Batas Kasambahay epektibo naAkda ni: JULIE CALLOPE-LLORENTE

Maaari nang humingi ng karampatang sahod at mga benipisyo na naaayon sa Republic Act No. 10361 o Batas Kasambahay ang mga kasambahay sa kanilang amo.

Ayon sa nasabing batas, hindi dapat bumaba sa dalawang libu’t limang daang piso (P2,500.00) ang buwanang sahod ng isang kasambahay na namamasukan sa Kalakhang Maynila (NCR).

Samantalang ang mga kasambahay sa mga pangunahing siyudad at munisipalidad ay dapat tumanggap ng hindi bababa sa dalawang libong piso (P2,000.00).

Sa mga namamasukan naman sa iba pang bahagi ng bansa, ang sahod na kanilang matatang-gap ay hindi dapat bumaba sa isang libo’t limang daang piso (P1,500.00).

Ang kanilang sahod at mga deductions ay dapat nakasaad sa kanilang natatanggap na bu-wanang payslip.

Bukod pa rito, kinakailangang din silang big-yan ng 13th month pay at mga social protection benefits gaya ng SSS, PhilHealth at Pag-IBIG. Ang kontribusyon sa mga ito ay babayaran ng

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NEDA’s 2013 forecasts: good news at the horizon

NEDA Dep. Dir. Gen. Emmanuel Esguerra expects brighter economic prospects for the country in 2013 after an impressive 6.5% GDP growth was registered for the first quarter alone. Esguerra made the forecast during the NWPC’s Strategic Pre-Corporate Planning held on January 14 at NWPC Conference Room where NWPC and RTWPB of� cers participated.

Growth trend

The massive in� ux of OFW remittances during the previous Christmas season has fuelled this trend.

“Despite the � scal-cliff issue in the US and the currency problem in Europe, we have proven that the country is resilient enough to weather these risks due to our limited trade linkages with them,” he said.

Esguerra cited in particular China, which has remained buoyant in the midst of global economic risks, as a strong trading partner.

He also shrugged of f concerns over a strengthening peso. Esguerra’s optimism is based on strong performance of export, tourism, trade, and BPO industries, and in� ux of OFW dollar remittances.

NEDA Dir. Emmanuel Esguerra (left panel) relays his ‘fearless’ forecasts for 2013 with attending NWPC offi cers and RB Board Secretaries (right panel) lending their full attention.

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Volume 17 � Number 1 March 2013www.nwpc.dole.gov.ph

The Offi cial Newsletter of the National Wages and Productivity Commission

LearningSession on post employment

Wage update for MIMAROPA

The story of Farmtec Foods Inc.

Productivity trainings at the regionsp.2 p.5 p.6 p.8

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Post employment issues explained

DOLE and NWPC information officers observed that the most common phone-in queries center on issues concerning separation pay, grounds on dismissal from work and other post-employment issues.

To give light on these post-employment issues, the Learning Session last February 21 had a competent resource person in Atty. Melisa San Miguel-Saluñga from the Bureau of Labor Relations (BLR).

Atty. Saluñga explained that post employment issues form part of a larger system called Labor Relations. This system in turn acts like a mechanism putting things in proper order “including the ideal relationship between management and the employees,” she added.

Post employment concerns cover two basic concepts of Labor Relations namely ‘management prerogative’ and ‘security of tenure’. “Ideally these two concepts should not be in con� ict with each other, and requires a skill to balance competing interests between management and terminated workers”.

She said that the company owner’s ‘management prerogative’ and workers’ ‘security of tenure’ are not absolute rights.

While DOLE is required under the Labor Code to resolve labor cases in favor of the safety and decent living of the laborer in case of doubt, if the dismissal was authorized, i.e. with just cause and due process, the same may be upheld.

NEDA’s 2013 forecasts from page 1

NWPC Exec. Dir. Ciriaco Lagunzad III also shared his insights on the 2013 local elections. He expects elections to stimulate huge spending which might affect in� ation level. He cautioned NWPC of� cers on politicians running for elections using the populist approach on the wage issue to gain support.

Apparent disconnect between economic growth and employment

When asked how is it possible for unemployment rates to remain static despite the growth trend, Esguerra replied that employment � gures are not responsive to the country’s economic gains. He said that poverty incidences remain the same despite growth in employment.

“I think poverty translates more to the change in the quality of jobs than the loss of jobs,” he said. Esguerra explained that the poor knew that they cannot afford to be unemployed and so they are willing to take on low paying jobs than remain jobless or unemployed.

