Written by Patricia Anne Jaymalin
Published May 30, 2022
The Department of Labor and Employment (DOLE) announced on May 23 that the Regional Tripartite Wages and Productivity Board V has issued Wage Order No. RBV-20 which will increase the minimum wage in the Bicol region by ₱55. The new minimum wage in total would be ₱365 across all sectors. Despite the increase, however, there are issues regarding its sufficiency.
The last wage order was in September 2018 which brought the minimum wage to the present ₱310.
Workers and domestic helpers in the Bicol region feel that the current increase of ₱55 is not enough considering that other regions have a much higher minimum wage at present. In Western Visayas, the increase will bring the minimum wage in the region to ₱410.00, while in Ilocos and Cagayan Valley, the increase will bring its minimum wage to ₱400.00 and ₱420.00, respectively.
Why is this so? The reason why such disparity exists in the minimum wage in every region is due to State policy, particularly embodied in R.A. No. 6727 or the “Wage Rationalization Act” of June 9, 1989. According to the act, it is the policy of the State to rationalize the fixing of minimum wages to ensure a decent standard of living for the workers and their families. The existence of different minimum wages in different regions in the country implies that the economic situation and standard of living, among other factors, is not uniform.
Recent data, however, shows that this is not so. With the advent of new technology, efficiency in the production, transportation and distribution of basic commodities, and the close range price of fuel/oil makes such difference insignificant. Data shows that the price of diesel fuel in some regions are as follows:
BICOL
Legazpi City – ₱79.60
Sorsogon City – ₱78.55
Masbate City – ₱88.67
ILOCOS REGION
Batac City – ₱82.77
Vigan City – ₱78.80
San Fernando City – ₱80.05
WESTERN VISAYAS
Bacolod City – ₱73.90
San Carlos City – ₱73.40
Cadiz – ₱76.94
CAGAYAN VALLEY REGION
Cauayan City – ₱75.75
Tuguegarao City– ₱75.40
Data shows that the prices of fuel in these regions are close in range. If the prices of basic commodities are dependent on oil prices, then with the prices of fuel in the above-mentioned regions, the prices of basic commodities should follow the same pattern. Hence, there is no more substantial disparity to talk about which will justify the different minimum wages in such regions.
However, the fact remains that there is such a disparity between the different minimum wages in different parts of the country.
Commodity prices and service costs are nearly identical throughout the country. Apart from that, the job function and tasks of a waiter or clerk in Visayas and Mindanao are the same as in Luzon, so why are their wages different?
Even back in 2016, various labor groups have been urging the Supreme Court (SC) to reject the Wage Rationalization Act. In their petition, they stated how the disparity is the effect of many years of implementing RA 6727. According to these groups, the law also violates Articles 135 and 248 of the Labor Code, which prohibits labor discrimination. Moreover, labor groups argued that the wages set by the Board have failed to meet the suggested living wage by various experts.
“Minimum wages in the country have long failed to provide for an adequate living wage for laborers,” the petition stated. “This is due to the fact that the criteria in determining minimum wages as defined by RA 6727 are patently erroneous, biased and ultimately unconstitutional.”
These arguments fuel a call that only one uniform minimum wage standard should be observed in the country.
Without a doubt, every ordinary Filipino is in a tight situation. Prices of goods are rising as well as the cost of living. Many Filipinos are struggling just to make ends meet. The wage board plays a critical role in attaining equality and social justice for workers. However, this is not the reality. If the Wage Rationalization Act no longer serves its purpose, then we might as well think of abolishing or amending it to conform to the present situation.
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