Productivity-based incentive scheme to benefit workers, mgt. in banana industry

DAVAO CITY- Banana industry workers and management will stand to benefit from the productivity-based incentive scheme adapted bythe Regional Tripartite Wages and Productivity Board (RTWPB).

The Voluntary Productivity-based Incentive Scheme otherwise known as Second-Tier Pay aims to provide the banana enterprise on a range of productivity incentives which is over and above the mandatory minimum wage (first tier) which the banana workers is receiving.

The productivity incentive scheme aims to guide enterprises on a range of productivity incentives, which may be the basis for employer initiatives and enterprise negotiations.

Advisory No. RB XI-01 recommends that enterprises may start with a 1% increase in productivity-based incentives considering that there has been a 0.80% average increase in demand for Cavendish bananas for the past five years, plus prospects of new markets for banana exports based upon data from the Department of Agriculture.

“It would mean additional benefits and income aside from the minimum wage the worker is receiving.” Joffrey Suyao, Department of Labor and Employment- XI Regional Director said.

Suyao said the advisory is voluntary and on the enterprise level noting that many large banana

companies already have existing productivity schemes.

Virginia Camus, labor representative in the RTWPB-XI said that the productivity-based incentive scheme will not just benefit banana workers receiving minimum wage but also would positively impact workers receiving over the minimum wage and also those receiving below minimum wages.

She also said that the scheme will encourage workers to participate in company productivity programs, the scheme will also benefit enterprises as it will be a performance based incentive which will push the productivity of the workers.

“It will also be advantageous to the management because it will enhance productivity, it will give workers the incentive to work more.” Rulfo Asis, management representative said.

“It is an eloquent proof that your board is working hard. We studied carefull the guidelines and it was immediately approved in Manila.” Atty. Bienvenido Cariaga, management representative said.

The National Wages and Productivity Council commended the advisory of RTWPB-XI for it being compliant to NWPC guidelines on having a specific pilot industry for the scheme.

Suyao said there were two or three regions that have submitted earlier than RTWPB but they were for generic industries when under the NWPC guidelines it must be tested in a specific industry and with its success can be replicated. (PIA/RG ALAMA)