The Governance Commission for GOCCs (GCG) has assured an amicable resolution to the issues raised in line with the implementation of the Compensation and Position Classification System (CPCS).
The GCG released this statement over the weekend as it said Clark Development Corp. (CDC) just recently expressed their disfavor to their approved CPCS and cited the disparity of salary increase and the loss of their allowances, benefits and incentives (ABI).
GCG said it established the CPCS as an intervention to increase the salary of government workers under its scope, making it at par with the private sector. It is in line with Executive Order (EO) No. 150 issued by former President Rodrigo Duterte that intends to curtail the practices done in the past which led to the dissipation and wastage of government funds.
EO 150 also aims to preserve government funds.
GCG said it is actively participating in discussions with government-owned and -controlled corporations (GOCC) to resolve the issue.
“As of this writing, 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,” the agency said.
“In the exercise of due diligence, all requests and appeals are prudently reviewed and evaluated by the Governance Commission,” it added.
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, the GCG said.
“While CDC finds EO 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),” the GCG said. – Angela Celis