Dep. Exec. Dir. Patricia Hornilla agreed with Dr. Esguerra pointing out the obvious disconnect in the levels of employment and the country’s economic growth. Esguerra added that for the public to really benefit from whatever progress the country has reached to-date, we should not only look at the high � gures but focus more on sustaining them.

Incentivizing productivity

At this point, Dep. Exec. Dir. Esther Guirao reiterated the need to incentivize productive workers. The implementation of the second tier of the Two-Tiered Wage System (2TWS) can serve as a vehicle for Regional Wage Boards to give due rewards for workers who have contributed to � rm’s greater performance.

“We should be there not just in times of crisis but also during good times,” Guirao said. The 2nd tier on productivity incentives, provides a mechanism for companies to augment deserving workers’ salaries even on days when the country seems to be doing well. “NWPC’s work is in the mainstream – we work during bad times and good times,” she proudly stated.

Convergence is the key

Exec. Dir. Lagunzad disclosed that this year, NWPC will be working more with its ‘sister’ agencies in DOLE as “the in-thing this year is convergence.” He

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BLR’s Atty. Melisa Saluñga (left panel) discussing the intricacies of labor relations to her audience ( r i g h t p a n e l ) o f H R s t a f f e r s a n d o f f i c e r s .

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Photo ops of the AIMM offi cers and members fl anking PIA Dir. Gen. Jose Mari Oquiñena (center; seated).

Info officers urged to inspire nation building

“Be an inspiration officer, not just an information of� cer,” urged the newly appointed Head of the Philippine Information Agency (PIA) during a recent gathering of information of� cers in Quezon City.

Director General Jose Mari Oquiñena’s rallying cry came at an opportune time to start the year’s � rst of many meetings for the Association of Information Of� cers in Metro Manila (AIMM).

AIMM is a professional network of information officers from 17 LGUs and key government agencies within NCR tasked to disseminate information on the various government development initiatives. The group is also mandated to implement communication campaigns in support of development plans for Metro Manila.

Oquiñena encouraged AIMM to partner with PIA in delivering not just news items but ‘inspirational’ information that will ignite the spirit of nation building. “Hopefully we can bring the government (much) closer to the people through social marketing and mobilization,” he added.

The new PIA Head’s call for nation building was further reiterated when he presented plans to push through with the 2013 “Bayani Challenge” – originally an offshoot of a disaster response action, this outreach program is now part of the government’s strategy to stir up volunteerism towards positive change in the country.

The said � ve-day event is scheduled to take place during the Holy Week or the last week of March with community-based initiatives spurring simultaneously across the nation. Oquiñena was quick to remind AIMM though that the Bayani Challenge is open to all age groups, civil servants included, and not just the youth.

With this, he even invited AIMM members and their colleagues at work to organize themselves into teams of 15 and join the action-oriented program for a noble cause. “Change (in our country) will not happen if we remain an audience,” the PIA Head hinted. (Story by: Andrew P. De Guia)

Batas Kasambahay from page 1kanilang amo maliban na lamang kung ang sahod na natatanggap ng kasambahay ay nagkakahalaga ng limanlibong piso (P5,000.00) o higit pa. Sa gay-on, kailangang makihati sa kontribusyon ang mga kasambahay.

Mayroon ding karampatang limang araw na an-nual service incentive leave with pay ang kasamba-hay na nanilbihan ng isang taon o higit pa.

Iniutos din ng batas na bigyan ng walong oras kada araw at 24 oras o isang araw kada linggo ang mga kasambahay para sa anumang sumusunod: pahinga; personal o panrelihiyon na lakad.

Ayon pa dito, ang edad ng isang kasambahay ay hindi dapat bumaba sa kinse.

Upang masiguro ang pagpapatupad ng Batas Kasambahay, ang DOLE ay magtatatag ng isang regulation and licensing system para sa mga Pri-vate Employment Agencies na nagri-recruit ng mga kasambahay.

Ang sinumang lalabag sa kautusang ito ay tatanggap ng parusa at multang nagkakahalaga ng P10,000.00 hanggang P40,000.00.

Inaasahang sa pamamagitan ng batas na ito ay mas mabibigyan ng proteksiyon at mas mapapa-ganda ang kalagayan at kondisyon ng empleyo ng mga kasambahay.

