Wednesday, January 18, 2012
CEBU bus operators do not have a choice but to comply with a Land Transportation Franchising and Regulatory Board (LTFRB) directive to give bus drivers and conductors basic salaries.
LTFRB Board Member Manuel Iway said Memorandum Circular 2012-001, issued on Jan. 3, will take effect on Jan. 20.
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Iway told Sun.Star Cebu that all bus operators are required to submit to LTFRB a labor standard certificate of compliance from the Department of Labor and Employment (Dole) not later than July 30 this year.
If they fail to do so, their franchises will be cancelled.
Bus drivers and conductors will get basic pay based on the eight-hour per day minimum wage structure in their locality. They are also entitled to performance-based incentives and bonuses.
Bus operators have the discretion to pay certain bus drivers and conductors above the mandated minimum wage.
But Julito Flores, president of the Cebu South Mini Bus Operators Association, told the 888 News Forum yesterday that the group will file an injunction case before the Regional Trial Court (RTC) to stop LTFRB from implementing the order.
Opposed
Flores said drivers are opposed to the directive because it would mean their daily earnings would be reduced to P305, the minimum wage for Cebu, a far cry from the P1,000 or more a day they get under the lease system.
Richard Corominas, president of the Cebu Provincial Bus Operators Association, said that while bus operators are amenable to the LTFRB circular, the drivers are against it.
Corominas said that if a driver’s revenue amounts to P7,000 a day, which is deducted P3,000 for fuel, he will get 20 percent of gross sales or an income of P800.
LTFRB 7 Director Ahmed Cuizon said during the 888 News Forum that the transport group has the right to go to court.
But, he said, the LTFRB circular will remain in effect until the court issues a restraining order.
Incentives
“Until and unless the memorandum circular is legally stopped by the court, it will be enforceable,” Cuizon said.
Iway said the performance-based incentives to be given to drivers and conductors include cash awards for zero accidents.
Drivers and conductors should also be enrolled with the Social Security System, Philippine Health Insurance Corp. and the Home Mutual Finance Corp. or Pag-ibig Fund.
Cuizon said that if after July 30, bus operators still have not secured the Dole labor standards compliance certificate, their applications for renewal of franchise (certificates of public convenience) will not be processed, which will lead to cancellation of their existing franchises.
Iway said providing drivers basic pay will discourage them from reckless driving.
The circular, he said, is also a way to professionalize the transport industry.
The memorandum circular was signed by Iway, LTFRB Board Member Julius Garcia and Chairman Jaime Jacob.
Published in the Sun.Star Cebu newspaper on January 18, 2012.
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