Labor department, TUCP to craft guide for performance-based pay increases

Published by rudy Date posted on July 12, 2010

OFFICIALS of the Labor department and of the Trade Union Congress of the Philippines (TUCP) will meet today to start discussing guidelines for a prospective two-tiered wage-setting system.

The prospective system sets the daily minimum wage as a floor level, as well as a scheme for performance-based wage increases and incentives.

“The idea is to determine additional wage increases on top of the new wage, which will be in the form of incentives, profit sharing, bonuses, etc. and on the basis of productivity and company viability,” Labor Secretary Rosalinda D. Baldoz said in a phone interview.

TUCP Chairman Ernesto T. Herrera cautioned in a separate interview, however, that productivity-based measures should be well-defined. “Systems and technology used are factors that affect a company’s performance [reducing the need for labor]. We want to clarify the basis for productivity.” — NMG

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