Advisory on the Implementation of Productivity-Based Incentive Scheme for the Bus Transport Industry in Region X

February 21, 2014NWPC ADVISORYADVISORY ON THE IMPLEMENTATION OF PRODUCTIVITY-BASED INCENTIVE SCHEME FOR THE BUS TRANSPORT INDUSTRY IN REGION XWHEREAS, the Regional Tripartite Wages and Productivity Commission-X (RTWPB-X) is mandated to implement the Two-Tiered Wage System (TTWS) as per NWPC Guidelines No. 02, Series of 2012, wherein the First Tier is the minimum wage component and the Second Tier is the issuance of advisories to guide industries in developing productivity incentives program, which may be used as basis for employer initiatives or enterprise-level negotiations. WHEREAS, the Second Tier is design to shift the pay structure based on productivity, performance, quality, profit and other pay-related criteria; and allows for collective bargaining to flourish. It consists of productivity incentives programs based on agreement between workers and management;WHEREAS, the productivity incentives program is a means by which workers are motivated to improve work performance through a reward system, thereby increasing organization's productivity, it also aims to foster teamwork, improve product or service quality, and enhance labor management relations;WHEREAS, this advisory is voluntary in nature and is issued to encourage...