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Congress told to revisit wage-setting system, EPIRA reforms

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December 30, 2024
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Congress told to revisit wage-setting system, EPIRA reforms
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By John Victor D. Ordoñez, Reporter

PHILIPPINE LAWMAKERS should review the country’s wage-setting system and consider amending the Electric Power Industry Reform Act (EPIRA) of 2001 when Congress resumes session on Jan. 13 to ensure workers’ adequate pay amid rising costs of living and affordable power costs for employers, according to labor analysts.

“Congress should prioritize passing the security of tenure bill, approving a P150 wage increase, and reviewing the process for setting minimum wages to ensure they reflect the cost of living and workers’ rights,” Sentro ng mga Nagkakaisa at Progresibong Manggagawa (SENTRO) Secretary-General Josua T. Mata said in a Viber message.

In February, the Senate passed on the third and final reading a P100 across-the-board increase for private-sector workers. The House of Representatives has yet to pass a counterpart bill.

Labor groups have said the country’s wage-setting system has failed since many workers still live in poverty even after paltry minimum wage increases.

The National Capital Region’s wage board in June approved a hike to the minimum wage by P35 pesos to P645, which took effect on July 17.

“While there are many significant reforms that need attention, focusing on these measures would be a meaningful way for Congress to conclude its sessions and leave a positive legacy.”

He also said that amending or repealing the EPIRA law could pave the way for reliable and affordable power costs for consumers and businesses.

Energy Undersecretary Sharon S. Garin earlier urged senators to amend the Energy Regulatory Commission (ERC) charter to allow price increases without regulatory approval as long as these fall within a set benchmark or bracket.

This would allow the ERC to do away with the cumbersome approval process that power distributors have complained about, she told a Senate energy committee hearing that is looking at changes to the 23-year-old EPIRA.

Renato B. Magtubo, a former congressman and chairman of Partidong Manggagawa added that stronger protection measures must be implemented to address the plight of contractual workers through a security of tenure law.

“The proliferation of labor contracting practices in which workers employed by labor contractors are supplied to principal employers as agency workers affects workers’ productivity since this circumvents the right to regular employment,” the former lawmaker said in a Viber message.

Mr. Magtubo added that Congress should also legislate measures to grow and expand the local economy by supporting farmers and local manufacturers. He said this could boost agricultural production and make local manufacturers competitive.

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