THE regional wage board in the National Capital Region (NCR) has denied the wage petitions filed by four labor groups in April, citing lack of a supervening event.
In a two-page resolution, the Regional Tripartite Wages and Productivity Board-NCR (RTWPB-NCR) noted the petitions to raise minimum-wage rates in Metro Manila were not exempted from the one-year ban rule.
The petitions were filed by these groups: BPO Industry Employees Network, Pambansang Kilusan ng Nagkakaisang Manggagawa (Kilos Na Manggagawa) and Metal Workers Alliance of the Philippines (MWAP), each of which is pushing for a P213 pay hike; and the Trade Union Congress of the Philippines (TUCP), which seeks a P710 across-the-board (ATB) increase.
They cited the high inflation rate blamed chiefly on the effects of the Tax Reform for Acceleration and Inclusion (TRAIN) Act; the need for higher pay to boost the productivity of workers; increase in the prices of petroleum and other fuel products; and the alleged existence of supervening conditions to justify their petitions.
“Whereas, at this time, there is no showing of supervening conditions which would merit a review of the minimum wage rates,” RTWPB-NCR said in its new issuance signed on June 7.
Although the petitioners cited TRAIN-induced inflation, the spike in prices had steadily been arrested after the September 2018 peak, with the series of inflation-busting measures rolled out by the government.
Inflation in the country slightly increased last May to 3.2 percent from 3 percent last April.
However, the inflation rate in May this year was still significantly lower compared to the 4.6 percent in the same period in 2018.
Republic Act 6727, or the Wage Rationalization Act, prevents the regional wage boards from processing new wage petitions until a year after their previous wage order took effect, except if they will declare a supervening event.
A supervening event is any unusual increase in the prices of basic services and commodities like petroleum products for a given period.
The last wage order issued by the RTWPB-NCR took effect on November 22, 2018.
In the case of TUCP’s petition, the wage board also ruled that processing a petition for an across-the-board wage hike does not fall within its mandate as decided by the Supreme Court in its decision in the case of Metropolitan Bank and Trust Company v NWPC (National Wages and Productivity Commission) and RTWPB Region 2.
As of Thursday, none of the petitioners had yet appealed the ruling of the RTWPB-NCR.
TUCP Spokesman Alan Tanjusay lamented the dismissal of their petition. He said it just shows how the existing wage setting mechanism of the country is already outdated.
“Because of this outrageous disconnection there is no growing, modernizing, and very competitive Philippine economy,” Tanjusay told BusinessMirror in a Facebook messenger reply.
He said TUCP will now be pushing for legislative reform of the current wage-setting mechanism in the country to make it “responsive and relevant to the needs of workers and families.”
For its part, the Employers Confederation of the Philippines (Ecop) agreed with the decision of RTWPB-NCR to dismiss the four wage petitions based on existing wages.
“Ecop believes that the allegations of the labor groups on the existence of a supervening event were baseless, groundless, unfounded and not supported by evidence,” Ecop said in a statement.
1 comment
It’s what you call abuso… If they increase the minimum wage most companies may close down due to high employment cost and therefore lead to more unemployment plus most may pass down the cost to its consumers.