Region 4-A wage board approves wage hike and productivity- based pay guidelines for CALABARZON workers
Labor and Employment Secretary Rosalinda Dimapilis-Baldoz yesterday announced that the Regional Tripartite Wages and Productivity Board in Region IV-A (RTWPB-IVA), has approved a new wage order providing for a P12.00 per day basic pay increase for workers receiving less than P267.00 per day and a P13.00 per day socio economic allowance (SEA) for workers receiving more than P267.00 up to P349.50 per day. The new Wage Order does not allow exemptions.
The P12.00 basic pay increase for workers receiving less than P267 shall be given in tranches until December 2016 (which means a P4.00 – P6.00 per day increase per tranche).
The P13.00 SEA shall be given to workers receiving above P267.00 up to P349.50 upon effectivity of the Wage Order. The payment of the SEA follows the “no-work, no-SEA” policy. The SEA shall be included in the payment of holiday pay and separation pay but excluded in the payment of overtime pay, premium pay, nightshift differential, 13th month pay and retirement pay.
Once the new wage order takes effect on May 1, 2014, the highest minimum wage in the region will be P362.50. By 2016, the lowest minimum wage will be P267.00 as a result of the increases granted for those receiving below P267.00.
The new wage order shall apply to all minimum wage workers and employees in private establishments regardless of their position, designation, or status of employment and method of payment of their wages. It also applies to all workers paid by result, including those paid on piece work, takay, pakyaw, or task basis, and to seasonal or temporary workers, but not to domestic workers, persons in the personal service of another, including family drivers, and workers of Barangay Micro Business Enterprises.
"The decision to adjust minimum wages of workers in CALABARZON was based on the Board’s assessment of the region’s socio-economic conditions, such as regional domestic output; net employment; and poverty incidence. The Board also considered the need to promote and generate long-term investments and quality employment as CALABARZON's economy continues to pick up," said Baldoz.
"The Board also issued the Advisory Guidelines on Productivity/Performance-Based Pay, to encourage workers and management within an enterprise to agree to implement productivity improvement programs and share in the gains realized”, Secretary Baldoz explained.
The advisory recommends the creation of a productivity improvement and incentive committee (PIIC), with equal representation from workers and management, that will design and implement productivity improvement programs and mechanisms for the grant of productivity-based pay.
"The PIIC will determine and recommend the mechanics and procedures for the grant of productivity-based pay, such as the amount, performance standards, criteria, coverage, frequency and manner of payment," said Baldoz.
Baldoz assured that the DOLE Regional Office 4-A and its RTWPB will provide the necessary technical assistance to companies in the development of productivity improvement programs for purposes of implementing the advisory guidelines on productivity-based pay.
For a copy of Wage Order No. IVA-16, visit the NWPC website at www.nwpc.gov.ph.
PH, SG partner to create a new breed of
Philippine productivity specialists
Some 230 Filipinos are now undertaking an intensive training in a school in Singapore to form the ‘Philippine Productivity Specialist’, a group tasked to lead the country’s micro small and medium enterprises (MSMEs) towards improved productivity and competitiveness, the Secretary of Department of Labor and Employment Rosalinda Dimapilis-Baldoz announced in a press conference held in Quezon City this morning. Of which, the 120 have already completed their training in March this year while the 110 are now undergoing their training in Singapore’s Nanyang Polytechnic International.
The labor chief said that the intensive training is a joint project between Philippines’ DOLE-National Wages and Productivity Commission (NWPC) and Singapore’s philanthropic organization, Temasek Foundation (TF) and premier training institute, Nanyang Polytechnic International.
Dubbed as ‘Capacity Building on Productivity, Innovation & Enterprise Development’, this program has two phases: the first is focused on productivity while the second is focused on innovation and enterprise development.
The first phase, which started in April last year and end last month, was participated by 120 chosen individuals from DOLE, NWPC, Regional Tripartite Wages and Productivity Boards (RTWPBs), and ten MSMEs.
