|
Friday, April 22, 2005
Senate president backs wage hike
* But employers oppose any salary increase, warns of displacement of workers if wages are raised
SENATE President Franklin Drilon Thursday urged regional wage boards to grant a salary increase for workers to help workers cope with the increases in the cost of basic goods and services.
The labor sector is pushing for a P125 across-the-board salary increase.
But employers reject any salary increase as they warned of massive retrenchment if any wage raise is ordered.
Drilon said a salary adjustment is needed to cushion the impact of the recent increases in the prices of prime commodities as a result of the rise in the prices of petroleum products, and another round of increases once the value-added tax (VAT) bill is passed.
"This is timely and necessary. I believe it is time to increase workers' wage," he said.
He called on the Regional Tripartite Wage and Productivity Boards (RTWPBs) to act expeditiously on pending petitions for a salary increase.
Meanwhile, Employers Confederation of the Philippines (Ecop) president Rene Soriano said the government should expect massive displacement of workers if a salary increase is given.
Soriano said an increase in wages at this time would only trigger "unprecedented spiraling cost-push inflation" and would mean the loss of jobs.
He said what the workers need this time is not a wage increase but economic relief like exemption of workers from paying withholding taxes.
"A wage increase is merely a palliative, what workers need is more lasting relief such as measures which will shore up their purchasing power," Soriano added.
On the other hand, Donald Dee, president of the Philippine Chamber of Commerce and Industry (PCCI), said many businesses, particularly small and medium enterprises (SMEs) and manufacturing firms would shut down in the event government grants a salary adjustment. Eighty percent of commercial establishments in the country are SMEs.
Dee however said business leaders and representatives of government and other concerned agencies have been meeting the past two weeks to determine the amount to be given if a wage increase is unavoidable.
"Leaders have been meeting up since last week to discuss the possible wage increase because obviously there are increases in the consumer price index (CPI)," said Dee as he noted that the CPI is one of the economic indicators being monitored and used by RTWPBs in determining any salary adjustments.
Dee said while employers are financially incapable of giving a salary increase, he admitted the need to raise workers' wages to cope with the increases in the prices of basic goods and services.
"There is no other choice but we are looking at all possible solutions and right now, we are looking at how we can reduce the cost of living since this is an area which is obviously eroding the purchasing power of the workers," Dee said.
"Increasing tax exemptions is better than increasing minimum wages," he added. (JPM/MSN)
(April 22, 2005 issue)
Write letter to the editor.Click here.
Join the Sun.Star message board.Click here. |
|
[return to top]
[home]
[network page]
|
LOCAL NEWS
BUSINESS
OPINION
SPORTS
LIFESTYLE
FEATURE
|
