Customs can charge airlines for overtime, Court rules

THE Supreme Court has cleared Customs to collect higher fees from the airline companies to pay its airport staff overtime and allowances.

The Court’s Second Division declared as constitutional Customs’ order requiring the airlines to pay for the overtime, travel, board and lodging expenses and meal allowances of Customs personnel at the airport.

A revised order issued in 2005 increased the rates on those charges by more than 100 percent, triggering a challenge from the airlines.

The high court’s decision set aside a Court of Appeals ruling finding for the airlines. The Court disagreed with its finding that the bureau order violated the Constitution, which says an appointive public officer or employee “is prohibited from receiving additional, double or indirect compensation, unless specifically authorized by law.”

The Court said Customs employees working overtime were not receiving double compensation.

“The overtime pay, travel and meal allowances are payment for additional work rendered after regular office hours and do not constitute double compensation prohibited under … the 1987 Constitution,” the Court said.

Associate Justice Antonio Carpio, who wrote the decision, said the bureau had created a committee to re-evaluate the increase in Customs’ charges and held several meetings with the airlines’ representatives over a period of two years. The airlines could not claim they were denied due process, he said.

The Court noted that the Customs order was published in the Manila Standard, a newspaper of general circulation, on Feb. 18, 2005, and was supposed to take effect on March 5, 2005 or 15 days after its publication. Still, the bureau deferred the increase until March 16, 2005.

Associate Justices Arturo Brion, Mariano del Castillo, Jose Portugal Perez, and Maria Lourdes Sereno agreed with the decision.

The decision affects the members of the Board of Airlines including Asiana Airlines, Cathay Pacific, Cebu Pacific, China Airlines, China Southern Airlines, Continental Micronesia Airlines, Emirates, Etihad Airways, Eva Air Airways, Federal Express Corp., Gulf Air, Japan Airlines, Air France-KLM Royal Dutch Airlines, Korean Air, Kuwait Airways Corp., Lufthansa German Airlines, Malaysia Airlines, Northwest Airlines, Philippine Airlines, Qantas, Qatar Airlines, Royal Brunei Airlines, Singapore Airlines, Swiss International Airlines, Saudi Arabian Airlines, and Thai International Airways. –Rey E. Requejo, Manila Standard Today