Christmas cash gratuity not included in XUNTELU CBA
Xavier University-Ateneo de Cagayan has clarified it has bent over backwards to accommodate the needs of its employees even during dire times and would continue to do so despite a notice of strike from one its employees unions.
The Xavier University Non-teaching Employees Union (XUNTELU) filed a notice of strike last 20 October 2015 over the reduction of the Christmas Cash Gratuity that has been reduced this year to P1, 000 due to the unprecedented financial losses experienced by XU in 2015. The union unanimously voted to proceed with its strike on 22 November 2016 and started holding nightly rallies in front of the university starting Tuesday, 15 November 2016.
XUNTELU is a “closed shop union” with a membership of 183, and composes 16.4% of the 1,118 regular employees of XU in its three campuses Downtown, Macasandig and Pueblo de Oro. It is affiliated with the Associated Labor Union-Trade Union Congress of the Philippines (ALU-TUCP). The union has signed a total of five collective bargaining agreements (CBAs) with XU since its inception, the latest one inked just last 19 May 2016.
The university has one other union Xavier University Tertiary Level Faculty Association (XUTELFA) with 151 members from the college faculty. The other 784 regular employees of the university are not unionized.
XU President Fr Roberto C Yap, S.J.
In an internal memorandum P1516-019 dated 16 December 2015 addressed to all Regular Full-time Faculty and Staff, XU President Roberto C. Yap, S.J. clarified that the granting of cash gifts, as authorized by the President on special occasions (p.19, 3rd edition, 2007 of the XU Staff Handbook) is solely a management prerogative and a gratuity, which cannot be construed as an obligation nor can it ripen into a benefit.
However, the memo stressed that “the ability of the University to give a cash gift is dependent on the net income (excess of revenue over expenses) from school operations of the previous school year as reported in the audited financial statements. The President determines what portion of the net income can be given as cash gift to all full-time employees, taking into consideration all the financial needs of the university.
Figures provided by XU show that all regular employees have been receiving a cash gift every Christmas since 2006 ranging from PhP 7,500-10,800. Even when it experienced a net loss in SY2009-2010, employees still received a PhP 7, 500.00 cash gift.
The cash gift only declined in 2015 when XU incurred an unprecedented loss in SY2015-2016 of PhP 160-million.
“We still gave a cash gift of PhP 4,000 for that year despite losses thinking we could hit our Grade 11 target, which we unfortunately missed by about 600 students,” Fr. Yap explained.
He said that XU earns about P60,000 per year for each high school student thus the enrollment shortfall cost them another – PhP36M in foregone revenues.
In fact, to come up with the P 1,000 cash gift for this year in the face of its ballooning deficit, XU had to repeatedly ask department heads to cut non-essentials from their budgets such as Christmas parties and representation expenses.
In a press statement released 15 November 2015, XU admitted “the severe decline in the financial health of the University is unprecedented in our 83-year history and, because of the K+12 transition, is expected to get worse before it can get better.”
St. Francis Xavier
Audited financial statements showed that the net loss from school operations for school year 2014-2015 was -P160 million and -P90M in SY2015-2016.
“Operational losses of these magnitudes are unprecedented, never seen before by XU. In the last 20 years, the previous loss was in SY2008-2009 and it was only -P8M. The budget approved by the Board of Trustees for SY2016-2017 is projected to cause as much as a net loss of -P199M.”
XU attributed the losses to decreasing enrollment which has been steadily declining from a high of 16,313 in SY2010-2011 to only 13,729 in SY2016-2017. Worst hit were enrollments for nursing which declined from a peak of 1,966 in SY2007-08 to 300 in SY2016-17 and for agriculture from a peak of 930 in SY2012-13 to 569 in SY2016-17.
“This decreasing trend is exacerbated by the loss of tertiary enrollment during the K-12 transition years (2016-2020) as Senior High School is being established and there are no students for two college year levels.”
In another memo #1516-047 on its Financial Challenges, Fr. Yap said XU’s financial situation is expected to worsen further before it gets better during the K-12 transition years (SY16-17 to SY19-20) when the university is expecting lower tertiary enrollment, and losses are projected at PhP-116M, -PhP102M, -PhP75M and – PhP 64M for each of the four school years, respectively.
“We are not expecting any college enrollment for SY2016-2017 due to the K-12 so that means 2,000 freshmen college students paying PhP 40,000 per semester or PhP80, 000 per year,” Fr. Yap noted. “For SY2017-2016 we expect a further shortfall of 4,000 freshmen and sophomore students so for just these two school years that’s already an energy shortfall for us of approximately PhP 480M.”
“We all have to brace before this gets better,” Fr Yap urged. “This is really a special time, we all have to come together in cost reduction, and help generate enrollment. Antos lang ta while this is going on, when this normalizes we’ll be okay. But this will normalize in 2021 yet when everybody comes back and we will all complete college enrollment and senior high on top of that. Once everything normalizes, we will be fine because we have two extra levels.
In this context, Fr. Yap said XU was surprised upon receiving the XUNTELU notice to strike since the Christmas cash gratuity is not included in the CBA, hence should not be an issue that can be sought redress for by a strike.
Furthermore, he said the CBA has a no-strike, no lockout clause and stipulates a grievance machinery with subsequent arbitration should that fail, before a notice of strike is filed, all of which XUTELU failed to adhere to.
However, in the event XUNTELU proceeds with its strike, Fr. Yap said XU can file a notice to arbitrate with the Dept. of Labor and Employment (DOLE) with the National Conciliation and Mediation Board appointing an arbitrator, or it can ask assumption of jurisdiction by the Labor Secretary.
Despite what has happened, Fr. Yap urged all employees to consider how Xavier University has repeatedly demonstrated it is doing its utmost to take care of its employees.
“Last year, we adjusted the job rankings by adjusting the salary scale and gave a one-time average increase of P2, 556 per person per month which comes to PhP 33,226 which cost us P6.5-million. We have been very generous in very difficult times!” he said.
Fr Roberto C. Yap, S.J.
“In addition, we gave all our employees tuition subsidies. The first three children of our employees get these from kindergarten to college, and if they have a fourth, he/she still gets a partial tuition subsidy. In the event one graduates, as long as there are three children enrolled, they are still entitled to the full subsidy.”
In its press statement, XU vowed to remain committed to providing our students a quality Atenean education that is formative as well as academic despite all the unfortunate circumstances.
“The University is also committed to honor the intentions of generous benefactors who, throughout the years, have entrusted her with their resources for the pursuit of shared goals. In the midst of these difficulties, we remain steadfast in steering and sustaining the University along its course until 2033 and beyond.”
“We continue to value the support of the XU community members and we call for further understanding, cooperation, and solidarity as we journey to restore the financial health of the University. We are grateful for the blessings that continue to come our way and pray that we fan the flames of gratitude even as we are buffeted by winds of uncertainty.”
– I N D J N C –