DOLE: EODB, strong ties with private sector to 'future proof' PH jobs

MANILA – Strengthening linkages with the private sector and ensuring the ease of doing business (EODB) are the key steps in "future-proofing" the country's job market against modern challenges, Labor Secretary Bienvenido Laguesma said Thursday.

During the Pre-SONA (State of the Nation Address) Special over state-run PTV, Laguesma said this is President Ferdinand R. Marcos Jr.'s marching order to government agencies to cushion the effect of market challenges and breakthroughs, including artificial intelligence.

"Alam natin na ang lumilikha talaga ng trabaho ay ang pribadong sektor, ang pangunahing responsibilidad ng pamahalaan ay lumikha ng isang (We all know that the private sector is the who creates jobs, the primary responsibility of the government is to create an) enabling environment conducive to investment tsaka paglago ng negosyo (and growth of business). How do you do that, through digitalization, reducing the cost of doing business in the Philippines, saka (and) ease in doing business," Laguesma said.

He underscored the importance of stability in policies in enticing more investors.

"Hindi 'yung pabago bago. Nakapag-invest ka na, may problema ka na naman agad. Hindi ka pa nagsisimula, napalaki na ng iyong ginagastos. Yun ang gustong tugunan ng ating Pangulo (We do not want policies that change from time to time. You already placed an investment and you are already having problems. You haven't even started and yet you have spent so much already. Our President wants these problems resolved)," he added.

Last month, the government launched the Trabaho Para sa Bayan (TPB) plan at the first-ever National Employment Summit.

The TPB is a 10-year roadmap that will serve as the national guide toward greater employment generation and recovery.

"Ang sinasaad noon ay ang paglilikha ng mga dekalidad at sustainable na hanapbuhay. Mabawasan ang ating poverty incidence na pwedeng i-address ng paglikha ng mas maraming hanapbuhay at dapat ay mas maging inclusive yung pagbibigay ng serbisyo, pati 'yung paglago ng ating ekonomiya, dapat ma-cascade natin sa lahat ng level ng ating lipunan (It mandates the creation of quality and sustainable jobs. It also aims to reduce poverty incidence by creating more jobs and ensuring that these are inclusive, as well as the services and our economic growth. It must be cascaded to all levels of society)," the labor chief said.

The TPB is expected to help generate at least 3 million new jobs by 2028.

Laguesma, citing data from the Department of Trade and Industry, said investment commitments from the foreign trips of the President are expected to generate an additional 200,000 jobs.

He said the DOLE is also sparing no effort in preparing the youth for employment through programs such as the Government Internship Program and the Special Program of Employment for Students.

The DOLE chief also said employers are responsible for adjusting workers' salaries to maintain the wage gap.

This comes after the National Capital Region wage board approved a P35 hike in the daily pay of private sector workers in the region.

Laguesma said this is essential to uplift the morale of workers.

"May nakaset na proseso. Pwede makipag-usap na kayo. Alam nila kahalagahan ng correction ng distortion. Ilang taon ka na nagtatrabaho, inabutan ka na ng minimum wage earners (There is a process. They should hold talks. They know the importance of correction of the distortion. You have been working for so long and yet the minimum wage earners have caught up on you in terms of salary). The employers must make adjustments to maintain the reasonable gap between wages," the DOLE chief added.

In Wage Advisory No. 1, Series of 2023, the National Wages and Productivity Commission (NWPC) reiterated relevant provisions of the Labor Code of the Philippines and jurisprudence on the matter, outlines how instances of wage distortion may be recognized.

The procedures to correct wage distortions are as follows: for organized firms (with union), employer and the workers' union shall negotiate to correct the distortions; any dispute arising from wage distortions shall be resolved through the grievance procedure under their collective bargaining agreement; and if it remains unresolved, the parties may push through with the process of voluntary arbitration.

On the other hand, for unorganized firms (without union) the procedures will be, the employers and workers shall endeavor to correct the wage distortions; any dispute arising therefrom shall be subject to mandatory conciliation-mediation through the Single-Entry Approach (SEnA) of the National Conciliation and Mediation Board (NCMB); and if there is no settlement, the distortion may be resolved through the labor arbiter or may be submitted by both parties through voluntary arbitration.

The formulas and examples may serve as guide in adjusting wage structures to rectify any wage distortions can be viewed through this link, nwpc.dole.gov.ph/nwpc-advisory-no-01.

Wage distortion occurs when the variations in wage structures or rates among employee groups within an enterprise are significantly eliminated or substantially diminished due to mandated wage increases.

Restoring the substantial distinction or gap is permissible under Article 124 of the Labor Code.

On the other hand, Laguesma noted that if the parties did not reach an agreement, they may submit a letter to the DOLE.

"Kung hindi magkasundo, pwede sila sumulat sa DOLE. May Single Entry Approach (SEnA) kami. Kung may issue, papatawag lang, ang usapan ay cordial, civil. Wala muna file-an ng demanda (If they do not agree on something, they can write to the DOLE. We have a Single Entry Approach. If there is an issue, we will call them for cordial and civil talks. No filing of charges yet)," he said.

SEnA is an administrative approach to provide a speedy, impartial, inexpensive, and accessible settlement procedure of all labor issues or conflicts to prevent them from ripening into full-blown disputes or actual labor cases. (PNA)