Labor group opposes 2-tiered wage system

CEBU, Philippines - A regional consultation on the two-tiered wage system in the Philippines is about to take off in Cebu as talks on wage increases are now in the offing.

Jose Tomongha, president of the Alliance of Progressive Labor told The Freeman yesterday that they are strongly against the kind of wage system as this is very disadvantageous to the majority of workers in Central Visayas.

“Advantageous ni nga system kung naay union or organized ang mga workers. But 90 percent of Central Visayas workers dili man organized. We are against gyud ani,” said Tomongha, who is also the labor representative to the Regional Tripartite Wage and Productivity Board-7.

APL is also bent on filing another round of wage hike by the end of the month, as according to Tomongha, there were movements in the prices of basic commodities.

According to the Department of Labor and Employment, under the two-tiered wage system, all workers get a floor or basic wage, while a second tier – a flexible rate above the floor wage – will be based on worker productivity and industry or enterprise performance, which may be negotiated between the employer and the workers.

The floor wage shall be the lowest wage in the region to protect the most vulnerable workers, characterized as unskilled and new entrants to the labor force who cannot bargain for better wages, or those who have been excluded from minimum wage legislation.

On the other hand, the productivity or performance-based pay scheme, which shall be implemented on a voluntary basis, shall be used to adjust the wages of workers receiving above the floor wage.

DOLE added, this wage reform seeks to modernize the minimum wage setting in the country and aims to minimize the unintended outcomes of mandated minimum wages, improve the coverage of the vulnerable sectors, and promote productivity improvement and gain sharing.

The regional forum will be attended by labor stakeholders in from regions 4, 5, 6, 7 and 9.  (FREEMAN)