Regional wage boards are studying the possibility of a new round of pay hike amid soaring inflation, according to the Department of Labor and Employment (DOLE).
In a television interview last Tuesday, Labor and Employment Secretary Bienvenido E. Laguesma disclosed the Regional Tripartite Wages and Productivity Board (RTWPB) will be conducting the review as rising cost of living “eroded” the value of wages.
“Under the existing law, there should only be a wage adjustment once a year. But the RTWPBs are now monitoring factors which contribute [to higher prices] to determine if there will be another [wage] adjustments again,” Laguesma said in Filipino.
An exemption to the one-year ban is if the RTWPB determines there is a supervening condition in its jurisdiction, which includes “extraordinary increase in prices of petroleum products and basic goods and services.”
Laguesma explained one of the major factors to be considered by the RTWPBs for making determination is the capability of employers to afford such pay increase.
The labor official made the remark after labor groups renewed their calls for a pay hike after state statisticians reported inflation accelerated to 7.7 percent last month from 6.9 percent last September.
The Partido Manggagawa has called on Congress to pass the pending bill granting workers a P100 across-the-board salary increase to help them cope with rising prices of basic goods and services.
Root causes
For its part, the Trade Union Congress of the Philippines (TUCP) said it is not keen on demanding for pay increases since many companies, particularly micro, small and medium enterprises are still reeling from the business disruptions caused by the pandemic.
“Until and unless we address the basics [which cause inflation], a wage hike might also become inflationary,” said TUCP Vice President Luis Corral.
Instead of a pay hike, the labor leader said they are demanding for new non-wage benefits, which will provide affordable food and energy to workers.
He also urged the government to grant their proposed labor assistance subsidy fund.
Under the scheme, the government will provide subsidies to employers and their workers who are struggling with high inflation.
Laguesma said DOLE is coordinating with the other government agencies to study the proposed additional subsidies for workers.
Last week, President Ferdinand R. Marcos Jr. assured the government will continue to provide cash transfers and fuel discounts to mitigate the effects of inflation to vulnerable sectors.