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Friday, June 24, 2005
Planners ward off Congress’ hand in pay hike
DEVELOPMENT planners in Central Visayas may oppose the proposal for a legislated across-the-board wage increase, because of its effects on businesses.
“The reasons for the opposition against legislated wage increases are legitimate issues in the country’s economic development,” the economic development committee (EDC) of the Regional Development Council (RDC) 7 said.
The EDC took up the resolution endorsed by chambers of commerce in a meeting last June 9 and has endorsed the resolution to the RDC full council for support.
The initiative of the business chambers is within the Central Visayas development plan, which includes the creation of more jobs and economic growth, the EDC said.
A draft resolution that the RDC 7 will discuss in next week’s meeting in Bohol shows it may support the joint resolution of the Visayas Chambers of Commerce and Industry, and inform the concerned committees of the House of Representatives of its stand.
House Bill 345, still pending in Congress, proposes a P125 across-the-board wage increase nationwide.
The chambers of commerce and the RDC 7, in the proposed resolution, said the proposal will have negative effects on business.
It will “negate employment generation, productivity promotion, business creation and competitiveness efforts especially of export-oriented and labor-intensive industries and small and medium enterprises (SMEs),” read the draft.
Instead of a legislated wage increase, business groups advocate for wage-setting based on employee productivity and specific industry conditions.
They also want the inclusion of non-wage benefits such as housing, medical care, education and insurance.
The Regional Tripartite Wages and Productivity Board 7 held a public hearing on proposals for wage adjustments last month and referred to Congress the petitions for the P125-legislated wage increase.
The wage board, in its recent order, shot down proposals for wage increases of P112 and P78, and instead granted minimum wage earners in Metro Cebu a P15 daily pay adjustment.
A P12-increase on the daily minimum wage was also granted to workers in the rest of Central Visayas.
The EDC also noted the observations of economist Dr. Gerardo Sicat, who confirmed the negative effects of nationally legislated wages and other advanced labor legislation like social security insurance.
Sicat had also established the adverse effects of promoting active unionism on labor absorption, productivity, international competitiveness and growth of labor-intensive enterprises, whether foreign or homegrown.
Members of the RDC 7, which includes the governors and mayors of Cebu, Siquijor, Oriental Negros and Bohol, are scheduled to take up the resolution during the second quarter meeting on July 1 at the Bohol Tropics Resort in Tagbilaran City. CYR
(June 24, 2005 issue)
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