Advertisement

Wages commission orders bus firms to submit fixed-pay plans

Font Size

THE National Wages and Productivity Commission (NWPC) called on bus companies to submit their schemes to offer partial fixed compensation of at least minimum wage for bus drivers and conductors, in line with the revised guidelines.

In NWPC Guidelines No. 1, Series of 2019 dated Feb. 15, the commission said it revised the rules requiring bus companies to offer part-fixed compensation scheme to its employees.

The use by transport firms of performance-based compensation has been blamed for reckless driving and traffic obstruction as drivers seek to maximize the number of riders on each trip.

The guidelines signed by NWPC Director Maria Criselda R. Sy require bus owners and operators to submit their proposed compensation schemes to the Regional Tripartite Wages and Productivity Board (RTWPB) with jurisdiction in the company’s principal place of business.




The proposed compensation scheme should also have “two copies of a duly notarized employment contracts between public utility bus owners and/or operators and the bus driver and between the public utility bus owners and/or operators and bus conductors.”

The NWPC said that within 10 days of receiving the compensation plan, the RTWPB Secretariat will observe the company’s compliance with the guidelines.

If found compliant, the RTWPB Secretariat will submit the findings to the respective regional directors of the Department of Labor and Employment (DoLE) responsible for the company’s principal place of business. The regional director’s approval will also be the basis for issuing a Certificate of No Pending Case.

NWPC said that if a compensation scheme is not compliant with the guidelines, “The concerned RTWPB Secretariat shall return the proposed compensation scheme with a directive to the public utility bus driver and/or operators to adjust and revise the same based on the comment of the RTWPB.”

Public utility bus owners/operators whose compensation scheme was previously approved prior to the revised guidelines must re-submit to the RTWPB. The revised guideliness will take effect in early March.

The compensation scheme will be in line with DoLE Department Order No. 118-12. The fixed-wage component should follow the prescribed minimum wage and wage-related benefits. The performance incentive component is computed as the current average daily earnings minus the fixed wage. — Gillian M. Cortez