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Manila Bulletin devider Philippines devider National devider UST welcomes CHED resolution affirming compliance with TFI fund disbursement

UST welcomes CHED resolution affirming compliance with TFI fund disbursement

Published May 10, 2025 12:10 pm
The University of Santo Tomas (UST) on Saturday, May 10, expressed support for a resolution issued by the Commission on Higher Education (CHED), which it views as confirmation of its compliance with legal standards in the allocation of Tuition Fee Increase (TFI) funds.
Thomasian Walk- Thousands of freshmen enter through University of Sto. Tomas (UST) Arch of the Centuries, that marks the start of their college life, on August 4, 2017. The traditional
Thomasian Walk- Thousands of freshmen enter through University of Sto. Tomas (UST) Arch of the Centuries, that marks the start of their college life, on August 4, 2017. The traditional "Thomasian Welcome Walk" to the historic gateway is a rite of passage that makes the freshmen as part of the UST family.(Photo by ali vicoy)
University of Santo Tomas / ALI VICOY / MANILA BULLETIN / FILE PHOTO 
UST welcomed the CHED resolution as recognition of its “good faith compliance” with legal obligations governing the use of TFI funds, in accordance with Republic Act No. 6728 and CHED guidelines.
The University emphasized that its long-standing practice of releasing TFI funds upon ratification of a Collective Bargaining Agreement (CBA) ensures equitable distribution and provides a clear legal framework to avoid future disputes—aligned with both jurisprudence and principles of equity.
CHED defers to DOLE
CHED has formally deferred to the Department of Labor and Employment (DOLE) regarding the ongoing dispute between UST and the UST Faculty Union (USTFU) over the release of 70 percent of TFI proceeds collected for Academic Years 2021–2024.
This decision follows a December 18, 2024, request from USTFU for a legal opinion and technical assistance, questioning whether UST is legally obligated to immediately disburse the faculty’s share of TFI funds, irrespective of a finalized CBA.
‘No misuse’ of TFI funds
In its May 7, 2025 resolution, CHED stated that, based on submitted documents, there is no indication that UST used the 70 percent TFI allocation for purposes other than enhancing benefits for teaching and non-teaching staff, as mandated by R.A. 6728 and CHED Memorandum Order No. 03, Series of 2012.
CHED further noted that the distribution of these funds is inherently linked to labor standards and CBA negotiations—placing the issue under DOLE’s jurisdiction.
USTFU’s position and legal proceedings
USTFU has alleged delays in the release of faculty benefits derived from the TFI, citing unresolved issues such as rank upgrades, Senior High School (SHS) salary restructuring, and expanded critical illness benefits. It filed a Notice of Bargaining Deadlock as a result.
In response, UST submitted a written explanation to CHED on March 18, 2025, asserting full compliance with applicable legal provisions. It clarified that the 70 percent allocation was deposited in a dedicated, interest-bearing account and emphasized that no law mandates its immediate release upon collection.
Following the union's notice of strike, UST filed a Petition for Assumption of Jurisdiction with DOLE on March 26, 2025.
DOLE as the proper venue
CHED affirmed that disputes involving labor standards and collective bargaining fall under DOLE’s jurisdiction. It also stressed that any premature ruling on the TFI issue, given the complexity of ongoing negotiations, would be inappropriate.
What’s next?
As the labor dispute proceeds under DOLE’s jurisdiction, negotiations between UST and USTFU are expected to continue, with both parties working toward a mutually acceptable agreement.
The ultimate goal remains the fair and lawful distribution of the 70 percent TFI share, in accordance with collective bargaining outcomes.

Related Tags

UST DOLE CHED TUITION FEE PHILIPPINE EDUCATION SYSTEM
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