Upholding just wages

It sounded like long-overdue relief for the 1.1 million minimum wage earners in the National Capital Region (NCR) faced with soaring gas prices, distressing inflation levels, and skyrocketing electricity rates.

The recently announced P85 minimum wage hike was meant to boost the purchasing power of Filipino workers and help them cope with harsh economic conditions, said Department of Labor and Employment (Dole) Secretary Francis N. Tolentino.

The first tranche of P60 was rolled out effective July 25, while the second tranche of P25 will take effect on Jan. 20, 2027. Upon full implementation, the P85 wage hike brings the daily minimum wage in Metro Manila’s nonagriculture sector to P780, while workers in the agriculture, services, retail, and manufacturing sector with fewer than 10 workers stand to earn P743 a day.

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The workers’ elation was short-lived, however, when the Pasig City Regional Trial Court Branch 152 on July 30 issued a temporary restraining order (TRO) on the wage hike based on the petition of two construction companies. Readycon Trading and Construction Corp. and R-II Builders Inc. contended that the wage hike did not consider the employers’ capacity to pay it.

Living on the margins

Some employers also argued that the P85 wage increase “departs sharply from two decades of regulatory practice” where salary adjustments generally ranged from P10 to P25. The increase, they claimed, could “trigger severe unintended consequences” such as displacing workers, increased prices of essential commodities, and a decline in gross domestic product.

The Labor chief however allayed such fears, saying that the wage hike would offer an “immediate cushion and impact on real wages and the purchasing power of workers to provide for [their] family.” As for struggling employers, they can apply for the Adjustment Measures Program which provides financial aid for micro, small, and medium-sized enterprises, labor groups, and displaced workers, Tolentino added.

But why was the Pasig City court even allowed to tinker with NCR Wage Order No. 27, asked several senators and labor groups, pointing out that under Article 126 of the Labor Code, courts are prohibited from issuing injunctions or TROs against proceedings before the country’s wage-setting bodies. As noted by Senate Majority Leader Juan Miguel Zubiri. “The law is all that our workers rely on. Let the law protect our workers.”

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The TRO, said Sen. Raffy Tulfo, undermines the country’s evidence-based tripartite wage-setting system and unfairly prejudices workers already living on the margins of survival. “Companies that do not value the contributions of workers to their business must go through the proper process,” he added.

Wage disputes

Indeed, pointed out Malacañang, “the proper remedy for anyone with concerns about the wage order [was] to file an appeal with the Regional Tripartite Wages and Productivity Board rather than bringing the matter directly before the court.”

While the restraining order would have expired yesterday, Aug. 13, labor groups have expressed alarm that the TRO could set a precedent on stopping future wage entitlements, as employers seek relief from the courts. Already, the Alliance of Philippine Fishing Federations Inc., a group of 52 companies and domestic corporations engaged in commercial fishing, has run to a Navotas court for a similar suspension order on the wage hike.

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“This case is not merely about legal procedure. It is about protecting the wages and livelihood of millions of workers whose voices deserve to be heard before any court decides their fate,” said Federation of Free Workers president Sonny Matula. It’s ironic that the court, whose mandate it is to uphold the law, seems to have ignored the Labor Code provision on wage increase and the process already in place to resolve wage disputes.

Industrial peace

Giving marginalized workers a decent wage that would allow them to live with dignity is a social issue, especially in a country just recently classified as an upper-middle-income economy. Such distinction is lost on ordinary Filipinos who have been fighting a losing battle against runaway prices. As noted by independent economic research group Ibon Foundation, a family of five needs a national average of P1,312 per day to cover basic needs as of April 2026, almost double the P743 and P780 minimum wage promised by the P85 wage hike.

While Dole staunchly defends its mandate to promote the rights of Filipino workers, Malacañang and the Office of the Solicitor General must exert all efforts to have the TRO lifted. The higher courts, too, must step in to define jurisdiction on labor matters. At the same time, employers must be encouraged to follow requisite processes under the Labor Code and offered just recourse when seeking exemption from the wage hike.

The tripartite system where workers, employers, and government have a voice must be consistently upheld to encourage industrial peace and a thriving economy—but not at the expense of much put-upon Filipino workers.