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Bus Companies to Submit Compensation Schemes for Drivers and Conductors Following Revised Guidelines

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Bus drivers and conductors will soon be receiving part-fixed, part-performance based wages after the National Wages and Productivity Commission (NWPC) revised the rules that require bus companies to offer part-fixed compensation scheme to its employees.

Under NWPC Guidelines No. 1, Series of 2019, public utility bus owners and operators employing drivers and conductors shall submit a proposed part-fixed, part-performance-based compensation scheme to their respective Regional Tripartite Wages and Productivity Board (RTWPB). The proposed compensation scheme should be mutually agreed upon between the management and the drivers/conductors.

The compensation scheme for the drivers and conductors shall include a part-fixed component. The fixed wage shall not be lower than the applicable minimum wage, which consists of the local minimum wage and the cost of living allowance, or COLA. Other wage-related benefits such as overtime pay, night shift differential, service incentive leave, 13th-month pay, holiday, and premium pay shall form part of the fixed-wage component.

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On the other hand, the performance-based component of the compensation scheme shall be based on business and safety performance of the companies, along with other parameters which are consistent with the policy intention of Department Order No. 118, Series of 2012.

Revenue or ridership may determine business performance. Meanwhile, safety performance will look into the company’s traffic violations and expenses for payments of government fines or charges.

bus seats

The bus company or operator may modify or use another formula for their compensation scheme, as long as it is by the part-fixed, part-performance-based compensation scheme.

Bus owners should submit the proposed compensation scheme within 60 days before the scheduled confirmation of a bus unit.

Evaluation of the compensation plan

The RTWPB will evaluate the proposed compensation scheme for compliance with the provisions of the NWPC guidelines, within ten days of its receipt. If found compliant, the RTWPB will endorse the compensation plan for the approval of the Department of Labor and Employment Regional Director.

Once approved, the compensation scheme will serve as a basis for the issuance of a Certificate of a No Pending Case.

However, if the proposed compensation scheme is not compliant with the revised guidelines, the RTWPB will return it to the bus company, with a directive to adjust and amend the compensation plan based on the comments of the board.

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