QuestionsQuestions (LTFRB MEMORANDUM CIRCULAR NO. 2012-001)
To ensure road transport safety by linking labor standards compliance of Public Utility Bus (PUB) operators to franchise/CPC regulation, requiring evidence of compliance with Philippine labor standards and mandatory benefits.
All Public Utility Bus (PUB) operators, i.e., operators subject to LTFRB franchise/CPC regulation for bus transport services.
That the PUB operator complies with relevant legislations on wages, labor standards, terms and conditions of employment, and all mandatory benefits currently provided or may be provided under Philippine Labor Laws.
A part-fixed, part-performance based compensation system: the fixed component must never be lower than the applicable minimum wage in the region, and the performance component must be based on the operator/company’s net income and on employee safety records (e.g., road accidents, traffic-violation commissions, and elementary courtesies of the road).
It requires that the fixed component of the compensation at no time be lower than the applicable minimum wage in the region.
Net income of the operator/bus company and employee safety records such as involvement in road accidents, commission on traffic violations, and observance of elementary courtesies of the road.
No. It expressly provides that PUB drivers and conductors are entitled to other mandatory compensations such as overtime, night shift differential, rest day, holiday, birthday, and service incentive leave pays (as applicable under labor law).
It states that the number of working hours and rest periods shall be determined considering existing conditions, peculiarities, and requirements of the transport industry.
Retirement benefits and mandatory social security benefits—membership in SSS, PhilHealth, and Pag-IBIG—“as specified by law.”
It encourages the right to organize to advance interests and welfare, and it states that such right shall not be abridged or diminished by any agreement or contract entered into for compliance or to obtain the certificate.
Yes. The Circular states nothing precludes entering into collective bargaining agreements granting more rights, privileges, and benefits, and that existing company policies, practices, and collective bargaining agreements that grant more rights continue and are not diminished by the issuance or subsequent policies.
It must not adversely affect public safety and convenience.
By July 30, 2012.
It is a ground for immediate cancellation or revocation of their franchises/CPCs.
No. After July 30, 2012, no application for new CPCs or renewal of existing CPCs shall be granted without the required certificates.
Fifteen (15) days following its publication in at least two (2) newspapers of general circulation.
Three (3) copies must be filed with the UP Law Center pursuant to Presidential Memorandum Circular No. 11, dated 9 October 1992.
To strengthen enforcement of labor standards compliance in the bus industry as a road safety measure—so that working conditions (e.g., wages, working hours, safety-related performance incentives, and social protections) are maintained to reduce risk-taking behavior and improve employee welfare.