Sunday, April 30, 2006
Bizmen caution against pay hike
MANILA -- Brace for closures of commercial establishments and massive retrenchment of workers.
Donald Dee, president of the Philippine Chamber of Commerce and Industry (PCCI) warned after the Trade Union Congress of the Philippines (TUCP) said it will file a petition for a salary increase in two weeks time.
"If they will push for wage hike now, many companies will downsize and many workers will be displaced because an unreasonable wage hike will ultimately be anti-labor since it will force businesses to close down," Dee said.
He added that companies that are able to survive now are blue-chip and multinational firms while the rest are "fighting for their survival," adding that 99 percent of commercial establishments in the country belong to the small and medium scale enterprises sector.
TUCP spokesman Alex Aguilar said they are not surprised with the employers' reaction to a move to grant workers a salary increase.
"It's always their stand and they do (oppose giving wage hike) that all the time," Aguilar said in an interview after the weekly "Kapihan sa Sulu" forum.
Aguilar said the best incentive that employers can give to their workers is for them to be given a raise in their daily pay in order to help them cope with the increasing prices of essential goods as a result of the rise in oil prices.
"It will be impractical not to think about giving the workers wage hikes at this time, considering the impact of the 12 percent E-Vat(expanded value-added tax) and the oil crisis," Aguilar said.
Dee said while they understand the plight of workers, granting another salary increase this year "is highly impractical."
He said many companies could not comply with a legislated wage increase or through the wage board as he proposed that workers and management discuss a viable alternative.
"It is better left to the company to decide and work with their workers how much can they give as wage hike because if they will do this through the regional wage boards, most likely we will have descending votes," Dee added.
Meanwhile, the National Wages and Productivity Commission and the Regional Tripartite Wages and Productivity Boards have started reviewing the wage situation in the country and monitoring economic indicators.
Rebecca J. Calzado, executive director and officer-in-charge of the NWPC, said 17 regional boards are currently studying issues raised by the different labor groups on wage orders issued by the RTWPBs.
Calzado said while the policy of minimum wage fixing is to protect the purchasing power of lower-income workers, it also aims to preserve existing jobs.
"There should be a balance between providing a decent standard of living for workers and ensuring the survival and viability of business, more so, small and medium enterprises," Calzado said.
According to Calzado, the minimum wage in the National Capital Region was already adjusted 13 times - from a low of P13.00 to a high of P26.50.
At present, minimum wage workers in NCR receive P325 after RTWPB-NCR granted on June 16, 2005 an increase of P25 in the basic wage.
Congress last enacted a minimum wage law in 1989, increasing the national minimum wage from P64 to P89.
Since then, it has delegated the power to determine the minimum wage to RTWPBs.
From 1990 to the present, the wage boards have adjusted the minimum wage 10 to 13 times. (Sunnex)
(April 30, 2006 issue)
Write letter to the editor. Click here.
Join the Sun.Star message board. Click here. |
Palace ready for a new siege