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Tuesday, July 18, 2006
ALU may take P18 pay increase issue to SC
While labor unions described as a token amount the P18 wage increase approved by the Regional Tripartite Wages and Productivity Board (RTWPB), business groups consider it too high and are now worried about its effect on small firms.
The Department of Labor and Employment (Dole) 7, however, vowed to conduct routine inspections starting August to check the compliance among companies.
Only businesses that are registered as a barangay enterprise are exempted from implementing the wage order.
Confederation of Philippine Exporters Foundation Inc. (Philexport) Cebu executive director Fred Escalona said the P18 increase in minimum wage is “quite high.”
“This might be okay for sectors that are performing well, but very stiff for those that are not doing well,” he told Sun.Star Cebu.
Cebu Chamber of Commerce and Industry (CCCI) president Francis Monera, on the other hand, said the implementing guidelines of the new wage order should take into consideration the different “peculiarities” of companies and include safety nets.
“There should also be safety nets for the small ones (companies),” he said.
He cited the regulation allowing companies that cannot afford to pay the legislated minimum wage to seek exemption.
He said companies that cannot afford the new minimum wage might be forced to close, which will be counter-productive to workers and the economy.
The Associated Labor Unions-Trade Union Congress of the Philippines (ALU-TUCP) announced, though, that it will appeal the increase and bring the fight to the National Wages and Productivity Commission.
“P18 is better than nothing. But again it cannot suffice the need of the workers. That will just go to taxes,” Joy Lim, spokesperson of ALU-TUCP, said in an interview.
Edwin Ruaza, chairman of the Bukluran ng Manggagawang Pilipino, said the wage board approved the increase “only to silence the workers clamoring for the P125 legislated increase.”
The P18 increase is for Metro Cebu workers only. Starting Aug. 1, employees as far as Danao City in the north and Carcar town in the south will be getting P241 a day.
Workers in the provinces of Bohol and Negros Oriental and the other parts of Cebu, excluding the islands of Bantayan and Camotes, will only get a P15 increase.
Siquijor was granted a P10 raise together with Bantayan and Camotes islands.
Those earning above the minimum wage, however, will not benefit from the new rate because the amount is only for entry-level workers, unless a wage distortion happens. This is when those getting paid above the minimum wage will end up getting less than minimum wage earners as a result of the wage hike.
Cayanong, also RTWPB chairman, defended the board’s decision saying the P18 was the most practical amount they could come up with, taking into consideration the industries that are operating in Central Visayas.
He also said they arrived at the amount based on certain indicators, such as the economic situation and the diversity of industries in Central Visayas, so the amount the workers will get shouldn’t be compared with how much those in Western Visayas are getting.
Cayanong said it doesn’t follow that just because Central Visayas is a premier region, it should get a bigger wage increase.
“In Western Visayas, there are no big manufacturing companies that will be affected,” Cayanong said in a radio interview. (RCT/LAP/AIV/With LCR)
For Bisaya stories from Cebu. Click here. (July 18, 2006 issue)
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