation ,s& NLR + $&R& No& 6F66'H+ !arch 54+ 6(((+ ,i<3
“ .he condition of (3siness losses is normally shown (y a3dited -+#A#C+AH 1 CI!,#.S liGe the yearly 6AHA#C, [email protected],,.S and "' -+. A#1 H SS statements as well as +#C !, .A* ',.I'#S. +t is o3r r3lin& that financial statements m3st (e prepared and si&ned (y independent a3ditors :4ilts*ire File Co., ;nc. v. NLRC, 193 )CR' 665, 6"7 .1991/ Banana Growers Collective at Puyod Farms v. NLRC, -"6 )CR' 511, 55-(556 .199"/# Lo&e2 )u3ar Cor&oration v. Federation o+ Free 4or5ers, 1 9 )RC' 1"9, 197 .1997/# 'G = P 0nited Ran5 and File 'ssociation v. NLRC .First >ivision/, -65 )CR' 159, 161( 166 .1996/# Ca++co ;nternational Limited v. <++ice o+ t*e 8inister(8inistry o+ La,or = %m&loyment, -1- )CR' 351, 35" .199-/9. Inless d3ly a3dited% they can (e assailed as self< servin& doc3ments :0ic*ico v. NLRC, -"3 )CR' 13 .199"/9. 63t it is not eno3&h that only the financial statements for the year d3rin& which retrenchment was 3ndertaGen% are presented in evidence. -or it may happen that while the company has indeed (een losin&% its losses may (e on a downward trend% indicatin& that (3siness is picGin& 3p and retrenchment% (ein& a drastic move% sho3ld no lon&er (e resorted to :P*ili&&ine )c*ool o+ Business 'dministration .P)B' 8anila/ v. NLRC, --3 )CR' 375, 37 .1993/9 . .h3s% the fail3re of the employer to show its income or loss for the immediately precedin& year or to prove that it expected no a(atement of s3ch losses in the comin& years% may (espeaG the weaGness of its ca3se :)omerville )tainless )teel Cor&oration v. NLRC, et al, G.R. No. 1-5 ", 8arc* 11, 199 ]. +t is necessary that the employer also show that its losses increased thro3&h a period of time and that the condition of the company is not liGely to improve in the near f3t3re.9

22

Thus+ it is not enou)h+ that only the financial statements for the year durin) =hich the retrenchment =as underta>en should be presented& The respondents should also present itSs income and loss for the I!!EDIATEL* PRE EDIN$ *EAR& Lor it may happen that =hile the company has indeed been losin)+ itSs losses may be on a DO.N.ARD TREND indicatin) that business is pic>in) up and retrenchment+ bein) a drastic mo,e+ should no lon)er be resorted to& %ence+ failure of the employer to sho= its income and loss for the immediately precedin) year or to pro,e that it e8pected no abatement in losses in the comin) years may BESPEA/ T%E .EA/NESS OL ITS A"SE& The respondents must sho= that the financial condition of the company is not li>ely to impro,e in the near future& IF E&ER THERE %AS LOSS< THERE IS STILL NO PROOF THAT IT ECPECTS NO ABATEMENT OF SUCH LOSSES IN THE COMING #EARS. Besides+ Radio Philippines Net=or> is no= under a ne= mana)ement& The respondents ha,e not sho=n that under the ne= mana)ement+ the financial status of the company =as in dire financial distress+ OR that its financial condition in the comin) years =ill li>ely not impro,e& The respondents cannot Nust rely on the financial status of the pre,ious mana)ement to Nustify the retrenchment under the ne= mana)ement& The respondents are mandated to also PRO0E that 3, );1)c,): *. 2?2,) 0 ) * , ./ 5Ac- (.55)5 3* ,-) c.03*+ 6)285< .8 ,-2, ,-) c.*:3,3.* ./ ,-) c.012*6 35 *., (3B)(6 ,. [email protected]) 3* ,-) *)28 /A,A8) & This is the clear import of the Supreme ourt in Asian Alcohol orporation ,s& NLR + $&R& No& 6F66'H+ !arch 54+ 6(((+ ,i<3
+t is necessary that the employer also show that its losses increased thro3&h a period of time and that the condition of the company is not liGely to improve in the near f3t3re.9

FAILURE TO FAIRL# IMPLEMENT RETRENCHMENT PROGRAM RENDER THE RETRENCHMENT ILLEGAL.
23

Radio Philippines Net=or> has a retrenchment pro)ram embodied in its BA =ith its =or>ers and employees&
1 ARTI!LE ;I/ VOLUNTARY RETRENCHMENT PROGRAM (VRP) +n case of / HI#.A'$ ',.',#[email protected]!,#. "' 0'A! J/'"N to (e implemented (y the Company% it shall &3arantee to said covered employeeOs a retrenchment pay in accordance of the followin& sched3le; ne J1N (3t (elow : years of service < 5: daysOyear of service : years (3t (elow 10 years of service < 70 days 10 years (3t (elow 1: years of service < 75 days 1: years (3t (elow 20 years of service < 7= days 20 years (3t (elow 2: years of service < :5 days 2: years and a(ove < >0 days pl3s Collective 6ar&ainin& A&reement (enefits 3nder Article *++% Sections 1%2 P5. Jp. 55N9

The implementation of the retrenchment pro)ram by the respondents+ ho=e,er+ =as arbitrary and unfair& The respondents unreasonably disre)arded any ,alid criteria in the selection of the =or>ers to be retrenched& In fact+ it appeared that the company selected the =or>ers or employees =ho =ere employed lon)er than those =ho =ere employed earlier+ in its retrenchment+ Nust to a,oid payin) bi))er monetary benefits or =a)es& The obNecti,e =as not merely to retrench but to e,ade the payment of hi)her monetary benefits and =a)es of the older employees& In Philippine Tuberculosis Society+ Inc&+ ,s& NLR + $&R& No&+ 664J6J+ Au)ust 54+ 6((H+ the Supreme ourt affirmed the decision of the NLR reIuirin) the REINSTATE!ENT of re# trenched employees not=ithstandin) its findin) that the retrenchment pro)ram =as Nustified by the losses incurred by the employer+ on the )round T%AT T%E E!PLO*ER LAILED TO I!PLE!ENT T%E PRO$RA! LAIRL* + particularly in the employerSs failure to consider SENIORIT* in selectin) the employees to be dismissed&
“ @owever% the employerBs prero&ative to layoff employees is s3(Dect to certain limitations set
24

forth in HopeE S3&ar% Corporation vs. -ederation of -ree ForGers [1=4 SC'A 1?0% 1=>< 1=?] as follows; -irstly% the losses expected sho3ld (e s3(stantial and not merely de minimis in extent. +f the loss p3rportedly so3&ht to (e forestalled (y retrenchment is clearly shown to (e ins3(stantial and inconse83ential in character% the (onafide nat3re of the retrenchment wo3ld appear to (e serio3sly in 83estion. Secondly% the s3(stantial loss apprehended m3st (e reasona(ly imminent% as s3ch imminence can (e perceived o(Dectively and in &ood faith (y the employer. .here sho3ld% in other words% (e a certain de&ree of 3r&ency for the retrenchment% which is after all a drastic reco3rse with serio3s conse83ences for the livelihood of the employees retired or otherwise laid< off. 6eca3se of the conse83ential nat3re of retrenchment% it m3st% thirdly% (e reasona(ly necessary and liGely to effectively prevent the expected losses. .he employer sho3ld have taGen other meas3res prior or parallel to retrenchment to forestall losses. i.e.% c3t other costs than la(or costs. An e47loyer #ho, for instance, lays off s85stan tial n845e rs of #or6ers #hile contin8ing to dis7ense fat e9ec8ti e 5on8ses and 7er<8isites or so= called 1golde n 7arach8 t es, >c a n scarcely clai4 to 5e retre nching in good faith to a oid losses . .o impart operational meanin& to the constit3tional policy of providin& “f3ll protectionBB to la(or% the employerBs prero&ative to (rin& down la(or costs (y retrenchin& m3st (e exercised essentially as a meas3re of last resort% after less drastic means Q e.&. red3ction of (oth mana&ement and ranG< and< file (on3ses and salaries% &oin& on red3ced time% improvin& man3fact3rin& efficiencies% trimmin& of marGetin& and advertisin& costs% etc. Q have (een tried and fo3nd wantin&. Hastly% (3t certainly not the least important% alle&ed losses if already realiEed% and the expected imminent

25

losses so3&ht to (e forestalled% m3st (e proved (y s3fficient and convincin& evidence. .he reason for re83irin& this 83ant3m of proof is readily apparent; any less exactin& standard of proof wo3ld render too easy the a(3se of this &ro3nd for termination of services of employees. +n addition to the a(ove% the retrenchment m3st (e implemented in a D3st and proper manner. As held in Asiaworld "3(lishin& @o3se% +nc. vs. ple% there m3st (e fair and reasona(le criteria to (e 3sed in selectin& employees to (e dismissed% s3ch as ; JaN less preferred stat3s Je.&. temporary employeeN; J(N efficiency ratin&C and JcN seniority9

SENIORIT# RIGHTS. The seniority of a =or>er for purposes of consideration in the retrenchment by an employer is =ell# reco)ni<ed by the Supreme ourt in the Philippine Tubercolosis case+ supra &
“ Seniority ri&ht is one of a criteria in selectin& employees to (e dismissed. Altho3&h% an employee has no inherent ri&ht to seniority. @e co3ld however % have s3ch ri&ht (ased on a contract% a stat3te% or an administrative re&3lation relative thereto. Seniority ri&hts% can (e ac83ired (y an employee thro3&h lon&< time employment and were said to (e contract3al% and not constit3tional [,nri83e vs. Ramora% 0.'. #o. :15==2% 1ec.24% 14=>]. Ar&3ment3 m of its 3nconstit3tionality% there is nothin& in the constit3tionality of the law that r3ns contrary with the o(servance of seniority ri&hts% this is more solicito3s for the welfare and protection of la(or especially in the selection process of dismissal a proced3ral d3e process that m3st (e afforded to the employee. .his is more of s3ppletory re&3lation and &3idelines and not in contravene to the o(Dect of the law. 6y this% selectin& employees to (e retrenched% the employer cannot completely disre&ard seniority as a factor.9

Thus+ the Supreme ourt e8pressed )ra,e alarm and concern on the retrenchment made by employers =ho failed to consider ,alid+ fair+ and reasonable factors in selectin) the employee or =or>er to be retrenched&

26

“ #or do we thinG the #H'C erred in holdin& that tho3&h the Society was D3stified in orderin& a retrenchment invalid. .hat is (eca3se in selectin& the employees% the Society disre&arded alto&ether the factor of seniority. As the #H'C noted; Fe noted with concern that the criteria 3sed (y the Society failed to consider the seniority factor in choosin& those to (e retrenched% a fail3re which% to o3r mind% sho3ld invalidate the retrenchment% as the omission immediately maGes the selection process 3nfair and 3nreasona(le. .hin&s (ein& e83al% retainin& a newly hired employee and dismissin& one who had occ3pied the position for years% even if the scheme sho3ld res3lt in savin&s for the employer% since he wo3ld (e payin& the newcomer a relatively smaller wa&e% is simply 3nconsciona(le and violative of the senior employeeBs ten3rial ri&hts. +n /illena vs. #H'C% 145 SC'A >=>. -e(r3ary ?% 1441% the S3preme Co3rt considered the seniority factor an important in&redient for the validity of a retrenchment pro&ram. Accordin& to the Co3rt% the followin& le&al proced3re sho3ld (e o(served for a retrenchment to (e valid; JaNone< month prior notice to the employee as prescri(ed (y Article 2=2 of the Ha(or CodeC and (N 3se of a fair and reasona(le criteria in carryin& o3t the retrenchment pro&ram% s3ch as 1Nless preferred stat3s Jas in the case of temporary employeesN 2N efficiency ratin&% 5N seniority% and 7N proof of claimed financial losses. Amelita 1oria% one of the employees retrenched% for instance worGed with the Society for 51 years% her latest position (ein& that of a @ead #3rse. -rom 14=2 3p to 1440% she was "resident of the K+ #3rses Association. Another employee retrenched% despite (ein& more senior than those retained% was +sa(el 03ille% a n3rse who worGed for the Society for 11 years. She was the inc3m(ent "resident of the K+ #3rses Association at the time of her retrenchment. 63enavent3ra /aE83eE worGed with the Society since 14:= contin3o3sly 3p to 1441% when he was incl3ded amon& those retrenched. Fhat

27

maGes his case partic3larly noticea(le is that he was retrenched after he filed an application for retirement as he was already of retira(le a&e. 'elatedly% he swears in an Affidavit that as an a3dit examiner% “+ Gnow f3ll JsicN well that the ".S is not (anGr3pt and in financial distress as it has many real estate properties and assets to pay (enefits to retirin& and separate d employees. After all the ".S is a non< profit or&aniEation esta(lished for profit.BB Another is "remia 13mlao% who s3(mitted an Affidavit attestin& to the fact that she worGed with the Society since 14:: contin3o3sly 3p to 1441% when she was retrenched despite her 5? years of service with the Society. She attests that her “retrenchment is ar(itrary and ille&al as the &3idelines did not provide for the consideration of the a&es% len&ths of service and retira(ility of the retrenched employees.9

In the case of the complainant+ she =as one of the most senior employees of RPN D1/D+ in term of len)th of ser,ice& The others =ho =ere not retrenched included Lield Reporter Renie N& Buaya+ =ho =as employed only last 5''7M Technician Ed)ar E& Lu)o =ho =as employed only last Au)ust 5''(M Technician risme 0& Empeynado =ho =as employed only last 5'6'M $arry Pe)arido+ =ho =as employed only last Euly 5''FM and Leo %& imafranca+ the Station !ana)er+ =ho =as employed only last Au)ust+ 6(HK& As compared to the herein# complainant+ =ho =as employed last September 6K+ 6(H'+ and =hose last position held =as as %ead of the Administrati,e Department& Normally+ had a criteria been adopted by the respondents in the retrenchment pro)ram+ the last one employed =ould necessarily be the first to )o in consonance =ith the rulin) of the Supreme ourt in !A*A LAR!S E!PLO*EES OR$ANIQATION 0S& NLR + 5F( S RA 4'H+ December 5H+ 6((J+ =hich adopted the LAST#IN#LIRST#O"T R"LE IN RETREN %!ENT PRO$RA!s&

NO CRITERIA USED B# THE RESPONDENTS IN THE RETRENCHMENT OF THE COMPLAINANT
28

In this case+ the respondents ha,e not sho=n that its selection of employees to be terminated =as based on any criteria such as =hether the positions of the employees are to be retained or abolished+ the Iualifications reIuired by the positions to be retained+ modified or created+ seniority+ efficiency+ etc& In terms of si)nificance+ as ashier and Administrati,e Officer+ the complainant retains a position of trust and si)nificance and is absolutely necessary for the operation of the radio station& Thus+ it is so mystifyin) =hy the complainant =as chosen amon) the se,eral employees of RPN D1/D to be retrenched& In its letter dated October 6+ 5'65 [see Annex E] + the respondents thru OI Robert T& Ri,era did not cite any criteria in selectin) the complainant as one of those to be retrenched2dismissed&
“ xxx As yo3 were aware% the Company contin3es to inc3r serio3s (3siness and financial losses. .he (enefits of employees remain 3npaid despite efforts to improve the operations of the Company. 6ased on its filed 2011 -inancial Statements alone% the Company has s3ffered financial losses of more than "hp 120 !% increasin& the capital deficiency to more than "hp26. .he fore&oin& has led mana&ement to review its or&aniEation to recover its dire financial sit3ation. Fe have contin3o3sly looGed into how to improve efficiency and optimiEe o3r reco3rses. !3ch as we have exerted all efforts to maintain to o3r c3rrent (3siness operations. .his move serio3sly into acco3nt the CompanyBs financial sit3ation and the lon& term s3rvival of the Company. After caref3l eval3ation% the Company is constrained to maGe the diffic3lt decision of red3cin& its personnel on the &ro3nd of retrenchment d3e to serio3s (3siness losses 3nder Article 2=5 of the Ha(or Code. Fe re&ret to inform yo3 that yo3 are amon& those that have (een considered for retrenchment. $o3r employment with the Company shall contin3e and remain effective only 3ntil 1: #ovem(er 2012. xxx9.

