Functions of the National Wages Council
- Serves as consultative and advisory body to the President/Prime Minister on wage matters
- Recommends issuance of wage orders to establish national, regional, or industry minimum wages
- Conducts ongoing studies of wage rates across agricultural and non-agricultural industries
- Collects, compiles, analyzes, and disseminates essential wage-related data including employment, wages, hours, work conditions, cost of living, productivity, and economic indicators
- Receives and processes exemption applications from statutory wage increases due to loss concerns
Wage Determination Criteria
- Minimum wages must be economically feasible to maintain adequate living standards
- Considerations include:
- Needs of workers and their families
- General wage levels in the country
- Cost of living and its changes
- Fair return on investments
- Industry viability
- Social security benefits
- Economic factors like development requirements, productivity, and employment levels
Cooperation and Information Gathering
- Council may seek assistance from:
- Industry, trade, and agricultural chambers or associations
- Trade unions
- Schools of economics
- Consumer groups
- Government and private agencies
- To aid in conducting studies and achieving the Council's objectives
Wage Orders and Collective Bargaining
- Wage orders recommended by the Council do not prevent workers from bargaining for higher wages with employers
Judicial Restraint
- No court may issue injunctions to restrain any proceeding of or before the Council
Composition of the Council
- Chairman: Minister of Labor and Employment
- Vice-Chairman: Minister of Economic Planning
- Members: Ministers of Industry, Agriculture, Finance, Trade; Governor of Central Bank; Executive Director of the Council; two representatives each from workers and employers
- Worker and employer representatives appointed by the President upon recommendation of the Minister of Labor and Employment for three-year terms
- Government representatives may designate deputies
Secretariat and Administrative Structure
- Secretariat headed by Executive Director and assisted by Deputy Director; both career administrators appointed by the President upon recommendation of the Minister of Labor and Employment
- Secretariat under administrative supervision of the Minister of Labor and Employment
- Executive Director authorized to organize units and inter-agency committees and appoint personnel, subject to laws and Council confirmation
Personnel Qualifications
- Council responsible for establishing qualifications for Executive Director, Deputy Director, and technical and clerical personnel in line with Civil Service Commission rules
Abolishment and Transition from Wage Commission
- Wage Commission in the Ministry of Labor abolished
- All personnel, equipment, records, and appropriations transferred to the National Wages Council
- Present officials and employees retain salary and rank without diminution
- Incumbent Chairman and Commissioner of Wage Commission become first Executive Director and Deputy Director of Council
Rulemaking Authority and Effectivity
- Council authorized to issue rules and regulations to implement the Executive Order
- Immediate effectivity upon issuance