DOLE Urges Firms to Address Wage Distortion After New Wage Orders
DOLE Urges Firms to Address Wage Distortion Issues

The Department of Labor and Employment (DOLE) has reiterated its call on all business establishments to address issues on wage distortion following the latest round of wage orders.

In a recent press briefing, DOLE spokesman Lennard Serrano emphasized that companies are urged to correct wage distortions through negotiations between employers and workers. "Having wage distortion is really part of the effects of a wage order. And they should look at how they could come up with the needed solution," said Serrano.

"We really leave it up to them how to address it," he added. However, if assistance is required, the labor official said they may seek help from the National Conciliation and Mediation Board (NCMB).

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Serrano noted that the NCMB is ready to provide support to both employers and employees through its Labor-Management Cooperation program. "Labor-Management Cooperation enhances communication between workers and management, especially in establishments that have no mechanism or no union representation," said the official.

"If they want to be heard, they can request assistance from the NCMB. Of course, they are very welcome," Serrano added.

Wage distortion is defined as a situation where an increase in prescribed wage rates results in the elimination or severe contraction of intentional quantitative differences in wage or salary rates between and among employee groups in an establishment.

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