DOLE to Monitor Bus Companies' Compliance on Drivers', Conductors' Fixed Salaries

Following the Supreme Court's decision upholding the legality of a part-fixed and part-performance salary scheme for bus drivers and conductors, the Department of Labor and Employment (DOLE) has said that it will enforce and monitor its order to provide not just the fixed and performance-based salaries, but better work conditions for drivers and conductors as well.

According to Bureau of Working Conditions (BWC) Director Teresita Cucueco, DOLE Department Order No. 118-12, series of 2012, established the rules and regulations governing the employment and working conditions of drivers and conductors in the public utility bus transport industry.

"The department order ensures income security for the bus drivers and conductors, as well as improves the working conditions in the bus transport sector," said Cucueco. "We will continue our monitoring on the implementation and compliance, as mandated."

Cucueco added that the department order reduces the risk-taking behavior of drivers with a purely commission-based system, as they are provided with a secured income, social benefits, as well as safety and health measures at work.

Based on the department order, the fixed wage component shall be an amount mutually-agreed upon by the owners or operators and the drivers and conductors, which should not be lower than the applicable minimum wage.

The performance-based wage component, on the other hand, shall consider business performance, which includes revenue or ridership and safety performance, taking into consideration the safety records, such as incidence of road accidents and traffic violations.

The Supreme Court on Sept. 27, 2018, dismissed the petition of the bus operator groups that questioned the DOLE order, which they claimed had violated their constitutional rights as public utility bus operators to due process, equal protection, and non-impairment of obligation of contracts.

"The Department Order No. 118-12 and Memorandum Circular No. 2012-001 are in the nature of social legislation to enhance the economic status of bus drivers and conductors, and to promote the general welfare of the riding public. They are reasonable and are not violative of due process," the decision of the SC read.