Gov't workers question DBM bonus cap before SC

MANILA, Philippines - Unions of government workers sought relief from the Supreme Court (SC) yesterday against an order of the Department of Budget and Management (DBM) placing a limit to their bonus from Collective Negotiation Agreements (CNA).

In a 32-page petition, the groups represented by the Confederation for Unity, Recognition and Advancement of Government Employees (Courage) asked the high tribunal to issue a temporary restraining order enjoining implementation of DBM Circular No. 2011-5 (Supplemental Guidelines on the grant of Collective Negotiation Agreement Incentive for Fiscal Year 2011).

Petitioners alleged the circular issued last Dec. 26 violated the Constitution since it is tantamount to enactment of a law, which is a power exclusively vested on the legislative branch.

“DBM Budget Circular No. 2011-5 transgressed not only Congress’ power to enact laws but also government employees’ right to self organization. Employees are now facing refund orders on the money they worked hard for and they already spent last December,” Courage national president Ferdinand Gaite said.

Courage alleged the DBM circular effectively amended previous presidential issuances pursuant to Presidential Decree (PD) No. 1597 authorizing the President to grant fringe benefits to government employees.

Under Section 5 of PD 1597, fringe benefits may be provided to government employees by their respective offices subject to the approval of the President, petitioners explained.

“CNA incentive bonus is traditionally one of the fringe benefits provided to government employees. Thus, the Secretary of the Department of Budget and Management has no power to set limits or set conditions in the grant of the same. Respondent (DBM Secretary Florencio) Abad has therefore committed grave abuse of discretion amounting to lack or excess of jurisdiction when he issued Budget Circular No. 2011-5,” they said.

Petitioners also urged the SC to nullify a memorandum issued by the Department of Social Welfare and Development (DSWD) last Jan. 12 addressed to individual employees directing the refund of their 2011 CNA incentive in excess of the amount the DBM Budget Circular specified.

They named both Abad and DSWD Secretary Corazon Soliman as respondents who allegedly committed abuse of discretion in issuing the orders.

Courage was joined by officers and members of Social Welfare Employees Association of the Philippines (SWEAP-DSWD), National Federation of Employees Associations in the Department of Agriculture (Nafeda) and Department of Agrarian Reform Employees Association (DAREA) in seeking relief from the SC.

Courage picketed outside the SC to protest the DBM and DSWD orders while the petition was being filed.

They believed their case is “another litmus test for the executive branch, including President Aquino, if they will engage the High Court anew should the justices favor the petition of employees.”