DOLE to workers: Pay hike coming soon

MANILA, Philippines - Workers in Metro Manila and several other regions are getting their salary increase in the next weeks, the Department of Labor and Employment (DOLE) announced yesterday.

Labor Secretary Rosalinda Baldoz said the Regional Tripartite Wages and Productivity Boards (RTWPBs) are already working on the process and would likely come out with a decision before May 26.

“The wage board in Metro Manila is just awaiting the public hearing and I don’t think they would even wait for the first anniversary of the previous wage order and would already issue a new one,” Baldoz said.

The law restricts the wage board from granting successive wage orders within a year unless there is a supervening condition or extraordinary increase in prices of essential commodities.

The wage board in Metro Manila already ruled that supervening condition does not exist in the region, but proceeded with the review of current wage rates.

National Wages and Productivity Commission (NWPC) deputy executive director Esther Guirao said the wage increase to be granted by the Metro Manila wage board will take effect in June.

“It would take effect 15 days after publication in a national publication, so if the board approves a new wage order before the end of May it could take effect early or by mid June,” Guirao explained.

Guirao noted the wage board in Metro Manila is also looking into the possibility of adopting the two-tiered wage system in the region.

The system grants productivity-based pay hike aside from the adjustment in the current minimum wage.

“Calabarzon already adopted the two-tiered wage system, but Metro Manila has a different situation so they would have to study it,” she said.

Guirao though gave assurance that the wage board would definitely grant the most reasonable and most affordable wage increase for Metro Manila workers.

The Trade Union Congress of the Philippines (TUCP), the country’s largest labor group, previously filed a petition seeking a P90 increase in the daily take-home pay of workers in Metro Manila.

Various labor groups also sought substantial wage hike and expressed dismay after President Aquino failed to heed their demand for salary increases.

Baldoz said Aquino could not immediately change the mechanism of granting salary increase just to heed the demand of workers.

But she stressed the different wage boards are taking appropriate action to ensure that workers are getting rightful wages.

At this time, the RTWPBs in Bicol region, Cagayan Valley Western Visayas, Socksargen and Calabarzon have already granted salary increases for minimum wage earners in their respective areas of jurisdiction, Baldoz said.

She said the wage boards in Central Luzon, Ilocos region and Cordillera Administrative Region (CAR) are also expected to issue new wage orders next month.

The rest of the wage boards are already conducting review and might also issue new orders within the year, Guirao added.

‘Glaring mismatch’

DOLE also noted the apparent “mismatch” between available skills and market demand since there are a lot of jobs available but only a few are getting hired.

During yesterday’s Labor Day celebration, only a few jobseekers applied and much fewer got hired in the job and livelihood fairs initiated by the government.

“Many applicants failed to qualify because they do not have the skills necessary for the available positions and because of this, many jobseekers also got discouraged and would not seek employment anymore,” Baldoz explained.

Data from DOLE showed that as of noon, there were 21,073 job applicants who came to the different job fairs.

Of the more than 21,000 job applicants, 1,032 got hired on the spot, 5,075 were referred to various employers while 3,010 completed the interview.

Baldoz pointed out the number of job applicants compared to the number of those who qualified for vacancies indicated a “glaring mismatch” between available skills and market demand.

Labor Undersecretary Danilo Cruz said a majority of those who applied and participated in the job fairs nationwide were young and new graduates who would rather look for local employment.

Philippine Overseas Employment Administration (POEA) chief Hans Cacdac said many recruitment agencies participated in the job fair, but the government is still prioritizing the promotion of local employment.

Since they do not yet have the necessary skills to work abroad, labor officials said many of the new graduates should not be picky and apply for local jobs.

But there were new graduates who have not lost hope that they would eventually get a job despite their lack of experience.

Although she is set to graduate from college this month, 20-year-old Sarah Jane Fresto said she already decided to try her luck in yesterday’s job fair held at the World Trade Center.

“I’m thinking positively so I heeded my father’s advice to take a chance and apply for job here even if I don’t have any work experience yet,” Fresto told The STAR in an interview.

At this time, Baldoz said, it is necessary for new graduates and other jobseekers to be multi-skilled to ensure employment.

“It is important for new graduates to undergo skills training so they would have different skills that would enable them to get employed in other companies. This is now what we call employment security, it’s not about tenure anymore,” Baldoz pointed out.

Baldoz said the government is trying its best to address the discouraged workers as well as the vulnerable workers.

International Labor Organization (ILO) Philippine country director Lawrence Jeff Johnson said the government is on the right track to resolve the unemployment problem.

He said most of the unemployed are young who need to develop the right skills for employment as well as entrepreneurship.

Among those highly vulnerable are workers in the agricultural sector, which he said has great potential to push the country’s economic growth.