Inilathala sa Philippine Star at Manila Times ang RA 10361 noong ika-19 ng Mayo kaya sa ika-4 ng Hunyo magiging epektibo ang nasabing batas. Ang Implementing Rules and Regulations ay kasalukuyan pang binabalangkas ng Kagawaran ng Paggawa at Empleyo (DOLE).

Feature NEWS

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NWPC, Singapore’s Nanyang Polytechnic and Temasek Foundation join forces to lift Philippine productivity

Written by: JULIE CALLOPE-LLORENTE

NWPC will be sending 120 selected participants to Singapore to develop them as productivity profes-sionals in a bid to improve Philippine productivity performance.

The series of training highlights the partner-ship agreement with Singapore’s premier training institute Nanyang Polytechnic and philanthropic organization Temasek Foundation. It started April this year and will end on March 2014.

According to NWPC Exec. Dir. Ciriaco Lagunzad III who spearheads the program, the participants in this training will be the pioneer group of the Philippine Productivity Professionals whose main task is to assist MSMEs in their productivity and quality journey.

The participants are also expected to cascade their learnings to other DOLE frontliners, thereby transforming them from being mere regulator and enforcer of labor laws to agents of development.

The participants—90 from DOLE and 30 from MSMEs—are divided in three groups. The � rst group is composed of ten senior of� cials from DOLE and ten CEOs and owners of selected MSMEs. The sec-ond group are productivity program managers, and the third are productivity specialists.

Dir. Lagunzad disclosed that the � rst group is scheduled to � y to Singapore this April 1st for one-week training. Then, the 2nd group will follow for a 2-week training and � nally the 3rd group for a 5-week training.

“The training is designed to cover topics on pro-ductivity concepts, measurement and metrics, prob-lem identi� cation and problem solving techniques, productivity improvement tools and systems, value chain productivity management, green productiv-ity, production management, quality programs for service companies, gainsharing schemes and study visits to companies, productivity and quality organi-zations,” Dir. Lagunzad added.

Dir. Lagunzad is optimistic that this training will have a signi� cant contribution in improving the productivity and competitiveness of MSMEs which constitute 99% of the country’s total estab-lishments.

Saluñga advised companies “to be compassionate in exercising management prerogative and cautioned that abusing employees’ right to security of tenure is a big no-no”.

Likewise she said that termination of work can be done by both management and the employee:

“Termination of work by the company can come in the form of an actual or constructive dismissal. On the other hand, termination of work by the worker can come in the form of a resignation or abandonment.”

She reminded the audience that payment of separation pay should not be associated with resignation because the latter was initiated by the employee while job separation came from management with qualifying conditions itemized under the law.

During the open forum, one of the participants asked whether an aggrieved employee may opt to be constructively dismissed vis-a-vis paid the separation pay, instead of being reinstated, to which Saluñga replied that “this option is under management prerogative and not by the worker’s unless there is already a strained relations between the worker and management”.

She also discussed the salient rules on back pay, back wages, and prescription for money claims.

This particular Learning Session was attended by 54 participants representing 40 companies. This event is held twice a month at the NWPC Conference Room, Dy International Building, Malvar St., cor. San Marcelino St., Malate, Manila. Interested parties may call tel. no. 527-8014 or e-mail at web.nwpc@yahoo.com for reservation.(Story by: Andrew P. De Guia)

Post employment issues from page 2

All of our dreams can come

true if we have the courage to pursue them.

Walt Disney

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The administrative region of MIMAROPA, also known as the Southern Tagalog Islands, covers the provinces of Marinduque, Occidental Mindoro, Oriental Mindoro, Palawan, and Romblon.

Feature NEWS

NEDA’s 2013 forecasts from page 2

surmised that NWPC will collaborate with NCMB and DOLE-HRDS for a possible 2TWS Training for Labor Conciliators/Mediators. NWPC will also be working closely with OSHC to incorporate productivity modules within OSHC’s Safety and Health Training regimen.

Other partnerships include BWC for their conduct of E-TAV, WIMS, and further development of the Productivity Specialists; BLR in revising the course syllabus on Labor Education. Instead of making productivity the last topic in the labor education program, it will be frontloaded given its importance in sustaining economic growth.

Other prospects

To conclude his brief forecast for 2013, Esguerra con� rmed reports on the return of the local automotive industry. The said industry is expected to surge this year with more and more brand new cars noticeably roaming the streets. Lagunzad also reported that Singaporean experts look forward to the country’s transformation into a manufacturing ‘powerhouse’. “The Philippines may even end up becoming Singapore’s largest supplier very soon,” Lagunzad quipped.

