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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Constitution Hills, Quezon City

SEVENTEENTH (17'*) CONGRESS
First Regular Session

‘OT wo, 4487

House Bill No. —

Introduced by REPRESENTATIVE ERIC L. OLIVAREZ

EXPLANATORY NOTE

‘There is no denying that an inherent inequality exists between
employers and employees in that the former always has the undue
advantage and the latter has not an ounce of bargaining power
when it comes to the terms and conditions of the latter’s
employment.

For our laborer, employment is the only thing that they cling
to for survival. Hence they would never dare assert their rights, fight
any form of discrimination or oppression, or push for a more
favorable working condition out of fear to lose their precious jobs.
For this reason they always find themselves at the mercy of their
employers.

The government therefore has the duty to ensure that this
inherent inequality is optimally reduced, if not totally eradicated, for
the protection of the rights and ultimately, the preservation of the
dignity of our humble laborers.

The passage of this Act addresses a specific outcry of one
group of manual laborers in our country - the public utility bus
drivers and/or conductors. This Act provides for a mandatory fixed
wage rate to be afforded to the said workers using an effective
scheme known as the “part fixed, part performance based


compensation”. Said scheme shall be mutually agreed upon by the
employer bus owner/ operator and the bus drivers and/or
conductors.

This Act endeavors to give our bus drivers and/or conductors
a fairer, more stable wage that they truly deserve, especially those
drivers and conductors who really work hard and exert more efforts
which eventually give the bus companies greater profits.

This measure, if passed, shall also prevent numerous road
accidents brought about by the stiff competition of bus drivers and
conductors to pick and transport as many passengers as they could
without regard to traffic rules and regulations since they are relying
on mere commissions based on the number of passengers that they
could ferry in a day.

It is for this purpose that this bill is earnestly sought to be

passed.
ERIC ees


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Constitution Hills, Quezon City

SEVENTEENTH (17') CONGRESS
First Regular Session

(PD wo 4487

House Bill No.

Introduced by REPRESENTATIVE ERIC L. OLIVAREZ

“AN ACT FIXING THE WAGE RATE OF BUS DRIVERS AND
CONDUCTORS”

SECTION 1. Short Title. This Act shall be known as the Bus
Drivers and Conductors’ Fixed Wage Act of 2016”.

SECTION 2. This Act shall apply to all public utility bus
owners and/or operators employing drivers and conductors.

SECTION 3. The following terms, as used herein, shall mean
as follows:

(a) Public Utility Bus Driver - a licensed professional driver
hired or paid to drive a public utility bus.

(b) Public Utility Bus Conductor- a person hired to serve as
conductor in a public utility bus.

(c) Public Utility Bus Operator — a person issued a certificate of
Public Convenience to operate a public utility bus by the
Land Transportation Franchising and Regulatory Board
(LTFRB).

(4) Ridership- the number of persons who ride the public
utility bus transport system.


(e) Minimum Wage - the lowest wage rate that an employer
should pay to his/her employee as fixed and/or prescribed
by the Regional Tripartite Wages and Productivity Boards
(RTWPB) of the National Wages and Productivity
Commission (NWPC).

() Fixed and Performance-based Compensation Scheme ~
compensation scheme for bus drivers and conductors
wherein the fixed component shall be based on an amount
mutually agreed upon by the owner/operator and the
driver/conductor, which shall in no case be lower than the
applicable minimum wage. The performance based
component shall be based on safety performance, business
performance and other related parameters.

(2) Workplace- the office, premises or worksite, where the
workers are habitually employed and shall include the
place where the workers, who have no fixed or definite work
site, regularly report for assignment in the course of their
employment.

For the public utility bus transport industry, workplace
includes the bus, bus terminals, garage, and the company
office.
(h) RTWPB ~ Regional Tripartite Wage and Productivity Board.
() NWPC- National Wages and Productivity Commission.
SECTION 4. Employment Agreement Must Include
Provision on Fixed Wage and other Wage-related Benefits.
There shall be an agreement in writing between the public
utility bus owner/operator and the public utility bus driver and/or

conductor which shall include the following terms:

a. Driver or conductor’s full name, date of birth or age,
address, civil status, and SSS ID Number;

b. Public Utility Bus Owner’s/ operator’s name and address;


c. Place where and date when the employment agreement is
entered into;

d. Hours of work;
e. Amount of the driver’s or conductor's fixed wage and
formula used for calculating the performance based

compensation;

f. Wages and wage-related benefits such as overtime pay,
holiday pay, premium pay, 13 month pay and leaves;

g. Social security and welfare benefits;
h. Separation or retirement payment; and
i, Other benefits under existing laws.
The public utility bus owner/operator shall provide the
public utility bus driver/conductor a signed and notarized
original copy of the agreement.
SECTION 5. Fixed and Performance Based Compensation
Scheme. Public utility bus owners and/or operators shall adopt a

mutually-agreed upon “Part-fixed, part-performance” based
compensation scheme for their employed drivers and conductors.

