BACOLOD City – Amid directives from President Ferdinand Marcos Jr. to review minimum wage rates, the Regional Wage Board’s (RWB) authority to implement a wage hike in Western Visayas remains unclear, creating confusion within the labor sector.
During the 2024 Labor Day celebration, President Marcos ordered a review of existing minimum wages, but this does not guarantee a wage increase, explained Wennie Sancho, secretary general of the General Alliance of Workers Association (GAWA).
The decision to raise wages will depend on the board’s evaluation of various economic factors.
The situation is further complicated by the ongoing deliberations over House Bill (HB) 2534, which proposes a nationwide daily wage increase of P100 for private sector workers but is currently stalled in the Lower House.
Sancho expressed concerns about mixed signals from the government regarding who will authorize the wage increase — Congress or the RWB.
He highlighted potential conflicts between any future congressional wage orders and those issued by the wage boards, questioning whether employers would be required to pay any differences.
“Congress must repeal Republic Act (RA) 6727 to maintain its legislative power over wage increases,” said Sancho, emphasizing the need for clarity on this critical issue.
He also predicted that any wage increase approved by the RWB might be offset by inflation and fail to restore workers’ purchasing power by the anniversary of Wage Order RBVI 27 on Nov. 26, 2024.
On the business front, Frank Carbon of the Metro Bacolod Chamber of Commerce and Industry (MBCCI) said the business community is currently focused on ensuring the availability of staple foods at affordable prices to nourish children and maintain peace and order. He noted the challenges of balancing salary increases, job creation, and price reductions for essential goods.
“The business community must prioritize initiatives that have the most significant impact on the community without putting businesses at risk,” Carbon added.
The Regional Tripartite Wages and Productivity Board is scheduled to meet to review the current minimum wage rates, following the president’s order./PN
