Volume 18 v Number 4 April 2014www.nwpc.dole.gov.ph

The Offi cial Newsletter of the National Wages and Productivity CommissionT

The NWPC organized a media event on April 8 at the

OSHC, Quezon City as culmina� ng ac� vity for Phase 1

(Developing Produc� vity Professionals in the Philippines)

and to kick-off phase 2 (Capacity Building on Innova� on

and Enterprise Development) of the training collabora� on

of DOLE, through the NWPC with Singapore’s Nanyang

Polytechnic Interna� onal (NYPi) and Temasek Founda� on

(TF).

The event was graced by DOLE Sec. Rosalinda Dimapilis-

Baldoz, DOLE and NWPC offi cials and delegates from

Singapore which include NYPi ‘s Mr. Foong Tze Foon, General

Manager for Programmes and Services Group, Mr. Anthony

Woon, Director for Interna� onal Development; Temasek

Founda� on’s Mr. Ong Boon Hwee, Board Director, Mr. Gerald

Yeo, Director for Programmes and Partnership and Ms.

Diana Lee, Senior Associate for Communica� ons. It was also

a� ended by Mr. Daniel Wang, Deputy Chief of Mission of

the Embassy of the Republic of Singapore in the Philippines.

Over 120 representa� ves from government, social partners,

produc� vity specialists, and media were also present during

the event.

In her speech, the Secretary expressed apprecia� on for

the con� nued assistance of NYPi and TF in developing the

country’s produc� vity champions and advocates who will

collec� vely assist MSMEs to grow into viable and sustainable

enterprises.

She specifi cally cited the diff erent forms of employment

and capacity building assistance being given to Tacloban and

how the ongoing training on produc� vity, innova� on and

enterprise development can contribute to fast-track recovery

Media event on Singapore

productivity training held

Left picture: DOLE Sec. Rosalinda Dimapilis-Baldoz delivering her speech during the Media Event on Capacity Building on Productivity, Innovation & Enterprise Development, on April 8 at OSHC Quezon City. Also present in the picture are (L-R): RBest Pres. Mr. Sir Ritchie M. Romero, Singapore’s NYPi Mr. Foong Tze Foon, Temasek Foundation Mr. Gerald Yeo and Mr. Ong Boon Hwee, DOLE Usec. Ciriaco A. Lagunzad III, NWPC Exec. Dir. Maria Criselda R. Sy, and Ati-Atihan Festival Hostel & Conference Center’s General Manager Ms. Josefina Lucille C. Dela Cruz. Right picture: Mr. Foong Tze Foon of NYPi taking pictures of the photo exhibit that shows the PIPs of ten private sector participants to the said training.

and build more resilient communi� es.

Seeing the promising results of Phase 1 and an� cipa� ng

be� er outcomes under Phase 2, Secretary Baldoz urged

NYPi and TF to consider a 3rd phase that will train a new

batch of produc� vity specialists from the government and

private sectors.

In his message, TF’s Board Member Ong Boon Hwee

expressed sa� sfac� on over the results of the training

program. He also shared the vision of the Secretary of a

possible 3rd phase, further strengthening the collabora� on

between DOLE and NYPi and TF.

The event featured the re-entry programs of the 120

par� cipants trained under Phase 1 through an audio visual

presenta� on and a photo exhibit. A brief presenta� on on

the produc� vity journey of A� -A� han Fes� val Hostel and

Conference Center and RBest Foods Corpora� on, two of the

private sector par� cipants in Phase 1, was also one of the

highlights of the event.

Ms. Cindy Dela Cruz of Ati-Atihan Hostel and Mr. Sir Ritchie Romero of RBest Foods Corp. sharing their productivity journey after attending the training in Singapore.

of the business for purposes of surfacing

and resolving problems, boos� ng

employee performance and enhancing

customer service. A staff sugges� on

box was installed to draw comments and

recommenda� ons from the employees.

To make shopping at Nesabel more

convenient, they improved the

supermarket’s lay-out by widening the

aisles for shoppers and employees to

move around with rela� ve ease. They

also maximized the use of shelves for

be� er product handling and display.

A produc� vity commi� ee composed of

ten employees from all its opera� ng units

and branches was formed. The commi� ee

supervises an inter-branch evalua� on

that looks at best prac� ces, lapses/areas

for improvement and corresponding

sugges� ons thereto. Employees were

made to par� cipate in training programs

relevant to the retail business.

