The House of Representatives and labor officials support the proposal to completely overhaul the 30-year-old Labor Code, Zamboanga del Norte Rep. Roseller Barinaga said.
Barinaga said it has become necessary for Congress to review the Labor Code to make it responsive to the current labor situation in the country.
Barinaga, chairman of the House Committee on Labor and Employment, said the effects of globalization to the country’s labor force is one strong reason why a total review of the Labor Code is vital.
Deputy Executive Director Ester Guirao of the National Wage and Productivity Commission said government supports the proposal for a revision of Labor Code.
Both Guirao and Barinaga agreed that the Code should embody additional protection for the workers but at the same time pursue industrial peace.
Guirao said labor standards and working conditions are likewise important items that should be looked into in view of the rapid progress in industrialization throughout the world.
Barinaga revealed that proposals for a per hour minimum wage will also be studied closely to determine if this will apply in the Philippine setting.
Per hour wage payment policy is already being implemented by various fastfood and service firms.
"We still have to determine if this will suit local employment. There are pros and cons to the proposal so we have to study this very carefully," Barinaga explained.
Earlier, the Mindanao solon revealed that the leadership of the House of Representatives is committed in approving an adjustment of minimum wage in the private sector but a P125 across-the-board increase appears to be an unlikely option.
Barinaga disclosed that the Lower House is expected to pass the proposed measure before the Labor Day celebration on May 1.
Floor debates on the proposal have already been terminated as lawmakers are set to consider various amendments that may be "acceptable to all stakeholders."
"We will be pushing for a P125 increase but were also coming with several amendments," Barinaga said.
Among the changes being considered by lawmakers include the introduction of non-wage benefits such as income tax reduction or additional tax exemptions and the installment implementation of the hike in two tranches.
Barinaga revealed that a number of lawmakers are supportive of the idea of limiting the application of the R125 across-the-board hike to the country’s top 1,000 corporations.
The senior administration lawmaker said his committee will stick to the original proposal which is a P125 increase, stressing that the figure is not even enough to sustain an average family’s daily needs.
He also admitted that even if the Lower House is able to pass the bill, legislative work in the implementation of higher minimum wage will only be halfway complete because there are no pending bills supporting the proposal in the Senate.
The House official said he is pinning hopes of an enactment of a legislative wage hike to the promise of Sen. Jose "Jinggoy" Estrada, chairman of the Senate Labor panel, that he would take immediate action on the measure.
Guirao said the NWPC would continue conducting studies on petitions for wage increases that have been filed by the labor sector even if Congress finally approves a legislated wage hike.
There are two petitions for wage hike submitted by various labor groups. One calls for a P95 across-the-board adjustment while the other, reportedly filed by the Trade Union Congress of the Philippines, is eyeing P75.
Guiarao said the NWPC will decide on the petitions by the end of July 2006 because it is only then that the agency is allowed by law to act on wage issues.
Under the law, no petition for wage increase can be acted upon by regional wage boards within a one year period upon the implementation of the most recent adjustment. (Ben R. Rosario)
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