TUCP lauds signing of ‘work from home’ law

The Trade Union Congress of the Philippines (TUCP) lauded President Duterte’s signing into law of a measure allowing workers to work from home as an alternative work arrangement.

In a statement, TUCP President Raymond Mendoza said the alternative work scheme will benefit both employers and their employees.

“Those who work from home would be able to save from transport and food costs. Employees would also be able to minimize stress caused by traffic congestion and ageing mass transport system,” he said.

“Employers meanwhile would be able to minimize operational costs and ensure higher productivity from home working employee,” added Mendoza.

Such work scheme, he said will also widen the employment horizons for Person with Disabilities, senior citizens and working mothers who need not to report at work.

According to Mendoza, the alternative work arrangement will not change the eight-hour standard working time. There will also be no diminution of wages and benefits including overtime pay, sick leave, maternity leave and all other benefits that employees have been receiving.

“However, these rights must be ensured in the drafting of its Implementing Rules and Regulations (IRR) as spearheaded by the Labor department, ” he said.

Mendoza expects the IRR finished by March this year. - By Leslie Ann Aquino

TUCP wants uniform minimum wage across PHL

Philstar file photo

The Trade Union Congress of the Philippines (TUCP) is urging President Rodrigo Duterte to abolish regional wage boards and instead create a singular wage-fixing body to determine a uniform minimum wage rate nationwide.

In a statement, TUCP President Raymond Mendoza said there is an "urgent need" for Duterte to start abolishing the differentiated provincial rates.

Under the TUCP proposal, the current structure will be replaced with a singular tripartite wage setting body that would determine a uniform minimum wage nationwide based on several criteria.

"The wage board is key in achieving equality and social justice for workers," said Mendoza. "Its mandate is to ensure that our economic growth also benefits the workers."

"However, our economy is growing and business enterprises have been prospering but the workers who helped built the wealth remain impoverished," he added.

The minimum daily wage in Metro Manila was adjusted upward to P537 in November 2018, but wages in other provinces currently fall below this.

Currently, there are a total of 17 wage boards across the country mandated to set a minimum wage, all of which were created through Republic Act 6727 or the Wage Rationalization Act.

In its proposal, however, the TUCP said there is a need to first increase all wages across the country by P100 in efforts to lift employees above the poverty threshold.

“Before overhauling the wage fixing mechanism, President Duterte must order all 17 regional wage boards across the country to immediately review and adjust their issued wage orders to a uniform daily P100 wage hike as stated by [Labor] Secretary [Silvestre] Bello as the amount the board should have granted to lift workers out of poverty,” said Mendoza.

"Prices of commodities and costs of services are the same in all parts of the country. Aside from that, the job function and tasks of a waiter or a clerk in Visayas and Mindanao are the same job function and tasks in Luzon but why are their wages different?” he added. —Jon Viktor D. Cabuenas/KBK, GMA News

Labor group calls on Duterte to abolish all wage boards

Business World file photo

The Trade Union Congress of the Philippines (TUCP) is urging President Duterte to abolish all wage boards in the country and replace it with a singular wage-fixing body that will determine a uniform minimum wage rate nationwide.

TUCP President Raymond Mendoza also said there is now an “urgent need” for the President to begin the process of abolishing the differentiated provincial rates by overhauling the 30-year-old current wage setting structure because “the current minimum wage setting mechanism only favors those businesses and no longer balances the interest of workers.”

“The wage board is key in achieving equality and social justice for workers. Its mandate is to ensure that our economic growth also benefits the workers. However, our economy is growing and business enterprises have been prospering but the workers who helped built that wealth remains impoverished,” Mendoza said in a statement on Sunday.

The 17 wage boards across the country were created in 1989 through Republic Act 6727 also known as Wage Rationalization Act. Its mandate is to set minimum wage that protects workers’ welfare and promote enterprise and workers productivity.

Despite the wage increase orders issued last year, workers’ minimum wages across all sectors nationwide still failed to reach even half of the P1,400 daily standard amount set by the National Economic and Development Authority for a family of five to live a comfortable life, the group said.

According to TUCP, the average minimum wage was raised to P374 a day by the end of 2018, from P340 during the first quarter of the same year.

The TUCP even noted that Labor Secretary Silvestre H. Bello III admitted last week that the Metro Manila wage board should have granted a P100 daily wage hike to enable workers cope with rising inflation rather than a mere P25 daily wage increase on its wage order issued on November last year.