These ini� a� ves improved customer

patronage, increased shopper turnover

and reduced merchandise breakage/

damage/spoilage which meant higher

revenues and sales for Nesabel.

Nesabel has come a long way. Equipped

with the right knowledge, skills, a� tude

and values, Nesabel is prepared to expand

its next chain of supermarkets soon.

Nesabel was one of the private sector

par� cipants to the Training to Develop

Philippine Productvi� y Professionals

(Phase 1), a joint project of DOLE-NWPC

with Singapore’s Temasek Founda� on

and Nanyang Polytechnic Interna� onal

(NYPi).

April 2014 Feature

From small sari-sari to big groceries

Nesabel’s journey from a small sari-

sari store to three big supermarkets

is a story of hard work and determina� on.

The story began when the couple built

a small store in front of their house in

1992 to help augment the family income.

Because they were both employed,

Belle in an accoun� ng fi rm and Nestor

in a mul� -na� onal fi sh company, they

employed two salesladies to man the

store.

Belle recounted how, from work, she

would scout Divisoria for wholesale and

bargain goods. And because she did not

have her own means of transporta� on,

she had to wrestle her way to get a ride in

a public u� lity bus. She single-handedly

carried oversized cartons containing

goods and wares to their store.

Soon, Nestor and Belle Castor saw

the poten� al of their business with the

promise of huge sales and revenues.

The couple rented a bigger commercial

unit in Comembo Market in Maka�

City. An� cipa� ng the requirements of

a growing business, Belle, unhesita� ngly

le" the corporate world to manage

Nesabel. The couple also decided to

purchase their own delivery van, knowing

they now have a bigger space to fi ll.

The journey has not always been easy

for Nesabel. Like any other business, it

has its share of problems and diffi cul� es.

The supermarket’s layout was crowded

and severely limited the movement of

shoppers and employees. Since products

were not properly displayed or stacked,

it took more � me than necessary for

shoppers to do their business, further

crowding the supermarket. This

inconvenienced

b o t h

shoppers and

employees of

Nesabel.

The same

p r o b l e m

extends to its

w a r e h o u s e ,

r e s u l t i n g

in a high

incidence of

stock damage,

spoilage and

breakage, bringing losses to the company.

It was at this � me when the Regional

Tripar� te Wages and Produc� vity Board

of Na� onal Capital Region (RTWPB-NCR)

approached Nesabel and ini� ally off ered

to help them organize their merchandise

using the principles of 5s of Good

Housekeeping.

The Board also conducted a training

on ISTIV produc� vity awareness program

which aimed to ins� ll posi� ve work

values to Nesabel’s employees.

Nesabel was also invited to par� cipate

in the training on Developing Produc� vity

Professionals in the Philippines. This

program is a collabora� on among the

Department of Labor and Employment

(DOLE) through the Na� onal Wages and

Produc� vity Commission (NWPC) and

Singapore’s Temasek Founda� on (TF)

and Nanyang Polytechnic Interna� onal

(NYPi).

Represen� ng Nesabel in this training

held at Singapore were its owner Ms.

Isabelita D. Castor (Senior Offi cer

Program, April 1-5, 2013), its supervisor

The improved merchandise display resulted to reduced number of bad orders and damaged merchandise

Nesabel employees regularly conduct inter-branch audit to reduce customer complaints. by: Julie C. Llorente

Ms. Zenaida N.

Evangelista (Produc� vity

Manager Program, April

15-26, 2013) and its

bookkeeper/supervisor

Ms. Jenney S. Nicolas

(Produc� vity Specialist

Program, September 9 –

October 11, 2013).

Bringing back

the lessons learned,

they conducted daily

mee� ngs on the status

its work processes

and procedures to

minimize errors and

improve workfl ow.

It also implemented

“just-in-� me” to

reduce in-process

inventory and

materials-handling

costs. Addi� onal

sewing machines and

cu� ng tables were

She created Puyo’s fi rst produc� vity

improvement team composed of

the owner, manager and worker

representa� ves. She conducted a series

of trainings for their employees such as

5S, basic produc� vity concepts and seven

wastes of produc� on.

The ini� al implementa� on of 5S on May

27, 2013 brought order and discipline to

the workplace. Materials were properly

stored and labelled, improving workplace

safety, cleanliness, and access to stocks

and inventories.

