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Monday, July 17, 2006
P17 wage hike ok'd for W. Visayas
By Antonieta B. Lopez
* The new wage increase, bracketed according to the industry and capitalization, will take effect 15 days after publication
* Among the factors considered by the Regional Tripartite Wage and Productivity Board were the increasing cost of living, the capacity of the employers to give additional compensation and the possible effect in employment and inflation.
THE Regional Tripartite Wages and Productivity Board in Western Visayas has granted workers from the region a P17 to P20 increase in their daily wage starting next month.
This brings the minimum wage of those working in the sugar mills to P235 per day and a maximum minimum wage of P222 for those in the non-agriculture industries including the industrial, commercial, hospital and retail sectors.
The increases though were bracketed according to a company's capitalization and the sectors comprising the region's main labor forces.
Its approval came two weeks earlier than the July 30 deadline set by the Board.
Labor Regional Director Carlos Boteros Sunday made the confirmation on the issuance of Wage Order No. 14 for both the private and the agricultural sectors.
He said the members of the Board had to strike a balance in granting increases for daily wage, adding that the body deliberated on the increasing cost of living, the capacity of the employers, especially those with small enterprises, and the possible effect in employment and inflation.
The increase is about P55 lower than the amount demanded by several labor groups, which lobbied for a P75 hike citing the unabated increases in the prices of oil, prime commodities, utilities and basic services and the two-percent addition to the value-added tax.
With the new order, the daily minimum wage for workers in the sugar mills is pegged at P235, agricultural estates with more than P3 million capitalization is set at P203 while those below P3 million is at P185.
For plantations, the daily rate is P180 while the industrial and commercial sector is given a range of P199 to P222 depending on the capitalization.
The daily rate for hospital workers is pegged at P222 while those from the cottage and handicraft industries is at P180.
The new rates will take effect 15 days after the publication of the wage order.
Boteros said the new rate applies to all minimum wage earners in the region except for household or domestic workers, family drivers and those employed by registered barangay micro-business enterprises.
For workers under contracts for construction projects, security and janitorial services, Boteros said the prescribed rate must be implemented by the clients and that contracts must be amended to reflect the new rate.
In case of failure of the client to comply, the contractors will be jointly liable for the violation, he added.
Distressed and new businesses may apply for exemption though. This will then be deliberated on by the RTWPB. If approved, the exemption is only good for a year, Boteros added.
In June last year, the Board set the general minimum wage at P180 per day.
(July 17, 2006 issue)
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