The second phase, which started on March 30 this year and will end next year, is being participated by 110 chosen individuals from government agencies such as DTI, DOST, DA, DOT, UP Institute of Small Scale Industries (UP-ISSI), Employers’ Confederation of the Philippines (ECOP), Trade Union Congress of the Philippines (TUCP) and the Federation of Free Workers (FFW), NAGKAISA, and the Philippine Association of Labor Subcontractors (PALSCON).
These 230 participants are tasked to re-echo their learnings not only to their offices but also to other companies, particularly the MSMEs, to help them boost their business performance through productivity improvement.
“In effect we’ve created a bigger circle of productivity champions who will collectively endeavor and assist MSMEs grow and develop through capacity building in various aspects of quality and productivity, business operations and development, product upgrading, market facilitation, incentivizing, and other forms of assistance,” Sec. Baldoz quipped.
She shared how the participants to the first phase realized improvements after implementing their learnings in their own companies.
“Some [participating] companies saw their reworks and rejects decline while other were winess to how their electric and gas consumption drop after adoption of the productivity improvement program. On top of increasing annul sales and declining cost of operation, the MSMEs productivity journey also strengthened teamwork among employees and significantly improved work processes resulting to positive client reviews and feedback.”
The participants from DOLE, on the other hand, rolled out their programs “to foster efficiency and flexibility in work processes, systems and policies. First, she instructed all the DOLE offices to avoid jargons or technical terms in writing reports, memos, new releases and other documents for public consumption, to ensure effective communication.
Second, she encouraged all offices and personnel to enliven productivity by featuring success stories of participants to the Singapore training. The old system of inspection was also revamped to adopt a more developmental approach, with inspectors now assisting companies to comply with labor standards.
In closing, Sec. Baldoz expressed her gratitude to the delegates from Temasek Foundation and Nanyang Polytechnic International who are also present in the press conference, for their assistance in lifting the productivity of the Filipino MSMEs.
Updated: April 11, 2014
Policy options for providing relief to workers,
enterprises in times of calamities
By: Zulaizah Genesis M. Lahan
The Commission, headed by DOLE Secretary and NWPC Chairperson Rosalinda Dimapilis-Baldoz is currently reviewing existing NWPC rules and guidelines on minimum wage fixing and its policy on the grant of exemption as part of its continuing effort to ensure the responsiveness to and coherence of wage policies with the socioeconomic growth and development requirements.
This initiative was also prompted by the need to provide relief and assistance to workers and enterprises in regions severely affected by typhoon Yolanda. Some of the practices of the Boards in addressing the relief requirements of enterprises affected by natural calamities include the issuance of a supplemental Wage Order to include an exemptible category for establishments affected by the calamity, re-opening of the period for the application for exemption and deferment of conduct of consultations, among others.
Undersecretary Ciriaco A. Lagunzad III, NWPC Chairperson- Designate emphasized the need to consider the environmental perspective in the review of NWPC’s rules and guidelines on minimum wage setting.
House Committee endorses HB 3251 to
Committee on Ways and Means
By: Jerome P. Lucas
Last February 19, 2014, HB 3251 amending RA 6971 otherwise known as the “Productivity Incentives Act of 1990” was approved on second reading by the House Committee on Labor and Employment for endorsement to the House Committee on Ways and Means, given the fiscal incentives provided in the bill.
The amendatory bill which was prepared by the NWPC and authored/sponsored by Cong. Francis “Boy Blue” Abaya of the 1st district of Cavite, liberalizes provisions of RA 6971 on the basis for the computation of the benchmark productivity level, sharing scheme and frequency of distribution, among others. It also deleted the penalty provisions under the current law. This is to ease the process of implementing workplace productivity programs and the subsequent availment of the fiscal incentives equivalent to 50% of the total productivity bonus and 50% of total cost of manpower training and studies relative to the productivity program.
