Business World

Bus operators want wage scheme to pay drivers more

- Gillian M. Cortez

BUS operators said one of the flaws of the part-fixed and part performanc­e-based salary scheme being enforced by the labor department is the failure to recognize the need to pay bus drivers more than conductors.

The Department of Labor and Employment (DoLE) is in the process of consulting stakeholde­rs on its plan to eliminate performanc­e-based compensati­on for bus employees. The old pay scheme, the so-called “boundary” system, is thought to have encouraged reckless behavior on the part of bus drivers and conductors, who speed between pickup points and linger there to maximize their passenger haul.

The operators aired their concerns at a consultati­on conducted by DoLE.

Provincial Bus Operators Associatio­n Executive Director Alex Yague said drivers need to be paid more than conductors because of their greater responsibi­lities, noting that the pay differenti­al is about 2 to 3%.

Labor Undersecre­tary Ciriaco A. Lagunzad III said that bus operators and their employees can come up with their own wage agreements as long as they are compliant with Department Order (DO) 118-12, which was first issued seven years ago.

DO 118-12 only requires that the fixed-wage component of employee compensati­on must be agreed upon by the bus operator, owner, driver and conductor and should not be below the prescribed minimum wage. The performanc­ebased wage component is computed as the current average daily earnings minus the fixed wage.

Last month, the National Wages and Productivi­ty Commission (NWPC) issued NWPC Guidelines No. 1, Series of 2019 which called for stricter enforcemen­t of the wage system for the compliance of bus owners and operators.

Bus operators and owners need to submit to their respective Regional Tripartite Wages and Productivi­ty Board (RTWPB) their proposed compensati­on schemes. —

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