DOLE: EODB, Strong Ties with Private Sector to ‘Future-Proof’ PH Jobs
MANILA: Strengthening linkages with the private sector and ensuring the ease of doing business (EODB) are key steps in “future-proofing” the country’s job market against modern challenges, Labor Secretary Bienvenido Laguesma said Thursday. During the Pre-SONA (State of the Nation Address) Special over state-run PTV, Laguesma explained that this is President Ferdinand R. Marcos Jr.’s directive to government agencies to cushion the effect of market challenges and breakthroughs, including artificial intelligence.
According to Philippines News Agency, “We all know that the private sector creates jobs, and the primary responsibility of the government is to create an enabling environment conducive to investment and growth of business. How do you do that? Through digitalization, reducing the cost of doing business in the Philippines, and ease in doing business.” He underscored the importance of policy stability in enticing more investors. “We do not want policies that change from time to time. You already placed an investment and you are already having problems. You haven’t even started, and yet you have spent so much already. Our President wants these problems resolved,” he added.
Last month, the government launched the Trabaho Para sa Bayan (TPB) plan at the first-ever National Employment Summit. The TPB is a 10-year roadmap that will serve as the national guide toward greater employment generation and recovery. “It mandates the creation of quality and sustainable jobs. It also aims to reduce poverty incidence by creating more jobs and ensuring that these are inclusive, as well as the services and our economic growth. It must be cascaded to all levels of society,” the labor chief said. The TPB is expected to help generate at least 3 million new jobs by 2028.
Laguesma, citing data from the Department of Trade and Industry, said investment commitments from the foreign trips of the President are expected to generate an additional 200,000 jobs. He also noted that the DOLE is sparing no effort in preparing the youth for employment through programs such as the Government Internship Program and the Special Program of Employment for Students.
Employers Must Address Wage Distortion
The DOLE chief also said employers are responsible for adjusting workers’ salaries to maintain the wage gap. This comes after the National Capital Region wage board approved a PHP35 hike in the daily pay of private sector workers in the region. Laguesma emphasized that this is essential to uplift the morale of workers. “There is a process. They should hold talks. They know the importance of correcting the distortion. You have been working for so long, and yet the minimum wage earners have caught up with you in terms of salary. The employers must make adjustments to maintain the reasonable gap between wages,” the DOLE chief added.
According to Philippines News Agency, In Wage Advisory No. 1, Series of 2023, the National Wages and Productivity Commission (NWPC) reiterated relevant provisions of the Labor Code of the Philippines and jurisprudence on the matter, outlining how instances of wage distortion may be recognized. The procedures to correct wage distortions are as follows: for organized firms (with union), the employer and the workers’ union shall negotiate to correct the distortions; any dispute arising from wage distortions shall be resolved through the grievance procedure under their collective bargaining agreement; and if it remains unresolved, the parties may proceed with the process of voluntary arbitration.
For unorganized firms (without union), the procedures will be: the employers and workers shall endeavor to correct the wage distortions; any dispute arising therefrom shall be subject to mandatory conciliation-mediation through the Single-Entry Approach (SEnA) of the National Conciliation and Mediation Board (NCMB); and if there is no settlement, the distortion may be resolved through the labor arbiter or may be submitted by both parties through voluntary arbitration. The formulas and examples that may serve as a guide in adjusting wage structures to rectify any wage distortions can be viewed through this link, https://nwpc.dole.gov.ph/nwpc-advisory-no-01/.
Wage distortion occurs when the variations in wage structures or rates among employee groups within an enterprise are significantly eliminated or substantially diminished due to mandated wage increases. Restoring the substantial distinction or gap is permissible under Article 124 of the Labor Code. Laguesma noted that if the parties did not reach an agreement, they may submit a letter to the DOLE. “If they do not agree on something, they can write to the DOLE. We have a Single Entry Approach. If there is an issue, we will call them for cordial and civil talks. No filing of charges yet,” he said. SEnA is an administrative approach to provide a speedy, impartial, inexpensive, and accessible settlement procedure of all labor issues or conflicts to prevent them from ripening into full-blown disputes or actual labor cases.