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Tuesday, April 15, 2008
Arroyo orders wage review
MANILA -- President Gloria Macapagal-Arroyo on Monday called for the convening of regional wage boards to discuss a possible wage increase to help workers cope with the increasing prices of oil and rice.
"Because of the increasing cost in the prices of fuel and rice, we're calling for a meeting of the regional wage boards all over the country so that every region can discuss how we can help...the workers cope with the rising world price of oil and rice," Arroyo said at the inspection of Yazaki-Torres Manufacturing Plant in Calamba City in Laguna.
Arroyo Watch: Sun.Star blog on President Arroyo
Wage boards approve different increases per region depending on the cost of living in the area but in Metro Manila, the last wage increase for private sector workers, amounting to P12 per day, was implemented on August 28. The order raised the basic pay to P362 per day.
Under labor laws, only one wage increase is allowed a year unless "supervening conditions" call for another hike.
The President, during the visit, also encouraged the provision of "wage and non-wage benefits" to workers like the putting up of daycare centers in the places of employment for working mothers.
She acknowledged Yazaki-Torres, a known exporter of automotive wiring harness in the US, Japan and Europe, for opening up its own hospital to address the needs of their employees.
She said since Labor Day is coming, she would be visiting several factories all over the country to personally check the working conditions and ensure the welfare of employees.
Trade Secretary Peter Favila said that while he favors a wage increase for employees to ease the effect of increasing prices of commodities, the impact on employers should also be considered.
Favila suggested that instead of a salary increase, provisions of emergency or additional allowance could be an option.
He revealed that aside from the rising prices of rice, prices of other food commodities are also going up.
The labor group, Trade Union Congress of the Philippines (TUCP) will file on Tuesday a petition before the National Capital Region (NCR) wage board seeking P80 across-the-board wage increase.
"We are seeking P80 across-the-board increase in the daily pay of workers in Metro Manila," said TUCP spokesman Alex Aguilar.
Aguilar said they are asking for the pay increase based on the prevailing high cost of essential commodities and the projected inflation rate.
"Workers have no choice at this time but to seek immediate financial relief from the wage board due to the extraordinary increase in the prices of rice and other basic commodities," he pointed out.
He said they already filed a wage petition last Monday with the Central Visayas wage board seeking a P150 adjustment in the daily pay of workers there.
A similar petition will also be filed by the TUCP with the remaining 15 regional wage boards within this month.
The Employers Confederation of the Philippines (Ecop) earlier expressed its strong oppositions to the plan of labor groups to seek another round of salary increase.
Ecop claimed that another round of salary increase may force many commercial establishments in the country to either retrench workers of shutdown due to economic difficulty.
The Department of Labor and Employment (Dole) through the National Wages Productivity Commission (NWPC) is now closely monitoring the economic situation in the country to determine if there is a need to grant the wage increase petition.
Meanwhile, Alliance for Progressive Labor (APL) secretary general Josua Mata said they support the initiative of the House of Representatives to exempt workers from tax payments.
However, Mata said the proposal should not prevent the moves to increase the basic salary of the workers.
"Under the current situation, workers need both the wage increase and the tax exemption," he said, adding that the proposal will be a big help to the labor force.
Mata said they have been long waiting for such an action from the National Government.
"It is about time that our long-standing demand to ease the tax burden of workers be acted upon," he said.
It was reported that there is a pending bill in the House which intends to exempt from paying income taxes workers, who are receiving monthly pays ranging from P7,457 to P9,209. (Sunnex)
For more Philippine news, visit Sun.Star Cebu. (April 15, 2008 issue)
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