In a press statement released on Tuesday, November 15, Xavier University - Ateneo de Cagayan has appealed for understanding and cooperation as it deals with its historic financial crisis to date.
The decline in the financial health of XU, the statement said, is “unprecedented in our 83-year history.” As the university traverses the K+12 transition years, this financial crisis is “expected to get worse before it can get better.”
According to the statement, the losses are a result of decreasing enrollment from the highest of 16,313 in SY2010-2011 down to 13,729 in SY2016-2017.
This falling trend is aggravated by the loss of tertiary enrollment during the K+12 transition years (2016-2020) as the senior high school program is being established throughout the country and there are no students for two college year levels.
Based on the audited financial statements of Xavier, the net loss from school operations was P160M in SY2014-2015 and P90M in SY2015-2016.
“Operational losses of these magnitudes are unprecedented, never seen before by XU,” the university said, adding that it has initiated cost-cutting measures in all aspects of Xavier operations across all of its campuses.
The budget approved by the Board of Trustees for SY2016-2017 is also projected to result in a deficit of P199M.
Christmas cash gifts
As a result of these unprecedented losses, XU is unable to provide Christmas cash gifts to its employees this year, a practice that started in 1997.
“According to our audited financial statements for SY2015-2016, we had a net loss from school operations of P89.7M. Since we had a net loss from the previous school year, I regret there will be no Christmas gratuity for 2016,” XU president Fr Roberto C Yap SJ said in his memo to the employees on October 13.
A week later, on October 20, the XU Non-teaching Employees Union (XUNTELU) filed a Notice of Strike out of dismay at the inability of the university to allot Christmas cash gifts to its employees.
Meetings were held between XUNTELU and the university officials before the National Conciliation and Mediation Board (NCMB) during the first two weeks of November, but they did not yield an agreement.
On November 12, XUNTELU members voted, through balloting, to launch a labor strike on November 22. Affiliated with the Associated Labor Union - Trade Union Congress of the Philippines (ALU-TUCP), XUNTELU has 183 members, making up 16.4% of the 1,118 regular employees of the university.
The capacity of the university to give a cash gift depends on the net income (excess of revenue over expenses) from school operations of the previous school year as reported in the audited financial statements.
The university officials also emphasized that “While it has been a past practice, the Christmas Cash Gift is not a benefit, but a ‘gift’ which is not obligatory. As a gratuity, it is not listed among the benefits in our Collective Bargaining Agreement (CBA).”
Despite the drastic losses of the university, XU continued to find ways to provide a modest amount of gift for its employees this Yuletide season.
“In consideration of the appeals that have been received, we asked each unit to sacrifice some items from their respective budgets to be able to allot Php1,000.00 per full-time employee as a Christmas gift," the university said.
Restoring XU’s financial health
Beginning SY2016-2017, Yap iterated that “a cash gift will be apportioned only if there is net income realized from the previous school year. As we all share when the university is doing well financially, I ask that we also help when XU is financially challenged."
As per the staff handbook of XU, “Employees may receive cash gifts, as authorized by the President on special occasions.”
This means that the granting of a cash gift is “a management prerogative and an act of generosity beyond what is strictly due to the recipient.”
A gratuity is a way of showing graciousness that is in no sense a reward for performing duties past, present or future. As such, Yap said, “it shall not be construed as a university obligation nor can it ripen into a benefit.”
The university officials assured that the suspension of the cash gift is only temporary and will resume once financial health is restored.
As the Jesuit-run university faces this historic crisis, it remains optimistic and confident that its financial status will improve as the K+12 program normalizes in SY 2020-2021.
“We continue to value the support of the XU community members and we call for further understanding, cooperation, and solidarity as we journey to restore the financial status of the University. We are grateful for the blessings that continue to come our way and pray that we fan the flames of gratitude even as we are buffeted by winds of uncertainty.”
The university officials added, “We assure our students and parents that XU will do its best to ensure that classes and other activities (including Xavier Festival Days) will continue as normally as possible while we work to resolve this labor dispute. The safety and security of our students, teachers, and staff will be our paramount concern. We will do our best to continue to provide the quality education that is expected of Xavier.” ∎