However, the decision has prompted public uproar and subsequent protests from labor groups, with Senate Majority Leader Mjgz Zubiri warning that it would set a “bad precedent” and could derail future wage adjustments if the government allows lower courts’ intrusion into wage hikes to go uncontested.
“There can’t be a TRO against the orders of regional wage boards because otherwise, every time there’s a [wage] increase, the influential and wealthy business owners will just go to any court to get a TRO. That’s just right,” Zubiri lamented.
"I hope our courts will show compassion for our workers who really need a wage increase during these times. We’re crying for a living wage," the lawmaker from Bukidnon added.
It was also Zubiri who pitched a Senate resolution urging the SC, among other judicial bodies, to review the Pasig RTC’s decision, which received robust backing from his colleagues.
Senate labor and employment committee chair Joel Villanueva mentioned that while he supports Zubiri’s proposal, he contended that the Labor Code explicitly prohibits any court or entity from issuing a TRO or injunction against any wage-setting proceedings or orders issued by the National Wages and Productivity Commission (NWPC) or Regional Tripartite Wages and Productivity Boards (RTWPBs).
“Is there any other interpretation of Article 126 of the Labor Code? Because it seems very clear...The inflation rate is currently 6.4 percent. Last year, it was only 1 percent. That is a huge difference,” Villuenva said as he emphasized the swift implementation of the stalled wage hike.
Similarly, Senator Risa Hontiveros urged the Department of Labor and Employment—now being headed by their former colleague, Francis Tolentino—and the Office of the Solicitor General to team up and challenge the RTC’s TRO.
She likewise called on the business community to refrain from bypassing the laws and regional wage boards, which were mandated, among other things, to set minimum wages.
Senator Raffy Tulfo, vice chair of the panel, accused the RTC of overstepping its jurisdiction by acting on the petition, deriding the court’s move as “unacceptable,” which warrants amendments to the Labor Code to prevent any court from meddling with wage increases.
Senate President Win Gatchalian, meanwhile, averred that if the Senate was able to pass a proposed legislated wage hike in the previous Congress, then there is all the more reason to ultimately approve it at present and enact it into law, especially amid the ongoing war in the Middle East that has jacked up prices of fuel, electricity, and basic goods since March.
Deadlock
In the 19th Congress, the Senate passed a P100 legislated wage hike, while the House-approved counterpart bill set it at P200 across the board.
The proposed increase, however, did not materialize and effectively died with the closing of the 19th Congress, as neither the House nor the Senate was willing to compromise.
Senator Bong Go from the Senate opposition bloc concurred with Gatchalian that global market volatility, driven by ongoing tensions between the United States, Israel, and Iran, has weakened the peso, triggering inflation that has greatly reduced the public's purchasing power.
He also backed Zubiri’s proposal to implement a nationwide wage hike to help the labor force in Visayas and Mindanao, since the minimum wage there is significantly lower than that of the NCR and no longer meets their needs amid skyrocketing costs for basic commodities such as food, housing, and transportation.
“With the current expensive costs of commodities and fuel, the value of the peso has significantly diminished... We appeal to business owners: if it won't cause you a loss, please share your blessings, especially with our impoverished fellow citizens,” Go averred.
Senator Robin Padilla, who raised the issue to the floor, vowed to support any move to lift the TRO.
Despite their political differences, Padilla declared that he was one with Akbayan and Kamanggawa Partylists in condemning and protesting the RTC's decision, arguing that the lower court must heed the workers’ clamor.
Several labor groups staged a protest at DOLE on Monday, demanding that the agency fight for workers’ rights rather than merely comply with the TRO.
Tolentino earlier said that although DOLE was disappointed with the RTC’s decision, the agency was compelled to comply with the ruling.
The TRO, which will be in effect until 13 August, reverted the minimum wage to the previous level pending review of the case.
Before the court-issued TRO, the daily minimum wage for non-agricultural employees in the NCR was raised from P695 to P755. This is because DOLE split the implementation into two tranches, with the P60 increase taking effect on 25 July.
The additional P25 increase was supposed to take effect on 20 January 2027.
Since assuming office in mid-2022, President Marcos Jr. has openly expressed reservations about supporting a proposed legislated wage hike, citing its economic and inflationary implications and adverse effects on businesses, particularly micro, small, and medium enterprises, which may lead to layoffs or force small businesses to shut down.
