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

{ 2752 comments… read them below or add one }

santa fe December 11, 2014 at 6:22 pm

wait lang tau 3 to 6 mos. sabi nga nila mag enbanc meeting sc kasama sa agenda ang ating dama para sa resolution ng mga letters n nag oobstruct sa payment kaya wait3 lang at malapit n maging real ang ang dasal nting lahat “BE POSITIVE”.


hope December 11, 2014 at 6:37 pm

Pag-isipan,”pwedeng may maging sanhi ng pagka antala,pero hindi pwedeng hindi nila bayadan ang DAMA claimants”final and executury na ang desisyon ng SC sa kasong yan. Salamat and God bless pro as eating lahat.


slec December 11, 2014 at 7:29 pm

Dapat dian i cite na for contempt ang mga cabinet secretaries na yan na komukwestion sa final and executory decision of the supreme court which is the highest court of the land bakit sinasaklawan nila ang supreme court na isang independent branch ng ating gobyerno. They should not defy the supreme court’s authority and power, kaya nga supreme court dahil pinakamataas sila.


hope December 11, 2014 at 8:44 pm

Mapupuno din ang salop ng SC at makakalos din yang matitigas ang ulo at nagmamarunong pa sa ipinasa at dinesisyunan na ng kataas taasang hukuman ng bansa. Hindi nila inalam ang history ng kaso, gusto pa nîla sila ang masunod. Tawag sa kanila (bobo), 11 years na pinag aralan at binusis ng SC bago desisyunan.Sorry for the word (bobo), 5 times na natalo na natalo na sila na kaso na ito,ilang justices na ang pinagdaanan, hayyyyy buhayyy talaga “no one is above DILAW talaga” pero sa amin,”Bukas luluhod ang mga tala”.lintik lang walang ganti.


mark lopez December 11, 2014 at 10:22 pm

dapat yung mga nagmamalinis na mga cabinet sec ang syang kasuhan sa ombudsman….daang matuwid kuno pero nangungurakot naman…kaya nga siguro nila pilit dine-delay dahil gagamitin sa 2016 election na naman ang pera para sa personal na kapakanan…sana ipakita ng SC na sila ay independent body at pinahahalagahan ang integridad ng institusyon na matagal ng pinangalagaan ng mga dating namumuno sa SC….slmat po


hope December 11, 2014 at 11:12 pm

Hindi pwedeng hindi sila mag hanap ng pambayad sa atin. Ubligasyon nila na hanapan ito ng paraan para tayo mabayaran,yan naka lagay sa batas at dapat nila itong sundin, baka gusto nilang bumangon si FPJ at kalusin sila. Hehehehe,joke lang.


mark lopez December 14, 2014 at 2:40 pm

papaano po kung talagang ayaw magbayad ng npc/psalm may other legal remedy pa po bang pwedeng gawin? balita po kasi ay talagang di sila magbabayad at idedelay lang nila ng idedelay…balita ko lang naman po ito…kaya po nagtatanong lang….slmat po


hope December 14, 2014 at 6:42 pm

Antayin nalang po ang magiging action ng mga leaders at lawyers ng DAMA case natin, kumikilos naman po sila. ‘Final and executory na po yan”antay din natin ang magiging sagot ng SC.GOD BLESS!


mark lopez December 14, 2014 at 10:24 pm

marami pong salamat..merry Christmas sa lahat.


hope December 14, 2014 at 11:49 pm



mark lopez December 15, 2014 at 12:09 am

same po sa inyong lahat…


Mark Aquino December 15, 2014 at 12:26 am

magandang umaga po! kailan po kya ma rerelease ung pera na pra sa atin? matagal na po tyong ng antay hnggng ngyn wala pa rin po..makukuha pb o pinapaasa lng po tyo?


gabriel credoe December 15, 2014 at 2:03 am

Me magandang balita!