In
November

apitol .ireless+ Inc& ,& onfesor + [G.R. No. 117174, 1 , 1!!"] + the Supreme ourt held that 9 in selectin&
29

the employees to (e dismissed% a fair and reasona(le criteria m3st (e 3sed s3ch as (3t not limited to; JaN less preferred stat3s% [ e.# . temporary employee]C J(N efficiencyC and JcN seniority.9

No such appraisal =as done in the present case& The absence of criteria in the selection of an employee to be dismissed rendered the dismissal arbitrary&

THE COMPLAINANT AND THE OTHER DISMISSED EMPLO#EE %ERE ALL OF$ FICERS OF THE LOCAL CHAPTER OF THE LABOR UNION & .hat could ha,e been the possible reason for the selection of the complainant Band another employee# Eocelyn arpio BallaresC as the =or>ers to be retrenchedO& The reason lies on the status of the complainant and the other =or>er @ Eocelyn arpio Ballares @ to the labor union& The complainant =as the Local hapter hairman of the RPNE"+ labor union& The other employee =ho =as dismissed+ Eocelyn arpio Ballares+ =as also the Local hapter Secretary & The decision of the Supreme ourt in the Bataan Shipyard and En)ineerin) o&+ Inc&,s& NLR case+ s%pra + =ill thus apply&
“ Inder the circ3mstances o(tainin& in this case% Fe are inclined to (elieve that the Company had indeed (een discriminatory in selectin& the employees who were to (e retrenched. All of the retrenched employees are officers and mem(ers of the #A-HI. .he record of the case is (ereft of any satisfactory explanation from the Company re&ardin& this sit3ation. As s3ch% the action taGen (y the firm (ecomes hi&hly s3spect. +t leads Is to concl3de that the firm had (een discriminatin& a&ainst mem(ership in the #A-HI% an act which amo3nts to interference in the employeesL exercise of their ri&ht of self< or&aniEation. Inder Article 274 of the Ha(or Code of the "hilippines% s3ch interference is considered an act of 3nfair la(or "ractice on the part of the Company% to wit Q

30

A'.. 274. $n%air labor practices o% emplo&ers . Q +t shall (e 3nlawf3l for an employer to commit any of the followin& 3nfair la(or practices; JaN .o interfere with% restrain or coerce employees in the exercise of their ri&ht to self< or&aniEation.C xxx xxx xxx9

In the instant case+ complainant and her companion+ Eocelyn arpio Ballares =ere all officers and members of RPNE"&&&=here the action of the respondents in dismissin) them happened durin) the pea> of the rene=ed ne)otiation for the BA& The act of the respondents in retrenchin) the employees durin) the hei)ht of the ne)otiations for a ne= BA can be classified as hi)hly suspicious& Similarly this can be called an interference pre,ented the employeesS ,ested ri)ht to or)ani<ation& that self#

%HILE THE EMPLO#ER RETRENCHED THE %ORKERS %HO %ERE OFFICERS OF THE LABOR UNION< THE SAID EMPLO#ER RE$ HIRED AND E&EN HIRED A REPLACEMENT %HICH IS AN INDICATION THAT THERE %AS NO SUCH URGENC# FOR THE SAID RETRENCHMENT. THERE IS NO SHO%ING THAT THE RESPONDENT ADOPTED OTHER MEASURES TO FORESTALL OR PRE&ENT THE PURPORTED BUSINESS LOSS. .orst of all+ =hile the respondents tried to paint a picture that it =as necessary to retrench or reduce its =or>ers+ as it =as accordin)ly sufferin) from business loss+ but it appears that this =as merely a charade& Thus+ immediately after the dismissal of the complainant and another employee+ =ho =ere all officers of the local labor union+ the respondents directed the retained Station !ana)er+ Leo %& imafranca to recommend the

31

rehirin) of three employees3 Renie N& Buaya+ Ed)ar E& Lu)o and risme 0& Empeynado& PROOF 3
Anne8 9 G : 3 Letter dated October 6H+ 5'65 of Station !ana)er Leo %& imafranca recommendin) for the rehire of Renie N& Buaya+ Ed)ar E& Lu)o and risme 0& Empeynado&

These three BFC persons are no= still =or>in) =ith RPN D1/D until no=& On the same date+ October 6H+ 5'65+ and reali<in) the importance of the =or> of the herein# complainant and the other retrenched employee+ RPN D1/D also loo>ed for and then ne=ly hired another person+ Eenny Babe !& Ello as their REPLA E!ENT& PROOF 3
Anne8 9 H : 3 Letter dated October 6H+ 5'65 of Station !ana)er Leo %& imafranca recommendin) for the hirin) of Eenny Babe !& Ello as replacement of Estrella $& o and Eocelyn arpio Ballares&

!s& Ello is no= currently =or>in) =ith RPN D1/D as the replacement of the complainant and the other retrenched employee& The rehirin) of the three =or>ers+ Renie N& Buaya+ Ed)ar E& Lu)o and risme 0& Empeynado and the SEAR % for a REPLA E!ENT and the %IRIN$ OL A NE. .OR/ER+ Eenny Babe !& Ello directly run counter to the true essence and real purpose of a ,alid retrenchment+ =hich is an economic )round to reduce the number of employees& Normally+ a company resorts to retrenchment to reduce the number of its personnel for the purpose of cuttin) do=n on costs of operations in terms of salaries and =a)es because of losses in operation of a business occasioned by lac> of =or> and considerable reduction in the ,olume of business [ Alaban# 'ountr& 'lub vs. N(R', G.R. No. 1)7"11, Au#ust
!, *++)].

But in this case+ the respondents e,en rehired its =or>ers and =orst+ e,en had to loo> for a replacement of the retrenched employees&
32

This Nust )oes to sho= that there "R$EN * to ma>e the retrenchment&

=as NO S" %

There is also no sho=in) that the respondents ha,e adopted other measures to pre,ent or forestall the purported business loss& The %i)h ourt pronouncement in 1ope2 3%gar Corporation vs & /ederation of /ree 4or5ers + 6H( S RA 67(+ 6('+ Au)ust F'+ 6(('+ is instructi,e3
“ Fe consider it may (e 3sef3l to sGetch the &eneral standards in terms of which the acts of petitioner employer m3st (e appraised. -irstly% the losses expected sho3ld (e s3(stantial and not merely de minimis in extent. +f the loss p3rportedly so3&ht to (e forestalled (y retrenchment is clearly shown to (e ins3(stantial and inconse83ential in character% the bona%ide nat3re of the retrenchment wo3ld appear to (e serio3sly in 83estion. Secondly% the s3(stantial loss apprehended m3st (e reasona(ly imminent% as s3ch imminence can (e perceived o(Dectively and in &ood faith (y the employer. There sho8ld, in other #ords, 5e a certain degree of 8rgency for the retr e nch4 e n t % which is after all a drastic reco3rse with serio3s conse83ences for the livelihood of the employees retired otherwise laid< off. 6eca3se of the conse83ential nat3re of retrenchment% it m3st% thirdly% (e reasona(ly necessary and liGely to effectively prevent the expected losses. The e47loyer sho8ld ha e ta6en other 4eas8r es 7rior or 7arallel to retr e nch4 e n t to forestall losses, i - e -, c8t other costs than la5or costs- An employer who% for instance% lays off s3(stantial n3m(ers of worGers while contin3in& to dispense fat exec3tive (on3ses and per83isites or so<called M&olden parach3tesM% can scarcely claim to (e retrenchin& in &ood faith to avoid losses. .o impart operational meanin& to the constit3tional policy of providin& Mf3ll protectionM to la(or% the employerLs prero&ative to (rin& down la(or costs (y retrenchin& m3st (e exercised essentially as a meas3re of last resort% after less drastic means Q e.&.% red3ction of (oth mana&ement and ranG< and< file (on3ses and salaries &oin& on red3ced time% improvin& man3fact3rin& efficiencies% trimmin& of marGetin& and advertisin& costs% etc. Q have (een tried and fo3nd wantin&.

33

Hastly% (3t certainly not the least important% alle&ed losses if already realiEed% and the expected imminent losses so3&ht to (e forestalled% m3st (e proved (y s3fficient and convincin& evidence. .he reason for re83irin& this 83ant3m of proof is readily apparent; any less exactin& standard of proof wo3ld render too easy the a(3se of this &ro3nd for termination of services of employees. . . .9

The Supreme ourtAs rulin) in Euan Saballa+ et&al&+ ,s& NLR + et&al&+ $&R& No& 6'5J75# HJ+ Au)ust 55+ 6((K+ =hich centered on the issue of =hy an employer should rehire its old =or>ers or =hy it =ill hire replacements =hen it supposedly had embar>ed on a retrenchment pro)ram should also be duly considered in this case&
“ 0iven the precedin& disc3ssion% it is indisp3ta(le that private respondent failed to meet the a(ove stated re83irements for a valid retrenchment d3e to imminent (3siness losses% since J1N the expected losses were not proven to (e s3(stantialC J2N the expected losses were not shown to (e imminent as private respondent was a(le to afford re< hirin& of some of the non< ten3rial employees on Mforced leaveMC and J5N the retrenchment was not shown to (e reasona(ly necessary and liGely to effectively prevent the expected losses. And% neither the losses already realiEed nor the imminent losses so3&ht to (e forestalled were proven (y s3fficient and convincin& evidence. !oreover% the private respondent admitted (3t failed to explain why it rehired previo3sly retrenched employees who were even non< ten3rial% d3rin& the pendency of the complaints for ille&al dismissal% when there were still a n3m(er of re&3lar employees in the same sit3ation. "etitioners also alle&ed that% immediately after their termination% private respondent hired replacements to fill their positions. .his alle&ation% s3pported (y the affidavit of petitionersL witness !arlene Cerillo% remained 3nre(3tted and 3ncontroverted (y private respondent. .his militates stron&ly a&ainst private respondentLs claim of &ood faith in implementin& red3ctions of its worG force to red3ce costs. And% altho3&h !emorand3m #o. 27< == set o3t the prioritiesOcate&ories to (e o(served in implementin& the personnel red3ction pro&ram% the same was not applied to the petitioners% who% (ein& re&3lar employees%
34

did not fall 3nder any of the cate&ories mentioned in said memorand3m% and who therefore o3&ht not have (een retrenched Q at least not 3nder said memorand3m. .his Co3rt has repeatedly enDoined employers to adopt and o(serve fair and reasona(le standards to effect retrenchment [Radio
'ommunications o% t,e -,ilippines, .nc. vs. National (abor Relations 'ommission, *1+ /'RA ***, **), 0une *), 1!!* and Asia1orld -ublis,in# 2ouse, .nc. vs. 3ple, 1)* /'RA *1!, **), 0ul& * , 1!47]. .he private respondent adopted in its

!emo. #o. 27< == a set of criteria in retrenchin& employees in accordance with its cost< red3ction pro&ram% (3t discarded these self< imposed criteria when it came to the retrenchment of petitioners% th3s renderin& its action ar(itrary. -3rther% it is 3ndisp3ted that Sec. 1% Article *+ of the Collective 6ar&ainin& A&reement of Septem(er 15% 14== (etween private respondent and the employeesL 3nion stip3lates that Mseniority in service to the company shall (e . . . considered in lay< off or red3ction of worGin& force. .h3s% the s3(Dect retrenchment is violative of this stip3lation as well. .he private respondentLs demonstrated ar(itrariness in the selection of which of its employees to retrench is f3rther proof of the ille&ality of the s3(Dect retrenchment% not to mention private respondentLs (ad faith. And lastly% we note that the termination was made effective five J:N days after receipt of notice. .he lacG of the thirty J50N days notice prior to retrenchment as re83ired 3nder Article 2=5 of the Ha(or Code f3rther (olsters the concl3sion that the s3(Dect retrenchment was ille&al. .h3s% it is inel3di(le that we sho3ld a&ree with petitionersL contention that% contrary to the p3(lic respondentLs findin&% the retrenchment of petitioners (y private respondent constit3ted ille&al dismissal.9

DISCRIMINATION Not all employees of the respondents =ere retrenched+ because there are still a lot of them retained in the pro,incial stations& In fact+ no one =as retrenched in S"RI$AO+ D1/S+ a sister radio station+ under the umbrella of the same NET.OR/&

35

The affected operates because RPN+ as a

contention that D1/S+ Suri)ao+ could not be because it is the only pro,incial station that =ith profit cannot be )i,en fa,orable reser,ation D1/S is an inte)ral part of the =hole system of net=or>& system e,en to the e8emption that it is effect to all sister ne,er be considered

.hen the body is sic>+ the =hole remotest part cannot be spared to claim unaffected& The principle of Domino stations holds true to this case and can as an e8cuse&

Nobody should be discriminated in the retrenchment pro)ram& Nobody should be fa,ored& Discrimination+ bias and fa,oritism in the retrenchment =ill render inNustice to the retrenched =or>ers& Both in )ood times and bad times + the members of RPN family =ill ha,e its share of the ca>e& Be it s=eet or bitter e,eryone has to accept the poison of death in the termination& But not in the case of D1/S+ S"RI$AO& Not one of the employees there =as retrenched& There =as+ therefore+ bias and discrimination+ on the companySs act of implementin) the retrenchment pro)ram& In the case of RPN D1/D+ Dipolo) ity =here the complainant is =or>in)+ out of the four re)ular employees+ only t=o =ere retrenched+ to include the herein# complainant and another =or>er+ Eocelyn arpio# Ballares& All the others =ere retained& E,en about four BJC contractual and Nob# order employees =ere also retained& Any e8planation to the effect that the ser,ices of the retained re)ular employees =ere indispensable+ as in the case of $ary Pe)arido+ [t,e ne1est amon# t,e %our re#ular , and
currentl& ,oldin# t,e 3.'5c,ie% 6ec, position in t,e 6ec,nical 7epartmen t] cannot be )i,en credence+ for the ,ery reason

that LA T"ALL*+ =hen !r& $& Pe)arido =ent on lea,e of absence+ e,en for t=o B5C or three BFC days+ or e,en on occasions that he utili<ed and a,ailed of his full 64 days paid ,acation or sic> lea,e pri,ile)es+ the stationAs operation still continued& In other =ords+ e,en =ithout !r& $& Pe)arido+ RPN D1/D still =as able to )o on air&

36

As the OI # Admininstrati,e Officer+ the complainant actually noticed and obser,ed that the stationSs operation and pro)rammin) remained unaffected+ because there =ere se,eral contractual =or>ers+ =ho could assume and =ho indeed assumed the technical operations of the station& !oreo,er+ e,en announcers in the production department still mana)ed to )o on air =ithout !r& $& Pe)arido at the technical department& .ith the ad,ancement in technolo)y and the use of the computeri<ed system+ the announcer can become a technician and radio announcer at the same time& This is an undisputed practice today& The Daily Time Records of !r& $arry Pe)arido and the Station pro)ram lo) =ill all sho= that the retained employees do not necessarily occupy such positions that =ithout them+ the radio station cannot operate& This =ill only sho= that the retrenchment made by the respondents =as unreasonable+ unfair+ baseless+ and discriminatory& It is a lon) time undisputed practice that for retrenchment to be ,alid+ it must be underta>en reasonably& %o=e,er+ the manner in =hich the prero)ati,e e8ercised should not be tainted =ith abuse of discretion& is

As held by the Supreme ourt in Bataan Shipyard and En)ineerin) o&+ Inc& ,s& NLR &+ $&R& No& L#7HK'J+ !ay (+ 6((H+ ,i<3
“ +t is not disp3ted that the retrenchment 3ndertaGen (y the Company is valid. @owever% the manner in which this prero&ative is exercised s(o3ld not (e tainted with a(3se of discretion. Ha(or is a personLs means of livelihood. @e cannot (e deprived of his la(or or worG witho3t d3e process of law :P*il. 8ovie Pictures 4or5ersA 'ssociation vs. Premiere Productions, ;nc., 9- P*il. 13 .1953/9. 'etrenchment striGes at the very heart of oneLs employment. Fhile the ri&ht of an employer to dismiss an employee is conceded in a valid retrenchment% the ri&ht differs from and sho3ld

37

not (e conf3sed with the manner in which s3ch ri&ht is exercised. +t sho3ld not (e oppressive and a(3sive manner since it affect oneLs person and property :>e Leon vs. National La,or Relations Commission, 177 )CR' 691 .19 7/9 . 13e process of law demands nothin& less.

