By CESAR JOLITO III
A labor group is urging lawmakers to fast-track a proposed measure that would grant automatic wage relief to minimum wage earners, while also calling for the abolition of regional wage boards, which it says have failed to respond swiftly to rising living costs.
In a press statement, Wennie Sancho, secretary general of the General Alliance of Workers Association (GAWA), said the group will lobby for the filing and passage of the proposed “Fuel Wage Shock Protection Law.”
Sancho criticized the current wage-setting mechanism under Republic Act No. 6727, which created regional wage boards, saying it is no longer responsive to the urgent needs of workers facing economic pressures.
“It is high time that the regional wage board should be abolished for its failure to provide immediate economic relief,” he said, noting that the process of wage petitions, hearings and consultations often takes months.
Automatic relief mechanism proposed
The proposed legislation seeks to institutionalize an automatic “shock allowance” for minimum wage earners in the private sector whenever fuel and basic commodity prices breach certain thresholds.
The mechanism, according to GAWA, would eliminate the need for formal petitions and speed up assistance during economic disruptions.
Sancho said workers across the country are experiencing a sharp decline in purchasing power due to rising fuel costs and commodity prices, partly driven by global factors such as tensions in the Strait of Hormuz.
“The workers are left defenseless while prices skyrocket,” he said, adding that the Constitution mandates the state to protect labor and ensure fair wages.
Cost-sharing scheme outlined
Under the proposal, funding for the temporary wage allowance would be shared among stakeholders: 50 percent from employers, 30 percent from the government through tax relief measures such as excise and value-added tax holidays, and 20 percent from a proposed Wage Shock Fund sourced from oil windfall taxes.
The measure is intended to cover all minimum wage earners regardless of employment status or position.
Call for legislative action
GAWA is also pressing legislators to prioritize measures that directly address wage erosion, arguing that current interventions remain insufficient amid persistent inflation and fuel price volatility.
“If there are funds for other government expenditures, there should be resources allocated to protect workers during periods of excessive oil price hikes,” Sancho said.
The group warned that without immediate intervention, minimum wage earners will continue to struggle with stagnant wages and rising costs, emphasizing that “workers could no longer wait” for relief./CJ, WDJ