Title
Creation of National Productivity Commission
Law
Executive Order No. 615
Decision Date
Aug 18, 1980
Executive Order No. 615 establishes the National Productivity Commission in the Philippines to improve national productivity and enhance the competitiveness of Filipino enterprises, with the goal of raising the living standard of workers and increasing real wages.
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Functions of the Commission

  • Mobilize labor and management cooperation to create a national productivity movement.
  • Conduct continuous studies on factors affecting productivity and their influence on development.
  • Formulate policies and programs aimed at increasing productivity.
  • Implement standardized productivity improvement programs specifically for industry sectors.
  • Undertake and disseminate research and studies to effectively develop productivity programs.
  • Assist employers and workers to better understand the link between productivity, wages, and other economic factors.

Collaboration and Coordination

  • The Commission may request assistance from any government or private entity to fulfill its functions.
  • It is required to establish close coordination with the National Wages Council, Ministry of Labor and Employment, Ministry of Industry, and Ministry of Agriculture.

Composition of the Commission

  • Co-Chaired by the Minister of Labor and Employment and the Minister of Industry.
  • Includes the Minister of Economic Planning, Minister of Agriculture, President of the Development Academy of the Philippines.
  • Includes two representatives from workers’ organizations and two from employers’ organizations.
  • These representatives are appointed by the President for a term of three years based on recommendations from Co-Chairmen.
  • Government representatives may designate deputies if unable to attend meetings.

Secretariat and Executive Director

  • The Commission is supported by a Secretariat led by an Executive Director who serves as Chief Operating Officer.
  • The Executive Director is appointed by the President upon the recommendation of the Commission.
  • The Commission prescribes qualifications for the Executive Director.

Appointment and Compensation of Personnel

  • The Chairman of the Commission appoints necessary personnel.
  • The Commission determines their qualifications and remuneration.
  • All personnel appointments and compensation are subject to applicable civil service, compensation, and budget laws.

Funding

  • The Minister of the Budget must immediately allocate funds for the Commission’s operations in 1980.
  • Starting in 1981, the Commission’s funding shall be included annually in the General Appropriations Act.

Rule-Making Authority

  • The Commission is empowered to issue rules and regulations to effectively implement the Executive Order’s provisions.

Effectivity

  • The Executive Order takes effect immediately upon signing, formalizing the creation and operation of the National Productivity Commission.

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