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Quality and Productivity Improvement

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The following post does not create a lawyer-client relationship between Alburo Alburo and Associates Law Offices (or any of its lawyers) and the reader. It is still best for you to engage the services of a lawyer or you may directly contact and consult Alburo Alburo and Associates Law Offices to address your specific legal concerns, if there is any.

Also, the matters contained in the following were written in accordance with the law, rules, and jurisprudence prevailing at the time of writing and posting, and do not include any future developments on the subject matter under discussion.


AT A GLANCE:

The month of October of every year is declared as the National Quality and Productivity Improvement Month, pursuant to Proclamation No. 726, series of 2004.

The National Economic and Development Authority (NEDA) is enjoined to coordinate and monitor all programs, projects and activities of both government and private sectors in celebration of the National Quality and Productivity Improvement Month. (Proclamation No. 726, series of 2004)


Recognizing the need to raise the quality and productivity consciousness of government organizations, private sector enterprises, academe and the general public and to implement value-adding activities in order to achieve higher productivity, then-President Gloria Macapagal-Arroyo issued Proclamation No. 726 on October 29, 2004 declaring the month of October of every year as the National Quality and Productivity Improvement Month.

The Proclamation highlighted the importance of multisectoral participation in enhancing overall productivity and the integral part of quality enhancement measures play in increasing productivity.

The law says:

“NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the Republic of the Philippines, by virtue of the powers vested in me by law, do hereby declare the month of October of every year as the National Quality and Productivity Improvement Month.

All departments, bureaus and agencies of the national and local governments are hereby directed to develop, implement and sustain quality and productivity improvement programs, projects and activities. In line with this, I hereby enjoin all quality and productivity organizations/associations to collaborate with the concerned government agencies in the development, implementation and promotion of quality and productivity improvement plans, programs, projects and activities.

The Philippine Council for Productivity chaired by the National Economic and Development Authority shall coordinate and monitor all programs, projects and activities of both government and private sectors in celebration of the National Quality and Productivity Improvement Month.” (Proclamation No. 726, s. 2004)

The National Wages and Productivity Commission (NWPC)

It is a declared policy of the State to rationalize the fixing of minimum wages and to promote productivity-improvement and gain-sharing measures to ensure a decent standard of living for the workers and their families; to guarantee the rights of labor to its just share in the fruits of production; to enhance employment generation in the countryside through industry dispersal; and to allow business and industry reasonable returns on investment, expansion and growth. (Section 2, R.A No. 6727 or the Wage Rationalization Act)

In line with the foregoing declared policies, the National Wages and Productivity Commission (NWPC) was created by virtue of the “Wage Rationalization Act” (Republic Act No. 6727), which established a new mechanism for minimum wage determination through the creation of the NWPC and Regional Tripartite Wages and Productivity Boards (RTWPBs) in all regions of the Philippines.

The law says:

The NWPC is an agency attached to the Department of Labor and Employment (DOLE) with the following powers and functions:

(i)To act as the national consultative and advisory body to the President of the Philippines and Congress on matters relating to wages, incomes and productivity;

(ii)To formulate policies and guidelines on wages, incomes and productivity improvement at the enterprise, industry and national levels;

(iii)To prescribe rules and guidelines for the determination of appropriate minimum wage and productivity measures at the regional, provincial, or industry levels;

(iv)To review regional wage levels set by the Regional Tripartite Wages and Productivity Boards to determine if these are in accordance with prescribed guidelines and national development plans;

(v)To undertake studies, researches and surveys necessary for the attainment of its functions and objectives, and to collect and compile data and periodically disseminate information on wages and productivity and other related information, including, but not limited to, employment, cost-of-living, labor costs, investments and returns;

(vi)To review plans and programs of the Regional Tripartite Wages and Productivity Boards to determine whether these are consistent with national development plans;

(vii)To exercise technical and administrative supervision over the Regional Tripartite Wages and Productivity Boards;

(viii)To call, from time to time, a national tripartite conference of representatives of government, workers and employers for the consideration of measures to promote wage rationalization and productivity; and

(ix)           To exercise such powers and functions as may be necessary to implement the Labor Code. (Article 121, P.D. No. 442 or the Labor Code, as renumbered)

 

Read also: What is the remedy of a party aggrieved by the wage order issued by the Regional Tripartite Wages and Productivity Board?

 

Alburo Alburo and Associates Law Offices specializes in business law and labor law consulting. For inquiries regarding taxation and taxpayer’s remedies, you may reach us at info@alburolaw.com, or dial us at (02)7745-4391/0917-5772207.

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