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6. Wage Distortion

1. When is there a wage distortion?

2. How should a wage distortion be settled?

3. Can the issue of wage distortion be raised in a notice of strike?

Explain. 10%

1 comment:

Anonymous said...

VI.

1.

Wage distortion shall mean a situation where an increase in the prescribed wage rates results in the elimination or severe contraction of intentional quantitative differences in wage salary rates between and among EE groups in an establishment as to effectively obliterate the distinctions embodied in such wage structure based on skills, length of service, or other logical bases of differentiation.

2.

A wage distortion is settled through the negotiation of the employer and the union. Any dispute arising from wage distortions shall be resolved through the grievance procedures under their CBA, and if it remains unresolved, through arbitrary arbitration.

In case where there are no collective agreements or recognized labor unions, the employer and worker shall endeavor to correct such distortions. Any dispute arising therefrom shall be settled through the National Conciliation and Mediation Board, or if unresolved after 10 days of conciliation, through the NLRC which shall decide the dispute within 20 calendar days.

3.

The issue of wage distortion cannot be raised in a notice of strike. In a case where a union went on strike over a salary distortion dispute, the Supreme Court held the strike illegal.