Sen. Drilon assures rank-and-file employees protected in terms of compensation

By Jason de Asis


SENATE OFFICE, Manila, November 5, 2010-Senator Franklin Drilon, author of Senate Bill 2566 or the proposed GOCC Governance Act of 2010, has assured rank-and-file employees who will be protected in terms of compensation once a measure seeking to rationalize the operations of government-owned or controlled corporations (GOCCs).


The employees occupying lower ranks will be given higher percentage of salary increases than those in the higher ranks Drilon said, who also chairs the Senate Finance Committee.


“To give due consideration to the rank-and-file and put the ratio of their compensation at par with the higher ranks, notwithstanding their respective charters is what we need,” Drilon said, adding that currently 27 GOCCs have been granted by Congress the authority to set their pay schemes.


The result of a series of hearings on the reported unwarranted salaries and perks received by governing boards and employees of state firm mandated a new compensation system for directors, trustees and employees of GOCCs measures.


To prevent the granting of excessive remuneration packages these measures, reasonable, justifiable and appropriate remunerations schemes will be adopted for the officers and employees of state firms.


The GOCCs proposed governance council will create an advisory, monitoring, recommendatory and policy-enforcing body attached to the Office of the President, will conduct compensation studies and recommend to the President a new salary scheme.


The GOCC compensation rates will be conducted periodically by the monitoring council the overall performance of the state-run firm and its contribution to the national economy, among other factors.


Republic Act 6758, as amended upon the implementation of the Compensation and Position Classification System for state firms covered no exemptions will be made for state firms from the coverage of the new compensation scheme, and in no case shall there be any decrease in the salaries of incumbent employees of state-run enterprises.


Subject to the President’s approval the monitoring body may also recommend additional allowances for certain position titles, giving due consideration to the necessity for such allowances and the good performance of the state enterprise. (Jason de Asis)