'Barya-barya'?: DOLE chief defends regional wages

The Department of Labor and Employment (DOLE) on Thursday said the existing policy of having regional rates for wages is "still the better approach."

DOLE Secretary Bienvenido Laguesma made the response when House Assistant Minority Leader Arlene Brosas asked him if they are inclined to propose a national minimum wage, if not wage increase, amid the rising prices of commodities.

"Our existing law of having Regional Tripartite Wages and Productivity Board is still the better approach, and the best approach is collective negotiations so we can see the capacity of employers which provide the terms and conditions for their employees," Laguesma said during DOLE's presentation of its proposed P25.8-billion budget for 2023 before the House appropriations committee.

"Implementing Republic Act 6727 (Wage Rationalization Act) is still conducive sa paglilikha ng hanapbuhay sa iba't ibang rehiyon at ibang oportunidad sa kanayunan. Our direction is we should ensure that the wage orders issued by Regional Tripartite Wages and Productivity Board are attuned to the times. We look at this yearly, whether there is a petition [for a wage hike] or not," he added.

Brosas, however, argued that DOLE should be proactive in finding ways to increase wages.

"In NCR (National Capital Region), it is P570. BBM -- barya-barya minimum ang ating sahod. In our Constitution, there is provision on right to a living wage. Ito po dapat ang itinataguyod ng DOLE," Brosas said.

(Even NCR's minimum wage is a pittance. DOLE should be pushing for the right to living wage as provided by our Constitution.)

"Kaya sana po ang DOLE ay magkaroon ng legislative priority sa usapin ng pagtaas ng sahod, Mr. Chair," she added.

(I really hope DOLE will make increasing wages a legislative priority.)

Laguesma agreed with Brosas that the right to living wage is under DOLE's mandate, but maintained that regional rate of the minimum wage is essential to create more jobs that would foster competitiveness and, ultimately, wage hikes.

"She is right on the Constitutional provision, but minimum wage is different from living wage. Minimum wage is just one component of various policy instruments towards a living wage," Laguesma said.

"We share the lawmaker's call in taking steps on how to ensure that the workers get the benefits due them, and that there is fair and equitable balance between them and the employers. Our current policy helps us generate more employment which would breed healthy competition, and when that is realized, the workers, rather than the employers, will be the ones who can dictate the wage rate," he added.

New department

DOLE's proposed budget for 2023 was reduced by over P3 billion with the creation of the Department of Migrant Workers  (DMW).

The Overseas Workers Welfare Administration, previously under DOLE, will get more than 66% of the proposed P15-billion budget of the newly formed DMW with P11.7 billion. Of this amount, P10.8 billion was earmarked for Social Protection and Welfare for Overseas Filipino Workers (OFW) Program.

Social Protection and Welfare for Overseas Filipino Workers (OFW) Program includes P31 million for Training and Scholarship Grant, P10 billion for Welfare Services, and P62 million for Membership Program.

The Office of DMW Secretary, on the other hand, will get a P3.5-billion budget, broken down as:

• P2.7 billion will be for Overseas Employment and Welfare Program
• P155 million for Overseas Employment Regulatory Program
• P32 million for Labor Migration Policy and International Cooperation Program
• P76 million for Maritime Research and Skills Competency Program and
• P199 million for Retirement and Life Insurance Premium

Other attached agencies of the DMW under the Office of DMW chief Ople include:

• Philippine Overseas Employment Administration
• National Reintegration for OFWs
• International Labor Affairs Bureau
• Philippine Overseas Labor Office
• OFW Hospital, among others

—KBK, GMA News