CONTINUATION OF DISCUSSION MONETAR# CLAIMS The computation of the monetary complainant shall be discussed hereinafter& RESPONDENTS4 OFFER At the outset+ actin) on the mista>en2=ron) assumption that its retrenchment2dismissal =as le)al+ the respondents made an offer to the complainant for the amount of P6+4F4+JKH&K5+ bro>en do=n as follo=s3 ;;; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ; ;;; ; ; ; ; ; ; ; ; ; ;
A. SEPARATION PA# RETRENCHMENT PA# P 5J+(7'&H' P 7((+'K4&K' 7!!< " 6 5 . 6 " B. BENEFITS 1. SICK LEA&E RESER&ED D15 DA#SE P 5J+(7'&H' 8 652546 6+6(F&H5 67+('7&F4 6+6(F&H5 8 8 F5 36#TOT&173)8&R&TIO 8&9

claims

of

the

64

2. UNPAID BENEFITS 5''6 TO 5''HM OT Pay for 5'6'25'66 and other unpaid benefits Sic> Lea,e on,ersion 5'66 Lon)e,ity Pay F rd ?uarter 5'66 Lon)e,ity Pay J th ?uarter 5'66 Educational Assistance 5'65# 6 Educational Assistance 5'65# 5 Lon)e,ity Pay 6 st ?uarter 5'65 Lon)e,ity Pay 5 nd ?uarter 5'65 Lon)e,ity Pay F rd ?uarter 5'65 Less3 Ad,ance or Deductions 44F+F7K&75

4H4+JK(&(F 57+65F&K4 (+J'J&7H (+JH6&FH 5J+KKK&H' 5J+KKK&H' (+447&6F (+KF5&'F (+7'7&7H 64K+FFF&4K

38

3. SHARE IN PRO&IDENT FUND J4+KH5&K4 4. ACCUMULATED &ACATION LEA&E P 6+6(F&H5 8 5K&74 days 36#TOT&1 #) )/IT3 64 < ! " 1 . 4 C. FINAL PA#
1. LAST PA# F D3*c(A:): 3* ,-) 1268.(( .* 15 [email protected] 2"12 ,. ?) :)1.53,): :38)c,(6 ,. 1268.(( 2cc.A*,E

F6+(FJ&77

P

5J+KKK&H'

8

' months 5+'44&47

2. 13 TH MONTH PA# 2"12 DPRORATEDE P 5J+KKK&H' 2 65 5+'44&47 1 6'&4 months 56+4HF&J4 3. CHRISTMAS BONUS 2"12 DPRORATEDE P 5J+KKK&H' 6H+4''&6' 1 2 K months 5 months 1 J&4

6H+4''&6' F7+'''&5'

4. LONGE&IT# PA# 2"1 2$ 4 TH 7UARTER DPRORATED G J+H(5&6( 5. SICK LEA&E CON&ERSION 2"1 2 DPRORATEDE P 6+6(F&H5 1 5'&6F days 5J+'54&K( 6. O&ERTIME PA# 2"12 7<5 " 1 . 5 3 TOTAL BEFORE TAC 1<53 5 < 4 6 . 6 1 L)55G TAC ON UNPAID BENEFITS AND FINAL PA#FF 11 < 4 ! 4 . 6 COOPERATI&E LOANS TOTALFF 1<41 6 < ! 7 3 . ! 3 ::: : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : ::: : : : : : : : : : : : : : : : : : P

PROOF 3
Anne8 9 I : 3 omputation Sheet2Payslip offered by the respondents&

39

omputed from date of employment to date of application for optional retirement =hich =as on October F+ 5'65+ complainant =as then or had then =or>ed for thirty# t=o [52] years and t=enty# si8 [2>] days [4< 1>< =0 3p to cto(er 12%
2012].

But computed from date of employment to date of dismissal by the respondents =hich =as effecti,e on 64 No,ember 5'6F+ complainant =as then or had then =or>ed for thirty# t=o [52] years+ one [1] month and thirty [50] days [4<
1>< =0 3p to #ovem(er 1:% 2012].

Lor the more than F5 years of lon)+ loyal and hard ser,ice of the complainant+ this =as only the amount offered by the respondents for the complainant& .orst+ out of the amount of P6+4F4+JKH&K5+ only a ,ery small amount of P7((+'K4&K' =as allocated as separation pay for complainantAs more than F5 years of ser,ice& The rest =ere considered accrued benefits already due to the complainant& As summari<ed+ this =as the offer of the respondents to the complainant&
A. Separation Pay [retrenchment pay] P799,065.60 B. Bene it! ". Sick Leave Reserved [15] da s 17,907.35 #. !"#aid $e"e%its 553,376.72 $. S&are i" Pr'vide"t ()"d 45,682.65 %. *cc)+)lated ,acati'" Leave 31,934.77 C. &ina' Pay 87,501.53 TOTAL P"()$)(%*+.*#

HOBSON4S CHOICE & apitali<in) on the fact that it =as the hristmas season+ the respondents dan)led an offer for the complainant to Nust accept the amount of P6+4F4+JKH&K5 and then si)n a document of .ai,er for any other benefits& The complainant pleaded that the accrued monetary a=ards be released ahead as any=ay these benefits =ere already due to her&

40

But the respondents did not a)ree+ and insisted that the complainant should recei,e the amount of P6+4F4+JKH&K5 and si)n the =ai,er& Thus+ the hristmas season passed by+ =ithout a sin)le centa,o+ bein) enNoyed by the complainant and her family&

BIAS IN COMPENSATION SEPARATION PACKAGE TO MANAGERS< AND DISCRIMINATION AGAINST LABOR UNION OFFICERS OR LO%L# EMPLO#EES. The compensation separation pac>a)e presented by the respondents to the complainants+ ho=e,er+ =as ,ery small& A DILLERENT STANDARD =as adopted by the respondents in its compensation separation pay pac>a)e to the !ANA$ERIAL E!PLO*EES =ho =ere also pre,iously dismissed+ in the persons of Romeo San)cap+ the former Station !ana)erM Ro)er Romano+ the former chief of the Technical DepartmentM and Tarcisia & Ladera+ the former ashier and %ead of the Administrati,e Department+ of RPN D1/D+ =hose position the herein# complainant thereafter assumed& Each of these persons =ere )i,en a compensation separation pac>a)e by the respondents of more than LO"R !ILLION BPJ+'''+'''&''C PESOS each+ paid ten percent lump sum as initial payment and the balance+ payable and spread out in monthly installments+ e,ery 64 th and F' th of the employeesA payrolls& To date+ Romeo San)cap+ Ro)er Romano+ and Tarcisia & Ladera continue to recei,e their compensation separation pay from the respondents& But for labor union officers+ and2or ran># and# file employees [obviousl& t,e respondents did not consider t,e
complainant as a mana#erial emplo&ee despite ,er assumption to t,e position le%t b& 6arcisia '. (adera because t,ere 1as even no c,an#e or raise in ,er salar&] the compensation separation pay

pac>a)e =as ,ery miniscule& Ob,iously+ the respondents played fa,orites& The respondents paid more the mana)ers than the ran># and# file

41

employees+ by usin) a different standard of separation pay pac>a)e& COMPLAINANT4S REACTION TO THE COMPAN#$ COMPUTATION/PA#SLIP ollatin) all the applicable pro,isions of the ollecti,e Bar)ainin) A)reement B BAC and the applicable la=s+ the complainant has her o=n computation& In fact+ complainant reacted to the offer made by the respondents by presentin) to them her o=n computation& PROOF 3
Anne8 9 J: 3 Letter dated December 7+ 5'65&

But the respondents complainantAs letter&

i)nored

%ereunder is complainantAs O!P"TATION OL %ER A R"ED BENELITS+ itemi<ed into3 A ; In relation to the ompany PayslipM B ; Other Points Not Included in the ompany Payslip+ and ; $eneral Reser,ation& A ; IN RELATION
[&nne; <=>"

TO

THE

COMPAN#$ PREPARED

PA#SLIP

Lor item 9 B. BENEFITS : and 9 C. FINAL PA# : of the company PA#SLIP [&nne; <=>" + the follo=in) =ere not considered3 1. The basic salary used by the respondents in the company PA*SLIP [&nne; <=>" as basis for their computation of complainantAs benefits =as still the rate of P5J+(7'&H'2month+ as ollector2Librarian& B"T "NDER T%E BA AND A T"AL PRA TI E AND "STO!+ any employee =ho is assi)ned to substitute positions of hi)her responsibility+ shall be entitled to recei,e SUBSTITUTION PA# [see /ection 11, Article 8. o% t,e '9A, ,ereto attac,ed as Annex :9 >" + eIui,alent to the rates+ allo=ances+ premiums of the substituted employee for the period in e8cess of fifteen B64C days&

42

Section K+ Article 0 of the BA [see Annex 6] + mandated that the complainant should be paid a 9salary adNustment :+ ,i<3
“ Section >. !(AN?E IN @O. !LA))I0I!ATION < +n the event that an employee is transferred andOor reassi&ned from a lower to a hi&her Do( classification level % s3ch employee shall (e &ranted a salary adD3stment e83ivalent to the difference (etween the minim3m rate of the lower level Do( classification% in which case% a reasona(le in< step adD3stment shall (e &iven instead . #o demolition in wa&es and Do( classification level shall (e made in any case of transfer andOor reassi&nment from a hi&her to a lower Do( classification level. +mmediate written notice to employee shall (e &iven prior to any transfer or

3%bstit%tion 8a$ Section 6+ Article 1I of the pro,ides3 BA
[see Annex 6] +

also

“ Section 11. )A.)TITATION PA" < C !"A#$ and I#+ # reco&niEe the necessity of on< the< Do( trainin& as a means to foster the professional &rowth and enhance the employees opport3nity to ass3me positions of hi&her responsi(ility. As part of s3ch on< the< Do( trainin&% covered employees shall from time to time (e called 3pon to s3(stit3te in Do(sOpositions with hi&her payC provided that in case s3ch s3(stit3tion is in excess of fifteen J1:N days% the s3(stit3te employee shall (e paid the rates% allowances% premi3ms of the s3(stit3ted employee for the period in excess of fifteen J1:N days. #o s3(stit3tion shall (e allowed or reco&niEed 3nless the s3(stit3tion is a3thoriEed in writin& (y the 1epartment @ead as recommended (y the S3pervisor andOor 1irector concerned. Jp.2=% C6A% Annex “69N

Effecti,e October 6+ 5''(+ thru an official memorandum+ the complainant =as desi)nated by out)oin) RPN D1/D Station !ana)er Romeo D& San)cap as OI + Administrati,e Officer and ashier+ ,ice Tarcisia & Ladera+ =ho =as recei,in) a basic salary of PF6+JJ(&'H& opy of the memorandum =as furnished to Pal A& !arIue<+ the Assistant $eneral !ana)er Ne=s+ Re)ional Operations T International Affairs+ Lourdes O& An)eles+ the
43

%uman Resource Department !ana)er+ and Nestor S& Sando,al+ the OI Re)ional Operations !ana)er+ all of RPN ?ue<on ity& PROOF 3
Anne8 9 K : ; !emorandum dated September F'+ 5''( of Out)oin) RPN D1/D Station !ana)er Romy D& San)cap&

Tarcisia & Ladera =as Administrati,e Department&

then

the

hief

of

the

Durin) that period last October 6+ 5''(+ Tarcisia LaderaAs position as ashier2Administrati,e Officer carried a salary already of PF6+JJ(&'H& Startin) October 6+ 5''(+ complainant assumed the position and =or>ed on the duties and responsibilities as hief of the Administrati,e Department+ and ashier+ of RPN D1/D& Last Eanuary 5(+ 5'6'+ RPN D1/D Station !ana)er Leo %& imafranca reminded mana)ement about it in his S! Eanuary 5'6' !onthly Report to !r& Nestor Sando,al+ the Re)ional Operations !ana)er of RPN( ?ue<on ity& PROOF 3
Anne8 9 L : ; 3? =an%ar$ 2010 ?onthl$ Report dated =an%ar$ 20, 2010.

But the salary that =as paid to the complainant be)innin) October 6+ 5''(+ =as still her old salary of P55+'4H&JH+DAnne8 ?#6M?#5G =hich =as increased last Euly+ 5'6' to P5F+KKK&H'+DAnne8 R#6MR#5G and thence increased a)ain last Euly+ 5'66 to P5J+KKK&H'DAnne8 S#6MS#5G&This in relation to BA increase+ 6 st yr&P 5''&''2monthM 5 nd yr&P H''&''2monthM F rd yr&P 6+'''&''2month+ see Article 0II+ Section 6 and 5+ p)& 65 of the BA + 5''(# 5'65+ =hich read as follo=s3
S)c,3.* 1 2*: 2< A8,3c() &II [email protected]:)5G S)c,3.* 1. SECURIT# CLAUSE ON GUARANTEED SALAR# INCREASE$ T-) COMPAN# 2+8))5 ,. 301()0 ) * , 2 92+) 5,8Ac,A8 ) 3* ,-) )*,) 81835) 9-3c- 5-2(( /238(6 c.01)*52 , ) < 93,-.A , :35c8303*2 ,3.*< ,-) :3//)8 ) * , ?28+23*3*+ A*3,5 93,-3* ,-) COMPAN#.

44

S)c,3.* 2. GUARANTEED #EARL# SALAR# INCREASE $ T-) COMPAN#5-2(( +82*, 2 6)28(6 2c8.55$ ,-)$ ?.28: 1)8 0.*,- 92+) 3*c8)25) ,. 2(( [email protected])8): )01(.6))5 3* ,-) ?28+23*3*+ A*3, 3* 2cc.8:2*c) 93,- ,-) /.((.93*+ 5c-):A()5 E//)c,[email protected]) "1 JA(6 2"" ! E//)c,[email protected]) "1 JA(6 2"1 " E//)c,[email protected]) "1 JA(6 2"1 1 $ $ $ P 2"". " " / 0 . * , "". " " / 0 . * , 1<" " " . " " / 0 . * , -

T-) +A282* , ) ) : 2c8.55$ ,-)$ ?.28: 3*c8)25) A*:)8 ,-35 S)c,3.* 5-2(( *., ?) c-28+) 2 ?() ,. 2*6 ()+35(2,) : .8 [email protected])8* 0 ) * , 02*:2 , ) : 92+) 3*c8)25) ?A, 5-2(( ?) c.*53:)8) : 25 2* 2::3,3.* ,. 2*6 5Ac- ()+35(2,) : .8 [email protected])8* 0 ) * , 02*:2 , ) : 92+) 3*c8)25). T-) COMPAN# 2+8))5 ,. +82*, 2c8.55$ ,-) ?.28: ,. 2(( 82*B$ 2*:$ /3() )01(.6) )5 3*c8)0 ) * ,5 28353*+ .A, ./ ()+35(2,3.*< E;)cA,[email protected]) O8:)85<L), , ) 8 5 ./ I*5,8Ac,3.*5< %2+) O8:)85< 2*: C.012*6 8A()5 2*: 8)+A(2 ,3.*5.

