DOLE to padlock bus firms not paying fixed wages

MANILA, Philippines - The Department of Labor and Employment (DOLE) said yesterday it will strictly enforce the fixed wage system for bus drivers and penalize transport firms that violate the new policy.

Labor Secretary Rosalinda Baldoz said bus companies found not compliant would be given five days to voluntarily comply or face sanctions.

“If, after five days, they still don’t comply, the DOLE will prepare a report of its findings and issue an order of compliance to the bus companies and provide the Land Transportation Franchising and Regulatory Board (LTFRB) copies of these orders which will form as basis for the non-renewal or cancellation of the bus franchise following due process,” she said.

Baldoz said the LTFRB requires compliance with all relevant legislation, rules, and regulations on wages, labor standards, terms and conditions of employment, social security benefits, and occupational safety and health standards prior to issuing a franchise.

She said an inter-agency team will start this week the inspection of 158 bus companies to determine their level of compliance with the order. The 158 bus companies have a combined total of 5,238 buses involving 10,476 drivers and a similar number of bus conductors.

The bus companies were earlier assessed, audited and offered technical assistance to enable them to comply with the provisions of the order.

“We have even provided them templates of employment agreements and taught them the modes and methods of computing the fixed-part and the performance-based part compensation of their drivers and conductors who, under the new wage system, should not earn lower than what they presently receive under the straight commission-basis. This is following the non-diminution principle,” Baldoz said.