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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.
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