BACOLOD City – The proposed P200 across-the-board minimum wage increase nationwide is a significant development, but its implementation is uncertain, according to the General Alliance of Workers Association (GAWA).
Wennie Sancho, GAWA Secretary-General, said any wage increase must be made in accordance with the current wage system established by congress which delegates the power to adjust minimum wage to the Regional Tripartite Wages and Productivity Board (RTWPB).
The RTWPB is the one responsible for setting minimum wage at the regional level taking into account factors like poverty threshold, prevailing wage rates and socio-economic considerations.
The National Wages and Productivity Commission (NWPC), meanwhile, supervises the whole process of the wage-fixing functions of the RTWPBs.
Sancho said the proposed wage hike would likely be shouldered by employers which could be a challenge, especially for small businesses.
The government might need to provide support or incentives to help employers absorb the increase labor costs, he added.
“It’s natural to wonder if this proposal is politically motivated, considering the kind of traditional politics that prevails in our society. However, it is crucial to consider the potential impact on workers, businesses and the economy as a whole,” Sancho said.
The fate of the proposed minimum wage hike depends on various factors including congressional approval, regional wage board decision and the ability of employers to absorb the increased labor costs.
Sancho said the implementation challenge is that the government and employers might find difficulties in implementing and funding the proposed wage increase.
“If it will materialize, one labor leader said it’s too good to be true. Let’s hope for the best but prepare for the worst,” Sancho added.
The House of Representatives’ committee on labor and employment has approved a P200 daily wage increase applicable across the board, following a recent consensus reached between lawmakers and labor organizations regarding the new rate.
The unanimous decision by the 10 members of the House labor panel came after Speaker Martin Romualdez announced that a consensus on a daily minimum wage of P200 was established during a recent meeting involving House leaders and labor representatives at the Batasan Pambansa.
House Deputy Speaker and TUCP Partylist Representative Democrito Raymond Mendoza, one of the proponents of the initiative, stated that this wage increase would help approximately five million minimum wage earners escape poverty./PN
