The workers' right to minimum wage

Workers, regardless of whether regular or contractual, are entitled to a minimum wage as mandated by law. Sad to say, that more than half or about 52 percent of the total employers in the country are not paying the right minimum wage rates to their employees. This figure only reveals what was reported by government agencies based on ocular inspections being conducted at random to selected companies. For sure, this figure is only the tip of the iceberg and that there is more to it than meets the eye.

That despite the much-ballyhooed 7.8 percent economic growth in Asia, a notch higher than China, the majority of Filipino workers continued to struggle a hand-to-mouth existence. With less than P300 average daily minimum wage to workers nationwide, it is beyond the realm of imagination how a worker with a family of five or six could make both ends meet for his family's daily needs. It is clear that the economic growth has only benefited the rich and the ruling elite of society who comprised not more than 10 percent of the population. They are the same capitalists and employers who continued to oppress and exploit the workers to satisfy their insatiable hunger for profit.

Some employers believe that doing business is all about amassing profit. They consider their workers not as partners but as a mere commodity of production. If their target profit for a given period is not met they conveniently declare loses. Then they resort to cost-saving measures and some labor flexibility measures to offset the alleged 'loses'. One such measure is to cut labor costs to the detriment of the workers. And the employers realize it too late that they have some labor problems to face, some labor cases to settle in court.

The Department of Labor and Employment (DOLE) is mandated by law to conduct inspections of establishments, as often as necessary, to determine whether the workers are paid the prescribed wage rates and other benefits granted by law or wage orders. In case of a unionized company, the labor inspector shall be accompanied by the union president or other responsible union officers during the conduct of inspection. For non-unionized establishment, a worker representing the rank-and-file employees of the company is required to accompany the inspector. The purpose of which is to make sure that there will be no connivance between the labor representative and the company. But this set-up doesn't always work.

Contractors and those in the construction business are the most notorious in violating labor laws particularly in the non-payment of the minimum wage. It is clearly an illegal act but unscrupulous employers continue this practice knowing that it can get away with it. Project employees have temporary job tenure. So that by the time the poor employees complained to DOLE, the project is long completed, the records fully secured and the employers are gone with the wind.

Section 8 of the Labor Code states that: “In the case of contracts for construction projects and for security, janitorial and similar services, the prescribed increases in the wage rates of the workers shall be borne by the principal or client of the construction/service contractor and the contract shall be deemed amended accordingly. In the event, however, that the principal or client fails to pay the prescribed increase or new minimum wage rate, the construction/service contractor shall be jointly and severally liable with his principal or client.”

Under the law, a contractor or subcontractor who refuses or fails to pay the mandated wage increase shall be fined of not less than P25,000 but not more than P100,000 or imprisonment of not less than two years but not more than four years or both, at the discretion of the court. Moreover, the contractor or subcontractor shall be ordered to pay an amount double than the unpaid benefits due to the employees. But even with the payment of indemnity will not absolve the contractor or subcontractor from criminal liability under the Revised Penal Code.

These employers are clearly committing illegal acts by not giving salaries according to the minimum standard. The workers have the right to demand what is rightfully theirs under the law.