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| Aquino family’s agri firm loses appeal |
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| Thursday, 29 July 2010 19:33 |
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THE Supreme Court declared that President Benigno Aquino’s family-owned Central Azucarera de Tarlac (CAT) acted in bad faith when it reduced the 13th month pay of its employees who staged a protest action six years ago. Seven workers died during the demonstration. In a 10-page decision, the SC turned down the petition filed by CAT seeking the reversal of the Court of Appeals resolution ordering it to revert to its long-established formula in computing the employees’ 13th month pay. The SC did not give credence to CAT’s claim that there was an error in the computation of the 13th month pay of its employees which was discovered only by the management when the workers’ union — Central Azucarera de Tarlac Labor Union – raised a question concerning the computation of their 13th month pay for 2006. The SC noted that the CA correctly held that CAT’s practice in giving the 13th month pay based on the employee’s gross annual earnings which included the basic month salary, premium pay for work on rest days and special holidays, night shift differential pay and holiday pay continued for almost 30 years as a company policy which cannot be unilaterally withdrawn. “The voluntariness of the grant of the benefit was manifested by the number of years the employer had paid the benefit to its employee. Petitioner only changed the formula in the computation of the 13th month pay after almost 30 years and only after the dispute between the management and employees erupted,” the SC noted. “This act of petitioner in changing the formula at this time cannot be sanctioned, as it indicates a badge of bad faith,” the Court added. President Aquino owns 301,792 shares or one percent of the company. |
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