Esguerra also expects growth in the service industry like public transport (i.e. rent-a-car), telephone service, labor recruitment, including allied services in the tourism industry. “We have high expectations on the tourism industry because of what Secretary Ramon Jimenez Jr. has done in putting the country on the global tourism radar,” Esguerra said. (Story by: Andrew P. De Guia)

W A G E U P D A T E

New wage hike for M I M A R O P A

Effective February 1, minimum wage earners in Region IV-B will receive basic wage increase ranging from P1.00 to P66.00 under Wage Order No. IV-B-06. Cost-of-Living-Allowance (COLA) was also granted in the amount of P5.00.

The latest wage hike for MIMAROPA effectively brings up the wage rates of covered workers from P142.00-P264.00 to P205.00-P275.00. Area classi� cations were regrouped into four clusters namely: (1) the highly urbanized city of Puerto Princesa; (2) Calapan City, Puerto Galera, El Nido and the island of Coron; (3) � rst class municipalities of MIMAROPA; and (4) the rest of the region.

Minimum wage earners belonging to the retail/service establishments employing ten (10) workers and less in the highly urbanized city of Puerto Princesa in Palawan, gets the highest increase (P66.00)

Minimum wage earners who belong to non-agricultural companies employing ten (10) workers and less do not get any wage adjustment.

The Regional Tr ipart i te Wages and Productivity Board for MIMAROPA (RTWPB-IV-B) granted the wage hike after a series of public consultations and dialogues in the island provinces of Mindoro, Palawan and Romblon.

The adjustment was granted by the Board motu propio, meaning, without any petition � led

by any organized group or labor association within the region.

In line with NWPC’s two tiered wage system, the Regional Wage Board shall also issue an advisory implementing the 2nd tier or the performance-based pay.

Essentially, the said advisory shall serve as guidelines for firms indicating the range of productivity bonuses and incentives that they may provide to their employees subject to the agreement between the labor and management sector.

Wage Order No. RB IV-B-06 was published on January 17 at The Manila Tribune.

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Some Productive Farm

Herbs and spices have come a long way from days of yore when they can only be found, with luck, somewhere in the littlest nook of the town market.

Thanks to pioneering entrepreneurs, many food ingredients are available nowadays in powdered form, which you can buy in supermarkets and even in some “sari-sari” stores. More than anything else, these products save us the trouble of going through the process of mixing, chopping and grinding.

Farmtech Foods Inc. (FFI) is one of these pioneering enterprises. Aside from its top seller chili powder, FFI’s other original products include powdered tamarind and shrimp.

Located in Silang Cavite, FFI is a modern version of the folklore song Bahay Kubo where you can � nd various products such as powdered turmeric, ginger, onion, bay leaves, kasubha, guava, gabi and ube. They have also powdered squash, ampalaya, banaba, camote and chili leaves, lagundi, malunggay, oregano, pandan, saluyot, sambong and many others.

“Farmtech was established not only for pro� t, but also to help our people by providing them jobs and to preserve the environment,” explains Fabian G. Espiritu, founder and owner of FFI.

One Busy Place

When FFI was first established in 1989, Espiritu simply wanted to start a backyard enterprise to keep himself busy. He has just left his work at Wise Choice Foods where he has been employed since 1981. The enterprise began with three workers and was initially registered under Kalakalan 20 as FGE Farmtec (Food and Agro-Milling Technologies).

A garage and an old warehouse in his home were used as makeshift production operations station. An old bakery oven was converted into a dryer. Galvanized iron sheets were fabricated into

drying trays which were later enlarged using liquid petroleum gas as heat generator. Other production equipment were either leased or borrowed during the initial months of operation.

From a meager savings of PhP 47,000.00, the enterprise steadily grew into a family corporation over the course of � ve years, with other relatives taking part in the business venture. FGE Farmtec became Farmtec as registered with the Securities and Exchange Commission.

In 1995, it acquired the sterilization facilities of Grif� th Laboratories, Phil. in Sta. Rosa, Laguna. The laboratory served the technical needs for R & D and quality assurance, not only of the company but also of other food and pharmaceutical companies.

Its plant in Silang, Cavite has the capacity to dry more than 3,000 kilos of fresh raw materials, pulverize 2,000 kilos of dried products and mix 2,500 kilos of powdered products.

