5. Performance-enhancing mechanisms for employee participation

Practice of Profession. The Corporation allows its officials and employees to practice their profession outside of office hours but authority is limited a period of one year and renewable upon approval by the President and CEO.

Program on Awards and Incentives for Service Excellence (PRAISE), TRANSCO adopts the basic policies and principles under CSC MC No. 01, s. 2001 and designed a similar Program to be referred to as TRANSCO’s PRAISE.

Career and Self-Development Incentive Program. Subsidy of tuition fees to assist and recognize officials/employees who have satisfactorily completed either a bachelor, masteral or a doctoral degree at their own expense.

TRANSCO supports the responsible exercise of the rights by government employees. NATIONAL TRANSMISSION CORPORATION EMPLOYEES ASSOCIATION referred as NATREA has been accredited by the CSC as the sole and exclusive negotiating agent of all rank and file employees of TRANSCO. TRANSCO and NATREA desire to establish a harmonious working environment which will redound to their mutual benefit and will ultimately result in a responsive public service through ensuring the proper operation, maintenance, upgrading and expansion of the transmission system contributing to the delivery of quality and reliable electricity to consumers. CNA (Collective Negotiating Agreement) Incentives. TRANSCO agrees to grant qualified employees a CNA incentive in accordance with Department of Budget and Management (DBM) implementing guidelines.

Section 38, page 32 of TransCo’s Corporate Governance Manual Circular No. 2016-001 (Issuance, Control and Standard Specification of Personal Protective Equipment (PPE) TransCo Safety Code TransCo Corporate Safety Program Manual

5.a Does the GOCC explicitly mention the health, safety and welfare policy for its employees?

HEALTH AND SAFETY

5.b Health, Safety and Welfare Activities of employees

Financial Assistance for Work Related Illnesses/injuries/death. Grant of financial assistance for the medical treatment &rehabilitation (as well as funeral expenses, in case of death) to officials and employees who contract sickness or sustain injuries while in the performance of duty, subject to evaluation/attestation by the GSIS-ECC.

ANNUAL PHYSICAL EXAMINATIONS (APE) that will cover mass health screening programs

composed of a package of routine laboratory tests, chest x-rays and other procedures conducted at the specified dates and laboratories/hospitals as may be selected. These physical examinations are mandatory for all TransCo personnel on a yearly basis.

Annual Executive Check-Up. Consist of a more comprehensive package of hospital and laboratory procedures conducted in accredited hospitals including comprehensive eye and dental examinations/procedures. All managers and higher level officials, who have been in the position for at least one (1) year, including those who have been in acting capacity as managers for a period of one (1) year may opt to avail of the benefit.

Our goal to promote the value of healthy lifestyle habits and physical fitness for all employees, we are encouraging all employees to join in the TransCo’s wellness programs, as follows:

• THREE (3) MINUTES FITNESS BREAKS conducted every workday at 10:00 a.m. and 3:00 p.m.

break times. This activity is envisioned to relieve employees’ stress during the day.

• SPORTS ACTIVITIES/TOURNAMENT conducted during TransCo’s Anniversary Celebration and other CSC/DOE related activities.

• WORK LIFE BALANCE/STRESS MANAGEMENT SEMINARS, which aims to educate employees on how to assess the different benefits associated with key work-life programs and practices and motivate employees to be proactive in order to help you develop proper perspective in life.

Wellness program

WELLNESS PROGRAMS

WELLNESS PROGRAM

5.c Training and Development Programmes

Section 35, page 31 of the TransCo Manual of Corporate Governance

Training and Development Programs for TransCo Employees

TransCo pursues the merit and fitness principle by adopting performance management systems and training programs that develop and sustain your career in the Corporation, which are mandated by the Civil Service Commission.

Personnel training needs shall be based on the Standard Training Requirements of the position, duly approved by the Functional Group Head. Types of Training Programs In-house Training Programs – training and development programs designed and

facilitated by the Human Resource Division (HRD) or customized by third-party service providers for HRD.

External Training Programs – local and foreign training and development programs which external training institutions, organizations or associations conduct as public seminars. These include conventions, conferences and similar activities. For local external training programs, only those personnel holding plantilla positions shall be authorized to attend such programs.

