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Sunday, April 13, 2008
Calibrated wage hike gains support
DAVAO CITY - House Speaker Prospero C. Nograles urged regional tripartite boards on Saturday to come up with calibrated rates to enable employees and employers to cope with the existing economic condition.
Presidential Management Staff (PMS) Chief Cerge Remonde maintained that private sector workers' call for a wage hike will have to wait while state workers are already assured of a 10 percent increase effective June 1, 2008.
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A wage increase, Nograles said, is acceptable to both the employees and their employers is very important amid the spiraling food and fuel prices causing tremendous pressure to every Filipino's ability to cope up with their day-to-day needs.
He pointed out, however, that any wage hike should also give prime consideration on the survivability of employers, as it will be a bigger problem if they close shops because they can no longer pay their employees.
"The regional wage boards should carefully balance both the interest of the employers and the employees. The rates should be properly calibrated because it would useless if we increase wages while pushing companies and corporations into financial bankruptcy. It will be a bigger disaster if that happens," Nograles said.
He added: "My appeal, however, is for the employers to give importance to their employees first and profits can come later."
And since a legislated wage hike is out of the question because this is a violation of existing laws, Nograles said Congress will just fast-track the approval of the pending measure that seeks to exempt minimum wage earners from paying income taxes.
"Under the law it is the wage boards, which will determine the issue of any wage increase in accordance with the existing economic situation in their respective regional jurisdictions," Nograles said. "Congress has bills exempting minimum wage earners from paying income tax."
"Both of these moves must happen," Nograles said as he mobilized House committees that are already in receipt of related measures that should be taken up when Congress resumes session on April 21st.
In the House, the matter of taxation comes within the jurisdiction of the Committee on Ways and Means chaired by Antique Representative Exequiel Javier who is in constant consultation with the House Oversight Committee headed by Quezon's 3rd district Representative Danilo Suarez.
After the P12 increase in minimum wage last year, Metro Manila workers started earning a daily pay of P362.
The Trade Union Congress of the Philippines (TUCP), according to the group's assistant secretary general Alex Aguilar, could seek an increase of as much as P80 in daily wage.
"The wage boards will have to balance any wage increase with that of inflation and the ability of employers to cope with the additional cost," Nograles said.
Workers' groups had been clamoring for a wage increase due to the rising costs of living that include price increases in fuel and food items.
Prices of bread and processed meat are also due to go up before the end of April.
"Responsible management sectors are open to wage boards tackling the issue. We hope this will address the hard times experienced by workers in the private sector," Remonde said.
Malacanang is expected to announce a package of benefits for the working class, at the commemoration of Labor Day on May 1.
For the private sector workers, a set of possible wage and non-wage benefits are being considered, but the details have yet to be released.
But while private sector workers will be haggling with employers for wage increases, government state workers need not to bargain at all since the Department of Budget Management (DBM) office have only assured enough funds to cover the 10 percent wage increase.
Budget Secretary Rolando Andaya Jr. said the 10-percent wage hike for government employees will take effect June 1 and will cover National Government employees and the uniformed services.
"We have enough funds for the government workers' salary hike. We already factored it into the P1.227-trillion 2008 budget. We will need P13 billion for it, although we still have to calculate because the adjustment in basic salaries will also affect pension," Andaya said.
But deputy presidential spokesman Anthony Golez Jr. said the formalities will have to be completed first. Golez hinted the formalities might be completed as early as this coming week.
Andaya said the 10-percent wage hike is part of the wage adjustment process that started as early as 2006.
He said the wage hike will cover public school teachers, policemen, soldiers and the coast guard, among others.
As soon as the forthcoming pay hike takes effect in July 1, this year, a government employee with a Teacher I position, which occupies Salary Grade 10 (in the 33-grade government pay scale), will get a basic salary of between P12,026 to P14,297 a month.
On the other hand, a 1st Lieutenant in the Army and his counterpart in the Philippine National Police (PNP), an Inspector, will start receiving a base pay of P18,343 a month.(Sun.Star Davao/JMR/Sunnex)For more Philippine news, visit Sun.Star General Santos. (April 13, 2008 issue) Write letter to the editor. Click here. |
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