Dole holds discussion on wage reform

A MAIDEN public discussion on the wage reform geared toward the Two Tiered Wage System (TTWS) was conducted last March 4 at the Department of Labor and Employment (Dole)-Northern Mindanao Training Center in Cagayan de Oro.

The activity was part of the continuing education and orientation on the different programs and services of the Dole-Regional Coordinating Council (RCC) in Northern Mindanao.

The discussion started with the current policy and practice of wage fixing under Republic Act 6727 or the Wage Rationalization Act.

The TTWS as a strategic shift in the approach of implementing the existing policy and not a deviation was highlighted during the discussion.

Sun.Star learned that the current wage fixing is challenged by its competing goals vis-à-vis intended outcomes based on Dole’s vision and mission of affording decent standard of living for all workers and his family, among others, that still need improvement.

According to the Regional Tripartite Wages and Productivity Board (RTWPB) in Northern Mindanao, the coverage of wage orders exclude the informal sector that comprise 92 percent of the total workforce, implies that this huge sector do not have adequate in law. The current system also encroaches on the collective bargaining while enforcement rate is recorded below its target of 85 percent.

Also, there are unintended results, such as slight acceleration of inflation, displacements/unemployment or closure of businesses, blossoming informal sector and others, that scenarios gave rise to this TTWS wage reform.

The TTWS thus envisions to protect the rights of the hapless workers that would allow them to take active part in policy making, enhance tripartite cooperation thereby promoting industrial peace, and ensure social protection to all workers including the informal sector.

It is an institutional response of the Labor department to the 22-point agenda on labor and employment of the Aquino administration. (PR)