Tuesday, May 02, 2006
Arroyo offers P40 billion non-wage benefits
MANILA -- President Gloria Macapagal-Arroyo didn't grant a wage increase for workers Monday, but she announced a P40 billion package of benefits for both government and private workers during her Labor Day address.
The package includes P20 billion for the third tranche of salary standardization for government workers to be given next year, and the condonation of P11.6 billion worth of loan surcharges and penalties by Social Security System (SSS) and Government Service Insurance System (GSIS).
It also includes P1 billion in income tax exemptions for minimum wage earners.
Workers, however, rejected the offer, preferring a salary increase, amid inflation due to the expanded value-added tax and soaring oil prices.
Arroyo, in her speech during a luncheon with moderate labor groups in Malacañang's Heroes Hall, said she supports a reasonable wage hike that the regional wage boards should determine.
Arroyo said there is a need to alleviate the burden of the workers while being mindful of the impact of a wage increase on business and employment.
Breakdown
The non-wage offer, which amounts to P39.765 billion, is broken down as follows:
*P20 billion, salary standardization;
*P11.6 billion, condonation of surcharges and penalties for housing and salary loans under the GSIS and SSS;
* P3.2 billion, two percent savings on Pag-ibig housing loans due to lower interest;
*P1.37 billion, loans from the Land Bank of the Philippines and the Development Bank of the Philippines for the acquisition of shuttle buses;
*P1.2 billion, establishment of commissaries in government offices;
*P1 billion, income tax exemptions for minimum wage earners;
*P615 million, working days gained through the resolution of cases by the National Labor Relations Commission;
*P500 millions, training certificates for call centers;
*P100 million, rehabilitation of the Philippine General Hospital;
*P60 million, GSIS scholarships;
*P44 million, health rehabilitation of overseas workers;
*P40 million, GSIS hospitalization discounts; and
*P36 million, Philhealth coverage for sacadas (sugarcane workers), farmers, fishermen, and other informal sector workers.
Bargaining
Trade Union Congress of the Philippines (TUCP) president Democrito Mendoza, in a statement, called for a P75 across-the-board daily wage hike for private workers.
He said 30 percent of the population is still impoverished, 15 percent live on $1 per day, close to three million are jobless, and some 600,000 youth join the labor force every year.
Allan Montano, vice president and secretary general of the Federation of Free Workers (FFW), said they are not expecting much from Malacañang.
He said FFW believes that the best means to get better wages and benefits is through collective bargaining agreement.
Donald Dee, president of the Philippine Chamber of Commerce and Industry, said representatives from the labor and employers sectors should have a discussion first before facing each other in the regional wage boards.
He said there should be a minimum wage to prevent exploitation.
Breakfast
Meanwhile, militant labor groups Kilusang Mayo Uno, Sanlakas, Partido ng Manggagawang Pilipino, and the Alliance of Progressive Labor rejected Arroyo's non-wage package.
Senate Minority Leader Aquilino Pimentel Jr. doubted whether President Arroyo can fulfill her promise to give P40 billion worth of employee benefits to workers.
Arroyo started off her Labor Day activities at 5:30 a.m. by having breakfast and coffee with call center officials and employees in Ortigas Center, Pasig City.
Government hopes to have a million jobs in call centers and business process outsourcing by 2010.
Arroyo said the unemployment rate has dropped from four million in 2001 to three million because of her administrations job generation efforts. (JMR/MSN/PE/Sunnex)
(May 2, 2006 issue)
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