The National Wages and Productivity Commission (NWPC) has issued a guide to companies in correcting wage distortion stemming from minimum wage orders. In Wage Advisory No. 1, Series of 2023 released Friday, the NWPC reiterated relevant provisions of the Labor Code and jurisprudence on the matter and outlines how instances of wage distortion may be recognized. It also provides suggested formulas with sample computations for addressing and correcting these distortions. 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; --In cases of unresolved matters on wage distortion, the parties may push through with the process of voluntary arbitration. On the other hand, for unorganized firms (without union), the employers and workers shall endeavor to correct the wage distortions. It also said any dispute arising therefrom shall be subject to mandatory conciliation-mediation through the Single-Entry Approach (SEnA) of the National Conciliation and Mediation Board. Once no settlement has been reached, the distortion may be resolved through the labor arbiter or may be submitted by both parties through voluntary arbitration. The Commission encouraged enterprises to seek guidance and technical assistance from the RTWPBs in correcting wage distortion issues. The formulas and examples may serve as a guide in adjusting wage structures to rectify any wage distortions can be viewed through this link https://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. It said addressing wage distortions is crucial for maintaining equity, boosting employee morale, and fostering a productive and harmonious workplace. The NWPC also said by rectifying wage distortions, business enterprises demonstrate their commitment to fair compensation and employee well-being. To date, the minimum wage rates in the National Capital Region have been hiked by PHP40 effective July 16.
Source: Philippines News Agency
