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Palace to study recommendation to abolish wage boards

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PHILSTAR/JOVEN CAGANDE

By Gillian M. Cortez, Reporter

Malacañang said it will study proposals on changing the current wage fixing system, days after a labor group called on the the current administration to abolish the regional wage boards.

Presidential Spokesperson Salvador S. Panelo said in a statement on Wednesday that removing the regional wage boards will require amendments by lawmakers and consultations with other affected sectors with regards to Republic Act No. 6727 or the The Wage Rationalization Act.

“Regional Tripartite Wages and Productivity Boards(RTWPBs) are created by law. The call of certain groups to abolish these and replace them with a singular wage-fixing body requires congressional fiat,” he said.

He added, “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.”

Mr. Panelo’s statements come after the Trade Union Congress of the Philippines (TUCP) on Sunday urged the President to abolish the RTWPBs and regional minimum wages in order to make way for a singular tripartite board that will determine a national minimum wage.

TUCP Party-list Representative Raymond C. Mendoza also recommended that Mr. Duterte order all 17 RTWPBs to review their wage orders and increase all prevailing wages by P100.

P100 is the increase Labor Chief Silvestre H. Bello III preferred if he were to have it his way when he told reporters last month.

Wage increases for 2018 were from P8.50 to P56, depending on the region.