THE UNIVERSITY has denied having P12 billion in “unrestricted earnings” it can use as an alternative source to the 70% tuition hike share for salary restructuring and rank upgrades.
According to UST, allegations that funds for rank upgrades and restructuring could be sourced alternatively from the University’s P12 billion unrestricted earnings are “inaccurate,” as the amount also constitutes non-cash assets such as its holdings, buildings, equipment, software, operating systems and supplies.
“It is incorrect to suggest that these funds are available for reallocation or distribution,” UST said in a statement released on Wednesday, March 26.
The UST Faculty Union (USTFU) previously claimed that the University is in an “exceptionally strong financial position,” citing a P11.6 billion in unrestricted assets that are supposedly available for discretionary use.
“Clearly, the University has more than enough resources to grant fair compensation to the very people—the faculty—who have been instrumental in building and sustaining its academic reputation and financial health,” the faculty union said on March 25, citing UST’s cash flows, investments, property acquisitions and unrestricted fund reserves.
UST maintained that its decision on the rank upgrade and SHS restructuring was “legally consistent” since such provisions are classified as improvements in faculty members’ salaries, wages and benefits.
“The University clarifies that its decision to source the amount from the TFI (tuition increase) is neither arbitrary nor without justification, and it does not possess P12 billion in unrestricted earnings as falsely claimed,” it said.
The Dominican-run institution also cited the Government Assistance to Students and Teachers in Private Education Act and the Commission on Higher Education’s Memorandum no. 8, series of 2012, which require schools to allocate 70% of their tuition hike shares to salary and benefits improvement.
“[S]ourcing their funding from the 70% TFI (tuition increase) share of academic staff is not only legally consistent with existing government regulations but likewise ensures a sustainable source for funding new policies,” it said.
The University reiterated that a 6% tuition increase was implemented across all year levels during the academic year 2023-2024, which was intended to fund the rank upgrades and salary restructuring. It added that consultations were made with the student body and that the policy was “thoroughly” explained and approved.
The distributable amount of the tuition increase for the academic year 2023-2024 was “much higher” than those of the previous school years, UST said.
While the University has already allocated the P220 million or 89% of the total distributable tuition hike shares to faculty members, it has yet to distribute the amount in the absence of a signed collective bargaining agreement (CBA).
The allocation of the remaining P26 million tuition hike share is part of the unresolved provisions of the CBA, which prompted the faculty union to declare a deadlock and file a notice of strike before the labor department last March 25. F
