FOLLOWING the call of Labor Secretary Bienvenido Laguesma, the Department of Labor and Employment (DOLE) yesterday advised private businesses to adhere to the advisory of the National Wages and Productivity Commission (NWPC) on correcting cases of wage distortion.
In a social media post, the DOLE said it would be good if the private sector employers followed the procedures and guidelines set by the NWPC on how to address wage distortion.
“Employers are reminded to observe the provisions of National Wages and Productivity Commission Advisory No. 01 — 2023 or Correcting Wage Distortions Arising from the Implementation of Minimum Wage Orders,” said DOLE.
According to the Advisory, correcting wage distortions for firms with labor unions may be done through negotiations between the employer and the workers.
Any dispute arising from wage distortions shall be resolved through the grievance procedure under their collective bargaining agreement.
If it remains unresolved, the Advisory said the parties may push through with the process of voluntary arbitration.
On the other hand, for unorganized workers without a labor union, it said that the employers and the workers must endeavor to correct the wage distortions.
Any dispute arising from it, the NWPC pointed out, shall be subject to mandatory conciliation-mediation through the Single-Entry Approach (SEnA) of the National Conciliation and Mediation Board.
And if there is no settlement, the NWPC said wage distortion may be resolved through the labor arbiter or submitted by both parties through voluntary arbitration.
According to the NWPC, the employers and workers may develop and agree on a formula to correct wage distortion based on their specific needs and circumstances.
The agency said it also encourages businesses to seek guidance and technical assistance from concerned Regional Tripartite Wages and Productivity Boards in correcting wage distortion issues.
Wage distortion is defined as a situation where an increase in prescribed wage rates results in the elimination or severe contraction of intentional quantitative differences in wage or salary rates between and among employee groups in an establishment.
