PROMDI Party standard-bearer Senator Manny Pacquiao has vowed to pursue the review of the 48-year-old Labor Code and seek the amendment of certain provisions in order to further ensure equitable and fair treatment of minimum wages of all workers regardless of geographical location.
In a press conference, Pacquiao said a review of Labor Code that was signed into law as Presidential Decree (PD) 442 in 1974 has become vital in the light of changes in the economic situation of the country, 48 years since it was first implemented.
A fierce advocate of anti-poverty programs, Pacquiao also vowed the immediate review of Republic Act (RA) 6727 or the Wage Rationalization Act as part of his bid to help workers in the provinces and prevent migration into urban areas in the country.
The Mindanaoan senator justified his proposal by citing the cost of fuel and other basic commodities in Metro Manila which are the same or even more expensive in other regions.
The Filipino boxing icon stressed that under such situation, it does not make sense that salaries should vary depending on ones’ place of work.
He said that under his administration, he would push for an across-the-board salary standardization scheme to address the disparity in salaries between workers employed in urban centers like Metro Manila and those working in the countryside.
Pacquiao said the imbalance in wage rates has contributed to the rapid decline of the quality of life and the productivity of many Filipinos living in Metro Manila due to traffic problem, extreme congestion in living spaces, and pollution.
Wages in the Philippines are set by tripartite regional wage boards with varying rates depending on the location of every region.
According to Pacquiao, the prevailing minimum rate, which ranges from P316 (US$6.57) to P537 (US$11.17) per day, must be reviewed to ensure that the minimum take-home pay would be within the monthly minimum threshold for a family of five as determined by the National Economic Development Authority (NEDA).
According to NEDA, an average Filipino family needs at least P42,000 monthly to live decently which means that a couple should earn at least P21,000/month each.
To encourage compliance from business owners, Pacquiao said the government should also “adjust” by reducing taxes and providing incentives to allow their businesses to flourish despite the salary adjustment.
“Although magiging disadvantage din sa mga company, mga employer, importante siguro diyan ang gobyerno ang mag-adjust . Ibaba natin taxes para ’di na sila mahirapan. Instead na ibabayad nila sa taxes, isusuweldo nila doon sa mga trabahante nila (Although this could be a disadvantage to some companies, employers, it is important that government should adjust. Let us lower taxes so that they will not suffer. Instead of paying their taxes, they will use the money to pay for the wages of their workers),” he said.
The senator also renewed his promise of bringing in more investors to the regions while noting that the government should focus on their country’s supply and production of goods to avoid a shortage and to ensure lower prices in public markets. He would also ask big international investors who are his personal friends to invest in the Philippines and generate thousands of jobs.