DOLE rules out wage hike freeze

MANILA, Philippines – The Department of Labor and Employment (DOLE) yesterday ruled out the possibility of enforcing a wage hike moratorium this year despite a clamor from the business community.

Labor Secretary Rosalinda Baldoz said employers are well represented in the different wage boards and therefore can easily make known their opposition to any pending petition for salary increases.

Baldoz was reacting to the call of the Employers Confederation of the Philippines (ECOP) for the Aquino government to impose a wage hike moratorium due to the lingering effects of the global financial crisis.

Workers earlier rejected the employers’ proposal while Malacañang said it was letting DOLE decide on ECOP’s appeal.

“ECOP is represented in the different wage boards and even in the National Wages and Productivity Commission (NPWC), which handles hearings and deliberations on wage hike petitions,” Baldoz said.

In an interview during the launching of the 2010 Model OFW Family of the Year Award, Baldoz also noted that the NPWC is already reviewing the existing wage fixing system in the country.

She said the government intends to replace the existing policy with a two-tiered wage fixing policy that allows the setting of industry as well as performance salary rates.

According to Baldoz, DOLE would be seeking the assistance of the International Labor Organization (ILO) and wage experts from Singapore in the drafting of industry wage guidelines.

Meanwhile, the Overseas Workers Welfare Administration (OWWA) has launched the annual Model OFW Family of the Year Award search in an effort to inspire OFWs and address the social cost of migration.

Baldoz said the DOLE is working closely with the different government agencies to strengthen social services for OFWs and prepare their families when they finally return home for good.

Under the Aquino administration, the government hopes to generate more local employment that would give Filipinos the option to stay and not be forced to seek work abroad. –Mayen Jaymalin (The Philippine Star)