FIRST DIVISION
G.R. No. 192836. November 29, 2022
THE PHILIPPINE PORTS AUTHORITY, Petitioner, v. PAMBANSANG TINIG AT LAKAS NG PANTALAN (PANTALAN), AS REPRESENTED BY ANTONIO C. IGNACIO, JR., ALEJANDRO L. TAN, PIO ROMULO N. BALATBAT, AND OTHER SIMILARLY SITUATED EMPLOYEES OF PHILIPPINE PORTS AUTHORITY, RESPONDENTS.
[G.R. No. 194889]
SAMAHANG MANGGAGAWA SA PALIPARAN NG PILIPINAS, ALL REPRESENTED HEREIN BY CEFERINO LOPEZ, Petitioner, v. MANILA INTERNATIONAL AIRPORT AUTHORITY, THE BOARD OF DIRECTORS OF MANILA INTERNATIONAL AIRPORT AUTHORITY, NAMELY, LEANDRO R. MENDOZA, ALFONSO G. CUSI, JOSEPH D. DURANO, NILO C. JATICO, JOAQUIN LAGONERA, ALIPIO FERNANDEZ, ALEXANDER M. AREVALO, RAUL B. TRINIDAD AND JEROME V. PARAS, RESPONDENTS.
D E C I S I O N
ZALAMEDA, J.:
The policy enshrined in Republic Act No. (RA) 67581 is to standardize the compensation and benefits of employees in the public sector, including government-owned and controlled corporations. It aims to provide equal pay for substantially equal work and to base differences in pay upon substantive differences in duties and responsibilities.2 Neither the law nor the Court suggests that the compensation of the employees after the promulgation of RA 6758 would be increased with the addition of the Cost of Living Allowance (COLA) and amelioration allowance into the basic standardized salary.3chanRoblesvirtualLawlibrary
WHEREFORE, the petition is hereby GRANTED. As prayed for, respondent is hereby mandated to ACTUALLY INTEGRATE the COLA and [amelioration allowance] of the petitioners as of July 17, 1999 into their basic salaries and pay the corresponding differentials therefor and pay lawful attorney's fees of at least 10% of such differentials.
The counterclaim is DENIED for lack of merit.
SO ORDERED.31cralawredlibrary
WHEREFORE, premises considered, let a writ of mandamus be issued in this case commanding respondents to integrate by adding, including or incorporating the COLA and AA of herein petitioners to the basic salaries of herein petitioners effective July 16, 1999 pursuant to Sections 4.1 and Sections 4.2 of DBM CCC No. 10 s. 1999 in relation to Section 12 of R.A. 6758; that respondent MIAA Board of Directors is hereby commanded to issue the necessary board resolution appropriating funds to pay for COLA and AA of petitioners which were not added, included and incorporated to their respective basic salaries commencing on July 16, 1999 up to such time said COLA and AA are added, included and incorporated into their respective basic salaries commencing July 16, 1999 until such time they are actually added, included or incorporated into said basic salaries, be released immediately in favor of herein petitioners.
SO ORDERED.33cralawredlibrary
WHEREFORE, the instant Petition for Review is DENIED for lack of merit. The assailed Decision, dated June 4, 2008, of the Regional Trial Court of Manila, Branch 3, in Special Civil Action No. 08-118633, is hereby AFFIRMED. Appellee's Motion to Refer Case to Mediation is DENIED.
SO ORDERED.36cralawredlibrary
ACCORDINGLY, the appeal is GRANTED. The Decision dated September 18, 2006 is REVERSED and SET ASIDE, and a new one rendered DISMISSING Civil Case No. 05-1422-CFM.
