REPUBLIC OF THE PHILIPPINES, REPRESENTED BY THE OSG AS THE PEOPLE'S

TRIBUNE, AND THE NATIONAL POWER BOARD, PETITIONERS,

VS.
HON. LUISITO G. CORTEZ, PRESIDING JUDGE, RTC, BRANCH 84, Q.C.,
NAPOCOR EMPLOYEES CONSOLIDATED UNION (NECU), AND NAPOCOR
EMPLOYEES AND WORKERS UNION (NEWU), RESPONDENTS.
[G.R. No. 187257, August 08, 2017]

Facts:
1. On August 21, 1989, Congress enacted Republic Act No. 6758, or the Compensation
and Position Classification Act of 1989, to standardize compensation and benefits of
public employees, effective July 1, 1989.
2. The law applied to all positions, whether appointive or elective, including those in
government-owned and controlled corporations.
3. On October 2, 1989, the Department of Budget and Management issued Corporate
Compensation Circular No. 10 (DBM-CCC No. 10) which provided for the integration
of COLA, AA, and other allowances into the standardized salaries of public employees
effective November 1, 1989.
4. On May 28, 2007, the Committee issued a Certification that the COLA and AA were
not integrated into the salaries of NAPOCOR employees hired from July 1, 1989 to
March 16, 1999.
5. NAPOCOR "thereafter referred the matter to the Department of Budget and
Management.
6. NECU and NEWU believed that they were among the government employees whose
COLA and AA were not factually integrated into their basic salary upon the
implementation of Republic Act No. 6758.
7. Regional Trial Court rendered its Decision in favor of NECU and NEWU.

Issue:
Whether the COLA and AA were already deemed factually integrated into the standardized
salaries pursuant to Section 12 of Republic Act No. 6758.

Ruling:
1. YES. COLA and AA are already deemed integrated into the standardized salaries of
the NAPOCOR employees from July 1, 1989 to December 31, 1993.
2. Thus, in order to conclude that the NAPOCOR employees were not able to receive
their COLA and AA upon the implementation of the New Compensation Plan, it must
first be determined whether its implementation resulted in the diminution of their
salaries and benefits.
3. Evidence on record, however, shows that the affected employees suffered no
diminution in their compensation upon the implementation of the New Compensation
Plan on January 1, 1994.