Palace says up to Congress to abolish regional wage boards
Malacanang said on Wednesday it would be up to Congress to amend the law creating the Regional Tripartite Wages and Productivity Board.
Presidential Spokesperson Salvador Panelo issued the statement after the Trade Union Congress of the Philippines urged President Rodrigo Duterte to abolish all wage boards and replace them with one body that will set the uniform wage rate in the country.
"The call of certain groups to abolish these and replace them with a singular wage-fixing body requires congressional fiat," he said in a statement.
"The President will initially defer to the wisdom of both houses of Congress as to amending the pertinent provisions relating to the existing wage boards. The Executive however will review and study the proposed change of structure of these boards," Panelo added.
But the spokesman added that whether the abolition of the regional wage and productivity boards is beneficial could not be decided by one interest group alone.
Panelo said consultations should be conducted among partners in various sectors, including those legitimately representing labor.
Republic Act No. 6727 was enacted into law in 1989 to rationalize wage policy determination by establishing the mechanism and proper standards. In particular, Article 122 created the regional wage and productivity boards.
Panelo noted that the rationale behind creation of the regional boards is "due to the different characteristics and peculiarities apropos their respective commercial settings, a vital factor in determining the applicable wages of the subject constituents."
TUCP has said that there is an urgent need for Duterte to start the process of abolishing the boards as only businesses are being favored under the current set up. Celerina Monte/DMS