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NEWS AND ANNOUNCEMENTS

RTWPB-VII introduces Two-Tiered Wage System to Cebu transport sector

June 1, 2026

The Regional Tripartite Wages and Productivity Board-VII (RTWPB-VII) presented the Two-Tiered Wage System (TTWS) to members and operators of the transportation sector during the Worker’s Organization Development Program (WODP) orientation on May 14, 2026 in Cebu City.

The orientation aimed to deepen stakeholders’ understanding of the TTWS, a compensation framework anchored on Department Order No. 118-12, also known as “The Employment and Working Conditions of Drivers and Conductors in the Public Utility Bus Industry.” The system seeks to strike a balance between guaranteed minimum wage standards and productivity-based incentives. TTWS ensures compliance with the mandated minimum wage while it allows an additional performance-based incentives tied to productivity and company growth.

By introducing TTWS, RTWPB-VII seeks to encourage enterprises to adapt fair wage practices while motivating drivers and conductors to improve efficiency and service quality. Considering that the transportation sector is a vital industry in Cebu, transport drivers and conductors were identified as priority stakeholders to benefit from wage innovations that recognize both their essential contributions and the challenges inherent in their work.

The WODP orientation also focused on capacity-building, equipping participants with knowledge on wage policies, productivity enhancement tools, and compliance strategies.

Transport group representatives expressed cautious optimism about the initiative. While acknowledging the system’s potential to boost worker morale and improve service quality, they underscored the need for clear implementation guidelines and sustained support from employers. (Atty. Jess Russell F. Jumalon)