Appeals court nullifies RTC ruling hiking salaries of airport workers

MANILA, Philippines - The Court of Appeals (CA) has nullified a 2006 ruling of a Pasay City regional trial court ordering the Manila International Airport Authority to integrate the cost of living allowance (COLA) and amelioration allowance into the basic salaries of the more than 1,500 airport employees in the country based on a circular of the Department of Budget and Management (DBM) in 1999.

In a nutshell, the fifth division of the appellate court said in its 10-page decision that the RTC erred in granting the petition of Samahang Manggagawa sa Paliparan ng Pilipinas led by engineer Ceferino Lopez due to its failure to consider the position of the DBM.

It ruled that there has been violation of DBM’s “right to due process.”

The CA explained that the Pasay RTC Branch 119 should have dismissed outright the petition filed by the airport workers for its failure to implead DBM which is an “indispensable party.”

“As a real party in interest, DBM stands to be injured by the judgment in the case below. It is well-settled that if a suit is not brought in the name of or against the real party in interest, it is dismissible on the ground that the complaint states no cause of action. Concomitantly, the case below should have been dismissed outright for failure to implead DBM as party defendant,” stated the ruling penned by Associate Justice Amy Lazaro-Javier.

The appellate court explained that the DBM has the right to be heard on the issue since it is the government agency primarily tasked to enforce RA 6758 (Salary Standardization Law) and its implementing rules.

It noted that it is also DBM which is in charge of all disbursements of public funds including the airport workers’ claim for COLA and amelioration allowance.

The appeals court noted that the respondents named in the complaint filed by MIAA employees are considered “nominal parties” only because they are only implementing Republic Act 6758 in accordance with the circular issued by the DBM.

“So, no judgment which in effect shall invalidate or set aside DBM Circular No. 10... may be legally rendered without according DBM its day in court. This can only be achieved by impleading DBM as real party defendant in the case which sought to compel disbursement of public funds to cover appellees’ money claim...,” the decision stated.

Associate Justices Rebecca de Guia-Salvador and Sesinando Villon concurred in the ruling.

Court records show that MIAA employees filed a suit before the Pasay RTC seeking to compel MIAA to implement Sections 4.1 and 4.2 of DBM Corporate Compensation Circular No. 10 series of 1999, by adding the COLA and amelioration allowance into their basic salaries from July 16, 1999 up to the present.

It also asked the trial court to direct the MIAA board of directors to issue the necessary board resolution appropriating funds for it.

The group named then MIAA general manager Alfonso Cusi and its board of directors as respondents.