Court orders NPC to pay employees P6.49-Billion

by EVMail News on April 7, 2009

ORMOC CITY – A Quezon City regional trial court has awarded with finality this week some 9,777 employees of the National Power Corporation (NPC) a whooping P6.496-Billion representing “back allowances” and unpaid cost of living allowances (COLA) from November 1989 up to 1999, when the case was filed against the government corporation.

The sum, if equally divided among the 9,777 employees, would give each around P664,000.00. However, the distribution of the money would be prorated, depending on their salary scale, as the back allowances and COLA due to them represents 40 plus 10 percent of their salaries, respectively.

Presiding Judge Luisito G. Cortez of the RTC Branch 84 in Quezon City has also ordered NPC to pay the employees another P 704-million interest at 12 percent per annum on the whole sum, from the time the complaint was filed in December 2007 until its resolution in December 2008. The lawyers and “consultants” of the NPC employees were also awarded 300,000.00 in attorney’s fees, aside from five percent of the entire amount that each employee will receive, as consultancy fee for them. That would be around P324.8-million.
A notice to comply dated March 24, this year, has since been served by the sheriff of RTC Branch 84 to the NPC on March 25, after the decision became final. It is not learned at this point in time if the NPC would file an appeal on the judge’s decision at the Supreme Court, or if still can be appealed.
However, NPC employees are confident they would get the P6.496-Billion award, banking on a similar case that has already been resolved by the Supreme Court just last December 2008. This was the complaint filed by terminated members of the NPC Drivers and Mechanics Association (NPC DAMA). The Supreme Court has ordered NPC to pay the terminated drivers their back wages and allowances, saying their termination from work was illegal. The National Power Corporation is a government-controlled corporation. Its transmission facilities under TransCo have since been privatized, including the one in Eastern Visayas based at Milagro, this city, which was bought by a Chinese firm and now operating under the name National Grid Corporation of the Philippines (NGCP).

NPC is the same entity that has recently been allowed by the Energy Regulatory Commission (ERC) to increase on their power rates by some P1.1460 in the Visayas, claiming they have been operating on the red. However, in a certification issued on April 22, 2008, Alexander Japon, NPC senior finance department manager, certified that it has available funds for the payment of back allowances and COLA to its personnel and former employees in the amount of P8.5-Billion.
To demand for the immediate compliance of the court order, former NPC employees, majority of who have since been absorbed by the new owners of its facilities, have started a “peaceful assembly” in their respective locations every lunch break. Here in Milagro, this city, the employees took to assembling at the plant gates during their lunch break starting Friday, March 27, 2009. Requesting anonymity, some employees told the EV Mail that what they are doing is just to dramatize their demand, but they are doing it during their lunch break so as not to disrupt the normal operations of the electric transmission facility.

Class suit

The complaint against the NPC is for mandamus. It was filed by two employees originally, Abner P. Eleria and Melito B. Lupanco. Eleria was president of the NPC Employees Consolidated Union or NECU and Lupanggo, president of the NPC Employees and Workers Union (NEWU). Soon thereafter, their respective unions filed as petitioner-intervenors in behalf of its members. The judge then ruled that since the parties involved were numerous, that the same was a “class suit”. The petitioners complained to the court that before November 1989, they received allowances and COLA which were discontinued after the Salary Standardization Law took effect. The Department of Budget and Management, on the other hand, issued DBM Corporate Circular No. 10 (CCC No. 10), as its implementing guidelines. The guidelines, however, proved fatally defective after it was not published. It was only published by the DBM on the Official Gazette on March 1999, after 10 years. Government counsels, on the other hand, including the Office of the Solicitor General, tried to argue for NPC and DBM, attacking the complaint for various technicalities including the non-payment of the proper amount of docket fees.

However, Judge Cortez brushed these aside, invoking in his decision the constitutional right of the people to the equal protection of law. In his prefatory statement, the judge said “The State affirms labor as a primary social economic force. It shall protect the rights of workers and promote their welfare. The state values the dignity of every human person and guarantees full respect of human rights.” He also invoked that “Free access to the courts and quasi-judicial bodies and adequate legal assistance shall not be denied to any person by reason of poverty”. He said that when the case was filed at his sala, the Clerk of Court computed the proper fees for its filing then, since it was only in the course of the proceedings that it became a “class suit”. As such, the judge also imposed a lien of P145.4-million on the total award representing payment of the adjusted docket fees. He cited Section 2, Rule 141 of the Rules of Court that provides: “Where the court in its final judgment awards a claim not alleged, or a relief different from, or more than that claimed in the pleading, the party concerned shall pay the additional fees which shall constitute lien on the judgment in satisfaction of said lien”. with a report from JP Serseña

