BUTUAN CITY – The Regional Tripartite Wages and Productivity Board (RTWPB) Caraga lauded the Nickel Asia Corporation (NAC) for its implementation of two-tiered wage system in the respective collective bargaining agreements (CBA) of Taganito Mining Corporation (TMC), Cagdianao Mining Corporation (CMC) and Hinatuan Mining Corporation (HMC) during the visit of the Department of Labor and Employment (DOLE) Secretary Bienvenido Laguesma on January 22,2024 at Almont Inland Resort, Butuan City.

Jessie Pagaran, NAC’s representative, presented their two-tiered best practice to Sec. Laguesma. According to him, “the implementation of two-tiered CBA wage increase is patterned to Wage Board’s two-tiered wage system, wherein the 1st tier is fixed wage increase, and the 2nd tier is focused on performance-based incentive. This practice is made possible through the convergence, assistance and intervention of DOLE Caraga, RTWPB and National Conciliation and Mediation Board - Caraga.”

Pagaran further explained the contents of the two-tiered CBA increase, stating, "the two-tiered wage increase  is composed of fixed increase and a performance-based increase. The latter increase is based on a criterion crafted and agreed by the employer and its union during the CBA negotiation, refined in their monthly labor-management committee meetings, and annually reviewed for adjustments.  The criteria used and implemented in these mining companies are bilateral as negotiated between the management and unions during their CBA negotiations and not unilateral or exclusively dictated by the management to its unions.”

“The performance-based increases measures the contribution of an employee to the group objectives established for the year and his individual contribution in terms of attendance, compliance with safety, environment, and company polices, among others, that are easily attributable to the employee,” he said.

Earl D. Dela Victoria, board secretary VI of RTWPB Caraga complimented NAC’s implementation on two-tiered wage system, saying, “as advocates of performance-based incentive schemes (PBIS), we are very grateful to the efforts of the management and workers of NAC in their full adoption of the two-tiered wage system. We are hoping that there are more firms that will follow the practices of NAC in the promotion of workers' welfare and in advocating performance-based incentives schemes."

The two-tiered wage system is a reform that maintains the mandatory minimum wage setting under Wage Rationalization Act or RA 6727 as the 1st tier,  and being complemented by a voluntary productivity-based pay scheme as the second tier. It was conceptualized in 2010 and implemented in 2012 with the support of social partners. (RTWPB-CARAGA/PIA-CARAGA)