Since the complainant is no= adoptin) under the Substitution status+ it is deem proper that the rate of Tarcisia & LaderaAs latest basic pay+ =hich is , 3!,-- ". . 8 =ill no= be the complainantAs ne= basic pay to consider& As the OLD DS" BA D5''F# 5''HG+ is no= e8pired + the complainant under status Iuo doctrine+ and its e8tension to remain in full force and effect+ as pro,ided in DS" BA+ Article 11I+ Section 6+5+ and F+ p)& J6+ =ill ha,e to a,ail of this pro,ision& DSU CBA< A8,3c() CCI [email protected]:)5 3 Section 6& This A)reement and the pro,isions hereof e8cept =hen e8pressly pro,ided other=ise+ shall become effecti,e as of Euly '6+ 5''F and shall remain in full force and effect until Eune F'+ 5''H+ consistent =ith Section 5 of Article 0I& Section 5& Either party may initiate ne)otiation for rene=al+ by )i,in) =ritten notice to the other party =ithin si8ty days DK'G prior to the e8piration of this A)reement+ consistent =ith the pro,ision of Article 0I+ Section 5 thereof& Section F& E8tension of Effecti,ity @ If no ne= A)reement is reached at the e8piration of the ollecti,e Bar)ainin) A)reement+ this A)reement shall remain in full force up to the time a subseIuent a)reement is concluded by the parties herein&

45

A8,3c() &I< S)c,3.* 1<1+. 11< ./ DSU CBA [email protected]:)5 3 Section 6& GA282*, ) ): #)28(6 I*c8)25) @ The O!PAN* shall )rant a yearly across the board increase to all co,ered employees in the bar)ainin) unit in accordance =ith the follo=in) schedule3 Effecti,e Euly 6+ 5''F @ P Effecti,e Euly 6+ 5''J # Effecti,e Euly 6+ 5''4 # 74'&'' 6+F4K&FF 6+4''&''

The computation of the yearly increase is based on a 67# man months& The )uaranteed across the board increase under this section shall not be char)eable to any le)islated or )o,ernment mandated =a)e increases but shall be considered as an addition to any such le)islated or )o,ernment =a)e increase e8cept =hen authori<ed by la= to correct =a)e distortions resultin) from the implementation of Re)ional .a)e Orders issued by the Tripartite Re)ional .a)e Boards& The O!PAN* a)rees to )rant across the board increase to all super,isory+ and directorial employees as =ell as any and all increments arisin) out of le)islation+ presidential decrees+ e8ecuti,e orders+ letters of instructions+ =a)e orders+ rules and re)ulations of the O!PAN*& On the preser,ation OL T%E Internal E?"IT* $AP that should ha,e been applied in the 5''J# 5''4 salary increase+ the T%E %"NDRED LO"R PESOS T 6526'' T0S& DF'J&65G shall be added to the basic salary in the computation of retirement2resi)nation pay of the Iualified employees+ list of =hich is under Anne8 9A: of this A)reement+ upon their retirement2resi)nation from the O!PNA*M Li>e=ise+ it is understood that the said PF'J&65 =ill be open for rene)otiation =hen the companyAs financial condition impro,esM Section 5& P)83.: 2*: Sc.1) ./ R)*)+.,32,3.* @ The parties hereby a)ree that si8ty DK'G days before the end of the third year of the effecti,ity of this A)reement+ they shall rene)otiate all pro,isions of this A)reement+ for the

46

remainin) life representation&

of

the

contract+

sa,e

the

matter

of

"nder the applicable la= and BA pro,isions+ the monthly salary that should be used as basis for computation in petitionerAs claim for accrued salary differential should be PF(+F(6&J62month+ [8.1,440.0,@month basic A 8.,-0,[email protected]
%nder 3ection 1 , &rticle 'I of the B36 C#&, pg. 11 A 8 2,004 4age &lloCance, to be s%pported b$ a 8a$roll =o%rnal A 81,4.0.00 ?eal &lloCance, &rticle D, 3ection 1, pg 1, of the R8 )6 C#& " & -.PL*/*012/3 $reakd'4" '% t&e TOTAL MONT,L- PA-: P 31,449.08 5 $asic Salar '% 0arcisia 6.Ladera 3,608.33 5 *rticle ,1, Secti'" 1, #7. 11, '% t&e 8S! 6$*. 2,904.00 5 9a7e *ll'4a"ce '% S)#ervis'r [Pa r'll :')r"al ;;;;;;;;;;;;;;] 1,430.00 5 <eal *ll'4a"ce, *rticle ., Secti'" 1, #7. 18 '% t&e RP/-! 6$*. 0'tal P 39,391.41

l

DSU CBAD2" " 3$ 2"" E A8,3c() CCI< 1+.41 Section 6& This A)reement and the pro,isions hereof e8cept =hen e8pressly pro,ided other=ise+ shall become effecti,e as of Euly '6+ 5''F and shall remain in full force and effect until Eune F'+ 5''H+ consistent =ith Section 5 of Article 0I& Section 5& Either party may initiate ne)otiation for rene=al+ by )i,in) =ritten notice to the other party =ithin si8ty days DK'G prior to the e8piration of this A)reement+ consistent =ith the pro,ision of Article 0I+ Section 5 thereof& Section F& A)reement is reached Bar)ainin) A)reement+ force up to the time a by the parties herein& A8,3c() &I< 1+.11 Section 6& GA282*, ) ): #)28(6 I*c8)25) @ The O!PAN* shall )rant a yearly across the board increase to all co,ered employees in the bar)ainin) unit in accordance =ith the follo=in) schedule3 E8tension of Effecti,ity @ If no ne= at the e8piration of the ollecti,e this A)reement shall remain in full subseIuent a)reement is concluded

47

Effecti,e Euly 6+ 5''F @ P Effecti,e Euly 6+ 5''J # Effecti,e Euly 6+ 5''4 #

74'&'' 6+F4K&FF 6+4''&''

The computation of the yearly increase is based on a 67# man months& The )uaranteed across the board increase under this section shall not be char)eable to any le)islated or )o,ernment mandated =a)e increases but shall be considered as an addition to any such le)islated or )o,ernment =a)e increase e8cept =hen authori<ed by la= to correct =a)e distortions resultin) from the implementation of Re)ional .a)e Orders issued by the Tripartite Re)ional .a)e Boards& The O!PAN* a)rees to )rant across the board increase to all super,isory+ and directorial employees as =ell as any and all increments arisin) out of le)islation+ presidential decrees+ e8ecuti,e orders+ letters of instructions+ =a)e orders+ rules and re)ulations of the O!PAN*& On the preser,ation OL T%E Internal E?"IT* $AP that should ha,e been applied in the 5''J# 5''4 salary increase+ the T%E %"NDRED LO"R PESOS T 6526'' T0S& DF'J&65G shall be added to the basic salary in the computation of retirement2resi)nation pay of the Iualified employees+ list of =hich is under Anne8 9A: of this A)reement+ upon their retirement2resi)nation from the O!PNA*M Li>e=ise+ it is understood that the said PF'J&65 =ill be open for rene)otiation =hen the companyAs financial condition impro,esM Section 5& P)83.: 2*: Sc.1) ./ R)*)+.,32,3.* @ The parties hereby a)ree that si8ty DK'G days before the end of the third year of the effecti,ity of this A)reement+ they shall rene)otiate all pro,isions of this A)reement+ for the remainin) life of the contract+ sa,e the matter of representation& RPNEU CBA D2"" ! $ 2"12E
ARTICLE . 3ection 1. ?)&1 &11O4& C) E The CO?8& 9 agrees to pa$ each employee a meal allo=ance accordin) to the follo=in) schedule3

48

!ETRO !ANILA 6 st & 5 *: F rd P 6''&''2day 6''&'' / day 6''&''2day

PRO0IN IAL P 44&''2day 44&''2day 44&''2day

PROOF 3
Anne8 9 M : ; 4 th par& of Section F+ Article 1I of the BA& Anne8 9 N : ; Section K+ Article 1 of the BA& Anne8 “ O 9 S Section J+ Article II of the BA . Anne8 HP$ 1I ; Section 6 and 5+ Article 0II of the BA& Anne8 HP$ 2I BA& Anne8 I7I Allo=ance the ; Section 5+ Sub Para)raph 6 T 5 of ; Payroll Eournal of !onthly .a)e Period3-----------------“ .he (ase fi&3re to (e 3sed in the comp3tation of (acGwa&es d3e to the employee sho3ld incl3de not D3st the (asic salary% (3t also the re&3lar allowances that she had (een receivin& s3ch as the emer&ency livin& allowances and the 15 th month pay mandated 3nder the law9 [6,e (abor 'ode, 1it, 'omments and 'ases, ;olume .., 7 t, ed., *+1+, b& '.A. A<ucena, 4) 5 4)4, citin# -aramount ;in&l -roduct 'orporation vs. N(R', et.al., G.R. No. 41*++, 3ctober 17, 1!!+].

So+ the bac>=a)es should be3 .A$E RATE U RE$"LAR ALLO.AN E Thus+ the basis for the computation in the company# prepared PA#SLIP [&nne; <=>" of complainantAs 9 B.1 . Sic> Lea,e Reser,edM and B.2 . Sic> Lea,e on,ersion 5'66M rd Lon)e,ity Pay F ?uarter 5'66M Lon)e,ity Pay J th ?uarter 5'66M Educational Assistance 5'65# 6M Education Assistance 5'65# 5M Lon)e,ity Pay 6 st ?uarter 5'65M Lon)e,ity Pay 5 nd ?uarter 5'65M Lon)e,ity Pay F rd ?uarter 5'65:+ =as =ron)& To complainantAs computation+ she is entitled to a salary differential from October 6+ 5''( until No,ember 64+ 5'65+ =hen she applied for optional retirement+ =hich =ill reach P362<! 2 2 . 7 " + computed as follo=s3

49

S"!!AR* OL A OL TAR ISIA

R"ED SALAR* DILLEREN E O

& LADERA T ESTRELLA $&

NAME TAR ISIA & LADERA O

DESIGNATION AD!IN& OLLI ER 2 AS%IER BOO//EEPER2 OLLE TOR

SALAR# RATE F6JJ(&'H 5JKKK&H

ESTRELLA $&

#E AR

PERIOD

SALAR# RATE 0arcisia 6. Ladera Ba!ic Acro!! the B.28: I*c8)25) Tota' F6+JJ(& 'H F6+JJ(& 'H F5+H'7& J6 F5+H'7& J6 FJ+F'7& J6 FJ+F'7& J6 FJ+F'7& J6

DIFFERE NCE E5,8)((2 G. C.

NO. OF MONTHS

TOTAL

DOCUME NTS

5'' ( 5'6 '

October# December

F6+JJ(& 'H F6+JJ(& 'H F6JJ(& 'H F5+H'7& J6 F5H'7& J6 FJF'7& J6 FJF'7& J6

55+'4H&JH

(+F('&K'

F

5H+676&H ' 4K+FJF&K ' KJ+J(F&4 H 4J+HJF&K K 47+HJF&K K 47+HJF&K K JF+FH5&7 J FK5+(55& 7'

Anne8V

V

Eanuary# Eune Euly# December

55+'4H&JH 55+'4H&JH

(+F('&K' 6'+7JH&(F

K K

Anne8V Anne8V

V V

6+F4H&FF

5'6 6

Eanuary# Eune Euly# December

5F+KKK&H' 5J+KKK&H'

(+6J'&K6 (+KJ'&K6

K K

Anne8V Anne8V

V V

6+4''

5'6 5

Eanuary# Eune Euly# No,ember

5J+KKK&H' 5J+KKK&H'

(+KJ'&K6 (+KJ'&K6

K J&4

Anne8V Anne8V

V V

$RAND TOTAL

FK5+(55& 7'

By the en/ o the thir/( 01ne $2(#2"#( an/ e ecti3e 2" o 01'y #2"#( !ince a'' pro3i!ion! o 4S5 CBA ,AS TO RENE6OTIATE4( or 7hat co1'/ 8e the app'ica8'e acro!! the 8oar/ increa!e that may8e a9ree/( the comp'ainant 7a! no7 8'in/ an/ !hort o :no7'e/9e o the ne;t remanin9 'i e o the 4S5 CBA. That i! 7hy it can 8e note/ in my !1mmary 01'y< No3em8er #2"#( comp'ainant cannot /etermine a! to the increa!e amo1nt ( th1! ( P$%(=2".%" remaine/ to 8e the !ame . PROO&:

Anne8 9-----: ; Section 6 T 5+ Article 0II

50

Anne8 9----#6 Anne8 9----#5 Anne8 9---#6-: Anne8 9---#5:Anne8 9---#6: Anne8 9---#5: Anne8 9 ---#6: Anne8 9----#5: Anne8 9----#6: Anne8 9----#5: Anne8 9 ---#6: Anne8:----#5: Anne8 9----#6: Anne8 9----#5:

; Payroll Eournal of Estrella $& o + Oct&6# 64+5''( ; Payroll Eournal of Estrella $& o+ Oct&6K# F6+5''( ; Payroll Eournal of Estrella $& o+ Ean&6#64&+5'6' ; Payroll Eournal of Estrella $& o& Ean& 6K# F6+ 5'6' ; Payroll Eournal of Estrella $& o+ Euly 6#64+ 5'6' ; Payroll Eournal of Estrella $& o+ Euly 6K# F6+ 5'6' ; Payroll Eournal of Estrella $& o+ Eanuary 6#64+5'66 ; Payroll Eournal of Estrella $& o+ Eanuary 6K# F6+ 5'66 ; Payroll Eournal of Estrella $& o+ Euly 6#64+ 5'66 ; Payroll Eournal of Estrella $& o+ Euly 6K# F6+ 5'66 ; Payroll Eournal of Estrella $& o+ Ean& 6#64+5'65 ; Payroll Eournal of Estrella $& o Ean& 6K# F6+5'65 ; Payroll Eournal of Estrella $& o Euly 6#64+5'65 ; Payroll Eournal of Estrella $& o Euly 6K# F6+5'65

2. In the same item 9 B BENEFITS :+ particularly 9 B.2 . "npaid benefits:+ there is a notation that any amount due is <less advances or ded%ctions 81!-,....!-> & omplainant has NO cash ad,ances or loan in the company+ so this should be clarified& "nder Article 66F of the Labor ode+ there can be no deduction of salary unless =ith the =ritten permission or consent of the =or>er&

3. Lor item 9 C FINAL PA# :+ particularly 9 2. 6F th !onth Pay 5'65 [8rorated" + 3 & hristmas Bonus 5'65 [8rorated" + 4 & Lon)e,ity Pay 5'65 @ J th ?uarter BProratedC+ and 5 & Sic> Lea,e on,ersion 5'65 BProratedC +: the basic salary used as basis for the computation should not be 5J+KKK&H'2month+ but PF4+'47&J62month+ [8.1,440.0,@month basic A 8.,-0,[email protected] %nder 3ection 1 &rticle 'I of the B36 C#&, pg.11 " &

%H# NOT P3!<6! 5. 5 3JD bec ause 6F
!onth+ hristmas+ Lon)e,ity+ Lea,e on,ersion are computed base on basic salary rateWnot monthly payDF(+K(4&4FG =hich include P F6+JJ(&'H plus PF+K'H&FF across the board increase& Article 0I+ Section 6+ p)&66 of the DS" BAD 5''F# 5''HG plus the allo=ance of 5+('J&'' and meal allo=ance of 6+JF'&'' plus P F'J&65 preser,ation OL T%E INTERNAL E?"IT* $AP+ ARTI LE 0I+Section 6+ Par&4+ p)&66

51

!oreo,er+ the complainant Iuestioned =hy the amount =as prorated =hen the last day of ser,ice =as on No,ember 64+ 5'65+ only barely a month before the year# end&

B ; OTHER POINTS NOT INCLUDED IN THE COMPAN# PA#SLIP [&nne; <=>" 1 ; Based on Section 64+ Article 1 of the BA+ [&nne; <#>" + the complainant =as entitled to recei,e a )ift item =orth P54+'''&'' or its cash eIui,alent as ANNI0ERSAR* A.ARD+ for thirty BF'C years in ser,ice& She did not recei,e this last 5'6'& Section 64+ Article 1 of the BA pro,ides3

“ Section 1:. ANNI/ER)AR" A*AR' – As a toGen of reco&nition for services rendered% the C !"A#$ shall &ive the followin& awards to each employee d3rin& the anniversary of his or her employment; 10 years of service – "7%000.00 worth of (arter items of employeeBs choice or "2%000.00 cash. 1: years of service – 17T &old rin& with '"# lo&o 20 years of service – 0old a3tomatic wristwatch 2:years of service – 0old a3tomatic wristwatch worth "20% 000.00 or its cash e83ivalent 50 years of service – 0ift item worth "2:% 000.00 or its cash e83ivalent 5: years of service – Cash e83ivalent to "50%000.009 Jp27N

2 ; There =as an "NPAID SALAR* that =as due to the complainant& Last October+ 5''7 until December 5+ 5''7+ the complainant =as on lea,e in order to prepare for+ and ta>e the Nursin) Board E8amination& She reported bac> to =or> on December F+ 5''7& She =as still included in the Payroll until December 64+ 5''7+ considerin) that she had some lea,e credits& But it came as a surprise that she =as e8cluded from the company payroll startin) December 6K+ 5''7 until April 64+ 5''H&

52

The complainant =as reinstated startin) only in the April 6K# F'+ 5''H company payroll& The company Payroll for the follo=in)3 Dec& 6K# F6+ 5''7M Ean& 6#64+ 5''HM Ean& 6K# F6+ 5''HM Leb& 6#64+ 5''HM Leb& 6K# 5H+ 5''HM !ar& 6#64+ 5''HM !ar& 6K# F6+ 5''HM and April 6#64+ 5''H are hereto attached for ready reference& PROOFS 3
Anne8 5''7& Anne8 Anne8 5''H& Anne8 5''H& Anne8 5''H& Anne8 Anne8 Anne8 9 O: ; ompany Payroll for December 6K# F6+

