I'm Giancarlo Enrico S. Pozon, a Wushu instructor, investor and Barrister... That's right, Barrister; I graduated from law school and took the Bar Exams, now I'm waiting for the results. I created this blog to make Philippine Law easy to understand for the average person. It's all about free legal advice. There are many law blogs. But the problem is that many of them are written for lawyers and law students. They use words that can't be understood by ordinary people.
Many lawyers, judges and law students consider themselves as superior to most human beings because of their knowledge of the law. It bothers me since the law is supposed to serve society. Since the law is meant to serve society as a whole, it is important that is must be understood by everybody.
This does not mean that we should all become lawyers. It means that although law is a highly specialized profession, the first duty of everybody in this profession is to make the law understandable to all; that's why all these articles are free legal advice.
Like I said, this blog is about law -but it's for the ordinary people, not the lawyers. It's for the ordinary folk so they will know what is good and bad for them, and that making them aware of the law will help us all improve society as a whole. This is free legal advice for everybody!
A wage distortion happens when a wage order increasing the rates of wages removes or significantly reduces the pay advantage of one position of employees over another. This change has to be corrected. The following are the essential elements of a wage distortion:
1.) The company has a hierarchy of positions with corresponding salary rates
2.) A wage order significantly changes or increases the salaries of the employees in the lower level but doesn't have a corresponding increase for the salaries of the employees in the higher level
3.) The distinction between the positions/groups of employees is eliminated
4.) The distortion exists in the same region of the country
Correction of a wage distortion must first be done in the company's grievance machinery provided for in the CBA. If the distortion isn't resolved there, the next step is voluntary arbitration. In case the company has no CBA or recognized labor union, the employers and workers have to reach an agreement to correct the distortion. If they can't agree, they have to bring the problem to the NCMB. If after 10 days in the NCMB there isn't any correction the next place to go is the NLRC.
Wage distortions can't be the cause of a strike or lockout (Ilaw ng Manggagawa vs. NLRC, 198 SCRA 586.) The correction of a wage distortion should be done by negotiation or arbitration.
Wage distortions, furthermore, are dangerous; an uncorrected one can lead to insubordination and weakening of productivity.
2 comments:
if a company implement a yearly salary increases, wage distortion is bound to happen.
Can it be considered a Wage Distortion if an employee directly under me who have been with the company for 22 years, have a basic salary of almost 50% higher than me, because I was just newly promoted and have just been with the company for 8 years?
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