Direct Request (CEACR) - adopted 2012, published 102nd ILC session (2013)

Minimum Wage Fixing Machinery (Agriculture) Convention, 1951 (No. 99) - Philippines (Ratification: 1953)

Article 1(3) of the Convention. Scope of application. The Committee recalls its previous comment in which it noted that Barangay Micro Business Enterprises (BMBEs) have been excluded from the coverage of the minimum wage legislation. In its report, the Government indicates that 3,505 BMBEs employ 13,263 workers, which represent less than one per cent of all establishments and also less than one per cent of the total workforce. In addition, the Government indicates that the exemption from the scope of the minimum wage legislation is an incentive to support the growth of micro-enterprises and that the employees concerned are still entitled to the same benefits given to all regular employees with respect to social security and health care.

In this connection, the Committee notes section 2 of the Department of Labour and Employment (DOLE) Order No. 45-03 of 2003, which provides that Regional Tripartite Wages and Productivity Boards (RTWPBs) must issue a wage advisory for BMBEs based on guidelines issued by the National Wages and Productivity Commission (NWPC). The range of wage levels proposed by the RTWPBs is advisory in nature and may be used by BMBE workers and employers in setting reasonable wage levels in their enterprises. The Committee further notes the NWPC Guidelines No. 01 of 2003 concerning the issuance of wage advisories for BMBEs, which provide that the non-binding wage advisories are meant to exert a persuasive effect on BMBE owners and provide a benchmark for workers, and that the workers and owners of BMBEs are encouraged to set mutually acceptable wage rates. In the light of these provisions, the Committee observes that the minimum wage regulation for BMBE workers is entirely permissive, and as a result, these workers would possibly face undue pressure from their employers. It is noted that prior to the adoption of wage advisories, RTWPBs are expected to conduct studies of social and economic factors, seek assistance of relevant entities or persons, and consult with affected sectors. The Committee is of the view that minimum wages for BMBE workers are not sufficiently protected, no matter how limited the number of BMBE workers or establishments may be on a national scale. The Committee recalls that the Convention allows for the exclusion only of those categories of persons whose conditions of employment render the provisions of the Convention inapplicable to them, such as members of the farmer’s family employed by him or her. The Committee accordingly requests the Government to take appropriate action to ensure that BMBE workers enjoy the coverage of binding and legally enforceable minimum wages established in accordance with the Convention.

Part V of the report form. Application in practice. The Committee notes the information provided by the Government, according to which as of August 2012, the daily minimum wage rates in agriculture range from 210–409 Philippine pesos (PHP) (approximately US$5.00–9.80) for the plantation sector, and from PHP190–409 (approximately $4.60–9.80) for the non-plantation sector. The Committee requests the Government to continue to provide up-to-date information on the practical application of the Convention, including information on the two-tiered wage system currently implemented by the NWPC.