DAVAO CITY (Mindanao Examiner / Apr. 2, 2014) – The Regional Tripartite Wages and Productivity Board in Davao region has issued its first wage advisory on the Implementation of Productivity-Based Incentive Schemes for the banana industry.
The advisory, which was also published in newspapers, has been formulated under framework of the “Advisory for the Voluntary Productivity-based Pay,” otherwise known as the “Second-Tier Pay” under the “Two-Tiered Wage System” or TTWS.
TTWS is a reform in the existing minimum wage system under Republic Act 6727 or the Wage Rationalization Act, which consists of a mandatory minimum wage as the first tier and a voluntary productivity-based incentive scheme as the second tier.
“The advisory has chosen to pilot the agribusiness sector particularly the cavendish banana industry as the industry is the region’s top exporter and major contributor to the economic output of Davao Region,” said RTWPB Chairman Joffrey Suyao.
“The advisory was issued to guide the enterprise on a range of productivity incentives starting with a one percent increase which may be the basis for employer initiatives and enterprise negotiations in Davao Region,” he added.
Suyao, who is also the regional director of the Department of Labor and Employment, said the Wage Board issued the Advisory on November 18 after it conducted regional consultations on the TTWS with the banana industry and with other stakeholders in September and October 2013.
“Our dream is to have all industries to adopt the productivity-based incentive scheme,” Suyao said. (Sherwin Manual)
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