Starting this month, bus companies will be mandated to implement the part fixed, and part performance-based compensation scheme, or risk the non-renewal of their franchise.
The National Wages Productivity Commission (NWPC) issued its Revised Guidelines 1, Series of 2019, mandating bus firms to start implementing the new pay scheme for bus drivers and conductors.
The guidelines will take effect in March, or 15 days after it was published on February 22 in newspapers of general circulation.
Under the said scheme, concerned bus employees should get a fixed wage, which should not be lower than the prevailing minimum wage rate applicable to them.
They will also be entitled to a performance-based wage to be determined, which they will have to negotiate with their employers as long as it follows NWPC guidelines.
The performance-based pay could be computed using the “business performance” of their employers, or the compliance to safety regulations of the concerned workers.
Bus companies are required to submit to their designated Regional Tripartite Wages and Productivity Boards (RTWPB) their proposed required compensation scheme 60 days prior to “confirmation” of a bus unit for approval.
Those which will have their compensation scheme disapproved by the RTWPB will have to revise it to conform to the NWPC guidelines before they could resubmit it.
If found compliant, the RTWPB will endorse the compensation scheme to the appropriate Department of Labor and Employment regional office so the applying bus firm could qualify for a “Certificate of No Pending Case.”
Ultimately, the DOLE regional offices will be the ones to issue the Labor Standards Compliance Certificate needed by bus companies to renew their license at the Land Transportation Franchising and Regulatory Board.
NWPC’s revised guidelines is based on the DOLE’s Department Order (DO) 118-12, Series of January 2012.
DO 118-12 was implemented in an attempt by the government to minimize bus-related vehicle accidents by providing bus drivers and conductors better compensation and work benefits.
The issuance will only be taking effect this year after the Supreme Court finally affirmed its legality, which was questioned by bus firms.