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Bacolod City, PhilippinesWednesday, November 28, 2012
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Opposition continues
against pay hike plan

Labor groups will continue to oppose the approval of the two-tier policy wage system being proposed by the government saying it will only limit the flexibility of wage determination, Hernane Braza, labor representative, said yesterday.

Braza said the Regional Tripartite Wages and Productivity Board in the Western Visayas will meet today to take up all wage issues and the two-tier policy might be on the agenda.

He said if this system is approved, workers cannot demand pay hikes according to their needs because the inflation rate will be based on the poverty threshold of the region.

If the current wage of the worker is above the poverty threshold, the increase of wages is likely to be minimal and will only be based on the data provided by the surveys conducted by DOLE, Braza also said.

However, DOLE Sec. Rosalinda Baldoz had said earlier that the system is a reform measure that aims to minimize the unintended outcomes of the mandated minimum wage, promoting gain-sharing and productivity, and improving coverage of the vulnerable sectors.

Baldoz said it consists of a fixed “floor wage,” or entry level for new entrants and low-skilled workers, and above the floor flexible wage that is based on worker productivity and performance of the industry and enterprises which may be negotiated between the employer and the workers.

It means that the policy reform allows enterprises to determine wages based on their circumstances, while at the same time satisfying both the social and economic functions of minimum wage, she added. *LTG

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