G.R. No. 141707 - CAYO G. GAMOGAMO, VS. PNOC SHIPPING AND TRANSPORT CORP..D E C I S I O N - Supreme Court E-Library

Ruling

Accordingly, Respondent implemented a Manpower Reduction Program to govern employees whose respective positions have been classified as redundant as a result of Respondents decrease in operations and the downsizing of the organization due to lay-up and sale of its vessels pursuant to its direction towards privatization. [7] Under this program, retrenched employees shall receive a two-month pay for every year of service. Sometime in 1995, petitioner requested to be included in the next retrenchment schedule. However, his request was turned down for the following reasons: [8] As a company dentist he was holding a permanent position; He was already due for mandatory retirement in April 1995 under his retirement plan (first day of the month following his 60 th birthday which was on 7 March 1995). Eventually, petitioner retired after serving the Respondent and LUSTEVECO for 17 years and 4 months upon reaching his 60th birthday, on 1 April 1995. He received a retirement pay of P512,524.15, [9] which is equivalent to one month pay for every year of service and other benefits. On 30 August 1995, Admiral Carlito Y. Cunanan, Repondents president, died of Dengue Fever and was forthwith replaced by Dr. Nemesio E. Prudente who assumed office in December 1995. The new president implemented significant cost-saving measures. In 1996, after petitioners retirement, the cases of Dr. Rogelio T. Buena (company doctor) and Mrs. Luz C. Reyes (telephone operator), who were holding permanent/non-redundant positions but were willing to be retrenched under the program were brought to the attention of the new president who ordered that a study on the cost-effect of the retrenchment of these employees be conducted. After a thorough study, Respondents Board of Directors recommended the approval of the retrenchment. These two employees were retrenched and paid a 2-month separation pay for every year of service under Respondents Manpower Reduction Program. [10] In view of the action taken by Respondent in the retrenchment of Dr. Buena and Mrs. Reyes, petitioner filed a complaint at the National Labor Relations Commission (NLRC) for the full payment of his retirement benefits. Petitioner argued that his service with the DOH should have been included in the computation of his years of service. Hence, with an accumulated service of 32 years he should have been paid a two-month pay for every year of service per the retirement plan and thus should have received at least P1,833,920.00. The Labor Arbiter dismissed petitioners complaint. [11] On appeal, however, the NLRC reversed the decision of the Labor Arbiter. In its decision [12] of 28 November 1997, the NLRC ruled: WHEREFORE, the Decision of the Labor Arbiter dated May 30, 1997 is hereby SET ASIDE and another judgment is hereby rendered to wit: (1) the government service of the complainant with the Department of Health numbering fourteen (14) years is hereby considered creditable service for purposes of computing his retire