DEPDev sees NCR cost of living distorting single national wage
By Justine Irish D. Tabile, Senior Reporter
THE Department of Economy, Planning, and Development (DEPDev) said wage hikes should continue to be set at the regional level to preserve competitiveness.
Economy Secretary Arsenio M. Balisacan said wages should be determined by the Regional Tripartite Wages and Productivity Boards (RTWPBs).
“There is a law that requires wage setting to happen at the regional level. And there is a very good economic reason for that,” he told reporters on Wednesday.
He said that the conditions vary across the regions, with a very high cost of living in Metro Manila compared to other regions.
“So, (if the minimum wage) that you will determine for Metro Manila will also apply for other regions, kawawa naman ang mga other regions (the other regions will suffer),” he said.
“They won’t be able to attract investors or create jobs. So, wages have to reflect the economic realities in those areas,” he added.
Federation of Free Workers (FFW) President Jose G. Matula said that the government should return to national wage setting, as the current system results in delayed in wage hikes.
He said RTWPBs have many pretexts for dragging their feet on wage hikes, citing in particular the one-year ban on filing wage petitions, with the sole exception to the ban being supervening events,” he told BusinessWorld via Viber, adding that the law does not support such a ban.
He said during crises, the government should simplify the system and return it to wage setting at a national level through legislation.
“Hindi dapat pira-piraso ang solusyon — dapat malinaw, pantay at mabilis (The solution should not be piecemeal. It should be clear, equal, and fast)” during crises, he added.
FFW supports an across-the-board P200 wage hike, the suspension of fuel taxes, and cracking down on profiteering.