SO ORDERED.39cralawredlibrary
[The case] does not involve an examination of the probative value of the evidence presented by the parties. There is a question of law when the doubt or difference arises as to what the law is on a certain state of facts, and not as to the truth or the falsehood of alleged facts. Said question [of law] at best could be resolved only tentatively by the administrative authorities. The final decision on the matter rests not with them but with the courts of justice. Exhaustion of administrative remedies does not apply, because nothing of an administrative nature is to be or can be done. The issue does not require technical knowledge and experience but one that would involve the interpretation and application of law.46cralawredlibrary
SEC. 12. Consolidation of Allowances and Compensation. — All allowances, except for representation and transportation allowances; clothing and laundry allowances; subsistence allowances of marine officers and crew on board government vessels and hospital personnel; hazard pay; allowances of foreign service personnel stationed abroad; and such other additional compensation not otherwise specified herein as may be determined by the DBM, shall be deemed included in the standardized salary rates herein prescribed. Such other additional compensation, whether in cash or in kind, being received by incumbents only as of July 1, 1989 not integrated into the standardized salary rates shall continue to be authorized.59cralawredlibrary
4.0 DEFINITION OF TERMS
- 4.1 The present salary of an incumbent for purposes of this Circular shall refer to the sum total of actual basic salary including allowances enumerated hereunder, being received as of June 30, 1989 and authorized pursuant to PD. No. 985 and other legislative or administrative issuances:
- 4.1.1 Cost-of-Living Allowance/Bank Equity Pay (COLA/BEP) equivalent to forty percent (40%) of basic salary or P300.00 per month, whichever is higher;cralawlawlibrary
4.1.2 Amelioration Allowance equivalent to ten percent (10%) of basic salary or P150.00per month, whichever is higher; xxx
x x x x
4.2 Allowances enumerated above are deemed integrated into the basic salary for the position effective July 1, 1989.61chanRoblesvirtualLawlibrary
x x x x
5.0 IMPLEMENTING PROCEDURES
x x x x
- 5.4 The following allowances/fringe benefits which were authorized to GOCCs/GFIs under the standardized Position Classification and Compensation Plan prescribed for each of the five (5) sectoral groupings of GOCCs/GFIs pursuant to PD. NO. 985, as amended by P.D. NO. 1597, the Compensation Standardization Law in operation prior to R.A. NO. 6758, and to other related issuances are not to be integrated into the basic salary and allowed to be continued after June 30, 1989 only to incumbents of positions who are authorized and actually receiving such allowances/benefits as of said date, at the same terms and conditions provided in said issuances.
- 5.4.1 Representation and Transportation Allowances (RATA)
5.4.2 Uniform and Clothing Allowance;
5.4.3 Hazard Pay as authorized by law;
5.4.4 Honoraria/additional compensation for employees on detail with special projects or inter-agency undertakings;
5.4.5 Honoraria for services rendered by researchers, experts and specialists who are of acknowledged authorities in their fields of specialization;
5.4.6 Honoraria for lecturers and resource persons/speakers;
5.4.7 Overtime Pay as authorized by law;
5.4.8 Laundry and subsistence allowances of marine officers and crew on board GOCCs/GFIs owned vessels and used in their operations, and of hospital personnel who attend directly to patients and who by nature of their duties are required to wear uniforms;
5.4.9 Quarters Allowance of officials and employees who are entitled to the same;
5.4.10 Overseas, Living Quarters and other allowances presently authorized for personnel stationed abroad;
5.4.11 Night Differential of personnel on night duty;
5.4.12 Per Diems of members of the governing Boards of GOCCs/GFIs at the rate as prescribed in their respective Charters;
5.4.13 Flying Pay of personnel undertaking aerial flights;
5.4.14 Per Diems/Allowances of Chairman and Members/Staff of collegial bodies and Committees; and
5.4.15 Per Diems/Allowances of officials and employees on official foreign and local travel outside of their official station.
5.5 The following allowances/fringe benefits authorized to GOCCs/GFIs pursuant to the aforementioned issuances are not likewise to be integrated into the basic salary and allowed to be continued only for incumbents of positions as of June 30, 1989 who are authorized and actually receiving said allowances/benefits as of said date, at the same terms and conditions prescribed in said issuances5.5.1 Rice Subsidy;
