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Sunday, November 13, 2005
No pay raise for workers until end of the year: labor, group
MINIMUM wage earners will have to be contented with their current salaries until the end of December.
Labor Secretary Patricia Sto. Tomas and Alex Aguilar of the Trade Union Congress of the Philippines (TUCP) revealed this Saturday as they explained that the law prohibits the granting of a salary more than once in a 12-month period.
The TUCP had earlier asked for a P70 across-the-board increase in minimum wage to help workers cope with the increase in the cost of goods and services following the implementation of the expanded value-added tax (e-VAT) last November 1.
Sto. Tomas said regional wage boards are barred by law from issuing a new salary increase order because the pay raise directive issued last July is still in effect.
Since the Arroyo administration took power, Sto. Tomas said the regional wages and productivity boards (RTWPBs) already issued four wage increases, the latest of which was issued last June wherein the wage boards granted an additional pay of P25 per day to the basic salary of minimum wage earners.
Aguilar, for his part, said "my fearless forecast is that there will be no wage increase this December".
But Aguilar said once the existing wage order expires at the end of the year, they will file with the regional wage boards a petition for an across-the-board pay increase.
He also said they are monitoring the consumer price index (CPI) and other economic indicators to determine accurately the exact amount of increase in pay which they would demand next year.
Aguilar said in the meantime the government should consider granting workers non-wage benefits like exemption from income tax.
"Tax exemptions and lower prices of medicines and contraceptives should be provided to workers and this should be immediately done, especially tax exemptions," Aguilar said.
Sto. Tomas shared Aguilar's view saying, "any decrease in income tax is practically an increase in their wages".
Donald Dee, president of the Philippine Chamber of Commerce and Industry (PCCI) and Rene Soriano, president of the Employers Confederation of the Philippines (Ecop), also favored the granting of income tax exemptions to minimum wage earners because it is "a more viable solution" than pushing for a legislated wage increase or granting another round of pay adjustments.
Dee said one other way of helping workers cope with the rising prices of goods and services is to increase the supply of essential goods. He said if there are more goods in the market, prices are expected to stabilize therefore the purchasing power of workers would not be eroded. (MSN/Sunnex)
(November 13, 2005 issue)
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