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PPA MEMORANDUM CIRCULAR No.

08-2014

SUBJECT: GUIDELINES IN THE IMPLEMENTATION OF THE APPROVED RATIONALIZATION PLAN OF


THE PHILIPPINE PORTS AUTHORITY

Pursuant to the Governance Commission for Government-Owned and Controlled Corporations (GCG)
Memorandum Order No. 2014-10 (GCG MO No. 2014-10), the following guidelines in the implementation
of the approved Rationalization Plan of the

Philippine Ports Authority (PPA-RP) are hereby issued for the guidance to all concerned.

I. AUTHORITY

1. Executive Order No. 366 (EO 366) and is Implementing Rules and Regulations - Directing a
Strategic Review of the Operations and Organization of the Executive Branch and Providing
Options and Incentives For Government Employees who May Be Affected by the
Rationalization of the Functions and Agencies of the Executive Branch.

2. Executive Order No. 77.s. 2012 (EO 77) - Amending Executive Order (EO) NO. 367 Is. 2007).
On the Basis of the Computation of the Incentives of Personnel Affected by the
Implementation of the Rationalization Program Under EO No. 366 (s. 2004).

3. Republic Act No. 6656 (RA 6656) - An Act to Protect the Security of Tenure or the Civil Service
Officers and Employees in the Implementation of Government Reorganization.

4. CSC Memorandum Circular No. 03 s. 2014 (CSC MC 03-2014) - Clarification on the Guidelines
on the Placement of Personnel relative to the Implementation of Approved Rationalization
Plans of Agencies.

5. CSC Memorandum Circular No. 07, s.2011(CSS MC 07-2011) –Amendment to the Revised
Policies on Qualification Standards and the Revised Omnibus Rules on Appointments and
Other Personnel Actions.

6. CSC Memorandum Circular No. 02.s. 2006 (CSC MC 02-2006) - Guidelines for the Placement
of Personnel Affected by the Rationalization of the Functions and Agencies in the Executive
Branch.

II. COVERAGE
These guidelines shall apply to all Responsibility Centers (RC) of the PPA and shall cover all incumbent PPA
officers and employees on permanent/regular and coterminous plantilla positions.

lll. OBJECTIVES

1. To ensure the smooth, fair and transparent implementation of PPA-RP.

2. To effectively address issues and concerns affecting the Implementation of PPA-RP

3. To define the duties and responsibilities of PPA Change Management Team (PPP-CMT) and PPA
Placement Committee (PPA-PC).

IV. DEFINITION OF TERMS

1. Affected Position is a position which functions have been declared redundant or non-core
services/activities of the unit/agency in the department/agency. In the case of PPA, the following are the
affected positions:

1.1 All positions in the abolished Port District Offices (POOs):

1.2 All positions in the abolished Port Services Division and Engineering Services
Division in the privatized ports, North Harbor and South Harbor:

1.3 Positions that have been reduced resulting in more incumbents than the number
of available positions within the unit of the RC’s;

1.4 Positions that have been abolished within the unit of the RCs; and

1.5 Positions in the PPA Supplemental Plantilla of Personnel in the DBM Approved PPA
Restructuring Plan in 2001.

2. Reclassified Position is a position whose regular duties and responsibilities have undergone
substantial changes which may result to a change in any or all of the position attributes: position title,
level and salary grade. It involves a change in the position title and may be accompanied by upward or
downward change in salary. It also involves the upward change in salary grade allocation without change
of position title. This position is a non-affected position.

3. Comparable Position is a position determined based not solely on salary grade l>UI also on the
duties and responsibilities o' the position and level of position In the Organizational Structure or plantilla
of PPA. Positions may be considered to be comparable if they belong to the same occupational grouping
and the duties and responsibilities o' the position are similar and or related to each other. These positions
may not necessarily be o the same salary grade but may be a grade higher than that of the old position.
This position is also a non-affected position.

V. IMPLEMENTATION PLAN
The implementation of the PPA-RP commenced on June 6, 2014 after receipt of the GCG MO No. 2014 10.

The PPA-CMT shall issue advisories as to the timetable of activities as necessary in the implementation of
the PPA-RP.

VI. DUTIES AND RESPONSIBILITIES

1. The PPA CMT shall perform the following.

1.1 Approve and issue action plan and/or recommend measures for the smooth
implementation of the PPA-RP;

1.2 Oversee the actual implementation of the PPA-RP;

1.3 Recommend and/or implement measures to mitigate the impact of


rationalization plan on the holders or affected positions:

1.4 Evaluate/resolve Issues/complaints arising from implementation of PPA-RP;

1.5 Determine unresolved issues for referral to CSC and GCG;

1.6 Conduct briefing on PPA-RP implementation; and

1.7 Perform other related tasks.

2. The PPA-PC shall perform the following:

2.1 Formulate/adopt selection criteria or procedures to identify the best PPA Personnel to be
placed to reclassified and/or comparable positions in the PPA-RP;

