Saturday, May 10, 2008 CCCI asks RTWPB 7 to grant pay adjustments, but to be ‘just, fair’ to employers
IF THERE’S any decision to be made on the current petitions of labor organizations to increase wages, it should be “just and fair.”
Although there is no specific amount to quantify what “just and fair” means for Cebu businessmen, Dr. Edward Gaisano, president of the Cebu Chamber of Commerce and Industry (CCCI), said the group has already relayed this message to the Regional Tripartite Wages and Productivity Board 7 during a consultation meeting yesterday morning.
“There is no consensus on the amount (but) `just and fair’ would mean (an amount that’s) kaya nato (something we can afford),” he said.
Instead of a wage increase, the group also discussed the possibility of extending allowances to employees.
He also said that members of the chamber understand that they are just one of the factors to be considered as discussions on the proposed wage hike are ongoing.
“I understand there are a lot of other segments,” he said, citing that the wage board also has to consider the export sector as well as companies from the export
processing zones.
But the P150 proposed wage hike, Gaisanos said, is too much on anybody’s pocket.
He said that based on the prevailing minimum wage of P250, the P150 increase will mean more than 50 percent will be added to a company’s budget for employees’ salaries. It will difficult for some companies, he said.
Impact
During the consultation meeting, the chamber also invited professor Fernando Fajardo of the University of San Carlos economics department and Dr. Juanito Aliño, economics professor from the University of San Jose–Recoletos, to explain to the group the impact to businesses if the wage hike is approved.
“I think everybody has an idea of what the impact will be,” he said.
Gaisano also mentioned that CCCI is open to other options like the giving of incentives to workers.
He said there are some requests for the waiving of withholding tax while some companies are applying for value-added tax exemption.
He said the CCCI will look into these options as well. Gaisano, however, is not sure if this is still within the wage board’s jurisdiction.
At present, only barangay-based micro enterprises are exempted from the minimum wage law.
However, employees of barangay micro enterprises are entitled to the same benefits given to any regular employee, like health care and social security, said Wendel Ganhinhin, senior tax manager of Punongbayan and Araullo.
With a proposed wage hike under the current economic situation, Ganhinhin advised that the wage board should consider the increase of prices of goods in the country, as well as the different economic conditions of various industries. (DME)