5.5.2 Sugar Subsidy;
5.5.3 Death Benefits other than those granted by the GSIS;
5.5.4 Medical/dental/optical allowances/benefits;
5.5.5 Children's Allowance;
5.5.6 Special Duty Pay/Allowance;
5.5.7 Meal Subsidy;
5.5.8 Longevity Pay; and
5.5.9 Teller's Allowance.
Payment of other allowances/fringe benefits and all other forms of compensation granted on top of basic salary, whether in cash or in kind, ... shall be discontinued effective November 1, 1989. Payment made for such allowances/fringe benfits after said date shall be considered as illegal disbursement of public funds.62cralawredlibrary
1.0 This Circular is being issued as a clarification on the impact of the latest Supreme Court rulings on the integration of allowances, including Cost of Living Allowance (COLA), of government employees under Republic Act (RA) No. 6758. x x x x 5.0 In view of the foregoing, <B> payment of allowances and other benefits, such as COLA, which are already integrated in the basic salary, remains prohibited</B> unless otherwise provided by law or ruled by the Supreme Court. 6.0 All agency heads and other responsible officials and employees found to have authorized the grant of COLA and other allowances and benefits already integrated in the basic salary shall be personally held liable for such payment, and shall be severely dealt with in accordance with applicable administrative and penal laws.63
CHAIRMAN ANDAYA: I just would like to point out na ngayon without the standardization pay, yung monthly pay ng Grade I, yung lowest monthly pay, is receiving one thousand four hundred including the COLA, including COLA one thousand four. Here, they will be receiving two thousand.
VOICE (Media): Plus COLA.
CHAIRMAN ANDAYA: No, incorporated na nga eh. They will have an increase take home pay of six hundred pesos increase. Now, I would like to explain. Noong araw ang mga increases percentage-wise is based on the basic, noong araw, you will receive an increase often percent (10%), twenty percent (20%), the basic. Yung one thousand four hundred ano ang component noong one thousand four hundred including COLA, seven hundred basic and seven hundred COLA. So if we go by the old standard of computing increase based on basic six hundred compared to seven hundred na basic nagkaroon siya ng increase of anywhere from eighty-five to ninety pecent. Now, have you seen such increase based on basic. Pero ibase na lang natin sa totality one four vis-à-vis six hundred ay malaki nga naman yata yun, even percentage-wise.
CHAIRMAN ROMULO: And then we may add, yung bonus will now be based on two thousand, not seven hundred. So malaki rin yun and of course the retirement pay.
CHAIRMAN ANDAYA: That's a good point raised by Senator Romulo. Without this ang bonus nila sa December will be seven hundred, but now ang bonus nila with the incorporation of the COLA plus the increase of six hundred they will receive a bonus of two thousand. Now, if they want to retire hindi na seven hundred ang basehan ng retirement, two thousand na, hindi lang nadoble almost triple.64cralawredlibrary
Section 17. Salaries of Incumbents. - Incumbents of positions presently receiving salaries and additional compensation/fringe benefits including those absorbed from local government units and other emoluments, the aggregate of which exceeds the standardized salary rate as herein prescribed, shall continue to receive such excess compensation, which shall be referred to as transition allowance. The transition allowance shall be reduced by the amount of salary adjustment that the incumbent shall receive in the future.
The transition allowance referred to herein shall be treated as part of the basic salary for purposes of computing retirement pay, year-end bonus and other similar benefits.
As basis for computation of the first across-the-board salary adjustment of incumbents with transition allowance, no incumbent who is receiving compensation exceeding the standardized salary rate at the time of the effectivity of this Act, shall be assigned a salary lower than ninety percent (90%) of his present compensation or the standardized salary rate, whichever is higher. Subsequent increases shall be based on the resultant adjusted salary.
SECTION 8. No elective or appointive public officer or employee shall receive additional, double, or indirect compensation, unless specifically authorized by law, nor accept without the consent of the Congress, any present, emolument, office, or title of any kind from any foreign government.
Pensions or gratuities shall not be considered as additional, double, or indirect compensation.
COLA is not in the nature of an allowance intended to reimburse expenses incurred by officials and employees of the government in the performance of their official functions. It is not payment in consideration of the fulfillment of official duty, as defined, cost of living refers to "the level of prices relating to a range of everyday items" of "the cost of purchasing those goods and services which are included in an accepted standard level of consumption." Based on this premise, COLA is a benefit intended to cover increases in the cost of living. Thus, it is and should be integrated into the standardized salary rates.72cralawredlibrary
Unless otherwise provided by law, government employees cannot be paid extra renumeration for the same offie that already has a fixed compensation73chanRoblesvirtualLawlibrary
PPA's counterclaim for exemplary damages,
litigation expenses, and attorney's fees
should be denied
At this juncture, We stress that to warrant the award of exemplary damages, the wrongful act must be accompanied by bad faith. The guilty party must have acted in a wanton, fraudulent, reckless, or malevolent manner.74 As regards litigation expenses and attorney's fees, the general rule is that attorney's fees cannot be recovered as part of damages because of the policy that no premium should be placed on the right to litigate. By way of exception, these may be awarded when warranted by factual, legal, and equitable justification.75chanRoblesvirtualLawlibrary
In this case, there is no showing that Pantalan acted in bad faith when it filed the petition for mandamus. Records are likewise bereft of any factual, legal, or equitable justification for the award of litigation expenses and attorney's fees.
