The arbitrator stated that Executive Decree No. 7, p. 2010, on the moratorium on wage increases cannot violate the mandate of Article 244 of the Labour Code, such as the right of unknown COGs to conduct collective bargaining. “Upon receipt of its approval, the GOCC Board of Directors will approve the appropriate salary range under the CPCS, with due regard to GOCC`s ability to afford and sustain its implementation,” he said. The Inquirer asked finance and budget officials whether potential wage increases for GOCC workers could be funded from the 2022 state budget of 5.02 trillion pesos, but they did not respond late Friday afternoon. First of all, not all COGs are active. Those who are active have followed two different salary scales described in decrees 201 and 203, introduced by former President Benigno Aquino III. In the meantime, SSL-covered GCGOs must adopt the amended salary range, including allowances and benefits under Executive Order 201, once approved by the GCG. The interim measures outlined in Duterte`s purchase order also stipulate that officials and employees of these GCOCs who have served at least 4 months can receive one-month semi-annual bonuses no earlier than May 15. In the meantime, year-end bonuses and cash donations are awarded in November each year. “The increases have to go through my office, and I`m not inclined to increase your allowances, bonuses and salaries at this time,” Duterte said at his SONA.
Executive Order 201 establishes the salary range for the 21 GCOCs that are not covered by the GCG, as described in Republic Act 10149, also known as the GOCC Governance Act of 2011. The 21 CCGs include: The MCG will also have the authority to review and revise the salary system of CAGs exempt from the SO who elect to adopt Order in Council 201. “GCCOs that substantially meet the requirements of the CPCS upon approval of EO 150 will apply the salary structures, benefits, benefits and incentives retroactively as of October 5, 2021,” or the day after Duterte`s order is issued, the GCG added. SSL-exempt GCOCs covered by the GCG have the option of maintaining the current compensation system in their company or following the EO 201 salary range, subject to GCG approval. “In summary, we regret the fate of the petitioning workers of APO who seek to increase their wages. We cannot give an imprimatur to an act that is expressly prohibited by law,” the board said. In fact, the 97 active GCGOs covered by the GCG will follow a unified CPCS once drafted by the Governance Commission. “The classification determines the appropriate compensation system to be implemented by the GOCC. It takes into account the nature of operations, the financial viability to support their operations, and the size of the GCGOs,” the GCG said.
In a letter dated September 2, 2013, GCG responded to APO that compensation matters cannot be voluntarily agreed upon by APO`s Board of Directors with APEA under a collective agreement, as these matters “are subject to policies, policies and parameters prescribed and approved by the President.” He added: “You can`t do it alone, you have to get it through the executive secretary.” Last May, the proposed SCPC was approved by the bench GCG after consultation with two ministries – Budget and Finance – which have two seats on the MCG. Employees of national government agencies and agencies receive an annual salary increase under SSL, the fifth tranche of which began last year. By 2023, the government will spend 130.5 billion pesos on these wage increases. Prior to Duterte`s order, GCG-covered GCGOCs did not follow the same compensation system. Some GOCs overseen by the MCG fell under the Wage Standardization Act (HSA), while others were exempt. “We intend that those who receive under SSL from the national government are on an equal footing. at least,” Pascasio said, while CCGOs that already pay high salaries will not be affected due to the principle of non-mitigation of benefits. In a 24-page decision released Tuesday, July 9, CA`s First Division, through Associate Judge Ramon Cruz, ruled in favor of the APO production unit and overturned the October 1, 2019 decision of the National Conciliation Mediation Council (NCMB) ordering the implementation of its renegotiated collective agreement (CLA) with the Asian Productivity Employees Association (APEA) for 2014 and 2015. He also said the State-owned and Controlled Companies Governance Commission (GCG) “finds compelling reasons to review and/or reassess the CPCS.” Pascasio said CCGOs are also ranked based on their financial performance, specifically their assets and revenues. GOCs can begin adopting the SCP once they have received MCF approval, including classification, job evaluation results and prioritization. GCG Director Karen Pascasio explained to Senator Sherwin Gatchalian that the CPCS will standardize salaries for CCGOs, whether they are currently covered or exempt from the Wage Standardization Act (SSL).
MANILA, Philippines (UPDATE) – When President Rodrigo Duterte, in his second State of the Union (SONA) address, expressed frustration with the excessive salaries and bonuses received by officials and employees of state-owned and controlled companies (SOCC), he signed an executive order 4 days later, on Friday, July 28, establishing the Compensation and Position Classification System (CPCS), which describes the salaries of GOCC public servants. However, the heavy but unauthorized benefits, incentives and allowances that some GCCOs receive are becoming “normalized,” she added. There are no comments yet.