G.R. No. 121304 March 19, 1998
ANGELICUM FACULTY AND EMPLOYEES ASSOCIATION, petitioner, vs. NATIONAL LABOR RELATIONS COMMISSION, ANGELICUM SCHOOL, INC., TAMERLANE LANA AND ALFONSO LORETO, respondents.

FACTS

Petitioner Angelicum Faculty and Employees Association (AFEA) is the collective bargaining agent for employees of respondent Angelicum School, Inc. (ASI). Following the promulgation of Wage Orders Nos. NCR-01 and NCR-02 granting daily wage increases, the Department of Education, Culture and Sports (DECS) issued Order No. 30, s. 1991. This order set guidelines for tuition fee increases to answer for wage increases, including a provision for an Emergency Tuition Fee Assessment (ETFA). Pursuant to this, ASI collected a total of P1,526,043.76 for school year 1991-1992, comprising P763,021.88 as a prescribed tuition fee increase and another P763,021.88 as ETFA.
AFEA demanded the distribution of 70% of the prescribed tuition fee increase (P534,115.32) to the employees under Section 5(2) of R.A. No. 6728 and the relevant CBA provision. ASI refused, contending it had already complied by granting a gross salary increase of P1,545,777.15, which included the mandated provisional wage increases under the Wage Orders and other CBA adjustments. ASI argued that the tuition fee increase was authorized precisely to help schools mitigate the effects of the wage orders, and thus, the wage increases could be credited against the 70% share. The Labor Arbiter ruled in favor of AFEA, ordering payment of 70% of the tuition fee increase. On appeal, the NLRC modified the decision, holding that the provisional wage increase could be credited against the employees’ 70% share from both the prescribed tuition fee increase and the ETFA, thereby reducing the differential due to AFEA.

ISSUE

Whether the provisional wage increase mandated by Wage Order No. NCR-02 may be credited against the seventy percent (70%) share of the teaching and non-teaching personnel in the tuition fee increase collected by the school under DECS Order No. 30, s. 1991, in relation to R.A. No. 6728.

RULING

The Supreme Court DENIED the petition and AFFIRMED the NLRC decision with modifications. The Court held that the provisional wage increase could properly be credited against the employees’ 70% share of the tuition fee increase. The rationale of DECS Order No. 30, issued in consideration of the regional wage orders, was to grant schools the authority to increase tuition fees to help them bear the additional financial burden imposed by the wage orders. Therefore, crediting the wage increase against the 70% share was consistent with this purpose. The Court clarified that the total amount due to the employees was the sum of 70% of the prescribed tuition fee increase (P534,115.32) and the entire ETFA collection (P763,021.88), or P1,297,137.20. From this, the amount of P1,191,564.00 (representing the provisional wage increase already given) was deducted, leaving a balance of P105,573.20 as salary differentials. Attorney’s fees were set at 10% of this amount, or P10,557.32.