WHEREFORE, premises considered:
1. The petition for review on certiorari filed by PPA, docketed as G.R. No. 192836, is hereby GRANTED. The Decision dated 29 January 2010 of the Court of Appeals in CA-G.R. SP No. 107730 affirming the Decision dated 04 June 2008 of Branch 3, Regional Trial Court, Manila is REVERSED and SET ASIDE.
2. The petition for review on certiorari filed by Samahang Manggagawa sa Paliparan ng Pilipinas, docketed as G.R. No. 194889, is hereby DENIED. The Decision dated 30 July 2010 of the Court of Appeals in CA-G.R. SP No. 96571, reversing and setting aside the Decision dated 18 September 2006 of Branch 119, Regional Trial Court, Pasay City, is AFFIRMED.
SO ORDERED.
Gesmundo, C.J. (Chairperson), Hernando and Rosario, JJ., concur.
Marquez,* J., on official business.Endnotes:
* On official business.
1 Entitled, "AN ACT PRESCRIBING A REVISED COMPENSATION AND POSITION CLASIFFICATION SYSTEM IN THE GOVERNMENT AND FOR OTHER PURPOSES." Approved 21 August 1989.
2 Section 2, Republic Act No. 6758.x x x x
Section 2. Statement of Policy. – It is hereby declared the policy of the State to provide equal pay for substantially equal work and to base differences in pay upon substantive differences in duties and responsibilities, and qualification requirements of the positions. In determining rates of pay, due regard shall be given to, among others, prevailing rates in the private sector for comparable work. For this purpose, the Department of Budget and Managements (DBM) is hereby directed to establish and administer a unified Compensation and Position Classification System, hereinafter referred to as the System, as provided for in Presidential Decree No. 985, as amended, that shall be applied for all government entities, as mandated by the Constitution.
3 Republic v. Cortez, 805 Phil. 294, 335 (2017).
4 Rollo (G.R. No. 192836), p. 500. In a Resolution dated 19 September 2011, this Court consolidated G.R. No. 194889 and G.R. No. 192836 in view of the similarity of the subject matter involved and in order to avoid conflicting decisions on related cases and to save the time and resources of this Court.
5 Id. at 14-48 (G.R. No. 192836) and, Id. at 9-47 (G.R. No. 194889).
6 Id. at 52-61. Penned by Associate Justice Noel G. Tijam (a former Member of this Court) and concurred in by Associate Justices Apolinario D. Bruselas, Jr. and Franchito N. Diamante.
7 Id. at 63-64. Penned by Associate Justice Noel G. Tijam (a former Member of this Court) and concurred in by Associate Justices Apolinario D. Bruselas, Jr. and Franchito N. Diamante.
8 Rollo (G.R. No. 194889), pp. 75-84. Penned by Associate Justices Amy C. Lazaro-Javier (now a Member of this Court) and concurred in by Associate Justices Rebecca De Guia-Salvador and Sesinando E. Villon.
9 Id. at 85. Penned by Associate Justices Amy C. Lazaro-Javier (now a Member of this Court) and concurred in by Associate Justices Sesinando E. Villon andNormandie B. Pizarro.
10 Rollo (GR 192836), p. 65-98.
11 Rollo (GR 194889), p. 16.
12 Entitled "PROVIDING FOR THE REORGANIZATION OF PORT ADMINISTRATIVE AND OPERATION FUNCTIONS IN THE PHILIPPINES, REVISING PRESIDENTIAL DECREE NO. 505 DATED JULY 11, 1974, CREATING THE PHILIPPINE PORT AUTHORITY, BY SUBSTITUTION, AND FOR OTHER PURPOSES" Approved 23 December 1975.
