The Philippine Amusement and Gaming Corporation (PAGCOR), a significant entity in the gaming and entertainment industry in the Philippines, has recently submitted a formal request to the Governance Commission for Government-Owned or Controlled Corporations (GCG) regarding a crucial matter concerning its employees’ compensation structure. This move comes in response to implementing the new Compensation and Position Classification System (CPCS), which has raised concerns among the workforce regarding equitable pay distribution.

With the introduction of the new Compensation and Position Classification System (CPCS), all PAGCOR employees were uniformly placed into Pay Step One, irrespective of their tenure or experience within the organization. This standardized approach to compensation meant that long-serving employees were receiving the same remuneration as newly recruited personnel. The ramifications of this policy became evident on the first payday under the CPCS, falling on February 15, as numerous employees reported a decrease in their salary.

In response to the challenges faced by its employees due to the CPCS implementation, Alejandro Tengco, the Chairman and CEO of PAGCOR, took proactive steps to address the issue. Recognizing the importance of prioritizing the welfare of its workforce, the PAGCOR Board of Directors approved the implementation of Step Increment based on the length of service. This decision was contingent upon the review and approval of the Governance Commission for Government-Owned or Controlled Corporations (GCG).

The submission made by PAGCOR to the GCG represents a pivotal moment in the organization’s commitment to ensuring fair compensation practices. Chairman Tengco emphasized the significance of the appeal, expressing hope for a positive response from the GCG. The objective is to rectify the disparity in pay experienced by tenured employees and align their compensation with the provisions outlined in the CPCS guidelines.

According to the guidelines stipulated in the Compensation and Position Classification System (CPCS), employees are entitled to progress one pay step every three years of service. However, it was discovered that a substantial portion, approximately 73%, of PAGCOR’s workforce had already surpassed this tenure requirement. This discrepancy underscored the urgency of implementing the Step Increment mechanism to address the concerns raised by employees regarding equitable compensation.

Chairman Tengco reiterated PAGCOR’s unwavering commitment to safeguarding the interests of its employees, particularly those occupying lower-level positions within the organization. The appeal submitted to the GCG marks the initial phase of a comprehensive strategy aimed at mitigating the adverse impact of changes in take-home pay on vulnerable workforce segments.

In addition to the internal adjustments related to employee compensation, PAGCOR is concurrently grappling with external challenges. Recent developments include a raid conducted by PAGCOR authorities, resulting in the seizure of electronic devices such as computers, phones, tablets, laptops, and flash drives. These actions underscore PAGCOR’s commitment to upholding regulatory compliance and combating illicit activities within its sphere of operation.

The request submitted by PAGCOR to the Governance Commission for Government-Owned or Controlled Corporations (GCG) reflects the organization’s proactive stance in addressing issues about employee compensation. By advocating for the implementation of a Step Increment based on length of service, PAGCOR aims to rectify disparities in pay and uphold the welfare of its workforce. This concerted effort underscores PAGCOR’s commitment to fostering a conducive work environment characterized by fairness and equity.

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