Dole-Davao to Adhere Upon Enactment of P200 Minimum Wage Law
In an interview at SM City Davao, Lawyer Randolf Pensoy, the regional director of the Department of Labor and Employment-Davao Region (Dole-Davao), shared that if the proposed P200 wage increase becomes law, Dole-Davao will follow the new wage order determined by Congress.
Pensoy acknowledged that the Regional Tripartite Wages and Productivity Board (RTWPB) exists, but its powers, as defined by law, can be amended or repealed by Congress. According to him, "The only thing we could do is to follow the new wage order issued or determined by Congress, if it will happen."
With the P200 wage hike on top of the RTWPB's recent P29 increase, the region's new minimum wage would be P729. The RTWPB approved a P29 daily wage increase for private sector workers under Wage Order No. RB XI-23, raising the daily minimum wage to P510 for non-agricultural workers and P505 for those in the agricultural sector.
Congress approved House Bill 11376, which proposes a P200 minimum daily wage increase for private sector workers, on the third and final reading. The Senate has also passed its own version, Senate Bill 2534, which proposes a P100 increase. If enacted, this would mark the first nationwide wage hike since the Wage Rationalization Act of 1989.
President Ferdinand "Bongbong" Marcos Jr. stated that he will closely examine the potential economic implications of the P200 wage increase. He emphasized the need to balance the welfare of workers with the sustainability of businesses.
Pensoy warned that the possible effects of the proposed wage hike might include job losses, reductions, or even business closures. However, he also noted that for the labor sector, the impact might be less severe, as it could provide additional purchasing power to workers. As a member of the RTWPB, Pensoy stated his readiness to listen to both sides: labor and management.
From a broader perspective, a P200 minimum wage increase could significantly boost earnings for minumum wage workers, potentially lifting many out of poverty. However, it could also lead to increased costs for businesses, which might respond by reducing employment levels, especially in sectors with high labor costs and low productivity. Higher labor costs could also reduce the competitiveness of local businesses and increase inflation, potentially reversing recent gains in controlling inflation rates. Balancing these competing interests is crucial for sustainable economic growth and social welfare.
- The proposed P200 wage increase, if enacted, could lead to a new minimum wage of P729 in Davao region, as Dole-Davao will follow the new wage order determined by Congress, as shared by Lawyer Randolf Pensoy.
- If Congress approves House Bill 11376 or Senate Bill 2534, which propose minimum wage increases, it would mark the first nationwide wage hike since the Wage Rationalization Act of 1989, issuing a significant change in the country's general news and politics.
- The potential economic implications of a P200 wage hike, as discussed by President Ferdinand "Bongbong" Marcos Jr., are complex and must be balanced, as they involve the need to help workers while ensuring business sustainability, job security, and maintaining a competitive economic landscape.
