DOLE rules out new wage hike

The Department of Labor and Employment (DOLE) ruled out yesterday the possibility of granting another round of wage hikes to workers nationwide despite the spiraling increase in oil prices.

DOLE-National Capital Region director Ricardo Martinez said a wage increase is unlikely at this time because the prices of essential goods remain stable.

"While a significant increase in the prices of gasoline may be considered a supervening event that may warrant the granting of wage increases, such a possibility is still very remote," Martinez said.

Martinez pointed out that DOLE is constantly monitoring the prices of essential commodities and there has been no substantial increase so far.

Oil prices in the world market surged past $70 per barrel Monday as a hurricane hit the southern United States and devastated an area that included crude oil production platforms as well as oil trading facilities.

Martinez said the increase in oil prices is not the only factor officials consider when granting a salary hike.

A few months ago, the 17 regional tripartite wages and productivity boards all over the country granted wage hikes ranging from P8 to P25 per day to help workers cope with the increase in transport fare.

Under the law, regional wage boards are restricted from granting successive wage increases in one year unless there is a supervening event to warrant an immediate salary hike.

However, Labor Undersecretary Danilo Cruz assured private sector employees that wage boards are closely monitoring the situation and studying where there is a need to immediately grant another round of wage hikes.

"We have asked the National Wages and Productivity Board to study the situation and act accordingly," Cruz said.

No formal petition for a wage hike has been filed before the regional wage boards at this time.

Meanwhile, the moderate Trade Union Congress of the Philippines (TUCP), the country’s largest labor group, called on the government to institute appropriate measures to protect workers from the adverse consequences of surging oil prices.

With the global prices of oil reaching alarming levels, the TUCP fears that many employers would retrench workers to cope with the high cost of operations.

"The government must afford protection, particularly for the most vulnerable sectors or those earning minimum wages and those who can barely make a living," the TUCP said in a statement.

The TUCP, the country’s largest labor group, is pushing for the enactment of a new bill exempting minimum wage earners from paying taxes, which it said is better than a salary hike.

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