THE Department of Labor and Employment (DOLE) yesterday defended the current minimum wage setting system being done through the Regional Tripartite Wages and Productivity Boards (RTWPBs).
In response to criticisms from Labor groups, DOLE said the minimum wage setting system is effective as it is in accordance with the policy of the International Labor Organization (ILO).
“The current system embodies principles in minimum wage determination found in Convention 131 on minimum wage fixing of the International Labor Organization (ILO), and is practiced in modern economies and industrial relations systems across the world,” said DOLE.
The Department said this is because the RTWPBs aim to set a floor or minimum wage to balance basic workers’ needs, continuity of employment, and growth of enterprises while leaving adequate space for collective bargaining and enterprise-level mechanisms to increase wages for those receiving salaries above the minimum wage.
It also noted that the system provides for democratic participation through tripartite representation on matters directly affecting workers and employers.
DOLE said the system is also decentralized in structure and decision-making, which allows the RTWPBs to consider local conditions.
The DOLE also said the system ensures the technical process of minimum wage determination based on the application of the objective criteria and standards set by law and on empirical data and statistics.
The DOLE issued the statement amid the ongoing push for the P150 legislated wage hike in Congress.