9 P : ; ompany Payroll for Eanuary 6#64+ 5''H& 9 7: ; ompany Payroll for Eanuary 6K# F6+ 9 R: ; 9 S: ; 9 T: ; 9 U: ; 9 &: ; ompany Payroll for Lebruary 6#64+ ompany Payroll for Lebruary 6K# 5H+ ompany Payroll for !arch 6#64+ 5''H& ompany Payroll for !arch 6K# F6+ 5''H& ompany Payroll for April 6#64+ 5''H&

omplainantAs basic salary durin) the period from December 5''7 until April+ 5''H =as P55+'4H&''2per month and an allo=ance of P5+54'&''2month& Thus+ for the period December 6K+ 5''7 until April 64+ 5''H+ complainant =as not paid of her salary for a total of P!7<2 3 3 . ! 2 + computed as follo=s3
SA002 8 6 C.01A,2 ,3.* ./ U*123: S2(286 Period Dec& 6K @ F6+ 5''7 Ean& 6 @ 64+ 5''H Ean& 6K @ F6+ 5''H Leb& 6 @ 64+ 5''H Leb& 6K @ 5H+ 5''H !arch 6 #64+ 5''H !arch 6K @ F6+ 5''H April 6 @ 64+ 5''H TOTAL Basic 66+'5(&5J 66+'5(&5J 66+'5(&5J 66+'5(&5J 66+'5(&5J 66+'5(&5J 66+'5(&5J 66+'5(&5J HH+5FF&(5 Allo=ance 5+54'&'' # 5+54'&'' # 5+54'&'' # 5+54'&'' # (+'''&''

Total basic salary HH+5FF&(5 Total allo=ance U (+'''&'' $rand Total (7+5FF&(5 ----------------------------

53

This matter e,en came to the attention of mana)ement before+ as in fact+ the mana)ement later on cited for disciplinary action of the cashier2administrati,e officer+ Tarcisia A& Ladera of RPN D1/D Dipolo) ity& The complainant e,en made a personal follo=# up in !anila for t=o B5C occasions+ but =as merely told that mana)ement =ill still ,erify it& "ntil no=+ the complainant =as not paid of her salary for the period December 6K+ 5''7 until April 64+ 5''H& DISMISSAL TO A&OID RETIREMENT BENEFITS If it is =ron) to ostensibly retire an employee =ho actually is retrenched+ it is li>e=ise =ron)+ and probably more reprehensible+ to dismiss an employee to a,oid payin) his retirement benefit&BT%E LABOR ODE+ .ith omments and ases+ 0olume II+ 7 th Edition+ 5'6'+ p)&(JH by &A&AQ" ENA&C In a 6(H6 case+ the Supreme ourt said that a company should e8ercise caution and care in dealin) =ith its employees to pre,ent suspicion that its dismissal of an employee is only a scheme to e,ade its responsibility of )rantin) retirement benefits& In the case at bar+ it should not ha,e =aited until petitioner employee applied for retirement to ha,e ta>en ad,erse action a)ainst him for a cause it had already >no=led)e of&BReyes ,s+ Ohil& Duplicators+ Inc&+ 6'( S RA JH( B6(H6C&C

SUMMAR# OF COMPLAINANT4S CLAIM
1 & BACK%AGES
PERIOD3 NO0E!BER 6K# F6+ 5'65DBasic PayG P 6K+H5J&4J ALLO.AN E 5+('J&'' !EAL ALLO.AN E 6+JF'&''
$1,1 5 B - 5 C

DE E!BER 6#F6+ 5'65 EAN"AR* 6#F6+ 5'6F LEBR"AR* 6#5H+ 5'6F !AR % 6#F6+ 5'6F APRIL 6#F'+ 5'6F P211< " 7 3 . ! 4

F7+(HF&'H F7+(HF&'H F7+(HF&'H F7+(HF&'H F7+(HF&'H

54

,xplanation;
.he amo3nt of "1>%=27.:7 represents; 1: days (asic pay[51%774.0= U 2%000 C6A% Across the 6oard% Article /++% Section 1 P 2 p&. 12 U 200.00 %A3tomatic adoption of the wa&e increase (ase on the old C6A% Article **% Section 1%2%5% p&.70 % divided (y two J2NS " 1>%=27.:7.] ri&inal 6asic "ay) P%1,C C D - 0 B [..C.Hadera last 6asic Salary] Allowance of $,D0 C - 0 0 represents; monthly allowance% received every end of the month% separate from the (asic pay. See payroll 2o3rnal% “Annex VVVVV9

!eal Allowance of p& 14<

1,C% 0 - 0 0 is fo3nd in; ["::Oday% "rovincial% C6A%

Article *% Sec. 1 ] Accroos< the< 6oard +ncrease $,00 0 - 0 0 [Article /++% Section 1 P 2% p&.12 of the C6A A3tomatic +ncrease from ld C6A $00- 0 0 [ Article **+% Section 1%2%5% p&. 70 of the C6A. Fa&e rder #o. #C'<15 %B5- 0 0 1ecem(er 1% 2015 –April 50% 2015 amo3nt is said to come 3p% a total of "1=4%41:.70 that is five months times monthly salary of "5?%4=5.0=J5?%4=5.0= x :N.

SUB K TOTAL FOR BACK %AGES P

211< " 7 3 . ! 4
2 . OPTIONAL RETIREMENT
P F6+JJ(&'H U 5+''' U FK4 U 5'' F ,xplanation;
.he amo3nt of "57%017.0= is arrived at (eca3se of the followin&; .asic )alary of a !ashierEAd 4i nistr a ti e Officer F P%1, C C D - 0 B AddG !.A Across= the= .oard Increase $,00 0 - 0 0 [Article /++%Section 1%2%p&.12] Article /++% Section 1 P 2 provides; Section 1 S,CI'+.$ CHAIS, # 0IA'A#.,,1 SAHA'$ +#C',AS,< .he C !"A#$ a&rees to implement a wa&e str3ct3re in the enterprise which shall fairly compensate% witho3t discrimination% the different (ar&ainin& 3nits within the C !"A#$. Section 2. 0IA'A#.,,1 $,A'H$ SAHA'$ +#C',AS, < .he C !"A#$ shall &rant a yearly across< the< (oard per month wa&e increase to all covered employees in the (ar&ainin& 3nit in accordance with the followin& sched3les; ,ffective 01 23ly 2004 ,ffective 01 23ly 2010 ,ffective 01 23ly 2011 < < < " 200.00Omonth =00.00Omonth 1%000.00Omonth

; P

FJ+'6J&'H

55

.he &3aranteed across< the< (oard increase 3nder this Section shall not (e char&ea(le to any le&islated or &overnment mandated wa&e increase (3t shall (e considered as an addition to any s3ch le&islated or &overnment mandated wa&e increase. .he C !"A#$ a&rees to &rant across< the (oard to all ranG< and< file employees increments arisin& o3t of le&islation% ,xec3tive rders% Hetters of +nstr3ctions% Fa&e rders% and Company r3les and re&3lations.

AddG *age Order No- N!R= 1%

%&5- 0 0

Par& 4+ Section F+ Article 1II+ Bsee Anne8 BC+ and Article 0II+ Sub#Para)raph F +p)& 6F of the BA pro,ides3
Paragr a7 h 5 – .he mandated salary adD3stment 3nder Fa&e rder #o. #C'<15 in the amo3nt of .hree @3ndred Sixty -ive "esos J"5>:.00N per month and its e83ivalent to provincial stations re&ional Fa&e rder iss3ances shall (e incorporated in the comp3tation of employeesB Comp3lsory% optional and loyalty separationOretirement pay 3this Article.9 Jp.50N).
Article /II, )ection $, )85= Paragra 7h %, 7g- 1% of the !.A

The salary ad:8st 4e n t 4anda t e d 5y *age Order No- N!R= 1% in the a4o8n t of Three (8ndre d )i9ty 0i e Pesos 2%&5 - 0 0 3 4onthl y and a77liedEi 47l e 4 e n t a t i on to 7ro incial stations #ith res7ect to regional #age order iss8ances, shall 5e incor7ora t e d in the co478ta ti on of the e47loye esH se7ara tionE re ti re 4 e n t 5enefits 78rs8an t to the Agree 4 e n t signed 5y the 7arties on A8g8st 1C, $00D 5efore the N!M. . AddG A84a tic Rene# al of the old !.A increase $00- 0 0 Article **+% Section 1%2%5%%p&. 70 of the 2004< 2012% C6A% and Article /++%Section 1 P 2% p&. 12 of the C6A respectively provides; . Section 1. ",'+ 1 - ,--,C.+/+.$ – .he provision of this A&reement shall (e effective as of 01 23ly 2004 and shall remain in f3ll force and effect 3ntil 50 23ne 2012% or 3ntil a new Collective 6ar&ainin& A&reement is concl3ded (y the parties% except the representation aspect which shall remain effective 3ntil 50 23ne 2017. Section 2. ',#,0 .+A.+ # – .he parties here(y a&ree that sixty J>0N days (efore the end of the third year of effectivity of this A&reement% they shall ne&otiate all other provisions of this A&reement% save the matter of representation. P

56

Section 5. ,*.,#S+ # - ,--,C.+/+.$$ – +f no new a&reement is reached at the expiration of the Collective 6ar&ainin& A&reement% this A&reement shall remain in f3ll force 3p to the time a s3(se83ent a&reement is concl3ded (y the parties herein. Article /II, )ection 1,$,-7g- 1 $ , res7ecti el y]. Section 1. S,CI'+.$ CHAIS, # 0IA'A#.,,1 $,A'H$ SAHA'$ +#C',AS,< .he C !"A#$ a&rees to implement a wa&e str3ct3re in the enterprise which shall fairly compensate% witho3t discrimination% the different (ar&ainin& 3nits within the C !"A#$. Section 2. 0IA'A#.,,1 $,A'H$ SAHA'$ +#C',AS, < .he C !"A#$ shall &rant a yearly across< the< (oard per month wa&e increase to all covered emplo&ees in t,e bar#ainin# unit in accordance 1it, t,e %ollo1in# sc,edules= ,ffective 01 23ly 2004 ,ffective 01 23ly 2010 ,ffective 01 23ly 2011 < < < " 200.00Omonth =00.00Omonth 1%000.00Omonth

.he &3aranteed across< the< (oard increase 3nder this Section shall not (e char&ea(le to any le&islated or &overnment mandated wa&e increase (3t shall (e considered as an addition to any s3ch le&islated or &overnment mandated wa&e increase. .he C !"A#$ a&rees to &rant across< the (oard to all ranG< and< file employees increments arisin& o3t of le&islation% ,xec3tive rders% Hetters of +nstr3ctions% Fa&e rders% and Company r3les and re&3lations -

Th1! : the tota' amo1nt o P $%(2"%.2+ >P $"(%%?.2+ 8a!ic @ #(222.22 CBA( *cr'ss=t&e=$'ard 1"crease @ $*).22 Aa9e Or/er No. NCR<"$ @ #22.22 A1tomatic A/option o Increa!e 8a!e/ on o'/ CBAB.
A77lication of the $51 days factor ;

G &rticle DI,3ection 4, pg.2- of the

C#&F
Article ;I, )ection C 7ro idesG Section 7. 2:1 1A$S -AC. ' S .he C !"A#$ shall 3se the 2:1< days factor to determine the employeeBs daily wa&e for the comp3tation of hisOher retirementOseparation (enefits% overtime pay% conversion of sicG leave and vacation leave% (on3ses and other wa&e relarted (enefits% (e&innin& 23ly 200?. -orm3la in comp3tin& !o.Salary to 1aily salarIsin& the 2:1 days factorOyear !onthly Salary x 12 <<<<<<<<<<<<<<<<<<<<<<<<<<<<<< S 2:1 daysOfactorOyear 6asic 1aily 'ate

P FJ+'6J&'H 8 65 per dayC 546

; P

6+K5K&67 BBasic rate

57

P 6+K5K&67 8 &rticle DII, 3ection 2,

3 :265

;

P

6FJ+(75&5'

GC#&,

pg.20F A8,3c() CII< S)c,3.* 2< 1+. 2!< ./ ,-) CBA [email protected]:)5 3
“ Section 2. OPTIONAL RETIREMENT – An employee who has reached the a&e of fifty [:0] and has rendered at least ten [10] years of service to the C !"A#$ or who has rendered at least twenty years [20] of service% re&ardless of a&e% may avail of ptional 'etirement from the C !"A#$ and shall (e paid a retirement pay in accordance with the followin& sched3le;
10 years (3t less year of service 1: years (3t less year of service 20 years (3t less year of service $5 years or ser ser ice than 1: years than 20 years than 2: years ice and a5o e < < < = 7= days per >5 days per ?= days per B% days 7er year of

!oreover% the C !"A#$ shall also &rant a [email protected] A1/A#C, e83ivalent to .,# ",'C,#. [10A] of the covered employeeBs retirement pay on the followin& conditions;
a. 'etirement date shall (e set within one [1] year 3pon receipt of the 10A cash advanceC remainin& (alance to (e paid on the scheme m3t3ally accepta(le to the employee and mana&ement. (. S3(Dect to availa(ility of f3nds.9

P 6FJ+(75&5' 8 FF years 4<45 4 < " 2 . 7 ! N.../ 6)285 3* 5)[email protected])

;

P

D I 20 LA2(3/63*+ -)8)3* /8.0 32 ,. 33 685. O/ 5)[email protected])< ?)c2A5) 3/ ,-35 c.01(23*, 93(( )*,23( ,. +. A*,3( 026< 2"1 3 < ,-35 35 2 /82c,3.*2( ./ .*) 68. ,-2 , c2* ?) c.*53:)8 ) : 2*.,-) 8 .*) 0.8) 6)28 /8.0 06 5)[email protected]).E

58

A8,3c() CII< S)c,3.* 3< SA?$ P282+8 2 1 - 3 1+. 3" ./ ,-) CBA [email protected]:)5G F.8 ,-) 1A81.5) ./ ,-35 S)c,3.*< 2 /82c,3.* ./ 2, ()25, 53; D6E 0.*,-5 5)[email protected]) ,. ,-) COMPAN# 5-2(( ?) c.*53:)8) : 25 .*) D1E 6)28. T-) /.((.93*+ :.cA0)* ,5 93(( 2(5. 5A11.8, *A0?) 8 ./ 6)285 3* 5)[email protected]). ,-)

P 1),3,3.*) 8 45 4 < " 2 . 7 4<45

The Supreme ourt in the case of "ni,ersity of the East ,s& "E Laculty Association+ $&R& No& 7J''7+ Euly F6+ 6(H7+ directed that it should not only be SEPARATION PA* that should be paid to the =or>er+ B"T+ also RETIRE!ENT PA* based on the company policy [see also 6,e (abor 'ode 1it,
'omments and 'ases, ;olume .., 7 t, ed., *+1+ p#s. !4*5 !4"] &

SUB$ TOTAL FOR OPTIONAL RETIREMENT

P 1<25 <

6.6

3 . SEPARATION PA#
BASI ; P F6+JJ(&'H ADD3 A ROSS#T%E# BOARD 5+'''&'' IN REASE .A$E ORDE No&N R#6F FK4&'' A"TO!ATI IN REASE BASE ON OLD BA 5''&'' ALLO.AN E ; 5+('J&'' Cage alloCanceF P FJ+F4F&'H !EAL ALLO.AN E 8rovincial, C#& pg. 107 &rticleD7 3ection 1F TOTAL !ONT%L* PA* ; O!P"TATION3 P FH+FJH&'H 8 FF years ; E1PLANATION3 In the omputation of Statutory Separation Pay+ the ourt said+ it is an error not to inte)rate the allo=ance =ith the basic salary in the computation of the Separation Pay& The salary base properly used in computin) the separation pay should include not Nust the basic salary but also the re)ular allo=ances that an employee has been recei,in) B Planters Product+ Inc& ,s& NLR + $&R& No& 7H45J+ Eanuary 5'+ 6(H(&C
59

G8a$roll Ho%rnal

;

6+JF'&'' [email protected]$,

PFH+FJH&'H P 1<26 5 < 4 6 . 6 4

In the computation of bac>=a)es and separation pay+ account must be ta>en not only of the basic salary of the employee but also of her transportation and emer)ency allo=ances& XSantos ,s& NLR + $&R&No& 7K756+ September 56+ 6(H7&C+LABOR ODE =ith omments th and ases+ 0ol&II+ 7 Edition 5'6' by& &A& AQ" ENA&+ p)&H46& Article 5HF of the LABOR ODE+ basic reIuisite of a retrenchment due to installation of labor sa,in) de,ices+ as to the third+ the la= reIuires that the employer has to pay a separation pay eIui,alent to .*) D1E 0.*,- pay or at least one# halfD625G month pay for e,ery year of ser,ice+ =hiche,er is hi)her B"ni,ersity of the East ,s& !inister of Labor+ $&R&No& 7J''7+ Euly F6+ 6(H7&M & "nder the applicable la= and BA pro,isions+ the monthly salary that should be used as basis for computation should be P3 <3 4 . " / 0 . * , - + [8.1,440.0,@month basic A [email protected] %nder 4age Order o. CR71., as mandated b$ the ! th par. of 3ection ., &rticle DII of the C#&, pg..0, A 82,[email protected] %nder 3ection 1 3ection 2, &rticle 'II of the C#&, pg. 12 , A 2,004.00, Cage alloCance, %nder pa$roll Ho%rnal, A meal alloCance 1,4.0.00, %nder pa$roll Ho%rnal A 200.00 &%tomatic Increase, based on old C#&, &rticle 'II, 3ection 1 I 2, pg. 12"J." Article 1II+ Section F+ Sub#Paraa)raph 4+ p)& F' of the BA pro,ides3

