ECOP, biz groups oppose proposals to abolish RTWPBs

by | Sep 12, 2025 | Info Notes

A broad coalition of employer and business organizations formally expressed their opposition to legislative proposals calling for the abolition of the Regional Tripartite Wages and Productivity Boards (RTWPBs).

In a joint letter submitted to the Senate Committee on Labor, Employment and Human Resources Development, chaired by Sen. Imee R. Marcos, and the House of Representatives Committee on Labor and Employment, chaired by Hon. Ramon Jolo B. Revilla III, the groups raised serious concerns over bills seeking to replace the current regional wage-setting mechanism with a national minimum wage system.

The statement emphasized that:

  • The RTWPBs, created under the Wage Rationalization Act of 1989, provide a balanced and evidence-based platform for determining minimum wages through tripartite consultations with labor, employers, and government.
  • Regional wage-setting ensures that adjustments reflect local socio-economic realities, protecting workers while allowing enterprises, especially 99.6% MSMEs, to remain viable and competitive.
  • Historical evidence shows that Board decisions have helped raise wage levels without triggering undue inflationary surges or widespread business closures.
  • The Philippines’ system is consistent with ASEAN practices, where most countries adopt decentralized, region-based wage mechanisms. Notably, Philippine minimum wages are already among the highest in the region.
  • Abolishing the RTWPBs risks discouraging investments, hurting MSMEs, and fueling urban migration by removing incentives for businesses to invest in the countryside.

The joint letter also highlighted that only 4 million workers, or about 16% of the labor force, are minimum wage earners covered by current wage laws, underscoring that drastic national-level changes may leave informal workers and MSMEs more vulnerable.

The business groups appealed to Congress to instead focus on strengthening existing mechanisms to ensure they remain responsive, inclusive, and regionally relevant. They reaffirmed their willingness to work with government and labor partners to improve the wage system while safeguarding both workers’ welfare and enterprise sustainability.

The letter was signed by leaders of major organizations including the Employers Confederation of the Philippines (ECOP), Philippine Chamber of Commerce and Industry (PCCI), President, Philippine Exporters Confederation, Inc. (PHILEXPORT), Federation of Filipino-Chinese Chambers of Commerce and Industry, Inc. (FFCCCII), Federation of Philippine Industries (FPI), Semiconductor and Electronics Industries in the Philippines Inc. (SEIPI), Women’s Business Council of the Philippines (WomenBizPH), Hotel and Restaurant Association of the Philippines (HRAP), Philippine Association of Colleges and Universities (PACU), People Management Association of the Philippines (PMAP), Philippine Retailers Association (PRA), Philippine Association of Service Exporters Inc. (PASEI), Philippine Hotel Owners Association Inc. (PHOA), Philippine Amalgamated Supermarkets Association (PAGASA), and the Philippine Food Processors and Exporters Organization Inc. (PHILFOODEX).

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Edgardo Lacson

Chairman of the Board

Edgardo G. Lacson is currently the Chairman of the Board of the Employers Confederation of the Philippines (ECOP), and Director of the Philippine Stock Exchange (PSE). He was formerly President and Honorary Chairman of the Philippine Chamber of Commerce and Industry (PCCI).  He was the President of ECOP from 2010 to 2016. Ed Lacson also serves as the President of various business firms, including MIS Maritime Corporation, Safe Seas Shipping Agency, Marine Industrial Supply Corporation, and EML Realty. He serves as Chairman of Metrostore Corporation, MIL Export Philippines, Beacon Environmental Management Services and Primelode, among others.

He is likewise Trustee of both the De La Salle Canlubang, Inc. and Philippine Petroleum Sea Transport Association (PHILPESTA), Managing Director of Link Edge, and a member of the Management Association of the Philippines (MAP), Philippine Interisland Shipping Association (PISA), and Makati Business Development Council (MBDC).

An alumnus of then De La Salle College and now De La Salle University where he earned his degree in Bachelor of Science in Commerce (BSC) Major in Accounting, Ed Lacson indeed through the years has expanded his horizons.

Edgardo Lacson serves as Honorary Chairman at PCCI. His previous business affiliations include the Philippine National Oil Company (PNOC), Marine Chemical Corporation, VLK Traders Philippines, Inc., and Esso Standard Eastern.