With growing demand for indigenous and locally manufactured products, FFI saw an opportunity for expansion. The three original products of powdered chili, tamarind and shrimp increased to 15 regular products consisting of herbs and spices, fruits and berries, root crops and tubers, vegetables, and other seafood derivatives.

Among these are (spices) powdered chili, onion, turmeric, ginger, bay leaves, kasubha; (fruit) guava and tamarind; (root crops and tubers) gabi and ube; (vegetable) squash; (seafood derivatives) shrimp and anchovy; (teas and herbs) alagaw, ampalaya, balbas pusa, banaba, camote leaves, chili leaves, guava leaves, kulitis, lagundi, pandan, saluyot, sambong and other products. It also produces chicken fat (oil) which is used as chicken � avoring.

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2011 Productivity Olympics Winner

(Editor’s Notes: For this issue, we feature a National Winner of the 2011 Productivity Olympics: Farmtec Food Incorporated, a small-sized industry fi rm from Silang, Cavite.)

Success STORIES

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Success STORIESSome Productive Farm from page 6

“When we started, most of our raw materials were delivered on a 30-day credit. I was fortunate that my last job was in food dehydration with Wise Choice Foods. Besides my technical knowledge in production, my graduate degree in Master of Agribusiness Management helped a lot in managing the business,” recalls Espiritu. “Owing to my previous work, I knew where to source the raw materials and where to market my products which I had already established in the past.”

Hitches along the entrepreneurial journey

Like any other new business enterprise, F F I e n c o u n t e r e d h i t ches a long i t s e n t r e p r e n e u r i a l journey. Capital is the foremost , but with good collateral, the company was able to obtain a loan from a local bank which they used to buy raw materials needed to increase stock for seasonal agricultural products.

Still, even with ava i l ab l e cap i ta l , g e t t ing abundant supply of raw materials all year-round was a big problem. A farm-to-company marketing/purchase agreement was reached through the Land Bank and the local government unit with some cooperatives in Bicol province for large-scale production of chili, but the deal did not push through as no delivery was made.

“We always encounter a problem on the supply of raw materials like dried or fresh chili and semi-dried alamang. We had to tap chili producers from Nueva Ecija and Pangasinan, and went even as far as Iloilo, Basilan and Bukidnon in order to meet the increasing demand of our products. Our alamang was supplied by the wholesale stores in Divisoria, and so we went down to another level, the assemblers (re: people who make and maintain aquariums for a living) who procure directly from small � shermen,” explains Espiritu.

When cost of interest rate peaked up to 45% in 1997, the company experienced dif� culty in paying its loans, resulting in higher cost of production thereby affecting sales and revenues due to a drop in market demand for its products.

Sizing up through productivity improvement

Although FFI had its better share of the market, Espiritu knew that there is still a big room for improvement in the company in terms of productivity and competitiveness. In 2008, the company, through the assistance of the Regional tripartite Wages and Productivity Board for CALABARZON (RTWPB IV-A), was enrolled as a bene� ciary of its productivity

i m p r o v e m e n t program.

After conducting business diagnostic, t h e B o a r d s a w particular areas of i m p r o v e m e n t o n the workp lace in terms of machines, manpower, methods and materials used. Some of these include: ( o n m a n p o w e r ) i n s u f f i c i e n t knowledge and skills o n p r o d u c t i v i t y programs; absence of systematic selection of competent and qualified manpower; (on methods) lack of in-house laboratory tests for f in ished products aside from moisture constant and sensory evaluation;

most of the processes used were manual and not machine operated; inadequate labelling of in-process products; and lack of documentation of all processes.

RTWPB IV-A likewise made the following observations: (on materials) wooden pallets used for incoming raw materials were placed in improper containers; materials were received in an uncovered area and placed directly on the � oor; (on machines) no regular preventive maintenance; some machines were not stainless; no digital weighing scales; and use of fabricated/second hand machines; (on workplace) absence of partition between process

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Farmtec diversifi ed its product line-up to a wide variety of herbal powders extracted from medicinal plants indigenous to the country.

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Productivity Talks @ the RegionsR E G I O N A L U P D A T E S

Female entrepreneurs in Manila briefed on productivity(January 11)

Report from: Regional Wage Board for the National Capital Region (RTWPB NCR)

32 potential entrepreneurs in Barangay 410, Zone 42 of Sampaloc, Manila were briefed on the importance of productivity in sustaining business/livelihood activities by the Regional Wage Board of NCR. Organized by DOLE’s Regional Of� ce for NCR, the event is essentially a capability-building seminar geared to bene� t the parents of child laborers under the “Child Labor-Free Barangay Program” of DOLE. The participating parents will be given start-up capital to jumpstart their own livelihood projects.

