The Philippine Amusement and Gaming Corporation (PAGCOR) finds itself at the center of a controversy surrounding its recent implementation of the Compensation and Position Classification System (CPCS). This system, while aiming to streamline employee pay structures, has inadvertently sparked discontent among PAGCOR employees due to its perceived unfairness. Alejandro Tengco, PAGCOR’s Chairman and CEO, has spearheaded efforts to address these concerns by petitioning the Governance Commission for Government-Owned or Controlled Corporations (GCG) for a reconsideration of the pay structure.
Background of the Compensation and Position Classification System (CPCS):
The CPCS was introduced with the intention of modernizing PAGCOR’s compensation framework and aligning it with industry standards. However, its implementation has led to unintended consequences, particularly regarding the equitable treatment of employees based on their length of service.
Employee Discontent and Pay Discrepancies:
Upon the rollout of the CPCS, PAGCOR employees were dismayed to discover that regardless of their tenure, all were placed at Pay Step One of the new system. This blanket approach meant that experienced employees received the same compensation as new hires, resulting in a significant decrease in take-home pay for many.
Alejandro Tengco’s Response and Appeal to GCG:
In response to mounting dissatisfaction, Alejandro Tengco, in his capacity as PAGCOR’s Chairman and CEO, has taken proactive steps to address the issue. Tengco highlights the commitment of PAGCOR’s Board of Directors to prioritize employee welfare and underscores the urgency of revisiting the pay structure to ensure fairness and compliance with the law. By appealing to the GCG for approval of a Step Increment system based on length of service, Tengco aims to rectify the disparities in employee compensation.
Proposed Step Increment System:
Under the proposed Step Increment system, employees would advance one Pay Step for every three years of service. This approach acknowledges and rewards tenure, providing a mechanism for experienced employees to progress within the organization’s pay scale.
Challenges and Implications:
Despite the merits of the proposed Step Increment system, challenges remain in its implementation. One notable obstacle is the significant portion of PAGCOR’s workforce already meeting the three-year tenure requirement. Addressing the concerns of this majority group while ensuring fairness for all employees poses a complex dilemma for PAGCOR’s leadership.
Ensuring Fairness and Protection for Vulnerable Employees:
Alejandro Tengco emphasizes the importance of safeguarding the interests of employees occupying the lowest echelons of the organization. By advocating for measures to shield these vulnerable employees from adverse impacts on their take-home pay, PAGCOR demonstrates its commitment to fostering an inclusive and equitable work environment.
Multifaceted Challenges Facing PAGCOR:
In addition to grappling with internal compensation issues, PAGCOR faces external challenges, as evidenced by recent raids targeting illegal gambling activities. The seizure of electronic devices underscores PAGCOR’s ongoing efforts to combat illicit practices within the industry and uphold regulatory standards.
The current predicament facing PAGCOR underscores the complexities inherent in managing a government-owned corporation amidst evolving regulatory frameworks and industry dynamics. Alejandro Tengco’s proactive stance in addressing employee concerns reflects PAGCOR’s commitment to fostering a culture of fairness and transparency. As the organization navigates these challenges, a concerted effort towards dialogue, collaboration, and equitable solutions will be pivotal in ensuring the well-being of its workforce and upholding its mandate as a regulatory authority in the gaming sector.