President Ferdinand R. Marcos announced that the country is considering the implementation of a minimum wage increase to protect the labor sector from the rapid economic expansion. In a meeting with International Labor Organization (ILO) Director General Gilbert F. Houngbo, President Marcos stated that his administration, in collaboration with the Department of Labor and Employment (DOLE), has been engaging in negotiations with workers, labor unions, and organizations to find a balanced approach to alleviate the inflationary pressures on workers.
President Marcos emphasized the potential negative impact of rapid industrialization and economic growth on the labor sector, expressing concerns about leaving workers behind and subjecting them to exploitation. He highlighted the prevalence of small businesses, with over 96 percent falling into the category of micro or nano-enterprises. The President acknowledged workers’ demands for wage increases but recognized the challenge faced by small businesses unable to meet higher wage requirements.
Labor Secretary Bienvenido Laguesma, also present at the meeting, echoed the President’s sentiments, noting that the majority of businesses in the Philippines are micro and small enterprises. He expressed optimism in resolving the issue promptly and mentioned the presentation of the Philippine Development Plan 2020-2023, endorsed by the labor sector and DOLE, to the President and Cabinet before a national tripartite conference.
Regarding worker protection, Secretary Laguesma discussed Executive Order (EO) No. 23, which aims to strengthen coordination and expedite the investigation, prosecution, and resolution of cases related to extrajudicial killings, harassment of workers, and union leaders and members. He assured the ILO chief that efforts were being made to align domestic laws with the goal of promoting bipartisanship.
President Marcos emphasized the government’s commitment to supporting workers and their families, particularly those who lost their jobs during the Covid-19 pandemic. He mentioned existing social programs under DOLE and highlighted the special program created to aid unemployed workers affected by travel restrictions. The President cited the repatriation of almost 800,000 overseas Filipino workers as a measure taken to address unemployment caused by the closure of businesses abroad.
Addressing other labor-related concerns, President Marcos acknowledged the persistent issues of illegal recruitment and human trafficking in the country. He expressed his administration’s dedication to combating these problems and mentioned the efforts to maintain a favorable tier classification in terms of compliance with standards for the elimination of human trafficking.
The ILO chief, Houngbo, praised the Philippines for taking steps to address labor-related challenges, including human trafficking, and considered it an example and model for other nations. The meeting also included the participation of ILO Senior Adviser for Asia Hitome Nakagome, ILO Country Director for the Philippines Khalid Hassan, and UN Resident Coordinator in the Philippines Gustavo Gonzalez.
