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

SIXTEENTH CONGRESS
First Regular Session

House Bill No. 2903

Introduced by REPRESENTATIVE ERIC L. OLIVAREZ

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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 laborers, 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,

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ERIC L. OL[VAREZ


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

SIXTEENTH CONGRESS
First Regular Session

House Bill No. 2903

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Introduced by REPRESENTATIVE ERIC L. OLIVAREZ

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“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 2013”.

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

Section 3. Definition of Terms. 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 us by the Land
Transportation Franchising and Regulatory
Board.

(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 RTWPB of the
NWPC.

(f) 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.

(g) 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.

(i) | 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;

8. Social security and welfare benefits;
h. Separation or retirement pay; and

i Other benefits under existing laws.

The public utility bus owner/operator shall provide the
public utility bus driver/conductor he 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
age-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, revenues 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
component of the salary shall be multiplied by 200%, and the
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 10:00 pm and 6:00 am 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 60 days after the
passage and publication of this Act.

Section 16, Non-Dimunition of Benefits. Nothing in this
Act shall be construed to authorize 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, Repealing Clause. All laws, 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.