The amendatory bill, likewise, expands the role of the NWPC with an expressed provision on the issuance of advisories by the RTWPBs to guide enterprises in adopting productivity programs. This is in support of the twin goals of the two-tiered wage system, which are to secure protection for poor and vulnerable workers and strengthen bipartite approaches in the promotion of worker and enterprise productivity.
Present during the meeting were Cong. Karlo Alexei B. Nograles, Chairman of the Labor and Employment Committee on Labor and Employment; Cong. Ma. Victoria R. Sy-Alvarado, 1st district of Bulacan; Cong. Leah S. Paquiz, Ang NARS Partylist; Cong. Emmeline Y. Aglipay, DIWA Partylist; Cong. Roy V. Señeres Sr.; and representatives from BIR, PALSCON, FBI, DLLO, NWPC, and other concerned agencies.
DZMM’s Konsyumer ATBP features the Productivity Olympics
By: Julie C. Llorente
The NWPC’s Productivity Olympics was featured in DZMM’s Konsyumer ATBP episode last March 1 entitled “Ugnayang Productivity Olympics”.
Joining the anchors, Mr. Alvin Elchico and DTI Undersecretary Zenaida Maglaya, were NWPC’s DED Patricia P. Hornilla, Dir. Jeanette T. Damo and PRPDD Chief Mr. Kim Lagcao and Productivity Olympics winners Col. Virgilio Cruz of VJANDEP, Ms. Helena de Guzman of Markenbug International Foods, Inc, and Engr. Edgardo D.L. De Guzman of Goldwin Manufacturing Laboratory.
DED Hornilla explained the concept of productivity as “mas masinop at maayos na paggamit ng mga raw materials at resources at mga proseso, para maitaas ang lebel at kalidad ng mga produkto at serbisyo ng mga kumpanya”. She emphasized that the program aims to heighten awareness and commitment of micro, small and medium enterprises (MSMEs) to install productivity improvement programs in their workplaces. She explained that the production of more and better quality products, means higher sales, revenues and profits, that allow enterprises to grow into sustainable and viable units.
OIC-DED Jeanette T. Damo also explained that the NWPC is offering training and consultancy services to MSMEs. “Kami po ang nagka-conduct ng mga training tulad ng ISTIV upang matulungan ang mga kompanya,” Dir. Damo quipped. She went on to explain that ISTIV is a values-driven human resource strategy, which aims to instill good working values/ethics such as being “industrious, systematic, time-conscious, innovative, and having strong value for work”.
The three Productivity Olympics winners shared how productivity improvement programs helped improve their company’s operations. As ISTIV training beneficiaries, the winners explained how the training instilled positive work values that improved the work ethics and behavior of their workers, making them more productivity and quality conscious. Col. Jose (Vjandep), maker of the famous pastel in Cagayan de Oro, Ms. De Guzman (Markenburg), producer of export quality marshmallows, and Engr. De Guzman (Goldwin Manufacturing Laboratory), soap manufacturer, also expressed their appreciation for the assistance of DOST and DTI in terms of upgrading their technology and improving work processes.
DED Hornilla also read the names of the rest of the 33 national winners, with an invitation from the program hosts to feature them in the succeeding episodes.
In closing, DED Hornilla and Dir. Damo challenged MSMEs to start launching their own productivity journey, assuring them of assistance from government.
The show airs every Saturday, 10:30 a.m, broadcast simultaneously in ABS-CBN’s major AM radio station DZMM, cable channels, and dzmm.com.ph.
NWPC Joins Women’s Month Celebration
By: Jerome P. Lucas
NWPC employees participated in the annual celebration of Women’s Month this March. This year’s theme “Juana, ang Tatag Mo ay Tatag Natin sa Pagbangon at Pagsulong!” pays tribute to the strong and resilient Filipinas who brought inspiring changes to the country and across the globe.
Selected NWPC employees participated in the “Women Symbol Formation” last March 8, at the Quirino Grandstand in Rizal Park, which was the kick-off activity for the month long celebration.
