By CESAR JOLITO III
The Court of Appeals (CA) 13th Division has issued a landmark decision in the case involving 59 former employees of the Bacolod City Water District (Baciwa), partially granting the water district’s petition for review and clarifying key issues on employment separation and benefits.
In a decision, the CA sustained the validity of Baciwa’s reorganization pursuant to its joint venture agreement (JVA) with PrimeWater Infrastructure Corp.
The ruling, penned by Associate Justice Roberto Quiroz, with concurrences from Associate Justices Rafael Antonio Santos and Emilio Rodolfo Legaspi III, reverses part of the Civil Service Commission’s (CSC) earlier finding that the employees were illegally separated.
The case stemmed from Baciwa’s petition challenging CSC Decision No. 240055 dated April 24, 2024, and resolution dated October 21, 2024, which had affirmed with modification a regional office ruling upholding the reorganization but declaring the 59 employees — including Rafael Abangan, Jr. and Ian Abuana — illegally dismissed.
The court found that Baciwa had exercised good faith in separating the employees, proving by substantial evidence that their departure was due to their refusal to participate in the reorganization process.
“By electing nonparticipation and neglecting to meet Baciwa officials anent their grievances, they themselves foreclosed any prospect of proper assessment,” the CA decision stated.
The court emphasized that the separation was for a just cause — bona fide reorganization — and followed due process, as Baciwa had repeatedly attempted to secure their participation.
Entitled to benefits
While CA declared the separation legal, it ruled that the employees are still entitled to benefits.
They are eligible for separation pay equivalent to one month’s salary for every year of service, and if qualified, retirement benefits under Republic Act No. 6656.
Those not entitled to these benefits will receive a separation gratuity of one month’s salary per year of service.
The court also dismissed the argument that the petition should have been filed in the Visayas.
It noted that while Baciwa operates in the Visayas, the CSC’s assailed decision and resolution were promulgated in Quezon City, giving the Manila division jurisdiction.
In its dispositive portion, CA partly granted Baciwa’s petition, affirming the CSC’s rulings with modification: the reorganization’s validity is sustained, the employees are declared legally separated, and Baciwa is ordered to pay their due separation and/or retirement benefits.
Baciwa, a government-owned and controlled corporation established under Presidential Decree No. 198, has been the major water provider in Bacolod City since its inception.
The JVA with PrimeWater was part of its efforts to restructure operations, a move that led to the employment dispute.
This decision balances the interests of both parties, upholding the validity of organizational changes while ensuring that affected employees receive the benefits they are legally entitled to.
It also sets a precedent for jurisdiction and due process in cases involving government-owned corporations and their employees./CJ, WDJ