GCG vows to address workers’ compensation system

Published January 25, 2023, 5:44 PM

by Bernie Cahiles-Magkilat

The Governance Commission for GOCCs (GCG) has assured government workers of an amicable resolution on issues raised in line with the implementation of the Compensation and Position Classification System (CPCS).

In a statement, GCG reiterated its steadfast commitment of staying true to its mandate. It explained that the implementation of the CPCS is a form of intervention to increase the salary of government workers under its scope, making it at par with the private sector.

The CPCS is in line with Executive Order No. 150 (E.O. No. 150) issued by Former President Rodrigo R. Duterte, which intends to curtail the practices done in the past which led to the dissipation and wastage of government funds, it noted.

E.O. No. 150 also aims to preserve government funds which the GCG has done since its inception. In fact, in the 11 years of the Governance Commission’s existence, the government corporate assets stand at P10.820 trillion by end of 2021 posting an annual average growth of eight percent within the ten-year period.

Recently, Clark Development Corporation (CDC) expressed their disfavor of their approved CPCS and cited the disparity of salary increase and the loss of their Allowances, Benefits, and Incentives (ABIs).

GCG is actively participating in discussions with GOCCs to resolve the issue. GCG already held consultative meetings with GOCCs including CDC, to hear their concerns, including those related to compensation. GCG met with CDC officials and invited representatives from the retirees on the 4th and 12th of January 2023 to discuss and give opportunity to amicably resolve the issues.

In the exercise of due diligence, all requests and appeals are prudently reviewed and evaluated by the Governance Commission.

The CPCS was mandated by the GOCC Governance Act of 2011 to provide fair and impartial wages in accordance with the principle of equal pay for work of equal value. Following this mandate, the salary structure crafted under the CPCS is at par with the rates under the Salary Standardization Law (SSL), which modified the salary for civilian personnel in government and authorized the grant of additional benefits. The SSL was also crafted to be comparable with the private sector.

In addition, salary rates in the private sector (i.e., market rate) were used for the progression or the creation of steps in the salary structure towards the maximum possible salary rate. As such, the pay for the positions in GOCCs is to be commensurable with the private sector and parallel with the National Government Agencies.

While CDC finds E.O. 150 unfavorable to them, it must be noted that the limitations on the list of ABIs in E.O. 150 is intended to preserve government funds. In fact, CDC may still go to OP to appeal ABIs and other compensation that are not included in the approved CPCS (Section 5, E.O. 150).

GCG vowed that it remains steadfast in its mandate to provide a standardized compensation package and Index of Occupational Services, Position Titles and Salary Grades for GOCCs in accordance with Sections 8 and 9 of Republic Act (R.A.) No. 10149. The Governance Commission, as stewards of the sector, will continue to safeguard its P10 trillion in total assets and prevent the dissipation and wastage of public funds arising from corruption, the statement concluded.