The celebration is aligned with Presidential Proclamation No. 224 (series of 2008) declaring the first week of March as Women’s Week and Presidential Proclamation No. 227 (series of 2008) on the observance of the month of March as Women’s Role in History Month.
NWPC joins ICT workshop
By: Elvira F. Mangubat
Mr.Alexis Fabunan, Ms. Elvie M. Mangubat, and Mr. Denver Calayan of the NWPC-Management and Information System Unit participated in the orientation on web-hosting and workshop on the new ISSP template last March 6-7 at the Information and Communications Technology Office in Quezon City.
The web-hosting orientation, organized by the Department of Budget and Management (DBM) and the Information and Communication Technology Office (ICTO), is in support of Administrative Order No. 39, which requires all government agencies to transfer their websites to the Government Web Hosting Service (GWHS) of the Integrated Government Philippines (iGovPhil).
The workshop on the new ISSP template, meanwhile, is in compliance with the Joint Memorandum Circular No. 2014-01 which requires government agencies applying for additional budget for IT purposes, to use the streamlined ISSP template.
RTWPB-V conducts presscon for new minimum wage
By: RTWPB-V Board Sec. Aurora Prades and Julie C. Llorente
DOLE-Region V Director and RTWPB-V Chairperson Nathaniel V. Lacambra announced the new wage increase in Bicol Region in a press conference held on February 13 at Kanzo Hall and Restaurant in Legaspi City.
Chairperson Lacambra said that Wage Order No. RBV-16 mandated an increase of P 8.00/day for all minimum wage earners in the region, pegging the minimum wage at P260 per day for establishments with not more than 10 workers and P236 per day for non-agriculture establishments with less than 10 workers, agriculture, and cottage/handicraft sectors.
Board Secretary Aurora Prades added that aside from the minimum wage, the said Wage Order also encourages enterprises to adopt productivity-based pay schemes under the two-tiered wage system.
Relative to this, Prades encouraged companies to avail of the RTWPB’s productivity improvement programs.
The press conference was attended by 24 local media organizations.
Tourism Industry in MIMAROPA Gets a Boost thru Productivity Incentive
by RTWPB IV-B Board Sec. Romeo E. Opis
White-sand beaches, pristine caves and breath-taking underground rivers have made MIMAROPA one of the most visited tourist destinations in the country. Truly, the constancy of tourists queuing up at Batangas port for a boat ride to the renowned beaches of Puerto Galera in Oriental Mindoro, storm or no storm, is a testament to the buoyancy of the tourism industry in the region.
The moment a tourist rides a boat for Mindoro or Coron in Palawan, this immediately puts into motion the set of players involved in a chain of economic activity in the region’s tourism industry i.e. the bangkero who steers the boat, the shuttle van or tricycle driver who brings the tourist to the hotel, the front desk clerk/concierge and other hotel or employees who attend to the accommodation needs of the tourist, the souvenir shop employees who promote the region’s native products, and even the local police officers who ensure the tourist’s safety.
Not surprisingly, the industry continues to play a significant role in the region’s economy, including the creation of jobs. In 2010 alone, Puerto Princesa City and the municipality of Coron in Palawan, including Puerto Galera, registered a combined total revenue of P7.2 million that accounted for 13.2% of the region’s revenue. Looking forward, the industry is expected to grow at least 9.47% for the next three (3) years.
Strengthening the link between pay and productivity
For this reason, RTWPB IVB selected the tourism industry as subject of its first advisory on the implementation of productivity-based pay scheme. The application of the advisory is voluntary and at the firm level.
How will it work?
The advisory provides an assessment of the industry’s past performance and a description of its outlook (risks and prospects) for the coming year. On the basis of which, the advisory recommends productivity improvement and gainsharing schemes appropriate to the industry. The advisory also recommends the creation of a labor management structure to design and implement productivity incentives programs.