SECTION 6. Component of Fixed Compensation. The fixed
compensation component mentioned in the preceding section shall
be based on an amount mutually agreed upon by the
owner/operator and the driver/conductor. In determining the same,
the minimum ridership requirement shall be taken into account and
shall in no case be lower than the applicable minimum wage for
work during normal hours/days.

‘The bus drivers and/or conductors shall also be entitled wage-
related benefits such as overtime pay, premium pay and holiday
pay, among others.

SECTION 7. Component of  Performance-based
Compensation. The performance-based compensation component
mentioned in Section 5 hereof shall be based on safety performance


as well as business performance such as ridership and/or
profitability, and other related factors and parameters.

SECTION 8. Total Compensation Shall Not Be Less Than
Minimum Wage. The total compensation of the bus drivers and/or
conductors, regardless of the agreed upon respective percentages of
the fixed and performance based components thereof, shall in no
way be less than the minimum wage prescribed by law.

SECTION 9. Other Benefits Not Included. The compensation
referred to in this Act shall only pertain to the basic wage of the
employees. The employer/bus owner shall not subsume in this
“part-fixed, part performance-based” compensation the other
benefits that the employees are entitled to as prescribed by law and
as agreed upon in an existing company policy and/or employer-
employee contract and/or Collective Bargaining Agreement.

SECTION 10. Payment of Wages. Wages for all actual work
during the normal work hours and days shall not be lower than the
applicable minimum wage rates. Wages shall be paid at least once
every two weeks or twice a month at intervals not exceeding sixteen
(16) days.

SECTION 11. Holiday Pay. The driver and/or conductor shall
be paid Holiday pay of 100% of the minimum wage even if he or she
does not report for work, provided he or she is present or is on leave
of absence with pay on the workday immediately preceding the
holiday.

If the driver/ conductor works, or is required to work on the
said holiday, he or she shall be paid 200% of the total compensation
he would be receiving under the “part fixed, part performance
based” compensation scheme. Meaning, in determining the rightful
holiday pay of the said bus driver or conductor who reported for
work, the two components of the wage shall be computed
independently such that the fixed performance-based amount which
may vary depending on the efforts of the driver and/or conductor,
shall be multiplied by 200% also.

However, the abovementioned holiday pay for a driver or
conductor who reports for work on the said holiday shall in no way
be less than 200% of the applicable minimum wage rate.


SECTION 12. Overtime Pay. A bus driver and/or conductor
shall be entitled to an overtime pay equivalent to at least 25% of the
basic wage under the “part fixed, part performance based”
compensation scheme adopted by the parties on ordinary days and
30% on regular holidays, special days and rest days for work
beyond eight (8) hours per day.

SECTION 13. Night Shift Differential. A bus driver and/or
conductor shall be entitled to a night shift pay of an additional 10%
of the basic wage under the “part fixed, part performance based”
compensation scheme adopted by the parties for work between
10:00PM and 6:00AM of the following day

SECTION 14, Operational Guidelines. The NWPC is hereby
tasked to develop operational guideline to implement the part-fixed
part performance-based compensation scheme including the
formula that should be used by public utility bus companies

SECTION 15. Submission of Proposed Scheme. All public
utility bus owners and/or operators shall submit a proposed
compensation scheme which shall be mutually agreed upon
beforehand by them and their drivers and/or conductors, to the
respective RTWPB for the approval of the same and for information
and reference purposes within 60 days after the passage and
publication of this Act.

SECTION 16. Non-Diminution of Benefits. Nothing in this
Act shall be construed to authorized diminution of benefits as
prescribed by law and as already being enjoyed by the bus drivers
and conductors at the time of the passage of this Act.

SECTION 17. Effect on Existing Company Policy,
Contracts and/or Collective Bargaining Agreements (CBAs). The
minimum benefits provided in this Act shall be without prejudice to
any company policy, contract or CBA providing for better or more
advantageous terms and conditions of employment to the bus
drivers and/or conductors.

SECTION 18. Implementing Rules and Regulations. The
Department of Labor and Employment (DOLE) shall promulgate the
implementing rules and regulations for the effective and immediate
implementation of this Act.


SECTION 19. Repeating Clause. All law, decrees, executive
orders, letters of instructions, rules and regulations or parts thereof,
which are inconsistent with this Act are hereby repealed amended
or modified accordingly

SECTION 20. Separability Clause. If any provision of this Act
is judicially declared invalid or unconstitutional, the remaining
provisions of this Act not affected thereby shall be continue to be in
full force and effect

SECTION 21. Effectivity Clause. This act shall take effect
fifteen (15) days following its publication in two (2) newspapers of
general circulation.

APPROVED.