Napocor, Power Board ordered to pay retirees P300M

MANILA, Philippines – The National Power Corp. and the National Power Board have been ordered by a Quezon City court to pay a total of P300 million to a group of retirees who alleged they got less than what they were supposed to when they opted to retire early under the company’s restructuring program.

In a 26-page decision dated August 16, Judge Ralph Lee of the regional trial court’s Branch 83 told the Napocor and the NPB to pay the 573 retirees P301,536,001 in claims and P1 million in exemplary damages.

The case stemmed from a petition for mandamus with a prayer for accounting and motion for evidentiary hearing filed by the petitioners, who were retirees of the NPC from 1998 to May 2001.

In the 2007 petition, the retirees claimed that the gratuity pay they received from the Government Service Insurance System was deducted from their gross financial assistance by the NPC.

In his decision, Lee said the GSIS gratuity should not have been deducted from the financial assistance.

The petitioners said they were told that the financial assistance that would be given to them would be on top of the GSIS gratuity pay and other benefits due them from the corporation.

The retirees explained that because of the deduction of gratuity pay, two sets of retirees were formed – the “favored” and the non-favored” – with the latter composed of retirees with longer years of service.

Under the supposed set-up, those with less than 15 years of service and not entitled to gratuity pay under the GSIS Law got full financial assistance of one and a half months salary for every year of service.

But those who served for 15 years and entitled to gratuity pay received only 23 to 43 percent of the “1.5 month financial assistance” because the gratuity they received was deducted from their total financial assistance.

“The gratuity benefits received by petitioners from the GSIS are entirely separate and distinct from the separation benefits under the SEDP [Special Early Disengagement Plan],” the court said.

Lee noted that the gratuity pay from the GSIS is the employees’ money while the financial help under the SEDP is according to Napocor’s restructuring and privatization program to serve as incentive to those who would be affected.

“It appears that respondents deducted an aggregate amount of at least P301,536,001.15, excluding the unknown claims of other petitioners, which can easily be ascertained upon verification with Napocor, plus amount of interests. Thus, respondents are hereby ordered to pay said amount,” the court said.

Lee also directed the two firms to pay exemplary damages to the petitioners regarding the two sets of retirees created by the set-up.

“Respondents’ act of making petitioners believe that they will get a generous financial assistance as a consideration for early retirement only to later on renege on that promise and adopting a policy that effectively ‘penalized’ employees for their long and loyal service clearly indicates bad faith,” the judge said. –Julie M. Aurelio, Philippine Daily Inquirer