{ 3195 comments… read them below or add one }

who me? June 22, 2015 at 5:42 am

after june 30, 2014 final and executory resolution,
anung final naman sa 2015? is there another term of final?


ooooooooooooohhhhh June 22, 2015 at 6:11 am

betoy ka dyan!


ooooooooooooohhhhh June 22, 2015 at 6:17 am

ikaw ang hanap ko damang dama ng puso ko – Music Search Results
Ikaw pa rin – Aegis

… Ikaw pa rin ang nais ko Damang – dama ng puso ko Mahirap … pa rin ang hanap ko Mapapatawad ba …

Mahal Pa Rin Kita – Rey Valera

… no nga ba ang pag-ibig … nais ko Damang – dama ng puso ko Mahirap … pa rin ang hanap ko Mapapatawad ba …

Mahal Pa Rin Kita – Rockstar

… no nga ba ang pag-ibig … nais ko Damang – dama ng puso ko Mahirap … pa rin ang hanap ko Mapapatawad ba …

Hanggang Ngayon ( Remix ) Hush One and – Sean Primero

… Hanggang ngayon damang – dama … nito damang dama parin ng puso ko … ngayon damang – dama … ngayon damang – dama


Randy June 22, 2015 at 8:49 am

Relax, ang MR/TRO ay tungkol sa Mali daw ang computation ng amount ng Dama, kaya iyan Lang ang pwede mabago at Hindi ang final decision, maliwanag ba?


kulafu damasu June 22, 2015 at 5:43 pm



Randy June 24, 2015 at 12:11 am

Opo-in kita dyan eh. Suntukan nalang!!


Randy June 25, 2015 at 9:36 pm

Bakit away ang gusto mo? Impostor ka!


NPC Retiree Din June 24, 2015 at 3:51 pm

June 25 na, countdown 5! Let us continue our prayers to our Almighty God for the positive result of the SC resolution! Praise the Lord amen!


elizasuelto June 24, 2015 at 4:22 pm

GOD is in control.


mart June 24, 2015 at 9:07 pm

sana maganda resulta..


elizasuelto June 25, 2015 at 5:07 pm

To God be the Glory.


HOPE June 25, 2015 at 6:42 pm



elizasuelto June 27, 2015 at 11:09 pm

God is good , all the time.


info June 28, 2015 at 12:13 am
kulafu damasu June 28, 2015 at 1:06 am

History na po yata ang info @info


bad June 28, 2015 at 2:05 am

any update?


info June 28, 2015 at 4:45 am

@kulafu – naisip ko lang, para i grant ng korte suprema ang m.r ng npc, dapat malakas ang nag lobby. Sana nga delaying tactics lang, kasi sabi ni pnoy “not in my term”. No offense to anyone, this is very raw info, pero yan daw ang direction ng sc.


onyot June 28, 2015 at 6:42 pm

Parang hinde ko pa po nakikita ang mga Lawyer natin sa Media/interviews para sa DAMA-COLA issue…kaya siguro walang Pwesa!


bad June 30, 2015 at 8:24 am

any updates sir/ma’am?


Randy June 30, 2015 at 10:45 am

At last!!! here is the resolution of Supreme Court! Cheers!!!!


Randy June 30, 2015 at 10:51 am
Heaters June 30, 2015 at 3:40 pm

@ randy, wala Ka bang magawa sa buhay!!! Kaya nanggugulo ka dito.


Randy July 1, 2015 at 8:05 am

Impostor ang Randy na yan, Hindi iyan ang tunay niyang name.


likas June 30, 2015 at 9:41 pm

any news meron na ba balita? sa dama lagpas na june 25 july 1 na po.


Heaters July 1, 2015 at 8:24 pm

Naka agenda daw ang COLA sa NP board meeting ngayong araw na ito (July 2). Sana maganda ang resulta ng meeting nila.


kulafu damasu July 2, 2015 at 4:29 am

Sana positve, pray pray at prayers pa


Mary July 2, 2015 at 5:05 am

Ito yung matagal na hinihintay ng Tatay ko na tutupad sana sa pangarap namin na magkadoctor sa pamilya. Sana makonsensya yung mga sangkot dito. Hindi lang isang pangarap ang nasira nyo.


Collateral Damage of EPIRA July 2, 2015 at 4:11 pm

Nganga na naman!……………………………………….

Wait2 pa din………………………………………………..

Always bear in minds that the Lord will provide our needs always specially for those who believe amen.!


angel July 2, 2015 at 5:43 pm

Me balita na po ba sa cola


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