Labor Secretary Rosalinda Dimapilis-Baldoz hailed the issuance of the advisory as timely and propitious, recognizing the importance of the tourism industry as key employment generator, bringing jobs and livelihood to local workers.
Series of Consultations
Prior to the issuance of the advisory, RTWPB IVB conducted a study and series of consultations with industry stakeholders in Calapan, City, Oriental Mindoro on September 19, 2013; San Jose, Occidental Mindoro on October 11, 2013 and Puerto Princesa, Palawan on October 8, 2013.
RTWPB IV-B Chairman Delson said that the results of the study and consultations showed positive business outlook in the tourism industry and the existence of various productivity and performance-based incentive schemes being unilaterally given by some establishments. He added that these incentives are based on performance standards like attendance, punctuality, innovation, sales quota and loyalty among others.
NWPC Pays Forward
by RTWPB IV-B Board Sec. Romeo E. Opis
Every year, NWPC assists institutions in need of used office equipment. By way of donation, the NWPC farms out used desks, tables, cabinets and even desktop computers to public schools, orphanages and other institutions mostly located in NCR.
Recently, the NWPC donated 36 used office equipment consisting of clerical desks, chairs, computer tables and filing cabinets to Oriental Mindoro’s Mary Help of Christians School.
Sister Ravena Dominguez, Technical Directress of the school was happy to receive the donation, which she said would be used by their students composed of indigenous members of the Mangyan community in Mindoro, specifically in the remote area of Lantuyan, Baco, Oriental Mindoro.
The charity work was coordinated by RTWPB IVB Chairperson Teodoro T. Delson, RTWPB-IVB Employer Representative Mr. Osias Navarro and Board Secretary Romeo Opis. Dir. Dir. Delson also committed to conduct productivity orientation for the school.
Sardines Canning Industry in Zamboanga City Warms Up for TTWS
By: Jerome P. Lucas
The Regional Tripartite Wage and Productivity Board - IX gathered at the Garden Orchid Hotel, Zamboanga City last 24 February 2014 to conduct its consultation meeting with the sardines canning industry stakeholders on the issuance of an advisory on productivity based incentive schemes.
In her welcome message, NWPC Deputy Executive Director Patricia P. Hornilla highlighted the importance of productivity based incentive scheme citing that “it embodies the very principle of inclusive growth where no one is left behind and where everyone gets a fair share in the fruits of production.” As a final note, she encouraged the industry to seize the opportunities for inclusive and productivity-driven growth and expansion, which are at the core of the wage reform.
It was then followed by a presentation of the results of the survey conducted by the Board among enterprises in the industry. Specifically, the survey presented the industry profile, labor productivity, productivity improvement programs and incentives practiced by enterprises in the industry.
The RTWPB-IX scheduled a focus group discussion with some of the key industry players to validate the results and improve the labor productivity measures for the industry.
NWPC employees attend briefing on competency based standards
By: Jerome P. Lucas
Last March 18, the NWPC convened a briefing on setting competency based standards for purposes of rationalizing recruitment, placement and training initiatives. The briefing was conducted by PSA Division Chief Mr. Manuel L. Laopao at the NWPC Conference Room.
Laopao said the setting of competency standards for each position is essential towards building the required internal capacities to effectively execute the policies and programs of the organization. He added it is important in career pathing and is a requirement for ISO 9001 certification.
Laopao focused his discussion on the building blocks of competency standards which include the key result areas, workflow, performance criteria and underpinning knowledge and skills.
Workers in Central Visayas receives P13 COLA per day
By: Atty. Jamie-Lyn Jamias-Garcia
The Regional Tripartite Wages and Productivity Board-VII granted a P13.00 cost-of-living-allowance (COLA) per day for workers in Central Visayas bringing the highest minimum wage rate in the region to P340 per day. The Wage Order took effect on 21 March 2014 having been published last 06 March 2014 in Sun Star Cebu.