Frequently Asked Questions

About the CBA Negotiations

What are the CBA negotiations all about?
The Ateneo de Manila University administration and the Ateneo Employees and Workers Union (AEWU) are currently in negotiations for the last two years of the 2019-2024 Collective Bargaining Agreement (CBA).

The Collective Bargaining Agreement is a contract between Ateneo and the Union that covers the two parties' rights and responsibilities as employer and employees, and the terms and conditions of the union members' employment (including wages and benefits).

Who are the parties in the negotiation?
The negotiation is between the Ateneo administration and the AEWU.

Who are the AEWU?
The AEWU is a labor union recognized by Ateneo and the government. It is the sole and exclusive bargaining representative for maintenance staff, and technicians whose membership in the Union is mandatory pursuant to the CBA’s closed shop union security clause. AEWU also represents individual office staff members who voluntarily applied for union membership on their own.

The Union currently has 218 members, accounting for 7% of the University’s 3,109 employees.

What has been the progress of the CBA negotiations?
Since the initial meeting of the Admin Panel and Union Panel on 30 August 2022 to discuss the Ground Rules for the CBA negotiations, the following transpired:

• The negotiations commenced after the Ground Rules were approved by both parties on 7 September 2022. Most provisions in the CBA were resolved in the succeeding meetings because of a give-and-take stance on the part of both parties.
• AEWU declared a deadlock on 4 January 2023 and ADMU received a Notice of Strike (NOS) from the AEWU and a Notice of Conference from the Department of Labor and Employment (DOLE) Regional Conciliation and Mediation Board (RCMB) on 18 January 2023.
• On 24 January 2023, the DOLE terminated the NOS filed by AEWU. Both parties agreed to go through preventive mediation.
• In the conference at DOLE on 15 February 2023, the Admin and Union Panels failed to agree on the remaining provisions in the CBA. The Union Panel moved to terminate the negotiations again.
• On 16 February 2023, the University administration received another NOS filed by the Union, sending the ongoing negotiations to conciliation again before the Department of Labor and Employment (DOLE).
• A conference between the University and AEWU on 22 February 2023 was held at the DOLE’s National Conciliation and Mediation Board (NCMB).
• On 28 February 2023, the two sides again met, with the assistance of DOLE, in hopes of finding a common position on the remaining CBA issues. However, no agreement was reached and the DOLE advised both sides to reformulate their proposals.

What are the main issues that still need to be resolved?
The remaining items that still need to be resolved are:

1. Wage increase
2. Rice allowance
3. Union leave with pay
4. Term and Effectivity of the CBA, including the date of retroactivity of the benefits agreed upon; and
5. Signing bonus.

As per the Labor Code of the Philippines, a CBA negotiated within six months after the expiration of an existing CBA retroacts to the day immediately following the expiration. This automatic retroactivity is lost if negotiations exceed six months, but in this case, the parties agreed in their Ground Rules that automatic retroactivity would expire on 28 February 2023.

Current AEWU Compensation and Benefits

How much do Union members get compensated by the University?
The University pays some of the highest salaries in the industry for the positions occupied by Union members.

The current monthly salaries of AEWU members are (all in Philippine Peso):

• Minimum: 15,700
• Average: 30,800
• Median: 28,800
• Maximum: 74,000

What are the current benefits that AEWU members receive from the University?
In addition to their salaries and government-mandated benefits (including SSS, PhilHealth, Pag-Ibig, 13th month pay), Union members also receive the following benefits:

• Rice Allowance (monthly)
• Dependent’s Allowance (monthly) or Family Subsidy (monthly)
• Union Educational Benefit (per qualified dependent per school year)
• Employee Development Opportunity (qualification for scholarships for employees to enroll in a University program)
• Leave Benefits (Sick, Vacation, Emergency, Bereavement) with corresponding monetary values
• Union Leave with Pay (for Union activities)
• Bereavement Assistance per family unit in case of death of an employee’s family member, or for the bereaved family in case of the employee’s demise
• Health Care Plan coverage
• Critical Illness Benefit
• Group Life Insurance coverage with Group Personal Accident coverage
• University Service Awards
• Retirement Benefits

You may read the details of these current benefits on the previous CBAs, which can be downloaded at ateneo.edu/cba ("Previous Ateneo-AEWU CBAs" section).

The Union claims that the actual wage increase for the non-union members is at 10% compared to the union members’ 6%. How accurate is this claim?
This is inaccurate and misleading.

