July 9, 2003

DAR OPINION NO. 10-03

MEMORANDUM

FOR             :     Undersecretary Teddie Elson E. Rivera
                          Finance, Management and Administration Office

SUBJECT    :     Legal Opinion/Official Stand of DAR Regarding "Payroll Deduction, etc."

This refers to your memorandum dated 09 April 2003 relating to the above-mentioned subject.

You stated that problems were encountered by the Regional and Provincial Offices on the payroll deduction of dues and other assessment fees or obligations of DAREA members which was not being effected last year that allegedly resulted in misunderstanding, chaos and subsequently non-availment of intended benefits of members from the association; that in this connection, you now seek for the Official Stand of the Department on matters involving "Payroll deductions, Etc." of DAREA members taking into consideration the union rights and privileges under Art. III of the Collective Negotiation Agreement (CNA) regarding check-off signed by then DAR Secretary Hernani A. Braganza and DAREA President Violeta M. Bonilla, representing the rank and file.   ScTIAH

Pertinent to your request are the following provisions of the Constitution and By-Laws of the Department of Agrarian Reform Employees Association (DAREA), adopted and ratified on 20 June 2001, and the First Collective Negotiation Agreement (CNA) between the DAR and DAREA signed on 16 August 2001:   DaEATc

I.          ARTICLE II, SECTION 1, a-c (Constitution and By-Laws)

"Section 1.    The Department of Agrarian Reform Employees Association (DAREA) shall be a civic, non-partisan, non-sectarian and non-stock Association and it shall be guided by the following principles:

a.         The principle of unity as a guiding light in order to sustain economic, social and moral development of all its members;

b.         The principle of camaraderie, friendship and mutual assistance as the cornerstone of a harmonious and beneficial relationship among its members; and

c.         The principle of mutual cooperation in all its endeavors and/or undertakings of common interest." (emphasis supplied)

II.        ARTICLE III, SECTION 1.3, 5-8

 

"Section 1.    The Employees Association shall have the following objectives, to wit:

xxx                      xxx                      xxx

 

 

  3.         To foster mutual understanding, fraternal relationship, solidarity and cooperation among member employees;

 

xxx                      xxx                      xxx

  5.         To create the most cordial and conducive atmosphere for cooperative relationship or interaction between the Association and the Management;

  6.         To serve as a medium or conduit for the presentation and resolution of problems involving personnel and Management;

7.         To lead and/or participate in local or national civic activities by itself or in cooperation with the Department; and

  8.      To continuously concern itself in the formulation and implementation of such measures and/or programs that shall redound to the benefit and welfare of all its members." (emphasis supplied)

 III.       ARTICLE V, SECTION 4.1-4

"Section 4.    Duties of Members. — A member shall have the following duties:

1.         To obey and comply with the Constitution and By-Laws of the Association and other rules and regulations as may be promulgated by the Executive Officers;

2.         To give full support and cooperation in all the plans and programs; undertakings and activities of the Association;

3.         To protect and defend the gains of the organization and to safeguard the general interest of its Members; and

4.         To pay membership fee, monthly dues and other fees that the Association may impose." (emphasis supplied)

IV.       ARTICLE VIII, SECTION 2 AND 3 (a-c)

"Section 2.    Monthly Dues. — A monthly dues shall serve as the National Welfare Fund and shall be remitted to the National DAREA Head Office.

Section 3.     Each duly admitted member shall pay a monthly due of twenty Pesos (P20.00) which shall be allocated for the following purposes:

a.         The Ten Pesos (P10.00) shall serve as mortuary fund in case of death of a member or to any of his/her immediate member of the family;   AcHSEa

b.         The Seven Pesos (P7.00) shall serve as a calamity fund in case of fire, floods, typhoon, earthquake etc., which totally or partially destroyed the residential place of an employee-member.

            A cash donation plus a calamity loan fund shall be granted to members who are greatly affected or whose house are either totally or partially destroyed;

c.         The remaining Three Pesos (P3.00) shall form part of the National Revolving Fund."

 V.         THE 5th WHEREAS CLAUSE OF THE COLLECTIVE NEGOTIATION AGREEMENT (CNA)

"WHEREAS, the DAR and the ASSOCIATION have mutually agreed to establish a working environment which will promote harmonious relationship between them and enhance the employees' welfare and productivity and contribution to the attainment of an improved, effective and efficient delivery of public service." (emphasis supplied)

VI.       ARTICLE III, SECTION 7 OF THE CNA

"Section 7.    Check-Off. — The DAR recognizes the right of the ASSOCIATION to check-off or to deduct from the payroll of ASSOCIATION dues, assessments and other fees from salaries of the members of the ASSOCIATION upon receipt of written authorization from said members and to remit the same to the ASSOCIATION Treasurer within a reasonable number of working days after the deductions have been made, provided that personal debts and obligations shall be excluded from this check-off authority." (emphasis supplied)

VII.      ARTICLE VI, SECTION 1.1 OF THE CNA

"Section 1.    The DAR shall set aside or allocate a budget intended for the benefits as herein adopted subject to availability of funds. For the purpose of ensuring the grant of such benefits, the DAR and the ASSOCIATION shall also establish a system for prioritizing the utilization of savings and available funds for purposes of granting the following benefits:

1.         Medical Health Maintenance Program. The DAR shall grant annual allowance amounting to Four Thousand Pesos (P4,000.00) to all employees. Said benefits shall not be given in cash but will serve as membership contribution to the self-managed health care program operated and managed by the ASSOCIATION's Foundation." (emphasis supplied)

IN VIEW of the aforequoted provisions which are all geared for the promotion of unity, cooperation, mutual support, harmonious and beneficial relations by, between and among the DAR and DAREA managements and DAREA member employees of which this present administration subscribes to, the Regional and Provincial Offices and all others concerned should, therefore, take heed and be reminded of said provisions to protect the gains and carry on the visions/objectives of the Association in partnership with the DAR Administration. Towards this end, all positive efforts should be undertaken by all concerned to encourage full support and cooperation in all the plans and programs of the Association to effect an orderly and continuous payroll deductions of all DAREA members' dues and obligations pursuant to the aforequoted provisions of the First Collective Negotiation Agreement (CNA) and DAREA National Constitution and By-Laws.

Please be informed and guided accordingly.

Thank you.

 

(SGD.) RICARDO S. ARLANZA
Undersecretary for Policy, Planning and Legal Affairs Office