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WELFARE NATION
STATE
STATE STATE
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Social State
Three Mainstays
1. Labor Law
2. Social Security
3. Public Services
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Modern State
Fundamental responsibilities:
1. Promotion of law and order
2. Personal safety and the safe-guarding of goods
3. Protection of property
4. Support of individual and collective freedom
5. Maintenance of an appropriate economic and
monetary framework
6. Responsibility to promote social cohesion
7. Ensure the welfare of its people
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Mitbestimmung in Germany
» Also known as co-determination
» The State played a minor role in the market-based
economic and social system
» Major labor market responsibilities are entrusted to
organized trades
» The importance of the State should not be
underestimated since many laws regulate the labor
market: layoffs, maintenance of pay in the even of
illness, job creation, or the organization of work in
companies
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French Model
» Minimum State – a power which individuals must
serve
» Social State – a force at the service of individuals
» In labor relations, the State intervenes to impose
social law and order
» The State appears as the guarantor of respect for the
principle of equality among its citizens
Role of Government Institutions
in the Shaping and
Administration of Labor and
Industrial Relations Policy
Bach Macaraya
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Incomes Policy
Living Wage
» 1987 Philippine Constitution’s standard payment for incomes policy
» Unlike minimum wage that is calculated on the basis of the needs of
a worker, the Living Wage is based on the concept of ‘family needs’
» The amount necessary to support an average Filipino Family (i.e. the
father, the mother, and four dependents)
» However, the reality on the ground is that the Philippine economy is
not financially capable or large enough to absorb such a high
criterion such as a ‘living wage’
» However, the Labour Code prescribes the fixing of regional
minimum wages tied up with productivity through the establishment
of the Regional Tripartite Wages and Productivity Boards (RTWPB)
that are under the supervision and administration of the National
Tripartite Wages and Productivity Council
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Payment
Forms of Payment
» No employer shall pay the wages of an employee by means of
promissory notes, voucher, coupons, tokens, tickets, chits, or any
object other than legal tender, even when expressly requested by the
employee.
Frequency of Payment
» Wages shall be paid at least once every two (2) weeks or twice a
month at intervals not exceeding sixteen (16) days