The company started standardizing

Puyo Handicra� is located in Cagayan

de Oro City, Misamis Oriental, home of

world-class abaca products. The term Puyo

means “supot” or “bayong” (described as

a na� ve bag). Puyo Handicra� s products

are made of indigenous materials such as

abaca fi ber, corn husks, coco coir, coconut

shells, and dried grass. Its product line

ranges from bags to house ornaments and

other similar household items.

It never crossed Engr. Vivian B. Libao’s

mind that she would one day manage an

abaca handicra� s enterprise. But Vivian

did, when in 2004, her sister asked her

to con� nue running the business. Puyo

Handicra� s started with an ini� al asset of

only P10,000 and one old machine.

One of Puyo Handicra� s’ pursuits is

to provide sustainable livelihood to the

women in their community belonging to

the city’s urban poor. “I do not require a

degree or a diploma. I just need people

who are willing to learn. I train them

personally,” explained Vivian.

Driven by her goal to see Puyo grow into

a viable business enterprise, Vivian wasted

no � me in exploring various government

assistance programs for micro, small, and

medium enterprises (MSMEs). Vivian

needed to address its problem of high

product rejects. With just a small profi t

margin, Puyo had to eliminate wastages

that unnecessarily raise produc� on costs.

“We only have 10-15% profi t margin,” said

Vivian.

Being a labor intensive enterprise, Vivian

realized the need to inculcate posi� ve

work values and build the knowledge and

skills of her workers before embarking on

a produc� vity improvement program.

Seeing the determina� on of Puyo, it was

selected as one of the par� cipants to the

mul� -level, mul� -sectoral training on

produc� vity in Singapore. This training

was a joint project of the Department

of Labor and Employment through

the Na� onal Wages and Produc� vity

Commission (DOLE-NWPC) with the

Nanyang Polytechnic Interna� onal (NYPi)

and the Temasek Founda� on (TF) of

Singapore.

Represen� ng Puyo in this training were

its CEO, Mr. Ivan Dave B. Labao (April 1-5,

2013); Manager, Engr. Vivian B. Libao

(May 6-17, 2013) and; Ms. Garlyn Mae

P. Bandiola (September 9 – October 11,

2013).

One week a� er a� ending the Singapore

Bagful of Success

After the implementation of 5S , Puyo Handicraft reduced rejects and reworks from 5% to 1.5%.

The term Puyo means “supot” or “bayong” (described as a na! ve bag).

t r a i n i n g ,

V i v i a n

cascaded her

learnings to

the workers,

emphasizing

t h e

i m p o r ta n c e

of imbibing

productivity

in the

workplace.

Established a system for documenting design and specifications per product line.

by: Zulaizah Genesis M. Lahan

April 2014Feature

also secured.

In no � me, Puyo has acquired a

culture of quality, replacing the ‘puwede

na a� tude’. According to Vivian “the

measure of sa� sfac� on is when customers

constantly patronize your products.”

To mo� vate workers to maintain

quality standards, Puyo implements

a performance incen� ve scheme that

grants incen� ves to workers with the least

amount of reworks. This has lowered

the percent of reworks from 5% to 1.5%.

Vivian added that “when profi t increases,

management fi nds a way of sharing these

gains with their workers.”

In hindsight, Vivian admi� ed that their

commitment to produc� vity enabled

them to overcome the diffi cul� es of

implemen� ng and managing change. With

con� nued hard work and determina� on,

Puyo Handicra� s will defi nitely realize

the fruits of its produc� vity journey.

Puyo Handicra" was one of the private

sector par! cipants to the Training

to Develop Philippine Productvi! y

Professionals (Phase 1), a joint project of

DOLE-NWPC with Singapore’s Temasek

Founda! on and Nanyang Polytechnic

Interna! onal (NYPi).

The next two batches of par� cipants, composed of Program

Managers from DOLE, DOST, DTI, DOT and DA will undergo

a more intensive training on May 18-31 (1st batch) and

September 7-20 (2nd batch).

Productivity and innovation training program starts with senior offi cials’ visit

The first batch of participants to Phase 2 is composed of senior officials from strategic and social partners.

