Wage Legislation in the National Capital Region: Government Response to the Clamor for a Wage Hike

Abstract

There is an unresolved conflict between workers and the employers when it comes to wage adjustments. This conflict involves the government since they serve as the neutral arbitrator to reach a compromise between the two parties. Under political economy, government should be responsive to the clamor and whims of its' citizens. Government responses to such a clamor include the creation of regional boards, the Lower House's Wage Bill and the executive's proposal of non-wage benefits. This research explored which of these responses are reactive and support the workers' fight for a just compensation and which protect the workers' rights. They mainly differ on how they can solve the problem: TUCP wants cooperation with the government on the assumption that the Regional Tripartite Wages and Productivity Board is a neutral body and is the only viable way for the workers to get efficient wage increases; KMU does not trust the government agency and wants an efficient and just wage increase through the nationally legislated wage increase forwarded in the Lower House. Both of the most active trade unions, KMU and TUCP, are against the proposed non-wage benefits. The RTWPB-NCR is confident that they are neutral and they have always accorded equal opportunities for both the employers, and workers5 sector when it comes to deciding on wage increases. The trade unions claim that the reasons presented by the board regarding the protection of the economy and businesses is nonexistent and should not be taken into consideration since most of the businesses can pay for additional wages, and if not, they can opt for an exemption. Basically, the fact that there has been clamor for a wage increase for the past years sends a signal that there is something wrong with the way the government is handling this issue.