“We have reached a point where even the secretary of labor openly admitted the discrepancy. This is an affirmation of the TUCP observation that wage boards have become obsolete and irrelevant to equate in the balance of labor and capital the interest of workers in these generation where there are no more boundaries,” Mendoza said.

Also, before the abolition of wage boards, the group noted that there should be a review of the wage increase orders issued last year.

“Before overhauling the wage fixing mechanism, President Duterte must order all 17 regional wage boards across the country to immediately review and adjust their issued wage orders to a uniform daily P100 wage hike as stated by Secretary Bello as the amount the board should have granted to lift workers out of poverty,” Mendoza said. - Bernadette D. Nicolas

Minimum wage leaves labor groups unsatisfied

Manila Times file photo

Three decades have passed since Republic Act (RA) 6727 or the “Wage Rationalization Act” was enacted in 1989, which turned out to lack teeth.

The measure paved the way for the creation of the National Wages and Productivity Commission (NWPC) and the Regional Tripartite Wages and Productivity Board (RTWPB) in every region of the country.

However, there has never been an instance when petitions for wage increase from labor workers in the private sector were granted or even close to the demand of the toiling class.

The last time workers got significant wage increase was also in 1989, when then president Corazon Aquino granted a P25 daily across-the-board wage increase nationwide.

Section 2 of RA 6727 states: “It is hereby declared the policy of the State to rationalize the fixing of minimum wages and to promote productivity-improvement and gain-sharing measures to ensure a decent standard of living for the workers and their families; to guarantee the rights of labor to its just share in the fruits of production; to enhance employment generation in the countryside through industry dispersal; and to allow business and industry reasonable returns on investment, expansion and growth.”

The wage adjustments by the National Capital Region (NCR)-RTWPB, however, were anything but rational, as in 2016, it granted only P10 out of the original petition of P154; in 2017, it gave P21 out of P184; and in 2018, it approved P25 out of labor’s petition of P334.

Since January 2018, the NWPC has issued wage orders adjusting the minimum wage rates in 16 regional wage boards across the country, except for Caraga Region (Region 13) which remained at P311 minimum wage a day.

The Metro Manila wage board was the most recent regional wage board that adjusted the wage rate from P512 to P537, raising the average daily nominal minimum wage rates in 17 regions nationwide from P200 a day in September 2018 to P232 a day as of Nov. 11, 2018.

The Associated Labor Unions-Trade Congress of the Philippines (ALU-TUCP), the country’s biggest labor group, said that workers were dissatisfied with the wage increase given the high inflation rate.

Citing as an example the wage increase in Metro Manila, ALU-TUCP spokesman Alan Tanjusay said the buying equivalent of P25 is only P17.50 per day these days because of rising prices of commodities and costs of services.

“On the average, wage boards acted only on the capacity of employers and businesses to afford the wage increases by adjusting the nominal minimum wage rates by P32 to P36 a day nationwide. This is too small for workers who help business and economy grow,” he said.

Tanjusay added the nationwide average daily minimum wage of P232 was inadequate for millions of poorly paid entry-level, rank-and-file and contractualized minimum-wage workers nationwide in agriculture, services and manufacturing sectors. ALU-TUCP said these types of workers with labor-intensive jobs need at least P800 to P850 a day in order to live above the poverty threshold.

Louie Corral, ALU-TUCP vice president, warned government and employers that hunger and poverty would only escalate, causing more instability from the labor front.
“Unfortunately, with this wage order instead of a realistic intervention to workers’ plight, the P25 will only prolong the instability, Corral said.

The group said it would file another wage hike petition this month.

Many factors

For her part, NWPC Executive Director Ma. Criselda Sy said that their wage hike decision was backed up by simulation on the impact of the proposed increase on existing economic indicators like inflation, with results showing that a higher wage hike would further increase the inflation rate, which would cause a second round of inflationary effect.

She cited as example the wage hike in 1993 wherein the computed erosion in the purchasing power of workers was at P44.27, but the approved wage increase was only P17 because the wage board took into consideration the other factors in the socio-economic environment that the economy was not growing at that time.

“The difficult task for the board is to come up with amount that essentially would balance the competing interests of our stakeholders and the primary consideration there is if the economy can absorb the increases that will be ordered by the regional board,” she said. - By WILLIAM DEPASUPIL, TMT