Two companies in Pampanga undergo Service Quality Training(February 5 to 6, 8, and 22)

Report from: Regional Wage Board forCentral Luzon (RTWPB III)

The Regional Tr ipart i te Wages and Productivity Board for Central Luzon (RTWPB III) sponsored two (2) in-housed Service Quality (SQ) Workshops in San Fernando City. The first is City Grill, an open barbecue-themed restaurant, with two (2) managers and three (3) supervisors attending the two-day event. The second company is Hotel Gracelane, an 11 year old halfway home to travelers and

tourists, with 28 participants representing all service departments going through the intensive program. SQ is a training intervention specially designed for workers in standard/economy hotel and restaurant establishments that aims to enhance the knowledge and skills of the industry’s workforce by providing “error-free” service to its clients.

Manufacturing company in Clark briefed on productivity strategies(February 7)

Report from: Regional Wage Board forCentral Luzon (RTWPB III)

RTWPB III, with the assistance of trainers from the NWPC, trained of� cers from the Paci� c Carpet Manufacturing Corporation on the basics of productivity improvement practices. Said company was nominated by the Wage Board for possible inclusion to the Singapore-bound Philippine Productivity Professionals Program and as such, the company must possess fundamental knowledge on productivity improvement technologies. Said program aims to develop a core of productivity professionals who will act as ‘change agents’ and assist micro small medium enterprises to become productive, therefore

contributing to the nation’s competitiveness.

RTWPB NCR conducts specialized ISTIV for middle and top management professionals(February 14 to 15)

Report from: Regional Wage Board for theNational Capital Region (RTWPB NCR)

33 supervisors and managers from 13 manufacturing and service � rms attended a 2-day ISTIV Productivity Awareness Program

(PAP) at the NWPC Conference Floor in Malate, Manila. The bene� ciary companies for this special training event were carefully chosen from the NCR Wage Board’s database of TMS, LHP clients, and applicants for wage exemption. RTWPB NCR’s Board Secretary Ms. Aida Andres, Ms. Aurora Quitlong and Ms. Marilyn Advincula facilitated the program. ISTIV is a values-driven human

Top panel: facilitators and participants of the SQ Program in City Grill / Lower panel: lecture portion with employees of Hotel Gracelane

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Some Productive Farm from page 6

areas; storage room for packaging materials are not properly enclosed; receiving area is not enclosed to prevent entry of birds and other pests.

Taking on the competitiveness challenge

Determined to boost its productivity and competitiveness, FFI upgraded its laboratory capabilities with the acquisition of a modern laboratory equipment under the Department of Science and Technology’s Small Enterprise Technology Upgrading (SETUP) Program. This allowed not only faster results of microbiological analyses but also yielded big savings on cost of third party analysis. In particular, the program netted the company a total of PhP 958,305.00 savings from June 2008 to December 2010.

To ensure compliance of management system to audit standards as well as statutory, regulatory, and customer requirements, workers of FFI underwent trainings on GMP, HACCP, and ISO 22000:2005 Food Safety Management System Certi� cation by SGS Philippines, Inc. A personnel was also sent to train on International HALAL Awareness Seminar to comply with the religious requirements observed by all Muslims worldwide.

The impact of these trainings resulted in improved customer con� dence, compliance with high standards of local and export markets, more systematic documentation of the systems, procedures and processes, improved quality and productivity, and increased sales. From PhP 26.6 Million total revenue earned in 2009, the same grew to PhP 35.5 Million in 2010 or an increase by 33.43%.

Given its improved performance, FFI rewarded its employees with gain-sharing in the form of annual bonus equivalent to 50% of monthly salary per employee.

The company likewise imbibed the teachings of 5S Good Housekeeping and ISTIV to encourage clean, safe, and orderly workplace. The impact was a highly motivated workforce and more systematize and safer workplace.

Taking care of the environment and community

As part of its program on environmental protection, the company sent its personnel to trainings on environmental cost and controlling, including a training on Green Philippine Islands Sustainability Project (GPIoS). These trainings not only accorded the company a Green Philippines

Eco Switch Award (Eco Focus Programme), but more importantly, it reduced waste generation, improved equipment utilization through less energy consumption, improved facility for solid waste and generated savings from its energy-saving program to increase ef� ciency.