Mark Aquino December 15, 2014 at 3:26 am



mark lopez December 16, 2014 at 12:14 am

yun po bang magandang balita ay yung P30B na dama? nagtatanong lang po.


Amad December 16, 2014 at 3:23 pm

Balitang kutsero lang yan 30B. Hwag po kayong maniwala sa ganyan.


mark lopez December 15, 2014 at 2:26 pm

ano po yung magandang balita? paki share naman po kung ano yung sabi nyo na magandang balita….slmat po


rogelio bandalan December 16, 2014 at 5:48 am

ing po, anong balita na sa ngayon? sana meron na malapit na pasko


Amad December 16, 2014 at 3:19 pm

1) Interview of Atty Vic Orocio by media people – – being arranged for January 2015.
2) Follow-up NPP Statement in answer to the Senate hearing – – being prepared with better content, format and style.
3) Another BIG rally will be held with VIP guest speakers (e. g. Cong Comenares et al).
4) Legal measures versus “other side” lawyers are contemplated.
5) NPP Corporation or NPP Foundation? – – being studied as to which is the better organization for our needs now and in the future.
6) Financial Statement is being finalized (yours truly is Auditor). Per our estimate, our present funds will only last up to March of daily presence in the Tent. At present, we cannot afford another newspaper ad release.
Best regards, LINO S CRUZ


hope December 16, 2014 at 6:27 pm

Thanks AMAD, sana may mag share din ng audio message nila Atty.Aldon,Atty.Orocio,Sir Edgar Herrera at Sir Resty Dela Cruz noong Christmas party sa tent para mapakinggan din ng mga kasama natin dito ng malaman ang sitwasyon ng DAMA natin.


Jess December 18, 2014 at 6:47 am

Ano na po balita sa COLA?


rogelio bandalan December 20, 2014 at 3:57 am

gud eve sa lahat na kasamahan natin, dito po ako sa ormoc city, sa palagay ko po na nasa malaman po ditor sa mga probensya ang mga bagong balita sa dama at cola we pray po na sana maibigay na po , salamat po sa lahat. maghintay po kami ng balita po ninyo .


gabriel credoe December 20, 2014 at 5:24 am

Baka next month mo na malaman ang ba lista ksi nka bakasyon mga taga SC ngyon.


boratzky December 21, 2014 at 1:42 am

Merry xmas na lang sa ating lahat.wag nyo ng asahan pa ang dama coz it is dead. True my friends, wag na kayong umasa pa maawa lang kayonsa sarili nyo.


boratzky December 21, 2014 at 1:44 am

Bye dama, bye cola! Hello 2015!


who me? December 21, 2014 at 2:28 am

ang wlang masabing mabuti wag na lng mag comments d2,
maki sawsaw ka na lng sa kalye…
this is for educated and noble person..
merry x-mass sa lahat..


boratzky December 21, 2014 at 4:32 am

Wawa ka naman naghihintay ng wala. Buti pa siguro hanap tayo pagkakakitaan, mas ok pa,


gabriel credoe December 21, 2014 at 7:55 am

Magbenta ka na lang ng herbal soap boratsky! Kilala ko ang estilo mo chonggo!


mark lopez December 21, 2014 at 3:11 pm

mga kasama hinay-hinay lang….malapit na ang pasko…magpasensyahan na lang tayo….gusto ko lang i-share pero di ko sure if true or not….sabi gagawa pa ng irr (implementing rules n regulation) at doon magbabase ang sc kung sino ang babayaran….di po ito personal na opinyon kundi balita ko lang kaya isini-share ko lang po….meron po bang ganiton balita kayong alam para ma confrm?? nagtatanong lang po at merry Christmas sa ating lahat…let us pray na sana maging firm at i-uphold ng sc ang finan n executory decision nila regarding po sa dama case natin at sana maging ganun din dun sa cola kung sakali man at mag decisiion din sila….slmat po.


JayVeeM December 21, 2014 at 6:50 pm

Merry christmas po sa lahat


Leave a Comment

Previous post:

Next post: