Incentive Order. Labor and Employment Director in Davao Region Joffrey M. Suyao explains that the wage advisory for Banana Industry was formulated under framework of the Advisory for the Voluntary Productivity-based Pay. With him (L-R) DOLE Undersecretary Rebecca C. Chato and Secretary Rosalinda D. Baldoz. (Photo by Ryan Roldan)The Regional Tripartite Wages and Productivity Board-XI (RTWPB-XI) made public the issuance of its first wage advisory on the Implementation of Productivity-Based Incentive Schemes for the Banana Industry in Davao Region.

Published recently in a local paper, the advisory was formulated under framework of the Advisory for the Voluntary Productivity-based Pay, otherwise known as the Second-Tier Pay under the Two-Tiered Wage System (TTWS).

“The advisory has chosen to pilot the Agribusiness sector particularly the Cavendish Banana Industry as the industry is the region’s top exporter and major contributor to the economic output of Davao Region,” said RTWPB Chair Joffrey M. Suyao.

TTWS is a reform in the existing minimum wage system under       R.A. 6727 or the Wage Rationalization Act, which consists of a mandatory minimum wage as the first tier and a voluntary productivity-based incentive scheme as the second tier.

“The Advisory was issued to guide the enterprise on a range of productivity incentives starting with a one percent increase which may be the basis for employer initiatives and enterprise negotiations in Davao Region,” said Suyao who is also the Department of Labor and Employment (DOLE) regional director.

Suyao, added that the Wage Board XI issued the Advisory last November 18, 2013 after it conducted regional consultations on the TTWS with the banana industry and with other stakeholders in September and October last year.

“Our dream is to have all industries to adopt the productivity-based incentive scheme,” Suyao said.

The RTWPB-XI is set to hold a press conference and orientation on the issuance of the Advisory with the banana industry stakeholders on April 4, today, at the DOLE Regional Office.