DISPOSITIVE:

ACCORDINGLY, the petition for review is GRANTED. The Decision dated July 12, 2018 and Resolution dated July 15, 2019 of the Court of Appeals in CA-G.R. SP No. 139311 a re REVERSED and SET ASIDE. The complaint in NLRC NCR Case No. 07-10180-13 is DISMISSED for lack of merit.

SO ORDERED.

SUBJECTS/DOCTRINES/DIGEST:

WHAT HAPPENED IN THIS CASE?

PNCC STOPPED GIVING MID-YEAR BONUS TO ITS EMPLOYEES. THE LABOR ARBITER, NLRC AND C.A. RULED THAT PNCC SHOULD CONTINUE GIVING MID-YEAR BONUS ON THE BASIS OF NON-DIMINUTION OF BENEFITS. SUPREME COURT SAID UNDER R.A. 10149 GOVERNMENT CORPORATIONS, WHETHER CHARTERED OR NON-CHARTERED SHOULD NO LONGER GRANT ANY ADDITIONAL BENEFITS TO ITS EMPLOYEES WITHOUT THE REQUISITE AUTHORITY FROM THE PRESIDENT. GRANTING OF THESE BENEFITS MUST CONFORM TO THE COMPENSATION AND CLASSIFICATION STANDARDS UNDER BY APPLICABLE LAWS.

In that case, employees of GSIS Family Bank demanded for the payment of their Christmas bonus which had been annually given them pursuant to their CBA with GSIS Family Bank, a non-chartered GOCC. GSIS Family Bank was advised by the Governance Commission that in view of the enactment of RA l O 149, GSIS Family Bank should no longer grant any additional benefits to its employees without the requisite authority from the President. Thenceforth, GSIS Family Bank stopped granting Christmas bonus to its employees. The Court ruled that while GOCCs without original chatiers are covered by the Labor Code, employees of GOCCs are bereft of any right to negotiate the economic terms of their employment, i. e. salaries, emoluments, incentives and other benefits, with their employers since these matters are covered by compensation and position standards issued by the Department of Budget and Management and applicable laws. GSJS clarified that RA IO 149 applies to both chartered and non-chartered GOCCs.

More, citing PCSO vs. Pulido-Tan, 46 GSIS reiterated that the power of a government-owned or controlled corporation to fix salaries or _ allowances of its employees is subject to and must conform to the compensation and classification standards laid down by applicable laws. For RA 10149 does not differentiate between chartered and non-chartered government-owned or controlled corporations; hence, the provisions of this law equally apply to all GOCCs.

Consequently, therefore, PNCC did not v iolate the non-diminution rule when it desisted from granting mid-year bonus to its employees starting 2013. True, between 1992 and 2011 , PNCC invariably granted this benefit to its employees and never before revoked this grant in strict adherence to the non-diminution rule under Artic le 100 of the Labor Code. Nonetheless, with the subsequent enactment of RA l 0 l 49 in 2011, PNCC may no longer grant this benefit without first securing the requisite authority from the President. As borne by the records, PNCC failed to obtain this authority in v iew of the position taken by the GCG not to forward the request to the President. GCG cited as reasons the infirmity of the grant and the extraneous application of the non-diminution rule thereto.

All told, the labor arbiter, the NLRC, and the Cou1i of Appeals each gravely e rred when they peremptorily compelled PNCC to release the questioned mid-year bonus to the employees.

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