2.2 Ensure fairness and transparency in the assessment of placement of personnel;

2.3 Place holders of non-affected positions to the same, reclassified or comparable positions
in the PPA-RSP;

2.4 Place holders of affected positions who opted to remain in PPA to available positions in
the RSP;

2.5 Prepare the master list of personnel placed under Items No. 2.3 and 2.4 tor approval of
the GM thru PPA-CMT;

2.6 Review and recommend the plantilla-type notice, special orders and appointment papers
on personnel placement for approval of the GM thru the PPA-CMT;

2.7 Endorse to the PPA-CMT any appeals or complaints received on placement issues;

2.8 Conduct briefing on placement guidelines and procedures; and

2.9 Perform other related tasks.


Vll. PLACEMENT GUIDELINES AND PROCEDURES

The guidelines and procedures on placement shall governed by the applicable provisions of PPA
Memorandum Order No. 10-2014 or subsequent issuance and other related laws, rules and regulations.

Vlll. NOTICE TO HOLDERS OF AFFECTED POSITIONS

1. Final Notice and Reply Slip with attached Checklist on Retirement as Annex "A" shall be issued by
the CMT to holders of affected positions immediately upon approval of this Circular.

2. Submission of duly accomplished Reply Slip by the holders of affected positions to the CMT, thru
HRMD, shall not be later than September 30, 2014 per GCG Letter Approval dated August 13, 2014. For
those who opt to retire, the supporting documents provided in Annex 'A" must likewise be submitted
within the same period.

3. Submission of the accomplished Reply Slip beyond the prescribed period shall be construed as a
decision to stay in government service. Non-submission of the Reply Slip shall likewise be construed as a
decision to stay in government service.

4. Holders of affected positions who opted to remain in government service but later on decided to retire
after September 30, 2014 will be allowed to retire under any of the regular retirement schemes, as
applicable, without the corresponding incentives under EO 366.

IX. RETIREMENT SEPARATION BENEFITS

1. Holders of affected positions who opted to retire/separated from PPA, can avail of any of the
following retirement/separation benefits provided under EO 366 as amended by EO 77:

1.1 Retirement gratuity under RA 1616 payable by PPA to personnel who joined the
government services before June 1, 1977 shall be entitled to the following, without the
incentive, provided in Item a, Section 14. Rule VII, IRR of EO 366:

a) One (1) month basic salary (based on the latest/highest salary receive as of date of
retirement) for the first twenty (20) years if service;
b) One and one-half (1.5) months basic salary (based on the latest/highest salary) from
the 21st years of service up to the 30th year of service; and
c) Two (2) months basic salary (based on the latest/highest salary) from 31 st year of
service and beyond.

The retiree shall also receive the refund of the retirement premium payable by the GSIS.

1.2 Retirement benefit under RA 660, or applicable retirement, separation or unemployment benefits
provided under RA 8291 payable by the GSIS if qualified, plus the following applicable incentives
payable by PPA:

a) Fifty percent (50%) of the basic monthly salary as of December 31, 2011, for every
year of government service. For those who have rendered less than 21 years of
service;

b) Seventy five percent (75%) or the basic monthly salary as of December 31. 2011 for
every year of government service computed starting from the 1st year of service for
those who have rendered 21 to less than 31years of eservice; and

c) One hundred percent (100%) of the basic monthly salary as of December 31, 2011,
for every year of government service, computed starting from the 1st year of service,
for those who have rendered 31 years of service and above.

Provided that for the purpose of computing the total amount of incentive that holders of affected
positions would receive, only on their government service up to the age of 59 years and a fraction thereof
would be counted, and the subsequent government service starting at the age of 60 shall no longer be
subject to the incentive provided in items a to c hereof.

1.3 Personnel with less than three (3) years of government service may opt to avail of the
separation gratuity under R.A. 6656, plus the appropriate incentive provided under Item No.1.2
a.

2. No affected personnel who opted for retirement or separation shall receive less than an aggregate
of Fifty Thousand Pesos (P50,000.00) as retirement/separation benefit from both PPA and the GSIS.

3. Holders of affected positions who opted to retire or be separated from government service shall
continue to receive their salaries until such time that the GSIS and PPA shall have paid them their
respective retirement/separation/unemployment benefits and incentives, provided that their
applications for retirement/separation have been approved by the PPA General Manager and these have
been submitted to the GSIS for adjudication at least one (1) month before scheduled date of
retirement/separation.

3.1 Holders of affected positions referred to in Item No. 3 above shall however, no longer earn
cumulative leave credits for services rendered from the date of effectivity of their
retirement/separation until the time they are finally paid their respective
retirement/separation/unemployment benefits and incentives by the GSIS and PPA, and such
service they have rendered during said period shall no longer be credited in the computation of
retirement/separation benefits and incentives.

4. Holders of affected positions who opted to retire/be separated from government service and who
are members of the PAG-IBIG Fund shall likewise be entitled to the refund of their contributions pursuant
to RA 7742 and 10 accordance with existing rules and regulations of the Home Development Mutual Fund.

