DOLE freezes wage hikes in disaster areas

MANILA—Companies affected by major calamities may soon file for exemption from wage increases approved by the regional wage boards, according to the Department of Labor and Employment.

Labor Secretary Rosalinda Baldoz, in a statement, said the National Wages Productivity Commission (NPWC) has issued a new resolution allowing disaster-hit firms a longer reprieve from wage increases and additional cost-of-living allowances mandated by the Regional Tripartite Wage and Productivity Boards.

The resolution, which amended NWPC Guidelines No. 2, Series of 2007, covers companies in areas where a state of calamity has been declared.

“Natural and human-induced disasters affect business operations and result in establishments experiencing temporary difficulties due to financial losses which necessitate government to step in and extend urgent assistance,” Baldoz said.

For the purposes of exemption, the resolution has expanded the concept of “calamity,” “hazard” and “disaster” to include both natural—such as typhoons, floods, earthquakes, tsunami, volcanic eruption, drought, pest infestation, etc., and human-induced—such as economic sabotage, financial crisis, rebellion, war, etc.

Baldoz explained that if the damage to  the establishment is at least 50 percent, based on the assessment of a competent authority, and the period of recovery will exceed one year, the six-month period of exemption may be extended to one year.

“This will allow establishments to recover from their financial loses,” she said.

Applicant-establishments, however, need to inform their workers about their intention to file an application for exemption prior to the filing of the application.

The new resolution also allows regional wage boards to revoke an exemption ban in a specific region, provided it was hit by a disaster six months prior to the implementation of its new wage order.

It also reduced the documentary requirements in filing for a wage hike exemption.

The resolution also allows wage boards to re-open the period for the filing of exemption applications after its deadline if a calamity hits their area.

Baldoz said the resolution will take effect 15 days after publication in a newspaper of general circulation.