Bus drivers will get salaries in lieu of commissions

THE wages of bus drivers shall be based on part-fixed and part-performance based parameters, instead of purely commission basis, the Metropolitan Manila Development Authority (MMDA) announced on Friday. 

The fixed component shall not be lower than the applicable minimum wage, while the performance-based
component shall be based on safety parameters such as zero road accidents and traffic violations, company revenues and other parameters of performance or productivity, the agency added.

Providing the shift in bus drivers’ pay scheme from commission to salary is a joint statement signed by Department of Labor and Employment (DOLE) Secretary Rosalinda Baldoz, Metropolitan Manila Development Authority (MMDA) Chairman Francis Tolentino, Angelo Gamboa and Leonides Rabanes of the Bus Transport —Industry Tripartite Council, and representatives from the Department of Transportation and Communication, Land Transportation and Franchising Regulatory Board and Land Transportation Office.

The statement, a result of a series of studies and surveys conducted by an inter-agency technical working group, aims to adopt and implement measures to promote public transport safety and develop a standard compensation scheme for workers in the transport industry.

The new pay scheme was broached following the tragic death of UP Professor Lourdes Estella Simbulan. 

The report indicated six important areas that need improvement: terms and conditions of work, competency, social protection, franchising, traffic rules and regulations and traffic-related information, and road design.

Further, it also identified factors that affect road transport safety such as driver behavior, road design, drivers’ licensing, public utility vehicle franchising systems, and enforcement of traffic rules and regulations.

“The series of consultations and discussions with the industry players validated our opinion that the risk-taking behavior of drivers has something to do with the lack of income security because of the commission-based compensation scheme employed by bus operators. That is why we really need to professionalize their sector by providing them standard wages and the mandatory benefits such as Social Security, Philhealth, PAG-IBIG, etc.” MMDA chair Francis Tolentino said.

The implementation of a uniform compensation system will commence by early next year, upon the issuance of a DOLE wage order.

The technical working group is composed of DOLE, National Wages and Productivity Commission, Institute for Labor Studies, Occupational Safety and Health Center, Bureau of Working Conditions, and the Bureau of Labor and Employment Statistics. -Manila Times

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