P282+8 2 1 - 5 @ The mandated salary adNustment under .a)e Order No& N R#6F in the amount of Three %undred Si8ty Li,e Pesos DPFK4&''G per month and its eIui,alent to pro,incial stations re)ional .a)e Order issuances shall be incorporated in the computation of employeesA ompulsory+ optional and loyalty separation2retirement pay under Section 6+5+ and F of this Article&: Dp&F'GW&

Also Article 0II+ Section 5+ Sub#Para)raph pro,ides3

F+ p)& 6F+of the

BA

The salary adNustment mandated by .a)e Order No& N R#6F in the amount of Three hundred Si8ty Li,e Pesos DP FK4&''G monthly and applied2implementa tion to pro,incial stations =ith respect to re)ion al =a)e order issuances+ shall be incorporated in the computation of the employeesA separation2retirement benefits pursuant to to the A)reement si)ned by the parties on Au)ust 6J+ 5''( before the N !B& and not A8,3c() &II< S)c,3.* 1<2<.1+ . 1 2 < Section 6 SE "RIT* LA"SE ON $"ARANTEED SALAR* IN REASE# The O!PAN* a)rees to implement a =a)e structure in the enterprise =hich shall fairly compensate+ =ithout discrimination+ the different bar)ainin) units =ithin the O!PAN*& Section 5& $"ARANTEED *EARL* SALAR* IN REASE # The O!PAN* shall )rant a yearly across# the# board per month =a)e

60

increase to all co,ered employees in the bar)ainin) unit in accordance =ith the follo=in) schedules3 Effecti,e '6 Euly 5''( Effecti,e '6 Euly 5'6' Effecti,e '6 Euly 5'66 # # # P 5''&''2month H''&''2month 6+'''&''2month

The )uaranteed across# the# board increase under this Section shall not be char)eable to any le)islated or )o,ernment mandated =a)e increase but shall be considered as an addition to any such le)islated or )o,ernment mandated =a)e increase& The O!PAN* a)rees to )rant across# the board to all ran># and# file employees increments arisin) out of le)islation+ E8ecuti,e Orders+ Letters of Instructions+ .a)e Orders+ and ompany rules and re)ulations& %2+) O8:)8 N.. NCR$ 13 Par& 4+ Section F+ Article 1II+ Bsee Anne8 BC+ and Article 0II+ Sub# Para)raph F +p)& 6F of the BA pro,ides3 P282+8 2 1- 5 @ The mandated salary adNustment under .a)e Order No& N R#6F in the amount of Three %undred Si8ty Li,e Pesos DPFK4&''G per month and its eIui,alent to pro,incial stations re)ional .a)e Order issuances shall be incorporated in the computation of employeesA ompulsory+ optional and loyalty separation2retirement pay uthis Article&: Dp&F'GW& A8,3c() &II< S)c,3.* 2< SA?$ P282+8 2 1 - 3< 1+. 13 ./ ,-) CBA T-) 52(286 2:MA5,0 ) * , 02*:2 , ) : ?6 %2+) O8:)8 N.. NCR$ 13 3* ,-) 20.A*, ./ T-8)) HA*:8 ) : S3;,6 [email protected]) P)5.5 D36 5 . " " E 0.*,-(6 2*: 211(3):/30 1() 0 ) * , 2 , 3 .* ,. [email protected]*c32( 5,2,3.*5 93,- 8)51)c, ,. 8)+3.*2( 92+) .8:)8 355A2*c)5< 5-2(( ?) 3*c.81.82 , ) : 3* ,-) c.01A, 2 , 3.* ./ ,-) )01(.6) )54 5)1282 ,3.*/8 ) , 38 ) 0 ) * , ?)*)/3,5 1A85A2* , ,. ,-) A+8)) 0 ) * , 53+*): ?6 ,-) 128,3)5 .* AA+A5, 14< 2"" ! ?)/.8) ,-) NCMB & A::G AA02 ,3c R)*)92( ./ ,-) .(: CBA 3*c8)25) 2"". " " P

Article 11I+ Section 6+5+F++p)& J' of the 5''(# 5'65+ BA+ and Article 0II+Section 6 T 5+ p)& 65 of the BA respecti,ely pro,ides3 &

61

Section 6& PERIOD OL ELLE TI0IT* @ The pro,ision of this A)reement shall be effecti,e as of '6 Euly 5''( and shall remain in full force and effect until F' Eune 5'65+ or until a ne= ollecti,e Bar)ainin) A)reement is concluded by the parties+ e8cept the representation aspect =hich shall remain effecti,e until F' Eune 5'6J& Section 5& RENE$OTIATION @ The parties hereby a)ree that si8ty DK'G days before the end of the third year of effecti,ity of this A)reement+ they shall ne)otiate all other pro,isions of this A)reement+ sa,e the matter of representation& Section F& E1TENSION OL ELLE TI0IT** @ If no ne= a)reement is reached at the e8piration of the ollecti,e Bar)ainin) A)reement+ this A)reement shall 8)023* 3* /A(( /.8c) A1 ,. ,-) ,30) 2 5A?5)LA) * , 2+8)) 0 ) * , 35 c.*c(A:) : ?6 ,-) 128,3)5 -)8)3*. A8,3c() &II< S)c,3.* 1<2<.1+ . 1 2 < Section 6 SE "RIT* LA"SE ON $"ARANTEED SALAR* IN REASE# The O!PAN* a)rees to implement a =a)e structure in the enterprise =hich shall fairly compensate+ =ithout discrimination+ the different bar)ainin) units =ithin the O!PAN*& Section 5& $"ARANTEED *EARL* SALAR* IN REASE # The O!PAN* shall )rant a yearly across# the# board per month =a)e increase to all co,ered employees in the bar)ainin) unit in accordance =ith the follo=in) schedules3 Effecti,e '6 Euly 5''( Effecti,e '6 Euly 5'6' Effecti,e '6 Euly 5'66 # # # P 5''&''2month H''&''2month 6+'''&''2month&

The )uaranteed across# the# board increase under this Section shall not be char)eable to any le)islated or )o,ernment mandated =a)e increase but shall be considered as an addition to any such le)islated or )o,ernment mandated =a)e increase& The O!PAN* a)rees to )rant across# the board to all ran># and# file employees increments arisin) out of le)islation+ E8ecuti,e Orders+ Letters of Instructions+ .a)e Orders+ and ompany rules and re)ulations .A$E ALLO.AN E T !EAL ALLO.AN E =ill supported by a Payroll Eournal Anne8 9----:+ and Anne8 9-----:& A8,3c() C< S)c,3.* 1 < 1+. 1 < ./ ,-) CBA< [email protected]:)5G Section 6& !EAL ALLO.AN E @ The O!PAN* a)rees to pay each employee a meal allo=ance accordin) to the follo=in) schedule3 !ETRO !ANILA 6 ST *R& P 6''&''2day PRO0IN IAL P 44&''2day

62

5 ND F RD

6''&'' / 6''&''2

44&''2 44&''2

SUB$ TOTAL 1.265 < 4 6 . 6 4

FOR

SEPARATION

PA#

4 . UNPAID BENEFITS
4$ A & SI / LEA0E RESER0ED P F6+JJ(&'H U 5+'''&'' U FK4 U 5'' ; P FJ+'6J&'H B basic U across# the# board increase+U =a)e order+ ncr# 6F + BA+ p)&6F+ Article 7+ Sub#Para)raph U Automatic Rene=al of the Old BA IncreaseC P FJ+'6J&'H 8 65 ; P 6+K5K&67 BBASI RATE PER DA*C 546 B546 days factor+ Article 1I+ Section J+ p)&5KC

P 6+K5K&67 8 64 days ; P 24<3 ! 2 . 5 7 BBASI DAIL* RATE PER DA* 8 64 DA*S RESER0ED# BA+ Article I1+ p)&6KC E8planation3 The abo,e computation for basic pay+ from =a)e order+ accoss#the# board increase+and automatic increase based on old BA+ are all the same =ith the pre,ious cited basic computation of the daily Basic PayW&& =hile the 64 days reser,ed is pro,ided in the BA+ Article I1+ Section 5+ p)& 64 of the BA& A8,3c() IC< S)c,3.* 2 Section 5& SI / LEA0E @ All re)ular employees are entitled to the follo=in) sic> lea,e pay benefits after each year of ser,ice in accordance =ith the follo=in) 3 Less than 4 years of ser,ice 4 to less than 6' years 6' to less than 64 years # 64 =or>in) days per year # 67 =or>in) days per year # 6( =or>in) days per year

63

64 to less than 5' years # 56 =or>in) days per year 5' to less than 54 years # 55 =or>in) days per year 54 years of ser,ice and abo,e # 5F =or>in) days per year "nused sic> lea,e for the year should be con,erted to cash+ pro,ided that the con,ersion is limited to the e8cess o,er a reser,e of fifteen D64 G days reIuired to be maintained by the con,ered employee at all times& Such reser,e may be con,erted to cash by the employee at his2her hi)hest salary credit upon retirement under the modes pro,ided in this A)reement+ or honorable separation or resi)nation& The same may also be a,ailed of by the employee in case of medical treatment lon)er than the current sic> lea,e pri,iled)es a,ilble upon certification by the O!PAN*AS Physician2s& omputation and payment of sic> lea,e credits con,erted to cash shall be made e,ery Eanuary of each year& 4$ B & "NPAID BENELITS G&doptedF 5 5< 4 6 ! . ! 3 See companyAs proposal SI / LEA0E ON0ERSION DP 6+K5K&67 8 5F daysG 37<4 " 1 . ! 1 = BASI DAIL* RATE 8 5F days# adopted fr&employerAs recordC LON$E0IT* PA* F RD ?"ARTER 5'66 ; P (+J'J&7H GadoptedF LON$E0IT* PA* J T% ?"ARTER 5'66 ; P (+JH6&FH GadoptedF LON$E0IT* PA* 6 ST ?"ARTER 5'65 ; P (+447&6F GadoptedF LON$E0IT* PA* 5 ND ?"ARTER 5'65 ; P (+KF5&'F GadoptedF RD LON$E0IT* PA* F ?"ARTER 5'65 ; P (+7'7&7H GadoptedF 47<7 3 . 1 " ED" TNAL ASSISTAN E 5'[email protected] 6 [&dH%sted b$ 3%bstit%tion" 34<" 1 4 . " ED" TNAL ASSISTAN E 5'[email protected] B &dH%sted b$ 3%bstit%tion" 34<" 1 4 . "

SUB$ TOTAL FOR UNPAID BENEFITS 5 & SHARE IN PRO&IDENT L"ND GadoptedF 45<6 2 . 6 5

P 763< " 7 5 . 6 7

6 & ACCUMULATED &ACATION LEA&E BBASI RATE PER DA*C
DP6+K5K&67 8 5K&74G G o. of da$s are adopted from employerAs recordG 7 & ADD 3 LINAL PA* LAST PA* 6F T% !ONT% DBasicG P FJ+'6J&'H %RIST!AS BON"S 5'65 KH+'5H&6K G8.4,014.0, ; 2F Bbasic pay 8 t=o monthsC LON$E0IT* GadoptedF J+H(5&6( SI / LEA0E ON0ERSION F7+J'6&(6 144< 3 3 6 . 3 4 G81,-2-.1( ; 2. da$sF Bbasic daily rate 8 5F days# adoptedC 43<5 " " . " 5

64

SUB$ TOTAL FOR ADDITIONAL UNPAID 233< 5 1 ! . " 4 BENEFITS ON SHARE OF PRO&IDENT FUND<ACCUMULATED LEA&E< AND FINAL PA#.. P . UNPAID SALAR#
=5)) HA**); C<D<E<F<G<H<I<J<K> SA002 8 6 C.01A,2 ,3.* ./ U*123: S2(286 Period Dec& 6K @ F6+ 5''7 Ean& 6 @ 64+ 5''H Ean& 6K @ F6+ 5''H Leb& 6 @ 64+ 5''H Leb& 6K @ 5H+ 5''H !arch 6 #64+ 5''H !arch 6K @ F6+ 5''H April 6 @ 64+ 5''H TOTAL Basic 66+'5(&5J 66+'5(&5J 66+'5(&5J 66+'5(&5J 66+'5(&5J 66+'5(&5J 66+'5(&5J 66+'5(&5J HH+5FF&(5 Allo=ance 5+54'&'' # 5+54'&'' # 5+54'&'' # 5+54'&'' # (+'''&''

231< 45!.4 P !7<2 3 3 . ! 2

Total basic salary HH+5FF&(5 Total allo=ance U (+'''&'' $rand Total (7+5FF&(5 ----------------------------

O&ER ALL TOTAL FOR ACCRUED UNPAID BENEFITSN P 1<"73 < 3 " 5 . 1 " D UNPAID BENEFITS P 754< 61 1 . 7 1 O SUB$ TOTAL FOR ADDITIONAL UNPAID BENEFITS ON SHARE OF PRO&IDENT FUND< ACCUMULATED LEA&E AND FINAL PA#DP 221< 45 ! . 4 7 E O UNPAID SALAR# DP !7<2 3 3 . ! 2 E . P !. SUBSTITUTION PA# D5''(# 5'6FG
=5)) HA**); PI>
S"!!AR* OL A R"ED SALAR* DILLEREN E OL TAR ISIA & LADERA T ESTRELLA $& O NA ME TAR ISIA DOCUME NTS Anne8 ---Anne8 ----

2 !< 1 " . 3

DESIGNATION & LADERA AD!IN& OLLI ER 2 AS%IER O BOO//EEPER2 OLLE TOR

SALAR# RATE F6JJ(&' H 5JKKK&H

ESTRELLA $&

#EA R

PERIOD

S2(286 R2,) T28c3532 C. L2:)82 E5,8)((2 G. C. 55+'4H&J

D3//)8 ) *c)

NO. OF MONTHS

T.,2(

5''(

October#

F6+JJ(&'H U 5 '' ; F 6 KJ

(+4('&K'

F

5H+776&H

65

December

(&'H F6+JJ(&'H U 5 '' ; F 6 KJ (&'H F6+KJ(&'H U H '' ; F 5 JJ (&'H F6+KJ(&'H U H '' ; F 5 JJ (&'H F5+JJ(&'H U 6+''' ; F F+ JJ(&'H F5+JJ(&'H U 6+''' ; F F+ JJ(&'H FF+JJ(&'H U 5 '' ; F F+K J(&'H

H 55+'4H&J H 55+'4H&J H

5'6'

Eanuary# Eune Euly# December

(+4('&K' 6'+F('&K '

K K

47+4JF&K K5+FJF&K

5'66

Eanuary# Eune Euly# December

5F+KKK&H 5J+KKK&H

H+7H5&5H H+7H5&5H

K K

45+K(F&KH 45+K(F&KH

5'65

Eanuary# Eune Euly# No,ember

5J+KKK&H 5J+KKK&H

H+7H5&5H H+(H5&5H

K J&4

45+K(F&KH J'+J5'&5K FJ7+6K'&F '

$RAND TOTAL

FJ7+6K'&F '

SUB$ TOTAL P 347< 1 6 " . 3 "

ON

SUBSTITUTION

PA#

1" . ANNI&ERSAR# A%ARD
=CBA< A8,3c() C< S)c,3.* 15< 1+.2 4 >

P 25<" " " . " " P 6<! " < " ! 6 . 5

PARTIAL TOTAL 11 . IF UP TO JUNE 2"13
SALAR#G MA# 1$ 31< 2"1 3 JUNE 1$ 3"< 2"1 3 3 <3 4 . " 3 <3 4 . "

ADDG 2"13 BENEFITS SICK LEA&E =:23(6 82,) ; 23 :265> 37<4 " 1 . 6 =c?2<A8,3c() IC<S)c,3.* 2<1+.15 > DP 1<626. 1 7 ; 23E &ACATION LEA&ED:23(6 82,) ; 22 :265E
35<7 7 5 . 7 4

=c?2< A8,3c() IC<S)c,3.* 1<1+.15 > = P1<626. 1 7 ; 22 :265> D?253c :23(6 82,) ; 22 :265E BIRTHDA# LEA&E 1<6 2 6 . 1 7 =c?2< A8,3c() IC< S)c,3.* 3<1+.16 > DP 1<626. 1 7 ; 1 :26E %EDDING LEA&E
1<62 6 . 1 7

=c?2<A8,3c() IC< S)c,3.* !<1+. 1 >
66

DP 1<626. 1 7 ; 1 :26E SER&ICE ANNI&ERSAR#
1<62 6 . 1 7

LEA&E

=c?2<A8,3c() IC< S)c,3.* 1"<1+. 1 > DP 1<626. 1 7 ; 1 :26E EDUC. ASSISTANCE K 1
34<" 1 4 . " "

EDUC. ASSISTANCE K 2
34<" 1 4 . " =c?2< A8,3c() &II< S)c,3.* 4<1+.1 3 > D34< " 1 4 . " ?253c 126E LONGE&IT# 1 ST P 2 ND 7UARTERD!< 7 " 7 . 7 ; 2 E 1!<4 1 5 . 5 6

=!<7 " 7 . 7 2:.1,) : /8.0 (2,)5, )01(.6)8 45 8)c.8:> CBA<AUTOM ATIC INCREASEDDP2 " " ; 12E 2<4" " . " " =c?2< A8,3c() &II< S)c,3.* 2< 1+.1 2 > DJUL# 2"1 2 $ JUL# 2"1 3 < A8,3c() CCI< S)c,3.* 1<S)c,3.* 3<1+4 " E

P 244< 5 ! 5 .