5. Holders of affected positions shall be entitled to the commutation of unused vacation and sick
leave credits in accordance with existing rules and regulations. In case the holders of affected positions
have accumulated compensatory overtime credit (COC), they shall be allowed to monetize the same as
an exemption from the guidelines provided under DBM-CSC Joint Circular No. 2 dated October 04, 2004.
In no case shall the COC to be monetized exceed 20 hours

6. The HRMD shall ensure the timely submission of approved retirement/separation applications to
the GSIS, at least one (1) month before actual date of separation/retirement of the holders of affected
positions concerned to ensure payment of benefits by the GSIS in the actual date of
retirement/separation.

7. The PPA Board through the General Manager shall be held accountable for the payment of separation
benefits to the retirees/separatees.

X. APPEALS MECHANISM

The appeals mechanism that shall address the various issues and concerns that may be raised by PPA
personnel who feels adversely affected by the implementation of the placement is described in the
following sections:

1. Subject of complaints and appeals on the implementation of the PPA-RP shall be strictly
limited to those provided under Section 20, Rule IX of the EO 366 IRR, to wit.
1.1 Deviations from Sections 3 and 4 of RA 6656 on the order of placement;

1.2 Actions implemented which are not in the approved Rationalization Plan; and

1.3 Violations of the provisions of EC 366 and its IRR.

2. Pursuant to Section 21. Rule IX of the EO 366 IRR, the following matters are not appealable to
the Civil Service Commission (CSC):

2.1 The declaration of what functions are to be abolished or merged as a result of the
consultation between the management and the union or rank and file representative in
the Change Management Team; and

2.2 For those who opted to remain in the service, their replacement in another agency.

3. Submission of Appeal

The PPA personnel shall submit their appeals In writing to the CMT within five (5) working days
from knowledge of any alleged deviation, action, or violation affecting the PPA-RP, EO 366 and
its IRR and RA 6656.

4. Appeal to the CMT

The appeal submitted shall be resolved by the PPA-CMT within five [5) working days from
receipt.

5. Appeal to the PPA General Manager (GM)

The decision or the PPA-CMT may be appealed to the PPA GM by the holders of the affected
positions within ten (10) working days upon receipt of the decision of the PPA-CMT.

The PPA GM shall render a decision within fifteen (15) working days from such filing. The GM's
decision shall be executory pending decision on the appeal to the CSC.

6. Appeal to the CSC

The holders of the affected positions may further appeal in writing with the CSC the decision of
the PPA GM within ten (10) working days from receipt of such decision. The decision rendered by
the CSC shall be final and executory.

XI. PROHIBITION ON REHIRING OF RETIRED/ SEPARATED PPA PERSONNEL

PPA personnel concerned who opted to retire or be separated from government service as a result or the
implementation of the PPA-RP shall not be appointed or rehired in any government agency under the
Executive Branch or GOCC/GIF’s, except in government educational institutions and hospitals, within the
period of five (5) years.
XII. SUPPORT MECHANISM

The PPA-CMT is tasked to mitigate the impact of the rationalization effort. To assist the holders of
affected positions, the PPA-CMT in coordination with the concerned RCs shall undertake interventions
such as, but not limited to, the following:

1. Provide Help Desk Services


2. Conduct Training and Seminar on Livelihood, Financial and Investment Planning
3. Provide Counseling Services
4. Coordinate with CSC on the facilitation of special eligibility examinations
5. Activate the relevant PPA PANTALAN Monitoring Team
6. Coordinate with agencies concerned (e.g. GSIS, DTI, DOLE, TLRC) relative to the timely
release of GSIS benefits and/or conduct of appropriate programs.

XIII. REGULAR FILLING UP OF VACANT POSITIONS

1. Regular filling up of vacant positions shall be programmed by the HRMD in coordination with the
RC concerned 10 ensure overall financial viability of PPA operation actual revenue collection and
operating requirements.

2. PPA shall fill up 25% of its vacant positions every year upon final determination of vacant
positions subject to the PPA Merit Promotion/Selection Plan approved by the CSC. Filling up in excess to
25% per year may be made upon request of the PPA subject to the approval of the GCG.

3. A moratorium on hiring/rehiring of casuals/contractual, including personnel on


consultancy/emergency/contract of service/job order basis for a period of five (5) years shall be
implemented upon the approval of the PPA-RP, except for contractual personnel hired on a project basis
for engineering requirement or for those granted exemption by the GCG.

4. PPA shall adopt a staggered filing up plan to be implemented over a period of five (5) years from
the approval of the GCG.

XIV. REPORTORIAL REQUIREMENTS

A monthly progress report shall be prepared and submitted by HRMD to GCG until such implementation
of PPA-RP has been completed.

XV. REPEALING CLAUSE

All PPA issuances that are in conflict with this Circular are deemed modified, revised or repealed
accordingly.

XVI.EFFECTIVITY

This PPA Memorandum Circular takes effect immediately.

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