THE DEPARTMENT of Labor and Employment (DOLE) XI on Monday said they are compelled to enforce a P200 daily across-the-board wage hike once passed in the Senate.
“If the Congress, particularly the two houses, would agree to have a new wage law increase, DOLE, there is no other way that we can but to follow the law,” DOLE XI regional director Atty Randolf Pensoy said.
Under the present setup, the Regional Tripartite Wages and Productivity Board (RTWPB) issues the minimum wage for each region after consulting with business and labor groups.
The RTWPB is composed of representatives from the government, in this case the DOLE, along with the workers and employers, to ensure a balanced representation of all stakeholders.
Pensoy recognized that if the wage hike pushes through, the role of RTPWB will possibly be bypassed.
“If you ask for the management, it would have an effect of terminations, reductions, or retrenchment, the very extreme would be closure of employment, but would increase the purchasing power of workers,” he added.
Pensoy stressed that as a member of the RTWPB, the opinions of labor and management will be considered for a balanced adjustment.
The bill granting a P200 increase hurdled the third and final reading of the House of Representatives on June 4, Wednesday. The House approved of the bill with 171 yes votes, zero no votes, and one abstention.
The Philippine Chamber of Commerce and Industry expressed concern on the impact it will have on the economy, particularly on the price of goods and services, and those working in the informal sector.
“The wage hike leads to higher labor costs, consequently resulting in higher costs of goods and services, and inflation,” PCCI added.
It stressed that legislating an across-the-board wage hike can harm businesses in lower-cost regions and remove the flexibility of the RTWPBs to set wages that are appropriate for the regional situation.
