Found this illustration helpful in grasping the K to 12 Program. (credits to the author [unknown])

NCR Wage Board Approves P30 COLA increase

NCR Wage Board Approves P30 COLA increase

Labor Secretary Rosalinda Dimapilis-Baldoz announced yesterday a new minimum wage increase of 30.00 Cost-Of-Living Allowance (COLA) in the NCR. In addition, the P22 COLA granted last year shall be integrated into the basic pay.

She said that the P30 COLA will be given in two (2) tranches - P20.00 upon effectivity of Wage Order No. NCR-17 and P10.00 effective 01 November 2012.

The new wage hike brings up the minimum wage in the NCR to P446 a day for the non-agriculture sector and P409 a day for the other sectors, namely: agriculture, private hospitals with bed capacity of 100 or less, retail/service establishments employing 10 workers or less and manufacturing establishments regularly employing less than 10 workers.

 Effective 01 November 2012, the remaining P10 COLA shall be added to the minimum wage raising it further to P456 and P419, respectively.

Coverage

The P30 COLA applies to all minimum earners in the private sector in the NCR, regardless of their position, designation or status of employment and irrespective of the method of payment of wages. Excluded from the increase are household or domestic helpers, persons in the personal service of another, including family drivers and workers of duly registered Barangay Micro Business Enterprises (BMBEs).  However, registered BMBEs should pay their workers not lower than the poverty threshold of P259.36 for a family of five (5) as of 2011, subject to the condition that should there be a change in the poverty threshold as determined by the National Statistics Office, the same shall be applicable.  This is a new provision intended to protect workers in BMBEs from being paid unduly low wages.

Exemption

The following establishments may apply for exemption from payment of the COLA:  distressed establishments, retail/service establishments employing not more than 10 workers, establishments whose total assets are not more than P3 million and establishments adversely affected by natural calamities.

Wage Distortion

In case wage distortion arise in the salary structure within an establishment after implementation of the new COLA increase, affected workers who are receiving above the minimum wage may be entitled to a COLA adjustment.  The management and the workers union shall negotiate to correct the distortion.  A new provision requires that the correction should be done within 30 days from the effectivity of the wage order.

Productivity Bonus under the Two-Tiered Wage System

The new minimum wage increase ushers in the two-tiered wage system in the NCR, with the prescribed P30 COLA being the 1st tier.  Workers may be entitled to productivity bonus and incentives based on agreement between workers and management.  Within 60 days from issuance by the NWPC of guidelines on the implementation of the two tiered wage system, the Board shall issue an advisory on the 2nd tier of the performance based pay which shall serve as guidelines for establishments on the range of productivity bonus.

http://www.nwpc.dole.gov.ph

MANAGEMENT PREROGATIVE: Rights of the employer to make profit

MANAGEMENT PREROGATIVE: Rights of the employer to make profit

Labor disputes cannot always be in favor of labor. The employers also have rights as much as the employees. The employer is allowed to control the variables in business operations, to enhance the chances of making a profit.  The Supreme Court have held in various cases that management is free to regulate, according to its own discretion and judgment, all aspects of employment, including hiring, work assignments, working methods, time, place and manner of work, processes to be followed, supervision of workers, working regulations, transfer of employees, work supervision, layoff of workers and discipline, dismissal and recall of workers. The Court, in another case, further states that while tilting the scales of justice in favor of workers, the fundamental law also guarantees the right of the employer to reasonable returns for his investment. xxx we must acknowledge the prerogative of the employer to adopt such measures as will promote greater efficiency, reduce overhead costs and enhance prospects of economic gains, albeit always within the framework of existing laws.

Some points to consider:

1.       When is management prerogative justified?

Management prerogative is justified, provided that the following are exercised:

a.       In good faith

b.      For the advancement of the employer’s interest

c.       Not to circumvent the rights of the employees

2.       Is it the prerogative of management to transfer an employee?

Yes. The management can transfer employee where it is perceived by the employer that the employee’s qualifications, aptitudes, and competence can function with maximum benefit to the company. This is a privilege inherent in the employer’s right to control and manage his enterprise effectively. An employee who refuses to be transferred when such transfer is valid, is guilty of insubordination.

3.       Is non-competition clause in employment contract valid?

Yes. The employer has a right to protect trade secrets and other proprietary data since a former employee, in whom the employer had invested time, training, and other resources, could potentially cause significant business loses to the employer if he is allowed to work with a competitor or set up his own business upon resignation or termination from the employer’s business.

4.       Is contracting out of services (hiring contractual) valid?

Yes. Management may contact out services in the exercise of its management prerogatives. The reduction of employees in a company made necessary by the introduction of the services of an independent contractor is justified when the latter is undertaken in order to effectuate more economic and efficient methods of production. The complaining employee must prove that the management acted maliciously.

5.       After completing probationary period, is an employee automatically becomes a regular employee?

No. Upon expiration of their contract of employment, academic personnel on probation cannot automatically claim security of tenure and compel their employers to renew their employment contracts. Probationary employees enjoy security of tenure, but only within the period of probation. Likewise, an employee on probation can only be dismissed for just causes or when he fails to qualify as a regular employee in accordance with the reasonable standards made known by the employer at the time of his hiring.

6.       Is term employment for more than 6 months valid?

Yes. Employment for a specific period, even more than 6 months, is valid provided that it was knowingly and voluntarily agreed upon by the parties, without any force, duress, or improper pressure.

7.       Can an employee with negative attitude be terminated?

Yes. An employee whose actions erode the morale of his co-employees may be terminated. If after several warnings, the employee obstinately refuses to curtail a bellicose inclination, he may be terminated. It will be considered as serious misconduct.

8.       Can theft of small value be a ground for termination?

Yes. The value of the property stolen is not material in termination due to serious misconduct. Even if the stolen materials are considered scrap, it still had monetary value which he cannot appropriate to himself.

9.       Can a manager contravene the directive of a VP?

No. As a general rule, although a managerial employee is clothed with discretion to determine what was in the best of the company, said managerial discretion is not without limits. Its parameters were contained the moment the discretion was exercised, and then opposed by the immediate superior for being against the policies and welfare of the company. Hence, any action in pursuit of the discretion thus opposed had ceased to be discretionary and could be considered as willful disobedience.

10.   Is there a need for actual hearing or conference in terminating an employee?

No. It is not necessary that an actual hearing or conference be held. The Labor Code only provides that an employer must provide the employee ample opportunity to be heard and to defend himself with the assistance of his representative if he so desires.