Administrative Order No. 135 — ADMINISTRATIVE ORDER NO. 135 AUTHORIZING THE GRANT OF COLLECTIVE NEGOTIATION AGREEMENT (CNA) INCENTIVE TO EMPLOYEES IN GOVERNMENT AGENCIES

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SECTION 1 SEC. 2 · Limitation SEC. 3 · Cost-Cutting Measures and Systems Improvement SEC. 4 · Savings as Source SEC. 5 · Release of Incentive SEC. 6 · Implementation SEC. 7 · Effectivity

SECTION 1

SECTION 1. Grant of Incentive – The grant of the Collective Negotiation Agreement (CNA) incentive to national government agencies (NGAs), local government units (LGUs), state universities and colleges (SUCs), government-owned or controlled corporations (GOCCs), and government financial institutions (GFIs), if provided in their respective CNAs and supplements thereto executed between the management and employees’ organization accredited by the Civil Service Commission, is hereby authorized. Furthermore, the grant of the CNA incentive pursuant to CNAs entered into on or after the effectivity of PSLMC Resolution No. 4, series of 2002, and PSLMC Resolution No. 2, series of 2003, and in strict compliance therewith, is confirmed.

SEC. 2

Limitation

SEC. 2. Limitation. – The CNA incentive shall be granted only to rank-and-file employees. The existing CNA incentive shall be rationalized to simplify its administration and to preclude duplication with incentives granted through the Program on Awards and Incentives for Service Excellence (PRAISE).

SEC. 3

Cost-Cutting Measures and Systems Improvement

SEC. 3. Cost-Cutting Measures and Systems Improvement. – The management and the accredited employees’ organization shall identify in the CNA the cost-cutting measures and systems improvement to be jointly undertaken by them so as to achieve effective service delivery and agency targets at lesser costs.

SEC. 4

Savings as Source

SEC. 4. Savings as Source. – The CNA Incentive shall be sourced only from the savings generated during the life of the CNA.

SEC. 5

Release of Incentive

SEC. 5. Release of Incentive. – The CNA Incentive may be paid every year that savings are generated during the life of the CNA.

SEC. 6

Implementation

SEC. 6. Implementation. – The Department of Budget and Management shall issue the policy and procedural guidelines to implement this Administrative Order.

SEC. 7

Effectivity

SEC. 7. Effectivity. – This Administrative Order shall take effect immediately. DONE in the City of Manila, this 27th day of December in the year of Our Lord, Two Thousand Five. (Sgd.) GLORIA MACAPAGAL-ARROYO President of the Philippines By the President: (Sgd.) EDUARDO R. ERMITA Executive Secretary