Title
University of San Agustin, Inc. vs. University of San Agustin Employees Union-FFW
Case
G.R. No. 177594
Decision Date
Jul 23, 2009
A dispute arises between the University of San Agustin and its employees' union over the interpretation of a provision in their Collective Bargaining Agreement regarding salary increases based on tuition fee increases, with the court ultimately upholding the union's position that 80% of the tuition incremental proceeds should be allocated for salary increases.
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Case Digest (G.R. No. 177594)

Facts:

  • The case "University of San Agustin, Inc. v. University of San Agustin Employees Union-FFW," G.R. No. 177594, was decided by the Supreme Court of the Philippines on July 23, 2009.
  • The petitioner, University of San Agustin, Inc. (the University), entered into a Collective Bargaining Agreement (CBA) with the University of San Agustin Employees Union-FFW (the Union) on July 27, 2000.
  • The CBA was effective for five years, from July 2000 to July 2005, and included provisions for salary increases linked to incremental tuition fee increases under Republic Act No. 6728 (Tuition Fee Law).
  • A dispute arose over Article VIII, Section 3 of the CBA, which stated that for the School Years 2001-2002 and 2002-2003, salary increases would be either P1,500 per month or 80% of the tuition incremental proceeds (TIP), whichever was greater.
  • The University proposed an across-the-board salary increase of P1,500 per month while deducting scholarship grants and tuition fee discounts from the TIP.
  • The Union opposed this interpretation, asserting that salary increases should be based solely on the TIP without deductions.
  • After failing to resolve the issue through grievance machinery, both parties agreed to voluntary arbitration.
  • The Voluntary Arbitrator ruled in favor of the Union, leading the University to appeal to the Court of Appeals, which modified the Arbitrator's decision regarding TIP computation.
  • The University then sought a review of the appellate court's interpretation of the CBA provision.

Issue:

  • (Unlock)

Ruling:

  • The Supreme Court affirmed the Court of Appeals' decision, which upheld the Voluntary Arbitrator's interpretation that 80% of the tuition incremental proceeds should be allocated for salary increases.
  • The Court ruled that ...(Unlock)

Ratio:

  • The Supreme Court emphasized that the CBA serves as the governing law between the parties, and its explicit provisions must be strictly adhered to.
  • The CBA clearly stated that 80% of the TIP or P1,500, whichever was higher, was designated for salary increases.
  • The Court dismissed the U...continue reading

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