The effective salary increases for non-union members is not 10%. Salary increases for non-union members are dependent on each employee’s annual performance rating, and are subject to salary caps based on their level.

In the last CBA negotiations, the Union negotiated that (a) their wage increases be independent of any performance rating; and (b) based on a “whole number” rather than a percentage of their current salary.  During the current CBA negotiations, the Union continues to propose a “whole number” increase that is independent of any performance rating – in other words, regardless of work performance they will get a standard across-the-board increase.

Tuition Incremental Proceeds

What is the Tuition Incremental Proceeds?
The Tuition Incremental Proceeds (TIP) is the amount an educational institution gets from the tuition increases approved annually by the Department of Education (for basic education), Commission on Higher Education (for higher education), or the Legal Education Board (for law schools). For SY 2022-2023, the average DepEd, LEB and CHED-approved tuition increase across Ateneo’s units (basic education and higher education) was 5.75%.

From the overall tuition increase proceeds, the University uses 70% to increase the salaries and benefits of all of its 3,109 employees – faculty, formators, staff, administrators, professionals, and other non-teaching staff. The rest of the tuition increase (30%) goes to improvement or modernization of instructional facilities, including laboratories and libraries; and for the purchase of new equipment and other tools needed for teaching and learning.

What does the law say about TIP?
By law, 70% of the TIP goes to salaries and benefits. The University has the right to determine how the 70% of the TIP is to be used for all its employees. Please refer to DECS Order 15, series of 1992 issued last January 30, 1992 for more details of this government regulation.

How does Ateneo allocate its TIP?
The distribution of the 70% of the TIP is prorated by salary ratio, based on the total cost of salaries and benefits for all employees, including members of the AEWU.

The discrepancy between the Union’s official proposal and that of the University is quite substantial. How do you explain the big difference?
The cost of AEWU’s latest official proposal for School Year 2022-2023 amounts to P12.6 Million or 200.9% of the Union’s prorated TIP share.

For next School Year 2023-2024, the cost of AEWU’s latest official proposal amounts to P11 Million or 167.4% of the union’s prorated TIP share for this year. Next school year’s TIP is yet to be determined based on approved tuition fee increases and actual enrollment numbers which will only become available after the enrollment is completed next school year. We can only compute for the current school year.

Unfortunately, another consequence of demanding a larger share of the TIP means a smaller share for other employees (e.g., faculty, professionals, formators, non-teaching staff, etc.) who are not members of the union.

Other CBA issues

The AEWU claims that because the University did not provide them with the data they requested, they are unable to justify their proposal.
The University gave the Union a copy of last fiscal year’s audited financial statement, as required by law. However, aside from this, the Union never requested any other document, as the official CBA meeting minutes would show.

Where does Ateneo base its offer to the Union?
The proposals presented by the University to the Union are based on several factors:

• The current and projected financial condition of the University, which is based primarily on tuition and fees
• Equitable distribution of salaries and benefits to all University employees
• Sustainability of the proposed package

Why can’t Ateneo give what the Union demands? Ateneo surely can afford to do so, given its high tuition.
Ateneo de Manila University is a non-profit educational institution; its income primarily goes to spending related to its core mission of education, formation, and research. The school also spends a significant amount on scholarships, to open up access to Ateneo education to more deserving yet financially-challenged students. All the excess of revenue over expenses go back to the University's operations and in the development and improvement of school facilities and services.

The University believes that its offer to the Union is the most sustainable and most fiscally responsible option. Sustainable, because the Administration believes its offer ensures that the institution spends within its means, allowing it to continue with its work in the years to come. Fiscally responsible, because the offer ensures all personnel are equitably and fairly compensated based on their position and performance, in relation to the University’s core mission.

Union Strike

If the Union goes on strike, how will University operations be affected?
The Administration is taking steps to ensure that there will be minimal to no disruption in University operations in case the Union conducts a strike. Contingency plans are already in place so that school operations, and delivery of services to various stakeholders in case of staff shortage, will continue.

Other Information

Where do the negotiations stand at the moment?
To see the latest updates, you may check the latest CBA Bulletin on ateneo.edu/cba.

Where can we find the previous CBAs between Ateneo and AEWU?
You can find the CBAs covering the period from 2014 to 2022 at ateneo.edu/cba.

(FAQs updated as of 8 March 2023)