GRAND TOTAL
7<22 4 < 6 3 6 . 4 *REA/0O1N2 BACK%AGES P 211<" 7 3 . ! 4 OPTIONAL 4<45 4 < " 2 . 7 ! SEPARATION PA# 1<26 5 < 4 6 . 6 4 UNPAID BENEFITS 763<" 7 5 . 6 7 ADDITIONAL UNPAID 233<5 1 ! . " 4 UNPAID SALAR# !7<2 2 3 . ! 2 SUBSTITUTION PA# 347<1 6 " . 3 " ANNI&ERSARR# A%ARD 25<" " " . " " IF UP TO 2"1 3 244<5 ! 5 . 1 TOTAL P 7<64 1 < 2 2 . 1 1
ARTI!LE ; )ection &- A''ITIONAL ALLO*AN!E < .he Ed8cational )a ings 08nd in the amo3nt of .hree .ho3sand -ive @3ndred "esos 2P%,5 0 0 - 0 0 N yearly% the Eyeglass )85sidy Inder Section 11 of the same article worth% ne .ho3sand -ive @3ndred "esos 21,50 0 - 0 0 3 every three J5N years or -ive @3ndred "esos J":00.00N per year and the .irthday Lea e To6en 3nder section 5 Article +* in the amo3nt of .hree @3ndred "esos 2P%00- 0 0 3 shall (e cash converted in the form of allowance and paid to the employees at T(REE (AN'RE' )I;T" 0I/E PE)O) 2P%& 5- 0 0 3 monthly J"5%:00.00 U :00.00 U 500.00 S " 7%500.00O 12 S "5:=.55 to "5>:.00N paya(le (y the C !"A#$ to the employees every 1: th of the month. Jp.14 of C6AN

P 7<14 < 7 " .

BASED ON THE FOREGOING CONSIDERATIONS< it is respectfully prayed of this %onorable Office that the instant Position Paper be duly considered in the appreciation of the case& Dipolo) ity+ Philippines+ April 5'+ 5'6F&
67

PETER *& O ounsel for the Barra+ Dipolo) ity

omplainants '57 P& Bur)os Street+

PTR No& 4776'6 '6# 'F# 5'6F IBP Lifetime No& 'KHFJ '7# 6H# 5''K Roll No& F4F7( '4# 5'# 6(HH ! LE ompliance No& III#'''64(5 65# F6# 5''H ! LE ''''JJ' '4# F'# 5'65
Telefa8 No& B'K4C565# (J562Tel& No& B'K4C565# F5J6

ompliance No& I0#

marshall-(56Yyahoo&com (H5H

'(6HK'F#

CERI&ICATION an/ SAORN STATEMENT A6AINST &OR5M S,OPPIN6
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Series '% 2013.

!"til 8ece + > e r 31, 2013 P0R /'. 5771 0 1 01= 03= 2013 8i#. 6it 1$P Li%eti+ e /'. 0689 4 07= 18= 2006 R'll /'. 3537 9 <a 30, 1988
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I)'t e d *rticles a"d Secti'" '% t&e 6$* Par. )( S e c t i o n $( Artic' e .II o th e CBA [! e e Ann e ; B]( pro3i / e ! : Para 9 r a p h ) 5 0&e +a " d a t e d salar adJ)s t + e " t )"d e r 9a7e 2rder /'. /6R=13 i" t&e a+' ) " t '% 0&re e E)"dr e d SiFt (ive Pes's D#P365. 0 0 ? #er +'" t & a"d its eK)iv al e " t t' #r'vi"cial stati'" s re7i'" al 9a7e 2rder iss)a " c e s s&all >e i"c'r#'r a t e d i" t&e c'+# ) t a ti ' " '% e+#l' e e sL 6'+# )ls 'r , '#ti'" al a"d l' alt se# a r a ti' "Br e tir e + e " t a )"d er Secti'" s 1, 2 a"d 3 '% t&is *rticle.M D#.30? S e c t i o n *( Artic' e . *881012/*L *LL29*/6- = 0&e E/1 c a t i o n Sa3i n 9 &1n / i" t&e a+' ) " t '% 0&ree 0&')s a " d (ive E)"dr e d Pes's D P$( ) 2 2 . 2 2 ? earl , t&e Eye 9 ' a ! ! S1 8 ! i / y !"derS e c ti' " 11 '% t&e sa + e article 4'rt&, 2"e 0&')s a " d (ive E)"dr e d Pes's D P"( ) 2 2 . 2 2 ? ever t&re e D3? ear s '% (ive E)"dr e d Pes's DP500.0 0? #er ear a"d t&e Birth / a y Lea 3 e To: e n )"d er Secti'" 3 '% *rticle 1. i" t&e a+' ) " t '% '% 0&re e E)"dr e d Pes's D P$ 2 2 . 2 2 ? s&all >e cas& c'"ver t e d i" t&e %'r+ '% all'4a" c e a"d #aid t' t&e e+#l' e e s at Thre e ,1n /r e / Si;t y &i3 e Pe ! o ! >P$ * ) . 2 2 ? +'"t &l D> t&e 62<P*/@ t' t&e e+#l' e e s ever 15 t& '% t&e +'" t &. S e c t i o n " an / #( Artic' e CII Secti'" 1 [email protected] 6L*!S- 2/ A!*R*/0--8 S*L*[email protected] 1/6R-*S-= 0&e 62<P*/@ a7re e s t' i+#le + e " t a 4a7 e str)ct ) r e i" t&e e"t er # ris e 4&ic& s&all %airl c'+# e " s a t e , 4it&')t discri+i" a ti' ", t&e di%%ere " t >ar7 ai"i"7 )"its 4it&i" t&e 62<P*/@. Secti'" 2. A!*R*/0--8 @-*[email protected] S*L*[email protected] 1/6R-*S- = 0&e 62<P*/@ s&all 7ra" t a earl acr's s= t&e= >'ar d #er +'" t & 4a7 e i"cre a s e t' all c'ver e d e+#l' e e s i" t&e >ar7 ai"i"7 )"it i" acc'rd a " c e 4it& t&e %'ll'4i"7 sc&e d )l e s C

69

-%%ective 01 :)l 2009 -%%ective 01 :)l 2010 -%%ective 01 :)l 2011

= = =

P 200.0 0B + ' " t & 800.0 0B + ' " t & 1,000.0 0B + ' " t &

0&e 7)ar a " t e e d acr's s= t&e= >'ard i"cre a s e )"d er t&is Secti'" s&all "'t >e c&ar7 e a >l e t' a" le7islat e d 'r 7'ver " + e " t +a " d a t e d 4a7 e i"cre a s e >)t s&all >e c'"sid er e d as a" additi'" t' a" s)c& le7islat e d 'r 7'ver " + e " t +a " d a t e d 4a7 e i"cre a s e . 0&e 62<P*/@ a7r e e s t' 7ra" t acr's s= t&e >'ar d t' all ra"k= a"d= %ile e+#l' e e s i"cre + e " t s arisi"7 ')t '% le7islati'", -Fec)tive 2rders, Letter s '% 1"str)cti'" s , 9a7e 2rders, a"d 6'+# a " r)les a"d re7)la ti' " s . The !a' ar y a/D1 ! t m e n t m a n / a t e / 8y Aa 9 e Or/ er No. NCR< "$ in th e am o 1 n t o Thre e ,1n /r e / Si;t y &i3 e Pe ! o ! >$ * ) . 2 2 B m o n t h ' y an / ap p 'i e / E i m p ' e m e n t a t i o n to pro 3i n c i a ' !t a t i o n ! 7ith re ! p e c t to re 9i o n a ' 7 a 9 e or/ e r i! ! 1 a n c e ! ( !h a'' 8 e inc or p o r a t e / in th e co m p 1 t a t i o n o th e em p ' o y e e ! ’ ! e p a r a t i o n E r e t i r e m e n t 8 e n e i t ! p1r ! 1 a n t to th e A9r e e m e n t !i 9 n e / 8y th e parti e ! on A19 1 ! t "% ( #2 2 ? 8 e o r e th e NCMB . P3,500.0 0 N 500.0 0 N 300.0 0 O 4,30 0.0 0B 1 2 O P 358.3 3 r')"d e d t' P365.0 0? #a a >l e

70

*!02<*016R-/-9*L 2( 6$*P /-9 Paci%ic 0i+>er G S)##l 6'+# a " ,1"c.,P e titi'" e r vs./LR6, et al, /(L, <.*kilit a"d 350 2t&ers,Re s # ' " d e " t s , AQR Q/ '.,1 2 4 2 2 4 , <arc& 17,20 0 0 . 0&e last se"t e " c e '% *rticle 253 re%ers t' t&e s ' called “a)t' + a t ic re" e 4 alM '% a 6$*. 0&e #artie s s&all c'"ti") e t&e 6$* i" “%)ll %'rce a"d e%%ectM )"til t&e reac & a "e4 a7re e + e " t . 9&at eFac tl d'es t&is +e a " R 1" '"e cas e t&e e+#l' e r a"d t&e )"i'" &ad a 6$* %'r t&e ears 1981 t&r') 7 & 1984. 0&e %ailed t' re" e 4 t&e 6$* >ec a ) s e '% a #e"di" 7 cas e >et4 e e " t&e +. 1s t&er e a 6$* %'r 1985R 0&at is, s&')ld t&e e+#l' e e s >e 7ive" 4a7 e i"cre a s e a"d 't&er 6$* >e" e%its R $)t &'4 +)c & s&')ld t&e 4a7 e i"cre a s e >eR S&')ld it >e t&e a+' ) " t 7ive" i" 6$* ear '"e, 'r ear t4', 'r ear t&re e R 0&e c')rt d'es "'t s#eci% i" /e4 Paci%ic 0i+> er, a r)li"7 t&at des e rv e s cl'se att e " ti' "P.*rticle 253 '% t&e La>'r 6'de eF#licitl #r'vide s FFF S1t is clear %r'+ t&e a>'v e #r'visi'" '% la4 t&at )"til a "e4 6'llective $ar7ai"i"7 *7ree + e " t &as >e e " eFec ) t e d > a"d >et4 e e " t&e #artie s, t&e are d)t = >')" d t' kee# t&e stat ) s K)' a"d t' c'"ti") e i" %)ll %'rce a"d e%%ect t&e ter + s a"d c'"diti'"s '% t&e eFisti"7 a7r e e + e " t . 0&e la4 d'es "'t #r'vid e %'r a" eFce # ti' " "'r K)ali%icati'" as t' 4&ic& '% t&e ec'"' +ic #r'visi'"s '% t&e eFisti"7 a7re e + e " t are t' >e retai" %'rce a"d e%%ect, t&er e%'r e, it +)s t >e )"d er s t ' ' d as e"c' + # a s s i " 7 all t&e ter + s a"d c'"diti'"s i" t&e said a7r e e + e " t . 1" t&e cas e at >ar, "' "e4 a7r e e + e " t > a"d >et4 e e " #etiti'" e r 6'+# a " a"d /(L, "'r 4ere a" '% t&e ec'"' +ic #r'visi'"s a"d B'r ter + s a"d c'"diti'"s #ert ai"i"7 t' +'" e t a r >e" e%its i" t&e eFisti"7 a7r e e + e " t +'di%ied 'r alter e d . 0&ere%'r e, t&e eFisti"7 6$* i" its e"tire t c'"ti") e s t' &av e le7al e%%ect. 1t is t&e d)t '% >'t& #arties t' t&e 6$* t' kee # t&e stat ) s K)', a"d t' c'"ti") e i" %)ll %'rce a"d e%%ect t&e ter + s a"d c'"diti'"s '% t&e eFisti"7 a7r e e + e " t d)ri"7 t&e 60= da s a"d B'r )"til a "e4 a7r e e + e " t is reac& e d > t&e #arties . 0' r)le 't& er4is e, i.e., t&at t&e ec'"' +ic #r'visi'"s '% t&e eFisti"7 6$* i" t&e i"sta " t cas e ceas e d t' &av e %'rce a"d e%%ect i" t&e ear 1984, 4')ld >e t' cre a t e 7a# d)ri"7 4&ic& "' a7r e e + e " t 4')ld 7'ver ", %r'+ t&e ti+e t&e 'ld c'"tr a c t eF#ire d t' t&e ti+e a "e4 a7r e e + e " t s&all &av e >ee " e"t er e d i"t'. ('r i%, as c'"t e " d e d , > t&e #etiti'" e r, t&e ec'"' +ic #r'visi'" '% t&e eFisti"7 6$* 4ere t' &av e "' le7al e%%ect, 4&at a7r e e + e " t as t' 4a7 e i"cre a s e s a"d 't& er +'" e >e" e%its 4')ld 7'ver " at allR /'"e, it 4')ld see +, i% 4e are t' all'4 t&e l'7ic '% #etiti'" e r 6'+# a " . 6'"s e K ) e " tl , t&e e+#l' e e s , %r'+ t&e ear 1985 '"4 ard s 4')ld >e de#rive d '% a s)>s t a " ti al a+' ) " t '% +'" e >e" e%its 4&ic& t&e c')ld &av e e"J' e d &ad t&e ter + s a"d c'"diti'"s '% t&e 6$* re+ ai" e d i" %'rce a"d e%%ect. S)c& sit)a ti' " r)"s

71

c'"tr ar t' t&e ver i"te" t a"d #)r#' s e '% *rticle 253 a"d 253= * '% t&e La>'r 6'de 4&ic& is t' c)r> la>'r )"re s t a"d t' #r' + ' t e i"d)s trial #eac e ..FFF

Secti'" 4, *rticle 11 '% t&e 6$* [se e *""eF $], #r'vid e s C ('r t&e '% t&e 8ail Salar Rate )si"7 t&e 251 da s %act'rB e a r “Secti'" 4. #) " 4A-S &ACTOR < 0&e 6'+# a " s&all )se t&e 251= da s %act'r t' det e r +i " e t&e e+#l' e eL s dail 4a7 e %'r t&e c'+# ) t a ti ' " '% &is 'r &er retire + e " t B s e # a r a t i ' " >e" e%its, 'verti + e #a , c'"v er si'" '% sick leav e, >'") s e s a"d 't& er 4a7 e relat e d >e" e%its, >e7i""i"7 1 :)l 2007. ('r+)l a i" 6'+# ) ti" 7 <'. Salar %act'rB e a r <'"t&l Salar F 2 $asic dail Rate O 251 da s (act'rB e a r D#.26? t' 8ail salar )si"7 t&e 251 da s

