Better protection for workers vs employer's abuses pressed

MANILA, Philippines - Lawmakers expressed confidence that members of the incoming 16th Congress will prioritize the enactment into law of a measure increasing the penalties for non-compliance with the prescribed increases and adjustments in the wage rates of workers.

Rep. Emil Ong (2nd District, Northern Samar), chairman of the House Commitee on Labor and Employment,  said such a measure was filed by President Benigno Simeon Aquino III, who was then a senator .

"House Bill 6924 is to discourage non-compliance of employers with the prescribed wage rates for workers in the private sectors and shall serve as deterrent to the  commission of wage violations of unscrupulous employers," Ong said.

Rep. Reynaldo Umali (2nd District, Oriental Mindoro) said the state has the obligation to protect the rights of workers and promote their welfare, labor being a primary social economic force as stated under the Declaration of Principles and State Policies of the 1987 Constitution.

'Verily, the minimum wage fixed by law is lower than the ideal living wage. Still, compliance by corporations and other work establishments has remained a persistent problem and it is very disturbing, to say the very least," Umali said.

He added that in 1995, non-compliance was estimated to be 53 percent; dropped to 20 percent in 1999 but increased to almost 30 percent the following year. The succeeding years showed a continued resurgence of minimum wage violations which the Department of Labor and Employment estimated to be 45 percent," Umali said.

Rep. Ben Evardone (Lone District, Eastern Samar), another co-author of the measure, said in 2005, out of the 19,539 firms inspected by DOLE, only 15,879 or 81 percent were found to be complying with the minimum wage law. 

Rep. Emmeline Aglipay (Party-list, DIWA), also an author of the measure,  cited DOLE’s report that compliance rates were based solely on the number of establishments inspected nationwide.  For instance, only 26,169 establishments out of a total of 761,409 or 3.44 percent were inspected in 2008.

“Admittedly, DOLE is undermanned to conduct consistent monitoring and enforcement strategies, the actual non-compliance rate may in fact be higher,” Aglipay said.

Under the measure, Republic Act 6727 as amended by Republic Act 8188, otherwise known as Wage Rationalization Act, shall be amended with the increase of the penalty for non-compliance with prescribed increases and adjustments in the wage rates of workers.

The measure requires the increase of penalty for non-compliance with prescribed wage adjustments from P25,000-P100,000 to P100,000 – P300,000 for each affected worker.

In addition, the violator shall also pay exemplary damages of at least P50,000 per worker, and shall shoulder the cost of litigation, including attorney’s fees.

In cases where a fine is decreed by the DOLE or the National Labor Relations Commission (NLRC) against person/s who violated the provisions of this Act, and the fine cannot be immediately satisfied because of the unavailability or inadequacy of funds, the assets of the owner, President or manager of the corporation, or a faction thereof, either movable or immovable property, estimated to be capable of fully satisfying the imposed fines shall be the subject of a summary forfeiture and garnishment proceeding to be litigated by the same body which imposed the penalty.

The penalties provided under the measure shall also be applicable in cases involving workers hired by contractors undertaking infrastructure projects under RA 6685 on local hires and in relation to DOLE’s Department Order No. 19-93 governing the employment of workers in the construction industry with respect to any violation in the payment of wages or appropriate wage increases.

“With enhanced monitoring by the DOLE and the new teeth that is being proposed in the measure, it is expected that the mantle of protection can be stretched for the workers and will be much more assured,” Rep. Joseph Victor Ejercito (Lone District, San Juan City), another co-author, said.

House Bill 6924 was approved and reported out last April 15, 2013 and is a substitute of HBs 942, 1817, 1889, and 2884 authored by Ong, Umali and Reps. Tomas Apacible (1st District, Batangas), Bernadette Herrera-Dy (Party List, Bagong Henerasyon), Aglipay, Evardone, and Ejercito, respectively.

House Bill 6924 has a Senate counterpart measure authored by Sen. Miriam Defensor Santiago.

Labor Day

Meanwhile, senatorial bet Grace Poe warned that Labor Secretary Rosalinda Baldoz's statement that  there will be no wage hike on Labor Day could spark a hoard of problems in the labor sector.

She added that the hardline stand taken by business owners against the issue of wage increases is likely to cause them bigger losses if workers go on strike to paralyze operations.

"Truth to tell, I do not see companies shutting down left and right if their employees are given a reasonable wage increase. On the other hand, leaving our workers with no choice but to stage protests would be the worst possible recourse since it will affect our growing economy. And this would mean a double whammy for us:  Production systems will be halted and wage earners and their families will go hungry,” Poe said.

She added that the P456 minimum daily wage is insufficient to feed a regular-sized fmily.

"Aside from wage issue, we know too that there are some employers who are downright abusive and inhuman. We hope DOLE should fulfill its mandate to protect our workers from these abuses," Poe added.