35
national level. Furthermore, the chronically low and lengthy process of
regularization is clearly shown by the fact that only a small percentage of the
workers surveyed were regular workers, and an even smaller portion achieved this
status within the mandatory 5-6 month period.
Regarding the implementation of labor standards, the national government's Labor
Laws Compliance System (LLCS) faces many issues. As noted by the DOLE gap
report, the national labor inspection system is plagued with the lack of qualified
labor inspectors, the fact that existing penalties are low, and the enforcement of
regulations and findings are weak, compromising the extent of employer
compliance.42
Meanwhile, the lack of a national minimum wage is also a source of concern. Once
again, the CESCR report is a useful reference for assessing the status of wages
in the country. The Wage Rationalization Act of 1989, with its abolition of the
national minimum wage through Congress towards a tripartite body, is riddled with
the lack of genuine workers' participation in wage-setting. Its implementation of a
two-tier wage system sets a "floor wage" based on the poverty threshold, often far
below the minimum wage rate. Furthermore, compliance is problematic. Similar to
the LLCS, the punishment for non- payment of minimum wages is "lenient and
non-dissuasive."43
As a result, not only is the minimum wage coverage low, it is often far too
insufficient for working families.44 Citing data from the Philippine statistic authority,
labor group Partido Manggagawa claimed in a statement that:
"We should remember that many workers, many of them women, are
paid even less than the minimum. In the NCR, there are 1 million
minimum wage earners but more than 800,000 workers are paid
below the minimum. It is worse nationwide: 2.4 million minimum
wage earners but 8 million paid below the minimum."45
42
Joyce Anne S. Lumactud, Gap Analysis of ILO Convention No. 81 (Labor Inspection), at viii,
available at https://ils.dole.gov.ph/rights-at-work/2016-rw/gap-analysis-of-ilo-convention-no-81labour-inspection (last accessed November 5, 2022).
43 U.N. Economic And Social Council, Concluding Observations On The Combined Fifth And
Sixth Periodic Reports Of The Philippines ¶ 29 E/C.12/PHL/CO/5-6 (October 26, 2016).
44 Ian Nicolas Cigaral, ‘Philippines one of the worst countries to live for minimum wage earners’,
PHILSTAR, January 14, 2020, available at
https://www.philstar.com/business/2020/01/14/1984769/philippines-one-worst-countries-liveminimum-wage-earners (last accessed November 20, 2022).
45 Catherine Gonzales, Labor group says salaries of low-paid workers must increase faster,
INQUIRER, January 27, 2022, available at
https://newsinfo.inquirer.net/1546142/labor-group-says-salaries-of-low-paid-workers-mustincrease-faster (last accessed November 20, 2022).