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Thursday, August 10, 2006
Exemption from P18 wage hike sought for ‘micro-businesses’
Businesses registered with the Barangay Micro-business Enterprise (BMBE) or those employing fewer than 10 workers may be exempted from the recently approved P18 wage increase in Central Visayas.
It will be up to the National Wages and Productivity Commission (NWPC) to approve the recommended exemption.
Department of Labor and Employment (Dole) 7 Director Elias Cayanong said he sent the NWPC a copy of the implementing guidelines of the approved new minimum wage in Central Visayas last July 18, but has yet to get a response.
The wage board considered these enterprises’ low income, compared to their operating expenses, in recommending the exemption.
The contract between BMBE-registered businesses and the Department of Trade and Industry also provides for the exemption from mandated wage adjustments.
As soon as the implementing guidelines are approved, the Dole regional office will conduct a survey to find out how many companies have complied, as well as an information drive to avoid misinterpretations of the order.
The guidelines are expected to be available later this month.
“Those that have not adopted the increase must implement it retroactive to Aug. 2 (when the wage order was issued),” said Cayanong, who is also chairman of the Regional Tripartite Wages and Productivity Board.
The P18 increase was approved by a 4-2 vote last July 16, despite opposition from the two labor representatives who pushed for an across-the-board increase of P75 to P95.
Cayanong downplayed speculations that some businesses will resort to retrenchment once the implementing guidelines come out.
He pointed out that businesses in the non-agricultural sector have performed well, particularly tourism.
In setting minimum wages, the regional boards consider several factors, including consumer prices, the cost of living, the need to induce industries to invest in the countryside, fair return of the capital invested by employers and the effects of an increase on employment generation and family income. (AIV)
For Bisaya stories from Cebu. Click here. (August 10, 2006 issue)
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