CBA Administration Panel releases an open letter to the Ateneo community

January 5, 2018
 
To our Ateneo Community,
 
Greetings of Peace and Understanding to all.
 
You must all know by now that on December 21, 2017, the Ateneo de Manila Employees and Workers Union (AEWU) filed a Notice of Strike. The Union freely distributed an open letter on January 3, 2018 on campus, and mobilized some union members during their lunch break to participate in concerted activities outside the perimeter of the University on January 3 and 4, as well.
 
This letter is addressed to members of the Ateneo Community – students and parents, employees and alumni – who are all stakeholders in this matter. We remain committed to continue negotiations in good faith and are happy that the National Conciliation and Mediation Board (NCMB) of the Department of Labor and Employment (DOLE) has again called both parties to a conciliation conference before Conciliator-Mediator Hacelfeo T. Cuares today, January 5, 2018 at 10:00 a.m.
 
However, we wish to clarify some points contained in the Union’s letter to the Ateneo Community distributed on January 3, 2018.
 
1. THE MEMBERSHIP OF THE UNION: The AEWU consists of 246 members as of June 1, 2017. They include maintenance service, food service and technical service (laboratory and audio-visual technicians) staff plus those individuals whose memberships were approved in their personal capacity (29 office staff).
 
With the actual total number of non-academic staff at 714 and the actual total number of employees at 3,109 as of October 2017, union members comprise 34.45% of non-academic staff, and equivalently 7.91% of the entire employee population.
 
2. AMOUNT AVAILABLE FOR WAGES AND BENEFITS: As per DepEd D.O. 15, s. 1992, CHED M.O. 14, s. 2005, and CHED M.O. 08, s. 2012, 70% of the total of the Tuition Incremental Proceeds (TIP) FROM ANNUAL TUITION FEE INCREASE SHOULD BE SPENT FOR THE WAGES AND BENEFITS OF ALL EMPLOYEES OF THE SCHOOL. This amount is projected at about PhP87+M for FY 2017-2018 and PhP94+M for FY 2018-2019.
 
As defined by DepEd D.O. 15, s. 1992, the basis for allocating this amount shall be the salary ratio (i.e., the resulting percentage coming from the salaries of AEWU members over the total salaries of all employees of the University).
 
The Union’s letter points to the University’s Net Income (General Fund) for funding wage increases. However, the balance of the General Fund (per Statement of Assets Liabilities and Fund Balances) consists mainly of “Restricted for Property and Equipment”. In fact, for fiscal year-end 2017, the “Not restricted” or available portion of the General Fund is a negative PhP26M (as shown in Note 12 of the 2016-17 Audited Financial Statement, a copy of which was provided to the Union panel).
 
3. DEMANDS OF THE UNION: The amount demanded by the Union is about PhP40,684,586.00 for FY 2017-2018 and another PhP45,563,395.00 for FY 2018-2019. For the two-year period, this would comprise around 47% of what is earmarked for the whole University. For the remaining two-year period of the five-year CBA, AEWU demands PhP85+M for 246 AEWU members, leaving PhP96+M for the rest of the employees of the University --- for 2,863 employees.
 
4. ADMINISTRATION’S COUNTERPROPOSAL: The University increased its initial offer of 4.72% of TIP to 5.91% of TIP (PhP 5,178,067.00) for Year 4 and 5.39% of TIP (PhP5, 119,617.00) for Year 5 in the last conciliation conference held on December 21, 2017.
 
5. COMPLIANCE WITH NEW MINIMUM WAGE INCREASE: As of this time, only 14 AEWU members receive minimum wage as they are new employees and their salaries have been adjusted accordingly in compliance with the new minimum wage.  
 
Furthermore, the average monthly salary of AEWU members is over PhP27,000.00.  Some 58% of AEWU members have salaries between PhP20,001.00 and PhP40,000.00, and 4 AEWU members (with 30 years of service or more) earn more than PhP88,000.00/month.
 
6. DATE OF CBA EFFECTIVITY: What is in force and in effect until a new CBA is agreed upon is stated in the Agreement signed on December 19, 2014. The Agreement states that effectivity is from April 1, 2014 up to May 31, 2019 and that if the CBA is not settled within six months from the date of expiry (NOTE: This date falls on May 31, 2017, for economic and social provisions), the effectivity date shall be subject to negotiation and arrangement by both parties.
 
Also, as agreed upon in the Final Approved Ground Rules signed by both parties on July 25, 2017, the “Date of effectivity will be discussed during the negotiation proper”.
 
We hope and pray that this clarifies matters raised in AEWU’s open letter. Again, the University reiterates that it has been negotiating in good faith.
 
 
(SGD.) Fr. Jose Mario C. Francisco, S.J. – Chairperson, CBA Administration Panel