Wages Boards to be summoned

EFC states that any wage adjustment could only be done in respect of minimum wages through the Wages Boards mechanism.

Recent media reports indicate that the Commissioner General of Labour would soon summon the Wages Boards for a revision of private sector wages.

In this regard it is important to clarify that the Wages Boards mechanism has the mandate only to revise minimum wages in respect of industries in which Wages Boards have been set up. The EFC has already highlighted that there should not be any arbitrary intervention of private sector wages and that whatever wage revision is effected should be done through the Wages Boards mechanism.

The Commissioner of Labour has the legal authority to summon the Wages Boards to consider an appropriate wage increase in respect of minimum wages. This will not entail a wage increase to the entire private sector. After summoning the Wages Boards, which consists of tripartite representation, each Wages Board will discuss and deliberate whether such a wage revision to minimum wages can be effected.

There is also an opportunity for the public to express views in the event of any wage revision contemplated by a Wages Board, as such a wage revision cannot be effected until the Commissioner of Labour publishes the proposal in the newspapers and calls for objections.

Thereafter objections, if any, will be discussed before taking a final decision. This is the process under the law.