GOCC workers’ pay to be more competitive than private sector’s under Duterte EO

MANILA, Philippines—Salaries of employees at state-run corporations would be competitive with those of their private sector counterparts under an order issued by President Rodrigo Duterte last year.

In a statement on Friday (Jan. 14), the Governance Commission for Government Owned or Controlled Corporations (GCG) said it came out with the implementing guidelines of Executive Order (EO) No. 130 on Jan. 12, paving the way for the new compensation and position classification system (CPCS) for employees of government-owned and/or -controlled corporations (GOCCs).

The GCG had said that the long-delayed CPCS was aimed at putting in place a competitive compensation and remuneration scheme to attract and retain talent while keeping GOCCs financially sound and sustainable.

While it had been pushed prior to the pandemic, the CPCS took a backseat to the huge financing needed for COVID-19 response.

The guidelines were approved by GCG Chair Samuel Dagpin Jr., Commissioners Michael Cloribel and Marites Cruz-Doral, as well as Finance Secretary Carlos Dominguez III and acting Budget Secretary Tina Rose Marie Canda. Dominguez and Canda are ex-officio members of the GCG.

The Inquirer asked officials of the finance and budget departments if possible salary upgrades for GOCC workers could be funded through the P5.02-trillion 2022 national budget, but they did not respond as of late Friday afternoon.

EO No. 150 categorized GOCCs into three:

• Category 1 or those “not self-sustaining” or posting losses and are dependent on subsidies from the national government
• Category 2 included self-sustaining GOCCs that generate funds from non-commercial activities
• Category 3 covered GOCCs generating revenues from commercial activities and directly compete with the private sector.

GOCCs can start adopting the CPCS upon receipt of authorization from the GCG, which will contain classification, job evaluation results, and tiering.

“The classification determines the appropriate compensation system to be implemented by the GOCC. It considers the nature of operations, the financial viability to sustain their operations/activities and the size of the GOCCs,” said the GCG.

“The job evaluation results shall determine the CPCS job grades of the GOCC positions which were determined using the job evaluation methodology under EO 150. The tiering determines the applicable pay levels that GOCCs may implement based on their financials,” the GCG said.

“Upon receipt of its authorization, the GOCC’s governing board shall approve the appropriate salary schedule under the CPCS with due consideration of the GOCC’s capability to afford and sustain its implementation,” it said.

“GOCCs with substantial compliance with CPCS requirements upon approval of EO 150 shall retroactively apply the salary structures, allowances, benefits, and incentives effective Oct. 5, 2021” or the day after Duterte’s order was published, the GCG added.

TSB