Palace backs DOLE order to review minimum wage

MANILA, Philippines — Malacañang on Thursday expressed support for the labor department's order to review the minimum wages nationwide but insisted that the proposal to declare an economic emergency requires a thorough study due to its possible wide-reaching impact.

Acting presidential spokesman Martin Andanar said raising the minimum wage would help workers cope with rising prices of goods.  

"I will take it from the labor secretary. If that's the policy of the labor secretary... as the alter ego of the president, then that would be good for us," Andanar told radio station dzBB.

"What can your P20,000 do? Or P10,000 or P15,000? So it (minimum wage) really has to be increased," he added.

Andanar said Labor Secretary Silvestre Bello III has asked the tripartite regional wage boards to talk about the minimum wages.

"That's the way it is. How do you help our countrymen, especially the minimum wage earners? What will happen to them if the inflation rises?" he said in Filipino.

Bello has asked the regional tripartite wages and productivity boards across the country to speed-up the review of the minimum wages, citing the rising oil prices caused by the conflict between Ukraine and Russia.

Bello said the skyrocketing oil prices may be a compelling ground for the wage boards to recommend adjustments in the minimum wages of workers. He cited the P537 minimum wage in Metro Manila, which he said may no longer cope with the price of basic commodities like food, electricity and water bills. The labor chief expressed optimism that the wage boards would submit their recommendations before the end of April.

While it is supportive of the order to review minimum wages, the Palace is cautious about the proposals for President Duterte to declare a state of economic emergency and to suspend the value added tax on fuel.

"We have to balance everything. With regard to the proposal to declare a state of economic emergency, it does not involve simple terms, it has to be studied thoroughly because many will be affected," Andanar said in Filipino.

Some lawmakers have claimed that declaring a state of economic emergency is the fastest way to enable local governments to use their calamity funds to soften the impact of soaring fuel prices and provide relief to affected sectors. Energy Secretary Alfonso Cusi has said such a declaration is not necessary for now and that the government is doing what it could to address the problems caused by the oil price hikes.

Andanar said suspending the value added tax on oil products would also create problems and would deprive the government of funds it can use to help sectors hit by rising commodity prices.

"According to the DBM (Department of Budget and Management), if you remove the excise tax, social services would be affected...The DOH (Department of Health) would be affected, everyone would be affected... If you remove the excise tax, what will happen to the medical services given to our countrymen? What will happen to the aid given by DSWD (Department of Social Welfare and Development)?" he said.

Andanar said it remains unclear whether Duterte would call for a special session to allow lawmakers to pass bills that would provide relief to sectors hit by the price hikes. Such a decision would depend on future developments, he added.

"The government is ready for everything. We have a lot of experts and you can be assured that the president would listen to all suggestions," Andanar said.