Across the Board Pay Hike Needs Congress Nod — Bello

The Congress has the jurisdiction over the across-the-board increase in the salary of workers, the Department of Labor and Employment (DOLE) said on Monday.

Labor Secretary Silvestre Bello III noted that it is the legislative branch, not the executive department, has the best position to act on demands for a nationwide PHP125 daily wage increase, citing Republic Act 6727 or the Wage Rationalization Act.

“We are into adjusting wages of our workers. But an across-the-board wage increase is not within our mandate,” he explained.

Bello added, “It is under the jurisdiction of Congress. It has to go through a legislative act.”

However, the DOLE chief said that all Regional Tripartite Wages and Productivity Boards (RTWPBs) are under the directive to conduct wage reviews and public consultations to determine possible wage adjustments in their respective jurisdictions.

“Different regions have different socio-economic conditions and cost of living conditions. We have to consider these conditions,” Bello said.

“The Regional Wage Boards will continue with their reviews and consultations on the salary adjustments at the regional level. They are conducting periodic assessment of their respective regions. They will be the ones to submit their recommendations if there is a need to increase the wage in their region,” he added.

Bello said that any increase in wages will have implications on the cost of doing business, production, employment and prices.

He also cited the simulation study made by the National Economic Development Authority (NEDA) on the impact of the proposed PHP125 wage increase.

Based on the study, the additional wage could result in upward pressures on prices from 2017 to 2018, the strongest of which could be felt in 2017, when inflation could rise to 9.7 percent from a baseline of 2.1 percent. (PNA) BNB/FGP/EDS