Lourdes M. SecillanoJulie Callope-LlorenteJerome P. Lucas

The NWPC Bulletin is published by the Information and

Publication Division of the National Wages and Productivity

Commission. Our address is 3rd Floor Dy International

Building, No. 1011 Gen. Malvar corner San Marcelino Streets,

Malate, Manila. Tel. Nos. 5275519, 5278011 to 17; Fax No.

5275139. For comments, suggestions, and contributions,

please write to the Editor-in-Chief or e-mail us at web.nwpc@

yahoo.com. You may also visit our website at www.nwpc.

dole.gov.ph.

NWPCBulletin

Editor-In-ChiefManaging Editor

Layout Artist

Executive Director Maria Criselda R. SyDeputy Executive Director Patricia P. Hornilla

OIC-Deputy Executive Director Jeanette T. DamoDirector Elvira P. Jota

OIC-Director Welma T. SicangcoOIC-Director Jamie-Lyn J. Garcia

Elvira F. MangubatGladys S. Gatpandan

Star� ng May 1, 2014, minimum wage earners in the private

sector in CALABARZON will receive a pay adjustment

following the issuance of Wage Order IVA-16 by the Regional

Tripar� te Wages and Produc� vity Board.

Under the new Wage Order, minimum wage earners

receiving below P267 will get an addi� onal P12 per day basic

pay increase, to be given in tranches un� l December 1, 2016.

Meanwhile, minimum wage earners receiving more than

P267 up to P349.50 will receive an addi� onal P13 Socio-

Economic Allowance (SEA) upon eff ec� vity of the Wage Order.

The SEA is a daily allowance which follows the “no work, no

allowance” policy for daily paid workers.

The wage increase brings the highest minimum wage in the

region to P362.50.

The new wage minimum wage rates shall apply to all

minimum wage earners in the region regardless of posi� on,

designa� on or status and irrespec� ve of the method by which

their wages are paid.

Wage Order RB IVA-16 does not allow exemp� ons.

Excluded from the wage order are domes� c workers, persons

employed in the personal service of another including family

drivers, and workers of Barangay Micro Business Enterprises

(BMBEs). Except from the said provision, the wage order

strictly implements the no exemp� on policy.

Wage Order IVA-16 was issued on April 8 and published on

April 16 in Philippine Daily Inquirer.

A" er a series of consulta� ons with representa� ves of the

industry and its stakeholders, the Regional Tripar� te

Wages and Produc� vity Board-X issues its fi rst wage advisory

for the public u� lity bus transport industry in the region.

The advisory was issued for the bus transport industry,

considering its contribu� on to the region’s employment,

economy, and produc� vity.

The advisory provides sample produc� vity improvement

programs such as 1) a$ endance incen� ve, 2) good conductor’s

pay, 3) zero traffi c viola� on and road accident incen� ve, and

4) fuel consump� on incen� ve.

It also recommends produc� vity gainsharing schemes such

as Scanlon, Rucker, Improshare, and profi t sharing.

To encourage adop� on of produc� vity improvement

programs, bus companies that have successfully implemented

produc� vity prac� ces will be given recogni� on by the

Regional Board.by: Jerome P. Lucas

Wage Increase in CALABARZON

takes effect on Labor Day

RTWPB X issues Two-Tiered Wage

Advisory for Bus Transport Industry

April 2014 News

by:Jerome P. Lucas

The second phase of the NWPC-Nanyang Polytechnic

Interna� onal (NYPi)-Temasek Founda� on (TF)

training collabora� on on innova� on and enterprise

development started with the senior offi cials program

on March 31 to April 4.

The delega� on, headed by Undersecretary Ciriaco

A. Lagunzad III, was composed of selected senior

government offi cials from DOLE, DOST, DTI, DOT and

DA; social partners represented by TUCP, FFW and

ECOP; UP-ISSI and PALSCON.

The programme oriented the par� cipants with

Singapore’s produc� vity journey and its innova� on

and enterprise development ini� a� ves. One of the

innova� on technologies presented by NYPi was Deep Dive, a

widely used technique on problem solving or idea crea� on for

product development, process improvement and customer

service improvement.

A highlight of the visit was a tour of public and private

sector organiza� ons like SPRING Singapore’s I & E development

strategy for SMEs, the Na� onal Library Board and New Water

and Marina Barrage (public sector), Makino Asia Pte. Ltd

(manufacturing sector) and the YCH Group (services sector) to

experience fi rst-hand, their produc� vity and innova� on journey.