Direct Request (CEACR) - adopted 2014, published 104th ILC session (2015)

Equal Remuneration Convention, 1951 (No. 100) - Philippines (Ratification: 1953)

Articles 1 and 2 of the Convention. Gender pay gap. The Committee notes from the Philippine Labour Statistics Authority publication, Gender Statistics on Labor and Employment 2014 that the gender pay gap (average daily basic pay by major industry) in favour of men tends to be wider in sectors where women are well or over-represented (manufacturing, wholesale and retail trade, repair of motor vehicles and motorcycles and human health and social work activities). The gender pay gap in favour of women tends to be wider in industries where there are very low employment rates of women, including construction and fishing and aquaculture. The Committee further notes that of the six lowest paid industries, four have workforces where women are over-represented, and women are paid less than men in all but one occupational category, with pay gaps ranging from 34.2 per cent for service workers and shop and market sales workers to 24.4 per cent for trades and related workers. The Committee notes from the 2013 Asian Development Bank report, Gender Equality in the Labour Market in the Philippines, that the overall average gender wage gap is 3 per cent in favour of women, however it is calculated using the average daily rate of pay, and does not take into account difference in amounts of paid work, and that once differences in human capital are taken into account, the adjusted gender wage gap is estimated to range from 23 per cent to 30 per cent (page 15). The Committee asks the Government to provide information on specific measures taken or envisaged to reduce the gender pay gap including identifying and addressing the underlying causes of wage inequalities, and to promote women’s access to a wider range of jobs, particularly higher paying jobs. Please continue to provide statistical data on the distribution of men and women, according to economic sector and occupation, and take the necessary steps to collect data on their average monthly pay in the respective economic sectors and occupations.

Article 2. Pay inequality in the public sector. The Committee had previously noted concerns regarding the large pay gap between women and men in the public sector attributed to discriminatory factors in the wage-setting process, vertical occupational segregation, and inequalities in the Salary Standardization Law. Noting the lack of information provided by the Government regarding pay inequalities in the public sector, the Committee once again asks the Government to provide information on the causes and extent of the gender pay gap in the public sector, and steps taken or envisaged to address it, including with regard to occupational segregation, and inequalities in the Salary Standardization Law. Please also include statistical information on the remuneration levels of men and women disaggregated by occupation.

Wage determination (productivity-based pay). The Committee notes from the Government’s report that a two-tiered wage system (TTWS) was introduced in 2012. The Government indicates that minimum wages in the first tier are set at the regional level, while the second tier consists of productivity bonuses and incentives based on agreements between workers and management (Guidelines on the Implementation of the Two-Tiered Wage System, NWPC Guidelines No. 2, section 4). The NWPC Guidelines state in section 1 that “collective bargaining” is recognized as the primary mode for setting wages, and that Regional Tripartite Wages and Productivity Boards (RTWPBs) issue an advisory to guide enterprises or industries on a range of productivity incentives, which may be used as a basis for employer initiatives or enterprise-level negotiations (section 4). While productivity bonuses and incentives are not discriminatory in themselves as a basis for wage differentiation, the Committee considers that they must be applied in good faith, as historical experience shows that they can be taken as a pretext for paying women lower wages than men. The Committee recalls that the principle of the Convention applies to productivity bonuses and incentives and should be applied in the context of collective agreements. The Committee notes the statistics provided by the Government indicating that 228,000 workers are covered by Collective Bargaining Agreements. The Committee notes from the Government’s report on the Discrimination (Employment and Occupation) Convention, 1958 (No. 111), that one of the strategies under the Women’s Empowerment, Development and Gender Equality (WEDGE) Plan 2013–16 is to include gender focused discussion/agenda items in collective bargaining and negotiations. The Committee asks the Government to provide specific information on how it promotes the principle of equal remuneration for men and women for work of equal value in the productivity-based pay system of the TTWS including in the issuance of advisories by the RTWBPs and in any agreements reached between employers and employees regarding productivity bonuses and incentives; please also provide examples of any advisories issued under the scheme. The Committee asks the Government to provide information on gender-focused agenda items in collective bargaining and negotiation agreements, including examples of any provisions in collective agreements which relate to the principle of the Convention as well as information on the number of men and women covered by these agreements and their distribution in the different wage levels. Please also provide information on the number of men and women respectively receiving the minimum wage disaggregated by economic sector.

Article 2(2)(b). Minimum wages. The Committee notes the Government’s indication that the RTWPBs set minimum wages generally for five broad economic sectors. The Committee notes from the website of the National Wages and Productivity Commission (NWPC) that current minimum wages in the Capital region are the same in four of the five economic sectors categorized, with non-agriculture set marginally higher than the others. The Committee notes Republic Act No. 10361, An Act Instituting Policies for the Protection and Welfare of Domestic Workers, adopted 18 January 2013, which establishes a minimum wage (section 24) which may be periodically reviewed by the RTWPBs. Regarding compliance with the minimum wage law, the Government indicates that 16 per cent of establishments inspected in 2013 were found not to be in compliance with the minimum wage law, down from 22 per cent in 2012. The Committee notes the measures taken to strengthen the inspection programme through the adoption of a new Labour Law Compliance System (LLCS). The Government indicates that the Bureau of Working Conditions is also working on incorporating sex disaggregated data in the LLCS checklist to generate data for reporting and monitoring. Recalling that the effective implementation of the minimum wage is an important means towards achieving the objective of the Convention, the Committee asks the Government to continue to provide information on minimum wage compliance in the various industries, particularly industries predominantly employing women including manufacturing, wholesale and retail trade, domestic work, and in export processing zones, and indicating the number of men and women respectively affected by violations detected. Please also provide information on any practical measures taken or envisaged to assist workers to enforce their rights to receive minimum wages.