MANILA, Philippines – Illegally dismissed workers of the Metro Transit Organization Inc. (MTOI) cannot run after the Light Rail Transit Authority (LRTA) for the P119 million compensation since it is not their employer.

The Commission on Audit (COA) ruled that “the employees of MTOI are not employees of LRTA since these two maintain personalities separate and distinct from each other.” 

“The LRTA cannot be made to pay MTOI employees since this money claim involves illegal dismissal, which is an employment-related issue,” state auditors said. 

The illegal dismissal stemmed from a strike conducted by rank-and-file employees on July 25, 2000 after a collective bargaining negotiation hit a deadlock, resulting in the halt of LRTA operations until August 2, 2000. 

LRTA decided not to renew its contract with MTOI, leading to the termination of its workforce. Employees, however, filed a case before the National Labor Relations Commission, which ruled in favor of them in September 2006. In its decision, NLRC said that LRTA and MTOI were both liable and ordered them to pay the workers.

The workers also filed a petition before COA to compel the LRTA and MTOI to pay, but LRTA invoked a previous Supreme Court ruling that stated that it is the Civil Service Commission and not the NLRC that has jurisdiction over it. 

COA upheld this position, denying the money claim given that “a judgment rendered without jurisdiction is a void judgment.” 

State auditors, however, affirmed the claimants’ petition against MTOI, but clarified that it is no longer in the position to settle the claim given that it has dissolved already.

“Although this Commission finds merit in the liability of MTOI for the subject claim, it is worth stressing that MTOI is a defunct government agency with no funds to disburse. There are no remaining assets that would be garnished or levied to satisfy or settle petitioners’ claims,” COA said. – Rappler.com