Duterte puts GOCC compensation system on hold

President Rodrigo Duterte delivers his second State of the Nation Address at the House of Representatives on Monday, july 24, 2017. Danny Pata

President Rodrigo Duterte has suspended the implementation of former President Benigno Aquino III's compensation system for employees of state firms.

On July 28, Duterte signed Executive Order No. 36 that put Aquino's Executive Order No. 203 on hold to review excessive allowances and bonuses for employees of government-owned and -controlled corporations.

Executive Order No 203 by GMA News Online on Scribd

"When the new administration came, there was a felt need to review this so that any excessive bonuses and allowances will have to go. And it appears that some government agencies also could not comply with the requirements under EO 203 alright, maybe for some requirements like rationalization or the budgetary requirements and so forth and so on," Senior Deputy Executive Secretary Menardo Guevarra told reporters during the Mindanao Hour in Malacañang.

Duterte signed EO No. 36 four days after his second State of the Nation Address where he said that GOCCs would receive no salary increases and bonuses during his term.

Since the compensation and position classification system for the GOCCs was suspended, the EO provided an interim measure for the state firms.

"Those GOCCs is covered by the SSL, Salary Standardization Law, which pertains to the National Government Agencies, alright, may adapt that system of compensation under EO 201 which applies to National Government Agencies," Guevarra explained.

"For those which are exempt from the SSL, they have the option of either maintaining their current compensation framework or similarly adapt the modified salary schedule under EO 201, iyong applicable sa National Government Agencies," he added.

The interim measure will retroact to January 1, 2017 upon the approval of the Governance Commission for GOCCs.

Duterte's EO No. 36, however, will not affect EO No. 203's points on collective bargaining agreements and collective negotiation agreements.

The GCG, meanwhile, is expected to promulgate implementing rules and regulations within 30 days of the EO's release.

Guevarra also said that the GCG was also tasked to review EO No. 203.

"No specific deadline, but I suppose the GCG was instructed to expedite the review of the implementation of 203, EO 203," he said. — RSJ/TJD, GMA News

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