The Land Bank of the Philippines (LandBank) is open to revising its Compensation and Position Classification System (CPCS), which is currently being rejected by its labor union.
In a statement, Landbank said it is now studying the issues raised by the Land Bank of the Philippines Employees Association (LBPEA) on the implementation of the CPCS to ensure it will be able to “attract and retain talents” without negatively affecting its financial sustainability.
“Items raised by its employees to be elevated to the bank’s management and the Board, and eventually to the Governance Commission for GOCCs [government-owned and -controlled corporations] for reconsideration,” LandBank said.
The largest government bank reiterated it values the contribution of its employees and its willingness to provide them a competitive compensation and remuneration system.
THE LBPEA rejected the proposed CPCS by the LBP management, which it claimed will widen the disparity in the pay of management and rank-and-file and cause massive wage distortion.
It warned the implementation of the current version of the CPCS this week will ultimately lead to the exodus of LandBank employees.
LBPEA President Nanette J. Lati said since 2019 they observed an increase in the number of LandBank workers who resigned after management suspended giving out some of their benefits that year. These benefits include free rice, health maintenance organization, children’s allowance and longevity pay.
Lati said that was also the year when management implemented an interim pay scale based on the Salary Standardization Law, pending the completion of the CPCS.
Lati told the BusinessMirror there was no “mass resignation.”
“But due to demoralization, some people from the ranks are really taking the chance to go out and find greener pastures,” she added.
LandBank also assured its clients that currently there is no mass resignation from its workforce.
“The current turn-over rate at 2.52 percent, according to the bank’s Human Resource Management Group, is below 2021 banking industry average of 7.0 percent,” Landbank said.