TSPI, INCORPORATION VS.

TSPIC EMPLOYEES UNION

G.R No. 163419
February 13, 2008
FACTS:
TSPI Corporation entered into a Collective Bargaining Agreement with the
corporation Union for the increase of salary for the latters members for the year
2000 to 2002 starting from January 2000. thus, the increased in salary was
materialized on January 1, 2000. However, on October 6, 2000, the Regional
Tripartite Wage and production Board raised daily minimum wage from P 223.50 to P
250.00 starting November 1, 2000. Conformably, the wages of the 17 probationary
employees were increased to P250.00 and became regular employees therefore
receiving another 10% increase in salary. In January 2001, TSPIC implemented the
new wage rates as mandated by the CBA. As a result, the nine employees who were
senior to the 17 recently regularized employees, received less wages. On January
19, 2001, TSPICs HRD notified the 24 employees who are private respondents, that
due to an error in the automated payroll system, they were overpaid and the
overpayment would be deducted from their salaries starting February 2001. The
Union on the other hand, asserted that there was no error and the deduction of the
alleged overpayment constituted diminution of pay.
ISSUE: Whether the alleged overpayment constitutes diminution of pay as alleged
by the Union.
RULING:
Yes, because it is considered that Collective Bargaining Agreement entered into by
unions and their employers are binding upon the parties and be acted in strict
compliance therewith. Thus, the CBA in this case is the law between the employers
and their employees. Therefore, there was no overpayment when there was an
increase of salary for the members of the union simultaneous with the increasing of
minimum wage for workers in the National Capital Region. The CBA should be
followed thus, the senior employees who were first promoted as regular employees
shall be entitled for the increase in their salaries and the same with lower rank
workers