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Friday, May 16, 2008
Arroyo assures Metro workers of P20 wage hike
MANILA -- President Gloria Macapagal-Arroyo assures Thursday that minimum wage earners in the private sector in Metro Manila receive a P20 daily wage increase.
President Arroyo, during the 29th National Conference of Employers at the Manila Hotel, told members of the Employers Confederation of the Philippines (Ecop) that the amount is already set as of Wednesday night's deliberation by the National Capital Region (NCR) wage board.
Arroyo Watch: Sun.Star blog on President Arroyo
She said the NCR wage board is still refining the P20 pay increase, whether the entire amount would be added to the minimum wage or whether it would be broken down into P15 minimum wage increase plus P5 cost of living allowance (Cola).
It was also not yet clear when the wage increase would take effect, or whether it would be given in two tranches.
The minimum wage in the NCR is P325 to P362 per day.
The President said Labor Secretary Marianito Roque also reported that the Northern Mindanao wage board has finished its deliberations Wednesday night.
She said before the deliberations, the existing Cola of the region was P26, adding that the regional wage board decided that P16 of the P26 would now be part of the integrated minimum wage, and "of the remaining P10 Cola, there will be an additional P12."
The minimum wage in Northern Mindanao is P217 to P244.
Arroyo thanked the wage boards that have finished their work and look forward to the wage orders in the other regions.
She also hailed the House of Representatives for approving the bill giving income tax exemptions to minimum wage earners.
In her speech before Ecop members, Arroyo also reiterated her government's call for large corporations to give rice to their employees.
"This is an important non-wage benefit at this important time in our history. Making food affordable to employees, indeed, brings about an empowered workplace because if they have the rice, they don't have to worry about the most basic need of their families," the President said.
Ciriaco Lagunsad, executive director of the National Wages and Productivity Commission (NWPC), meantime announced that a P20 wage increase would be granted to the minimum wage earners in the Calabarzon (Cavite, Laguna, Batangas, Rizal and Quezon) sub-region (Region IV-A).
Sergio Ortiz-Luis Jr., Ecop president, said the small- and medium-scale enterprises (SMEs) that make up 97 percent of companies would be most affected by the wage increase and that some of them would be forced to downsize.
Luis said the exporters, who are already suffering from the dollar and power problems, would be hardest hit, adding that the "casualties" among the SMEs could run up to "thousands."
He also said workers should be happy with the P20 wage increase because they are actually getting P85 per day, if the tax break, rice subsidy, Government Service Insurance System/Social Security System (GSIS/SSS) condonation, and other non-wage benefits are included.
The tax break is equivalent to a wage increase of P33 a day, according to Luis.
"Even without the problem of increased power, even without the problem of increased wage, there would be many casualties. I'm sure there will be those in the borderline who might give way," he said.
Luis also stressed that only 16 percent of the labor force would benefit from the wage increase. (PNA/JMR/Sunnex)
For more Philippine news, visit Sun.Star Iloilo. (May 16, 2008 issue)
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