Palace leaving it to Congress to decide on calls to abolish wage boards
MANILA, Philippines — Malacañang is leaving it to Congress to decide on whether to retain the wage boards after a labor group called for an overhaul of the country's wage-setting structure because of its supposed failure to protect the interests of workers.
The Trade Union Congress of the Philippines asked President Rodrigo Duterte to scrap all wage boards and replace them with a body that would set a uniform minimum wage rate nationwide. The group has claimed that the present minimum wage-setting mechanism "only favors those businesses and no longer balances the interest of workers."
Despite last year's wage hikes, minimum wages across all sectors have not reached even half of the P1,400 that the National Economic and Development Authority said was needed for a family of five to live a comfortable life, TUCP added.
Presidential spokesman Salvador Panelo noted that congressional action is needed before wage boards could be abolished. The wage boards were created under the Wage Rationalization Act enacted in 1989.
"Regional Tripartite Wages and Productivity Boards are created by law. The call of certain groups to abolish these and replace them with a singular wage-fixing body requires congressional fiat," Panelo said in a statement.
The president will initially defer to the wisdom of both houses of Congress as to amending the pertinent provisions relating to the existing wage boards. The Executive, however, will review and study the proposed change of structure of these boards," he added.
Panelo said the wage boards were created because of the different characteristics and peculiarities in the commercial settings of regions.
"Whether the (extinguishing) of these boards is beneficial cannot be decided by one interest group alone. It requires consultation among our partners in various sectors, including those legitimately representing labor," the presidential spokesman said.
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