Bus operators told to comply with new pay rules

LABOR officials warned Tuesday bus operators that their failure to follow the new wage rules for bus drivers and conductors could risk their chances of having their franchises not being renewed.
 
In a press conference Tuesday, National Wages and Productivity Commission (NWPC) Executive Director Ciriaco Lagunzad said the labor department holds a power to punish those who will be violating its Department Order 118-12.
 
"The reserve powers of the department of labor will always be there because these are standards based on the law," said Lagunzad.
 
Particularly, Department of Labor and Employment (Dole)–National Capital Region (NCR) Director Alan Macaraya said the bus operators, who will fail in complying with the rule risk of not being able to renew their franchises with the Land Transportation Franchising and Regulatory Board (LTFRB).
 
"The Certification of Compliance issued by us is a requirement. Kapag wala silang maipakitang certificate, their renewal will be denied by the LTFRB," said Macaraya.
 
Labor officials said this is aside from the inspections and memorandums that may be sent by the Dole, through their regional offices, if ever they receive complaints of violations.
 
Lagunzad said they are giving bus operators based in Metro Manila until the middle of 2012 for them to be fully compliant with the order.
 
Dole earlier issued Department Order 118-12 or the Rules and Regulations Governing the Employment and Working Conditions of Public Utility Bus Transport Industry, which provides for a part-fixed, part-performance compensation plan of all bus companies.
 
In the Operational Guidelines issued by the NWPC, the part-fixed wage may be based on a time unit of work or on a per trip/kilometer basis.
 
For the time rate fixed wage system, the basic wage will be added to the wage-related benefits while the trip based fixed wage will be the rate per trip multiplied by the number of trips per day.

On the other hand, the performance-based wage system shall be based on business performance, and other safety performance of the buses.

The NWPC said the performance-based component may be computed by using the current average daily earning less the fixed wage multiplied by the value given to traffic violations or road accidents, wherein the lower they are, the higher is the incentive.

"If you look at it on a daily basis, bababa talaga ang kita ng driver since their working hours will be limited to 12 hours. But if you look at it on a larger scope, their earnings will go up since they will have additional working day," Lagunzad said. (AMN/Sunnex)