Layoffs possible in W. Visayas if fuel crisis worsens, DOLE warns

By Mariela Angella Oladive

The Department of Labor and Employment in Western Visayas is preparing contingency measures as tensions in the Middle East raise concerns over possible economic spillovers that could affect local employment.

DOLE-6 Regional Director Sixto Rodriguez Jr. said the agency is closely monitoring the situation, adding that prolonged instability abroad may lead to business disruptions and potential workforce reductions.

“There might be some reduction of workers,” he said, noting that the agency is ready to verify any reported layoffs and extend legal assistance to affected employees, particularly in cases of questionable termination practices.

To cushion potential impacts, Assistant Regional Director Melisa Navarra said the department is prepared to activate its Adjustment Measures Program, which provides support to displaced workers during crises.

The Adjustment Measures Program is a DOLE intervention that provides temporary employment, livelihood assistance, and retraining opportunities to workers displaced by economic shocks, natural disasters, or other extraordinary events. It was widely utilized during the COVID-19 pandemic to support millions of workers affected by business closures and reduced operations.

The program may be rolled out again if conditions worsen, although specific guidelines have yet to be issued.

As of now, DOLE-6 reported no cases of local displacement linked to the Middle East situation.

The agency also assured continued labor inspections across establishments in the region to ensure compliance with labor standards and safeguard workers’ welfare.

Employees who experience irregularities may file complaints through DOLE’s online platforms or provincial offices for immediate action.

DOLE-6 said no wage increase petitions have been filed in the region.

However, Rodriguez noted that the Regional Tripartite Wages and Productivity Board may still act on wage adjustments motu proprio in the event of “supervening circumstances,” such as rising oil prices, despite the one-year prohibition on modifying existing wage orders.

Under the Philippine wage-setting system, minimum wages are determined regionally by tripartite boards composed of representatives from government, employers, and workers. The boards are authorized to issue wage orders that take into account the cost of living, prevailing wage levels, and economic conditions in each region.

He also pointed to a pending measure in Congress seeking to abolish regional wage boards and shift toward a national wage-setting system under the National Wages and Productivity Commission.

This move could significantly alter how minimum wages are determined across the country.