THE COMMISSION on Higher Education (CHEd) has found no irregularities in the use of teachers’ share of tuition hike proceeds in UST, but deferred the decision on the legality of its distribution timeframe to the labor department.
Citing a May 9 resolution, UST said on Saturday that CHEd “affirmed” that the distribution of the tuition hike shares should be negotiated under a collective bargaining agreement (CBA) between the management and the faculty union.
“As far as the records of this case are concerned, there is no showing that the 70% tuition fee increase (TFI) allocations are being used by UST for purposes other than the improvement of the academic staff’s salaries, wages, and benefits,” UST said, quoting the CHEd resolution.
The commission had issued a show-cause order to UST on March 7, directing it to explain its compliance with Republic Act 6728 (the Government Assistance to Students and Teachers in Private Education Act), which requires schools to set aside 70% of tuition hikes for teaching and non-teaching personnel’s benefits and salaries.
UST said it submitted a written explanation on March 18, where it reiterated its compliance with the law by setting aside the allocated amount for Academic Years 2021-2024 while awaiting a new CBA.
“These funds are currently held in interest-bearing deposit accounts and will be distributed in full, including any interest earned, upon the conclusion and ratification of the new Faculty CBA with UST Faculty Union,” UST said.
“The University views the CHEd resolution as a fair and reasoned recognition of the legal and factual circumstances surrounding the issue,” it added..
UST also acknowledged that the distribution structure, including a P26 million provision for rank upgrades and senior high school salary restructuring, remains under negotiation with the faculty union.
Unresolved proposals, such as the increase in critical illness benefits, led to a bargaining deadlock, prompting USTFU to file a notice and the University’s subsequent filing of a petition for assumption of jurisdiction with DOLE.
While it cleared UST of any misuse of tuition hike funds, CHEd left it to the DOLE to determine whether the University had violated any law in delaying its distribution of the faculty’s legally mandated share, which is a “labor standards issue.”
“CHEd recognized that it was premature to determine whether there had been any violation of the law or the memorandum order on the part of the University in connection with the timing of the TFI’s distribution,” UST said.
“The Commission thus resolved to defer to the DOLE jurisdiction over the pending labor dispute, affirming the principle that determinations on the manner of distribution of the 70% TFI require the outcome of the collective bargaining process,” it added.
UST stressed that its practice of releasing tuition hike proceeds only after a new CBA ensures legal certainty and the protection of faculty interests amid ongoing labor negotiations.
“The University reiterates that it has always acted in good faith in the fulfillment of its obligations under the law, guided by its long-standing practice of releasing the 70% TFI proceeds upon the ratification of the applicable CBA,” it said.
“This practice not only provides a definitive legal basis for distribution but also avoids the risk of conflicting interpretations or unilateral claims that may jeopardize faculty interests…it remains committed to the orderly resolution of the pending issues under the guidance of the DOLE,” UST added.
