Supreme Court upholds NEA termination pay plan

MANILA, Philippines - The Supreme Court has upheld the National Electrification Administration (NEA) Termination Pay Plan issued in 2003 by its board of administrators.

The Supreme Court said the board was then chaired by the late former Armed Forces of the Philippines (AFP) Chief of Staff Angelo T. Reyes.

The Supreme Court, in a 14-page decision penned by Justice Presbitero J. Velasco, Jr., denied the petition of the United Claimants Association of NEA (UNICAN), et al. and upheld Resolution 46 and 59, dated July 10, 2003 and Sept. 3, 2003, respectively, issued by the NEA board of directors terminating all NEA employees.

The High Court said the petitioners are former NEA employees who were terminated from their employment with the implementation of the assailed resolutions following NEA’s reorganization.

The Supreme Court, in its decision said the NEA Board has the power to pass Resolution 46 and 59.

Citing Rule 33, Sec. 3 (b)(ii) of the implementing rules and regulations of the Electric Power Industry Reform Act of 2001 (EPIRA), the High Court held that all NEA employees shall be considered legally terminated with the implementation of a reorganization program pursuant to a law enacted by Congress or pursuant to Sec. 5 (a)(5) of PD 269 (NEA Charter) through which the reorganization was carried out.

The Supreme Court said that petitioners failed to prove that the NEA Board acted in bad faith absent clear and convincing proof.

“Evidently, the fact that the NEA Board resorted to terminating all the incumbent employees of National Power Corp. and, later on, rehiring some of them, cannot, on that ground alone, vitiate the bona fides of the reorganization,” the Supreme Court said.