Productivity Improvement Program

When the Department of Labor and Employment (DOLE) launched the Productivity Improvement Program I would say it was one move that will benefit both the employee and the whole organization or company. The Productivity based pay is also an output production measurement and must give an awareness to the employee about their capacity and balance between the input and output.

On August 23, 2012, out from the 23 manufacturing companies at the Laguna Techno Park (LTP) at Binan, Laguna, only 7 are still not practicing the new DOLE program. The majority from this group shared that the program gives more strength and opportunities for the whole organization. The program according to them gives consistency, institutionalized a process, clarity and transparency. The program also gives more strength to the workers according to an HR Manager from Panasonic Precision Devices Philippines Corporation.

To encourage more the different companies not only at TLP but to all manufacturing businesses in the Philippines, the DOLE Region 4A under Director Alex V. Avila with Robelinda dela Rosa, Board Secretary of RTWPB IV-A initiated the giving of certificates of acknowledgement to those companies that complied with the Productivity Improvement Program (PIP) and Productivity Based Pay Program (PBP).

Assistant Vice President under Yutaka Manufacturing Philippines Atty. Ma. Fatima U. Liu gave a message to the HR Managers and employees at the Amtek Manufacturing Company Hall with media practitioners headed by the Philippine Information Agency 4A.

Here are the companies that complied with the programs;
F. Tech R&D Philippines, Inc.
Ichinomiya Electronics Philippines Corporation
Katolec Philippines Corporation
Yutaka Manufacturing Philippines Incorporated
Fujitsu Ten Corporation of the Philippines
Meinan Philippines Incorporated
Wakorepco Manufacturing Philippines Incorporated
Swedish Match Philippines Incorporated
Superflex Logistics Incorporated
Ryonan electric Philippines Corporation
Surtec Philippines Incorporated
NIPPI manpower Services
Sapphire Industrial Laundry Services Incorporated
Takata Philippines Corporation
Panasonic Precision Devices Philippines Corporation
Nihon Garter Philippines Incorporated

A background from May 2012 launched of the program. Labor Secretary Rosalinda Dimapilis-Baldoz said that Wage Order No. IV-15 issued by the CALABARZON Regional Tripartite Wages and Productivity Board (RTWPB) introduced for the first time a two-tier wage system consists of a floor wage.

The first tier, which covers all workers and functions as a social safety net, and a productivity based pay, while the second tier is determined jointly by workers and management based on agreed set of parameters and is linked to individual, group or organizational productivity, performance or a combination of criteria. Under the wage order, companies are required to set up within three months after its effectively the so-called Productivity Improvement and incentives Committee (PIIC).

The PIIC shall serve as the implementing mechanism of productivity-based pay with equal representation from both workers and employers. Its functions include determination of productivity-based pay schemes, parameters, measurements, coverage, and amount of productivity-based pay to be given to covered workers.