To help the community, the company extended social program by giving seasonal job opportunities to residents, including � nancial assistance for municipal and barangay activities and projects.

A � tting reward

In 2011, the company was given one of the highest accolades on productivity improvement in the country, a Productivity Olympics award, given no less by Labor Secretary Rosalinda Dimapilis-Baldoz.

Espiritu advises budding entrepreneurs to grab the opportunity of tapping government assistance, like the productivity improvement program of the NWPC and RTWPBs.

“FFI truly owes a debt of gratitude to the NWPC and RTWPBs for were it not for their productivity intervention program, my company would not have been as competitive in the industry as it is today due to high production cost and low sales turn over. They should continue this program to encourage MSMEs not only to harness the potentials of their human resource, but also to ensure proper use of machineries and effective management of capital resources for ef� ciency, quality and food safety standards.” (Story by: Romeo E. Opis)

Farmtec’s Founder Mr. Fabian Espiritu (right) received the trophy and cash price from Labor Secretary Rosalinda Dimapilis-Baldoz (left)

during the Awarding Ceremonies dated 27 October 2011.

Success STORIES

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NCR conducts specialized ISTIV from page 8

Productivity Talks @ the Regionsresource strategy for quality and productivity (Q&P) improvements rooted on the five ideal attributes of a productive individual namely “I” for industrious, “S” for systematic, “T” for time-conscious, “I” for innovative, and “V” for strong value for work.

Roxas City hosts Service Quality Training for hotels and restaurants(February 15 to 16)

Report from: Regional Wage Board forWestern Visayas (RTWPB VI)

Managers from 12 hotels, resorts and restaurants in Capiz convened at the MVW Restaurant and Tourist Inn for a two-day Service Quality (SQ) Workshop. Said event was sponsored by RTWPB VI with assistance from the Association of Resorts, Restaurants and Hotels in Capiz (ARRHC). Ms. Imelda Caeg, President of ARRHC, acknowledged the wage board’s valuable contribution in further improving the industry’s service capabilities via responsive training interventions such as the SQ program.

Left to right: RB NCR’s Ms. Marilyn Advincula, Board Secretary Aida Andres, and Ms. Aurora Quitlong

Participants of the SQ Program in Capiz busily collaborating with peers during the group activities unique to the training initiative.

TTWS Wage Reform Maiden Public Discussion appreciated

The RTWPB X organized a dialogue with media groups on the Two Tiered Wage System (TTWS) at the DOLE-X WODP Training Center, Cagayan de Oro City last March 4, 2013.

The activity was part of the continuing education and orientation on different programs and services of the DOLE RCC including the TTWS as a wage reform. Twelve (12) tri-media groups in Northern Mindanao attended the activity.

The discussion focused on the current wage � xing system under RA 6727 and the shift towards TTWS. RTWPB X Board Sec. Estrella U. Pahalla clarified that the TTWS does not deviate from the current system, and is intended only to address its unintended outcomes such as in� ation, unemployment or closure of businesses, disincentive to collective bargaining and others.

Board Sec. Pahalla added that the TTWS seeks to give protection to the informal sector which, despite comprising 92% of the total workforce, is excluded from the coverage of wage order. Meanwhile, the current system also encroaches on the collective bargaining while enforcement rate is recorded below its

RTWPB X Board Secretary Ms. Estrella U. Pahalla (right; standing) speaking before a handful of media delegates during the public forum.

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NWPCBulletin1st Quarter 2013

TTWS Public Discussion from page 10

Feature NEWS

Left to right: Mr. Luis Biel of Biel Transport, Mr. Elidel Arcillas of Liza May, Mr. Albert Gutib of DOLE Regional Offi ce IX and RTWPB

IX Board Secretary Joel Ijirani evaluating the buses of Starlight Express (at the background) in Zamboanga del Norte

Two ZamPen Bus Operators receive LSCCs

D’ Biel Transportation Co., Inc. in Isabela City, Basilan and Starlight Express in Midsalip, Zamboanga del Sur were recently awarded the Labor Standards Compliance Certificate (LSCC) during the 1st ZamPen Regional Occupational Safety and Health Summit last February 20, 2013 at Marcian Garden Hotel, Zamboanga City.