13 Rollo (G.R. No. 192836), pp. 16-17.
14 Entitled, "CREATING THE MANILA INTERNATIONAL AIRPORT AUTHORITY, TRANSFERRING EXISTING ASSETS OF THE MANILA INTERNATIONAL AIRPORT TO THE AUTHORITY, AND VESTING THE AUTHORITY WITH POWER TO ADMINISTER AND OPERATE THE MANILA INTERNATIONAL AIRPORT." Approved 04 March 1984.
15 Rollo (G.R. No. 194889), pp. 53, 76.
16 Id. at 76-77.
17 Entitled "AN ACT PRESCRIBING A REVISED COMPENSATION AND POSITION CLASSIFICATION SYSTEM IN THE GOVERNMENT AND FOR OTHER PURPOSES" Approved: 21 August 1989.
18 Rollo (G.R. No. 192836), pp. 53-54; Rollo (G.R. No. 194889), pp. 76-77.
19 355 Phil. 584 (1998).
20 Rollo (G.R. No. 192836), p. 53 Rollo (G.R. No. 194889), pp. 76-77.
21 Rules and Regulations for the Implementation of the Revised Compensation and Position Classification System Prescribed Under R.A. No. 6758 for Government-Owned and/or Controlled Corporations (GOCCs) and Financial Institutions (GFIs).
22 Rollo (G.R. No. 192835) pp. 52-61; Rollo (G.R. No. 194889), pp. 75-84.
23 Id.
24 Rollo (G.R. No. 194889), p. 28.
25 Rollo (G.R. No. 192836), p. 82: Rollo (G.R. No. 194889), pp. 9-48.
26 Rollo (G.R. No. 192836) pp. 52-61; Rollo (G.R. No. 194889), pp. 75-84.
27 Rollo (G.R. No. 192836), pp. 52-61.
28 Id. at 107-108.
29 Rollo (G.R. No. 194889), pp. 52-74.
30 Rollo (G.R. No. 192836), p. 153-159. Penned by Judge Antonio I. De Castro
31 Id. at 159.
32 Id. at 153-159.
33 Rollo (G.R. No. 194889), p. 74.
34 Id. at 52-74.
35 Rollo (GR No. 192835), pp. 52-61. Penned by Associate Justice Noel G. Tijam (a former Member of this Court) and concurred in by Associate Justices Apolinario D. Bruselas and Franchito N. Diamante.
36 Id. at 61.
37 Id. at 52-61.
38 Id. at 63-64.
39 Rollo (G.R. No. 194889), p. 83.
40 Id. at 75-84.
41 Id. at 85.
42 Rollo (G.R. No. 192836), p. 500.
43 Spouses De la Cruz v. Ramiscal, 491 Phil. 62 (2005).
44 Travel & Tours Advisers, Inc. v. Cruz, et al., 783 Phil. 257, 264-265 (2016).
45 785 Phil. 382 (2016).
46 Id. at 398.
47 MMDA v. Concerned Residents of Manila Bay, et al., 595 Phil. 305, 326 (2008)
48 Quilatan v. Heirs of Quilatan, 614 Phil. 162 (2009).
49 572 Phil. 383 (2008)
50 Id. at 404.
51 See Divinagracia v. Parilla, 755 Phil. 783, 792 (2015).
52 Republic v. Cortez, 805 Phil. 294 (2017).
53 Ronquillo v. NEA, supra at 396.
54 630 Phil. 1 (2010).
55 G.R. No. 210631, 12 March 2019.
56 G.R. No. 218304, 09 December 2020.
57 779 Phil. 225 (2016).
58 805 Phil. 294 (2017).
59 Emphasis supplied.
60 Ronquillo v. NEA, supra at 399.
61 Emphasis supplied.
62 DBM-CCC No. 10, Item 5.6.
63 Metropolitan Naga Water District v. COA, G.R. No. 217935, 11 May 2021. Emphasis supplied.
64 Bicameral Conference, Committee on Appropriations, 06 August 1989, pp. 12-13
65 See Rollo, pp. 135-144.
66 Republic v. Cortez, supra.
67 Ronquillo v. NEA, supra at 406.
68 Republic v. Cortez, supra at 346.
69 Id. at 338.
70 See Republic v. Cortez, supra.
71 630 Phil. 1 (2010).
72 Id.
73 Ronquillo v. NEA, supra at 407.
74 Francisco v. Ferrer, Jr., 405 Phil. 141 (2001).
75 Spouses Timado v. Rural Bank of San Jose, 789 Phil. 453, 460 (2016).