Republic of the Philippines
House of Representatives
Quezon City

EIGHTEENTH CONGRESS
Second Regular Session

House Bill No.7 724

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.

emer ERIC u Ce Quoaeey


Republic of the Philippines
House of Representatives
Quezon City

EIGHTEENTH CONGRESS
Second Regular Session

House Bill No. 7724

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 2020”.

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).

(d) 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


a Productivity Boards (RTWPB) of the National Wages and Productivity

2 Commission (NWPC).
3 (f) Fixed and Performance-Based Compensation Scheme — compensation
4 scheme for bus drivers and conductors wherein the fixed component shall be
s based on an amount mutually agreed upon by the owner/operator and the
6 driver/conductor which shall in no case be lower than the applicable minimum
7 wage. The performance-based component shall be based on safety
8 performance, business performance, and other related parameters.

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

B For the public utility bus transport industry, workplace includes the bus, bus
4 terminals, garage, and the company office.

15 SECTION 4. Employment Agreement Must Include Provision/s on Fixed

16 Wage and other Wage-related Benefits.

v7 There shall be an agreement in writing between the public utility bus
18 owner/operator and the public utility bus driver and/or conductor which shall include the
19 following terms:

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

22 b. Public utility bus owner's/ operator's name and address;

2B c. Place where and date when the employment agreement is entered into;

coy d. Hours of work;

25 e. Amount of the driver's or conductor's fixed wage and formula used for
26 calculating the performance-based compensation;

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

29 g. Social security and welfare benefits;

30 h. Separation or retirement payment; and

31 i, Other benefits under existing laws.

32 The public utility bus owner/operator shall provide the public utility bus
33 driver/conductor a signed and notarized original copy of the agreement.

34 SECTION 5. Fixed and Performance Based Compensation Scheme. Public

35 utility bus owners and/or operators shall adopt a mutually-agreed upon “part-fixed, part-
36 performance” based compensation scheme for their employed drivers and conductors.


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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 shalll 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. Excluded Benefits. 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, 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 a 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
also multiplied by 200%.


evans

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 guidelines 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
sixty (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) shalll 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.