Updates on the COLA Case

This is to inform the NPC Employees that the NP Board through The Office of the Corporate Secretary was furnished a copy of the Supreme Court Decision promulgated on February 7, 2017 on the consolidated “COLA” case entitled REPUBLIC OF THE PHILIPPINES, represented by the OFFICE OF THE SOLICITOR GENERAL (OSG) as the PEOPLE’S TRIBUNE, and the NATIONAL POWER BOARD, Petitioners versus HON. LUISITO G. CORTEZ, Presiding Judge, Regional Trial Court, Branch 84, Quezon City, ABNER P. ELERIA, MELITO B. LUPANGCO, NAPOCOR EMPLOYEES CONSOLIDATED UNION (NECU), and NAPOCOR EMPLOYEES AND WORKERS (NEWU), Respondents. ROLANDO G. ANDAYA, in his capacity as Secretary of the DEPARTMENT OF Budget and Management and member of the Board of Directors of the National Power Corporation, Petitioners, versus HON. LUISITO G. CORTEZ, Presiding Judge, Regional Trial Court, Branch 84, Quezon City, ABNER P. ELERIA, MELITO B. LUPANGCO, NAPOCOR EMPLOYEES CONSOLIDATED UNION and NAPOCOR EMPLOYEES AND WORKERS UNION, Respondents. Docketed as G.R. no. 187257 and G.R. No. 187776, respectively.

The Supreme Court ruled that the “COLA and AA were already deemed integrated into the basic standardized salary from July 1, 1989 to December 31, 1993. These allowances need not be separately granted.  All basic salaries by December 31, 1993 already included the COLA and AA.”

                                                            x   x  x

Considering there was no diminution in the salaries and benefits of the NAPOCOR employees upon the implementation of the New Compensation Plan, there was no basis for the Regional Trial Court to grant NECU and NEWU’s money claims. To repeat, the indiscriminate grant of additional allowances would be tantamount to additional compensation, which is proscribed by Section 8, Article IX (B) of the Constitution.”

In the dispositive portion, the Supreme Court ruled as follows:

“WHEREFORE, the Petitions for the Certiorari and Prohibition in G.R. Nos. 187257 and 187776 are GRANTED. The Decision dated November 28, 2008, joint Order dated March 20, 2009 and Writ of Execution dated March 23, 2009 of the Regional Trial Court of Quezon City, Branch 84 in Civil Case No. Q-07-61728 are VACATED and SET ASIDE. The Temporary Restraining Order dated April 15, 2009 is made PERMANENT.

SO ORDERED.”

For the information and reference of the employees.

Supreme Court Decision in G.R. No. 187257