LTFRB defers wage fixing memo

CEBU, Philippines - The Land Transportation Franchising and Regulatory Board has deferred the implementation of its memorandum circular requiring bus operators to give its drivers fix salaries and other labor standard benefits.

LTFRB board member Manuel Iway said that the implementation was moved to February 1, 2011 pending the issuance of the guidelines from the Department of Labor and Employment.

Under the circular, LTFRB ordered that all public utility bus drivers and conductors shall be entitled to a mandatory compensation which also includes overtime pay, night shift differential, rest day, holiday, birthday and service incentive leave pays.

The circular also requires bus operators until July 30 to secure and submit to the LTFRB board a certificate of compliance. Failure to do so would be a ground for the immediate cancellation or revocation of their franchise and no application for new CPC’s or renewal of existing CPCs will be entertained by the Board without the required certificate of compliance.

The said circular further stated that all bus drivers and conductors shall be entitled to retirement benefits and to all mandatory social security benefits such as memberships in the SSS, Philhealth and Pag-IBIG as specified by law.

The circular met a strong opposition from the bus operators in Cebu. In fact, bus operators threatened to file a civil case in court to block the implementation of the circular. Bus operators vow to seek a temporary restraining order from the court.

The circular was allegedly issued to ensure road transport safety through linking labor standards compliance with franchise regulation.

The measure was an offshoot of a survey conducted by DOLE on the working conditions and compensation schemes in the bus transport sector.

The survey results, as validated in a series of focus group discussions with bus operators, drivers, government regulating agencies and experts from the academe in the fields of engineering and traffic psychology, indicate that the risk taking behavior of drivers is associated with the lack of proper training on motor skills, safety and on traffic rules and regulations, poor health due to long work hours and exposure to health hazards and lack of income security under a purely commission-based compensation scheme. (FREEMAN)