0&e +'"t&l salar #a '% P 38,148.08 is c'+#)ted as >asic salar rate '% P 31,499.08 N P 2,000.00 acr'ss t&e >'ard i"crease N P 365.00 9a7e 2rder /'. /6R=13 [P-,777Bmont* under )ection 1 )ection -, 'rticle @;; o+ t*e CB', &3. 1-9 'ddin3 t*e wa3e allowances o+ P -,971.77 : to ,e su&&orted ,y a Payroll !ournal9 0&e all'4a"ce is >ased '" +'"t& e"d #a r'll J')r"al, t&at t&e #etiti'"er is receivi"7, 'ddin3 anot*er <eal *ll'4a"ce t' >e s)##'rted > a Par'll :')r"al '% t&e #etiti'"er a"d as #r'vided > t&e 6$*, P 55.00Bda , Pr'vi"cial, *rticle ., Secti'" 1, #7.19.]
Artic'e . (Section " Section ". MEAL ALLOAANCE F The COMPAN- a9ree! to pay each emp'oyee a mea' a''o7ance accor/in9 to the o''o7in9 !che/1'e: METRO MANILA "ST -R. #n/ $r/ P "22.22E/ay "22.22E "22.22E PROCINCIAL P )).22E/ay )).22E )).22E

72

PROO&:

Anne8 9--#6 and --#5-: F6+5''(# Latest

Payroll Eournal Oct&6# 64M6K# Salary Rate of Tarcisia &

Ladera Anne8 9 ---#6-: Payroll Eournal Au)&6# 64+5'65+ see the allo=ance column& Anne8:----#5: Section 6+ Article 1 of the BA&

ARTI!LE ;I/ PROGRAM (VRP)

VOLUNTARY

RETRENCHMENT

+n case of / HI#.A'$ ',.',#[email protected]!,#. "' 0'A! J/'"N to (e implemented (y the Company% it shall &3arantee to said covered employeeOs a retrenchment pay in accordance of the followin& sched3le; ne J1N (3t (elow : years of service < 5: daysOyear of service : years (3t (elow 10 years of service < 70 days 10 years (3t (elow 1: years of service < 75 days 1: years (3t (elow 20 years of service < 7= days 20 years (3t (elow 2: years of service < :5 days 2: years and a(ove < >0 days pl3s Collective 6ar&ainin& A&reement (enefits 3nder Article *++% Sections 1%2 P5. Jp. 55N

*881012/*L *LL29*/6- = 0&e E/1 c a t i o n Sa3i n 9 &1n / i" t&e a+' ) " t '% 0&ree 0&')s a " d (ive E)"dr e d Pes's D P$( ) 2 2 . 2 2 ? earl , t&e Eye 9 ' a ! ! S1 8 ! i / y !"derS e c ti' " 11 '% t&e sa + e article 4'rt&, 2"e 0&')s a " d (ive E)"dr e d Pes's D P"( ) 2 2 . 2 2 ? ever t&re e D3? ear s '% (ive E)"dr e d Pes's DP500.0 0? #er ear a"d t&e Birth / a y Lea 3 e To: e n )"d er Secti'" 3 '% *rticle 1. i" t&e a+' ) " t '% '% 0&re e E)"dr e d Pes's D P$ 2 2 . 2 2 ? s&all >e cas& c'"ver t e d i" t&e %'r+ '% all'4a" c e a"d #aid t' t&e e+#l' e e s at Thre e ,1n /r e / Si;t y &i3 e Pe ! o ! >P$ * ) . 2 2 ? +'"t &l DP3,50 0. 0 0 N 500.0 0 N 300.0 0 O 4,300. 0 0B 1 2 O P

73

358.3 3 r')" d e d t' P365.0 0? #a a >l e > e+#l' e e s ever 15 t& '% t&e +'"t &.

t&e 62<P*/@ t' t&e

THE HOBSON4S CHOICE
0&e E2$S2/TS 6E216- is a sit)ati'" 4&ere a" e+#l' ee is '%%ered a c&'ice '"l as t' t&e <-*/S 2( 0E-1R 0-R<1/*012/ %r'+ t&e service $!0 /2 6E216*S 02 0E- S0*0!S 2( 0E-1R -<[email protected]<-/0. 1t is a case '% c&''si"7 >et4ee" 4&at is '%%ered 'r E*,1/A /2/- *0 *LL. 0&is '>tai"s 4&ere a" e+#l' ee is 7ive" "' 2P012/SC t' R-01R-, >e R-0R-/6E-8 'r >e 81S<1SS-8 a"d i" t&e latter case 4it&')t receivi"7 a" t&i"7, a"d 4&ere t&e e+#l' ee is +ade t' )"dersta"d t&at &e &as /2 6E216- >)t t' leave t&e c'+#a" . 0&is is a case '% >ei"7 (2R6-8 02 S9*LL29 0E- $100-R P1LL 2( 81S<1SS*L *L0E2!AE *((2R8-8 * 6E216- 02 S9--0-/ E1S S-P*R*012/ (R2< -<[email protected]<-/0. 0&e S)#re+e 6')rt &eld t&at retire+e"t 'r se#arati'" %r'+ e+#l' +e"t )"der s)c& sit)ati'" is 1/,2L!/0*[email protected], &e"ce, ille7al. Recei#t > t&e e+#l' ee '% se#arati'" >e"e%its 4ill /20 st'# &i+ %r'+ K)esti'"i"7 'r c&alle"7i"7 t&e le7alit '% &is dis+issal. DS*/ <1A!-L 62RP. ,S. /LR6.,A.R./'.107693, :)l 23, 1998?.

*!8102R

0&e 6* reJected Se"ti"elLs %i"a"cial state+e"ts %r'+ 1995 t' 2005 D4&ic& 4ere s)>+itted d)ri"7 t&e c'+#)ls'r ar>itrati'"? i" t&e a>se"ce '% evide"ce t&at t&ese 4ere “%)ll a)dited > a" i"de#e"de"t eFter"al a)dit'r.M [Se"ti"el 1"te7rated Services, 1"c. vs. Ri' :'se Re+', AR /'. 188223, :)l 5, 2010] . 0&e 6* c'"sidered t&e &iri"7 '% a re#lace+e"t D<arcel' *l>a ? %'r Re+', as a" i"dicati'" t&at Se"ti"elLs %i"a"cial distress 4as "'t as seri')s as it clai+ed, a"d t&at retre"c&+e"t 4as "'t t&e act)al reas'" %'r Re+'Ls
74

dis+issal. Lastl , t&e 6* #'i"ted ')t t&at t&ere 4as "' s&'4i"7 t&at 't&er less drastic +ea"s &ad >ee" tried a"d %')"d i"s)%%icie"t 'r i"adeK)ate >e%'re Se"ti"el res'rted t' retre"c&+e"t 5 a J)ris#r)de"tial reK)isite i" retre"c&+e"ts [P*ili&&ine Car&et 'ssociation .P?;LC'/ v. )to. $omas, A.R. /'. 168719, (e>r)ar 22, 2006, 483 S6R* 128]. 1t, t&ere%'re, '#i"ed t&at Se"ti"el did "'t act i" 7''d %ait& i" ter+i"ati"7 Re+'Ls e+#l' +e"t. [Se"ti"el 1"te7rated Services, 1"c. vs. Ri' :'se Re+', AR /'. 188223, :)l 5, 2010]

RETAINER CONTRACT
1/ 62/S18-R*012/ %'r e"7 a 7i " 7 t&e le7al service s '% *tt . Peter @. c', i" + la>'r c'+#lai" t a7 ai" s t RP/, 1 c'+ +it t' #a t&e %'ll'4i"7C
1. 09-/[email protected] [20U] P-R6-/0 2( *LL <2/-0*[email protected] *9*R8S 1/ 0E- S*18 L*$2R 6*S-. 2. 1 *LS2 *AR-- 0E*0 0E- L2*/ 0E*0 1 *< S01LL 2$L1A*0-8 02 P*@ [P420,0 0 0. 0 0 as '% :a")ar 8, 2013] SE*LL *LS2 $- -/[email protected] 8-8!60-8 (R2< 9E*0-,-R <2/-0*[email protected] $-/-(10S 0E*0 91LL $- 8!- 02 <- (R2< 0ES*18 L*$2R 6*S-. 0E1S 62/0R*60 SE*LL P-RS1S0 )"til %i"alit '% 8ecisi'".

$!0 *LL PL-*81/AS 0E*0 91LL $- (1L-8 1/ 0E- 6*SSE*LL $- $1LL-8 S-P*R*[email protected] (R2< 0E- (--S E-R-1/= PR2,18-8, $*S-8 2/ *<2!/0 2( 92RV */8 R-S-*R6E */8 0E- PR-P*R*012/ /--8-8 02 (1L- 10. 8ece + > e r 28, 2012, 8i#'l'7 6it , P&ili##i"e s .

:[email protected]/ 6*RP12 $*LL*R-S 6lie"t

75

RETAINER CONTRACT
9e &ere> e"7a7e t&e le7al services '% *tt . Peter @. 6' t' re#rese"t )s i" t&e la>'r c'+#lai"ts t&at 4e ca)sed t' >e %iled. 1" c'"siderati'" t&ere'%, 4e c'++it t' #a t&e %'ll'4i"7C

76

*. 30U '% ')r t'tal +'"etar a4ard as att'r"e Ls %ees, i"cl)sive '% salar '" rei"state+e"t 4&ile '" a##eal3 $. *ct)al eF#e"ses '% #leadi"7s a"d 't&er act)al c'sts s&all >e %'r ')r acc')"t. 8i#'l'7 6it , P&ili##i"es, :)l 18, 2008.

6el%'"e /'. 09284505549 Pri"cess 'r E'"e

77

09212065407 Leli>et& -l'la

Re#)>lic '% t&e P&ili##i"es 8e#art+e"t '% La>'r a"d -+#l' +e"t /*012/*L L*$2R R-L*012/S 62<<1SS12/ S!$=R-A12/*L *R$10R*012/ $R*/6E /2. 09 8i#'l'7 6it -L1*I!1< :. -A*@, 6'+#lai"a"t, =vers)s= $1A $R20E-R, 1/6., a"d ,16 L. 6-$R10*S, a"d *LL1-8 $*/V 62RP2R*012/, re#re= se"ted > its $ra"c& <a"a7er, Res#'"de"ts. .===============================================B /LR6 S!$=R*$ 6*S- /2. ;;;;;;;;;;;;;;;;;;;;;;;;

COMPLAINT
62<PL*1/*/0, t' t&is E'"'ra>le La>'r *r>iter, +'st res#ect%)ll aversC

PARTIES:
". /a+e '% 6'+#lai"a"tC -L1*I!1< :. -A*@ *7eC 54 Stat)sC <arried #. *ddress C Rel'cati'" site, La' , 2li"7a", 8i#'l'7 6it

$. /a+e '% Res#'"de"tsB6'+#a" C $1A $R20E-R, 1/6., a"d ,16 L. 6-$R10*S3 a"d *LL1-8 $*/V 62RP2R*012/ [as i"direct e+#l' er] %. *ddress '% $1A $R20E-R, 1/6.
78

<ai" 2%%ice <i"da"a' 2%%ice

C 1236=* Sa"ta"der Street, Sa+#al'c, <a"ila C 67 :)st' Ra+'"al Street, 6a7a a" de 2r' 6it 0&is is t&e sa+e address '% ,16 L. 6-$R10*S

*ddress '% *LL1-8 $*/V 62RP2R*012/C cB' 8i#'l'7 6it >ra"c& ). 24"erB<a"a7erBPreside"tC
$1A $R20E-R, 1/6. C ,ice"te Plat'" [24"erBPreside"tBAe"eral <a"a7er] C ,ic L. 6e>ritas as *rea S)#ervis'r

*LL1-8 $*/V 62RP2R*012/C L)ci' 0a" [24"erBPreside"tBAe"eral <a"a7er] cB' $ra"c& <a"a7er '% 8i#'l'7 >ra"c&.

*. /at)re '% $)si"essC
$1A $R20E-R, 1/6. C [email protected] *A-/[email protected] *LL1-8 $*/V 62RP2R*012/C 62<<-R61*L $*/V

=. /)+>er '% 9'rkersC <'re t&a" 50 [%'r t&e +ai" a"d >ra"c& '%%ices] +. 8ate -+#l' ed 8ate '% 1lle7al 8is+issal @ears i" service ?. /at)re '% 9'rkBP'siti'" C 1991 C :a")ar 31, 2007 C (i%tee" [15] ears C Sec)rit A)ard.

"2. 9'rk Sc&ed)leC 8C00 *.<. 5 10C00 P.<. 2"l 15 +i")tes "''" >reak 4it&i" t&e >a"k. -,[email protected] <2/8*@=(R18*@. "". Place '% 9'rk C *llied $a"k 8i#'l'7 6it >ra"c&.

"#. Eave ') ever %iled a" si+ilar la>'r case else4&ereR /'. "$. Salar RateC <'re t&a" P6,000.00B+'"t&

CA5SE O& ACTION
*. 1LL-A*L 4ISMISSAL. $. R-1/S0*0-<-/0 4it& $*6V9*A-S 6. 1" t&e alter"ativeC S-P*R*012/ P*@. 8. *002R/[email protected] (--S.
79

-. 8*<*A-S

RELIE&S
COMPLAINANT pray! or the o''o7in9C *. R-1/S0*0-<-/0 4it& $*6V9*A-S $. 1" t&e alter"ativeC S-P*R*012/ P*@. 6. (1R-*R< $2/8. 8. *002R/[email protected] (--S. -. 8*<*A-S (. *LL 20E-R $-/-(10S PR2,18-8 (2R [email protected] L*9. 8'"e i" 8i#'l'7 6it , P&ili##i"es, t&is 7t& da '% (e>r)ar , 2007. -L1*I!1< :. -A*@ 6'+#lai"a"t

CERI&ICATION an/ SAORN STATEMENT A6AINST &OR5M S,OPPIN6
Re#)>lic '% t&e P&ili##i"es ? [email protected] 2( 81P2L2A ? S.S. .===============================B 1, -L1*I!1< :. -A*@, (ili#i"', '% le7al a7e, +arried, reside"t '% Rel'cati'" site, 2li"7a", 8i#'l'7 6it , )"der 'at&, &ere> de#'set& a"d sa et&C 1. 0&at 1 a+ t&e c'+#lai"a"t i" t&is case3 2. 0&at 1 &ave ca)sed %'r t&e #re#arati'" a"d %ili"7 '% t&is 6'+#lai"t3 3. 0&at 1 &ave s)##lied all t&e +aterial %act)al aver+e"ts i" t&e 6'+#lai"t3

80

4. 0&at 1 &ave read a"d )"derst''d t&e 6'+#lai"t, a"d 1 a%%ir+ t&at all t&e alle7ati'"s t&erei" c'"tai"ed are tr)e a"d c'rrect t' t&e >est '% + k"'4led7e a"d >elie%3 5. 0&at 1 &ave "'t c'++e"ced a" 't&er acti'" 'r #r'ceedi"7, "'r is t&ere a" s)c& acti'" 'r #r'ceedi"7, i"v'lvi"7 t&e sa+e iss)es i" t&e S)#re+e 6')rt, t&e 6')rt '% *##eals 'r a" 't&er a7e"c 3 6. 0&at i% 1 s&')ld &erea%ter lear" t&at a si+ilar acti'" 'r #r'ceedi"7 &as >ee" %iled 'r is #e"di"7 >e%'re t&e S)#re+e 6')rt, t&e 6')rt '% *##eals, 'r a" 't&er tri>)"al 'r a7e"c , t&e" 1 )"dertake t' re#'rt t&at %act 4it&i" %ive D5? da s t&ere%r'+ t' t&e c')rt 'r a" a7e"c 4&erei" t&e 'ri7i"al #leadi"7 a"d s4'r" state+e"t c'"te+#lated &erei" &ad >ee" %iled. 7
t&

1/ 910/-SS 9E-R-2(, 1 &ave &ere)"t' a%%iFed + si7"at)re t&is da '% (e>r)ar , 2007, at 8i#'l'7 6it , P&ili##i"es. -L1*I!1< :. -A*@ *%%ia"t

S!$S6R1$-8 */8 S92R/ t' >e%'re +e t&is 7t& da '% (e>r)ar , 2007, at 8i#'l'7 6it , P&ili##i"es, a%%ia"t eF&i>iti"7 &is c'++)"it taF certi%icate "'. ;;;;;;;;;;;;;;, iss)ed '" ;;;;;;;;;;;;;, at 8i#'l'7 6it .

8'c. /'. ; 46 C Pa7e /'. ;;;102C $''k /'. ;L.111C Series '% 2007

PETER -. CO /'tar P)>lic !"til 8ece+>er 31, 2007 P0R /2. 0383657 01=12=2007 1$P /2. 658977 07=18=2006 8i#'l'7 6it R'll /'. 35379

81

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