The LSCCs were personally handed by Occupational Safety and Health Center (OSHC) Executive Director Teresita S. Cucueco and Department of Labor and Employment-9 Regional Director Sisinio B. Cano

Cucueco expressed her appreciation to the bus operators as the compliance shows a concern for the welfare of their employees particularly the drivers and conductors.

Likewise, Cano praised the operators for complying with the LSCC requirements and added that their technical working group shall continue to assist them to ensure adherence to general labor standards, social protection bene� ts and occupational safety and health standards required under the DOLE’s Department Order No. 118-A.

“At present, three bus companies in Zamboanga Peninsula Region have been awarded LSCCs,” Cano added.

A series of evaluations was conducted in November 2012 and January 2013, where Mr. Luis R. Biel IV, ITC President, actively participated.

Ms.Araceli Albor, owner of Starlight Express conveyed her thanks to the group for the technical assistance extended to them in complying with the requirements under DO 118-12.

It can be recalled that last year, the Land Transportation Franchising and Regulatory Board (LTFRB) added the LSCC as a major requirement for the application and renewal of bus franchise all over the country.

target of 85%.

The TTWS forms part o f DOLE’s institutional response to the President’s 22-point agenda on labor and employment, particularly with regard to affording protection to the rights of workers to take active part in policy making, including enhancement of tripartite cooperation, promotion of industrial peace and social protection to all workers including the informal sector.

Meantime, the lively discussions on average wage, � oor wage and poverty threshold drew positive response from the participants, giving the DOLE-NWPC/RTWPB’s con� dence and readiness to implement the TTWS. (With reports from: the Regional Wage Board for Northern Mindanao - RTWPB X)

Before a bus company is issued an LSCC, they should first develop a “part-fixed, part-performance” based compensation scheme and comply with all other requirements under DO 118-A. (With reports from: the Regional Wage Board for the Zamboanga Peninsula - RTWPB IX)

Romeo E. OpisAndrew P. De GuiaJulie Callope-Llorente

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OIC Executive Director Maria Criselda R. Sy Deputy Executive Director Patricia P. HornillaOIC Deputy Executive Director Elvira P. Jota

Director Jeanette T. DamoDirector Ahmma Charisma L. Satumba

Attorney Welma T. Sicangco

Dear NWPC,

Good day. I wish to inquire about the basic wage in NCR. I read from your website that the basic wage for NCR Non Agriculture is P419 and P389 (before adding the COLA). Can you enlighten me what is the difference of these two rates? If a company which is a corporation (trading/retail/service) is going to establish an of� ce employing eight workers, which of these two rates will be used as minimum rates for the employees?

Thank you and I hope you would reply to my query.

Ms. Manila

Dear NWPC...Dear NWPC...

Ms. Manila,

Please be informed that agriculture for purposes of minimum wage fixing pertains essentially to work on the soil and its products, including dairy production, raising of livestock and culture of � sh or other aquatic products in farms or ponds. If it involves processing or manufacturing of agricultural inputs, it becomes non-agriculture. The distinction is important as the minimum wage for agriculture sector is lower compared to non-agriculture sector.

A retail/service establishment is one principally engaged in the sale of goods or services to end-users or individuals for their own or household use. Accordingly, an establishment engaged in the sale of agriculture equipment, machinery and supplies is not a retail establishment.

We hope this clari� es your concern.

Kristo� er S. Resurreccion Gladys S. Gatpandan

Yolanda S. Argete

1st Quarter 2013

NWPCBulletin

Happiness is not a goal, it is a by-product of a life well lived.

Eleanor Roosevelt

NBN

Dear NWPC,

I will put up a ‘lugaw‘ (Filipino congee) food cart as the extension for my canteen business in Makati City currently employing nine workers.

The additional employee I’ll be hiring will only be employed during the upcoming rainy days to be paid on a daily basis.

Do I need to follow the latest minimum wage rate for NCR or can I pay her a smaller fee per day since she’s a seasonal worker only?

Ms. Goto

Ms. Goto,

The Wage Rationalization Act of 1989 or Republic Act No. 6727 does not discriminate among the different kinds of workers.

All minimum wage earners in the private sector regardless of their position, designation or status of employment (re: seasonal, temporary, contractual, casual, regular) and irrespective of the method by which their wages are paid (re: monthly or daily paid) should follow the applicable regional wage rate.

In the case of your additional worker, she should be paid P419 per 8 hours of work since your business is categorized under “Retail/Service Establishments employing 15 workers or less” in Metro Manila.