1 FY 2016-2018 CORPORATE BUDGET CALL BRIEFING AND CORPORATE BUDGET PLANNING SYSTEM SEMINAR

2 TRANSCO LEADERSHIP ENHANCEMENT 3 ASSOCIATE PROJECT MANAGER (APM) PROGRAM (SESSIONS 1, 2 & 3) 4 POWER SYSTEMS ENGINEERING FACILITATOR'S COURSE, LOAD FLOW ANALYSIS WITH PSSE 5 POWER SYSTEMS ENGINEERING COURSE, LEVEL 1: LOAD FLOW ANALYSIS WITH PSSE (BATCH 2) 6 POWER SYSTEMS ENGINEERING COURSE, LEVEL 1: LOAD FLOW ANALYSIS WITH PSSE (BATCH 3) 7 SAFE AND BETTER DRIVING AND BASIC TROUBLESHOOTING REFRESHER COURSE 8 GENDER SENSITIVITY SEMINAR (BATCH V) 9 ASSOCIATE PROJECT MANAGER (APM) PROGRAM (SESSIONS 4, 5, & 6)

10 TRANSCO-GAD PARENTING SEMINAR 11 ISO AWARENESS SEMINAR 12 ISO 9001:2008 AWARENESS SEMINAR (BATCH 2)

13 POWER QUALITY & HARMONICS IN POWER SYSTEMS: PRINCIPLES, CALCULATION AND MITIGATION

14 ISO 9001:2008 AWARENESS SEMINAR (BATCH 3) 15 ISO 9001:2008 AWARENESS SEMINAR FOR TRANSCO-AFAB (BATCH 1)

2015 TRAINING PROGRAMS CONDUCTED

5.d Training Programs and Activities

16 ISO 9001:2008 AWARENESS SEMINAR FOR TRANSCO-AFAB (BATCH 2) 17 POWER SYSTEMS ENGINEERING COURSE, LEVEL 1 : LOAD FLOW ANALYSIS WITH PSSE (BATCH 3) 18 ISO 9001:2008 AWARENESS SEMINAR FOR TRANCO-BCEZ (BATCH 1) 19 ISO 9001:2008 AWARENESS SEMINAR FOR TRANSCO-BCEZ (BATCH 2) 20 ISO 9001:2008 AWARENESS SEMINAR (BATCH 4) 21 TRANSCO DAY CARE CENTER PARENTING SEMINAR (BATCH 2) 22 ASSOCIATE PROJECT MANAGER (APM) PROGRAM SESSIONS 1, 2 & 3 (BATCH 2) 23 ISO 9001:2008 AWARENESS SEMINAR (BATCH 5) 24 ISO AWARENESS SEMINAR (FOR EXECUTIVES AND MANAGERS) 25 ISO 9001:2008 AWARENESS SEMINAR (BATCH 6) 26 STRATEGIC PERFORMANCE MANAGEMENT SYSTEM SEMINAR 27 STRATEGIC PERFORMANCE MANAGEMENT SYSTEM SEMINAR 28 ISO 9001:2008 AWARENESS SEMINAR (BATCH 7) 29 GENERAL SAFETY AND SECURITY TRAINING 30 POWER SYSTEMS STABILITY AND DYNAMIC STUDIES WITH APPLICATIONS OF SIEMENS PSS/E

2015 TRAINI NG PROGRAMS CONDUCTED

41 ISO FAMILIARIZATION 42 DATABASE MANAGEMENT AND PROGRAMMING FOR COST ESTIMATION 43 ISO FAMILIARIZATION 44 ISO FAMILIARIZATION 45 TRANSMISSION PROJECT COST ESTIMATION, WORKSHOP 2 46 ISO FAMILIARIZATION 47 GAD STRATEGIC PROGRAM FOR BUDGET YEAR 2017 48 INTEGRATION PROCESS

2015 TRAINI NG PROGRAMS CONDUCTED

Number of Trainings Conducted Per Position Classification Target VS. Actual

Target

Actual0

5

10

15

20

25

30

35

40

45

50

ManagerialSupervisors

Rank & File

Target

Actual

TRAININGS/WORKSHOPS

6. Stakeholders including individual employee and their representative bodies, should be able to freely communicate their concerns about illegal or unethical practices to the board and their rights should not be compromised for doing this.

6.a Does the GOCC have procedures for complaints by employees concerning illegal (including corruption) and unethical behavior?

6.b Does the GOCC have procedures to protect an employee/person who reveals illegal/unethical behavior from retaliation?

Section 40, page 33 of the TransCo Manual of Corporate Governance

Circular No. 2006-0010, TRANSCO Code of Conduct

TRANSCO Grievance Machinery

YEAR PERFORMANCE SCORECARD RATING

2012 113.00%

2013 99.39%

2014 91.63%

2015

97.83% (IAD audited)

12. Did the GOCC achieve 90% in the PES?

TransCo achieve a weighted-average score of more than 90% in its approved Performance Scorecard, as follows:

13.Code of ethics or conduct

13. a Are the details of the code of ethics or conduct disclosed?

13. b Does the GOCC disclose that all Directors/Commissioners, senior management and employees are required to comply with the code?

13.c Does the company disclose how it implements and monitors compliance with the code of ethics or conduct?

TransCo Manual of Corporate Governance Circular No. 2006-0010, TRANSCO Code of Conduct

Circular No. 2006-0010, TRANSCO Code of Conduct

Section 2, page 9; Section 3 and Section 4, page 11 of TransCo’s Manual of Corporate Governance

Article XI, pages 33 and 34 of TransCo’s Manual of Corporate Governance