A MEMBER of the Regional Tripartite Wages and Productivity Board (RTWPB) in Western Visayas expressed optimism that the appeal filed by some businessmen will not stop the implementation of wage increase in Western Visayas, including Negros Occidental.
Nine business organizations under the Iloilo Business Club filed an appeal before the RTWPB-Western Visayas during the board’s emergency meeting in Iloilo City on Monday.
Wennie Sancho, labor representative to the RTWPB-Western Visayas, said the business groups urged them to seriously consider adopting a P12 increase instead of P15 to P25 provided under the new wage order that will take effect starting March 16.
Sancho said the appeal will be forwarded to the National Wages and Productivity (NWPC) for resolution within 60 days.
“We respect their position, but the appeal cannot restrain the Board from implementing the wage increase as it is unlikely for the business groups to file an appeal bond,” he said, adding that NWPC sets the “huge amount” equivalent to the number of workers involved in the corresponding increase.
Citing NWPC Guidelines No. 1 Series of 2007, or the amended rules of procedure on minimum wage fixing, Sancho said the filing of the appeal does not operate to stay the order unless the party appealing shall file with the commission an undertaking with a surety satisfactory to the latter for payment to affected-employees.
“In the event such order is affirmed, it must be noted that the appeal does not specify if the workers in Negros Occidental are included thus, workers in the province have nothing to worry,” Sancho added.
Wage Order No. 23 approved by the RTWPB-6 last December 15 and affirmed by NWPC on February 17 replaces the previous wage order that provided a lower increase of P11.50.
Under which, the new daily minimum wage rate in non-agriculture, industrial and commercial establishments employing more than 10 workers is P323.50, with an increase of P25 from the existing rate of P298.50.
From only P256.50, the new rate for those employing less than 10 workers is P271.50, with an increase of P15.
Workers in the agriculture sector, meanwhile, will receive a daily minimum wage of P281.50 and P271.50 for plantation and non-plantation, respectively.
Both will have an increase of P15, from the previous rates of P266.50 and P256.50.
The business sector pointed out in its appeal that Western Visayas, despite having no big industries, is one of the regions with the highest wage and most number of increases.
Other reasons included higher inflation rate, the increase’s serious implications on skills and productivity, and the possibility of having stunted growth and investments.
NWPC has yet to evaluate their position with comments from the members of the Wage Board, Sancho said.
Earlier, the Metro Bacolod Chamber of Commerce and Industry (MBCCI) said that new wage rate lacks “classification” thus, it may pull down economic growth by depressing the local money in circulation.
Its chief executive officer Frank Carbon said RTWPB-Western Visayas missed to consider another bracket or category particularly for workers in the non-agriculture, commercial, and industrial sectors.
Carbon pointed out that large-scale companies should be excluded from the category of those “employing less or more than 10 workers” since they have the capacity to pay more.
“Workers of huge companies should have at least P40 increase, which is bigger than the P15 and P25 to be given by small and medium enterprises," he said, adding that the new wage scheme will not significantly help create more production and demand, sales, taxes, and employment.
For agricultural workers in the province, the impending P15 daily minimum wage increase is unfair.
Samuel Gavoro, chairman of Bukluran ng Manggagawang Pilipino (BMP), had earlier said it is demoralizing on the part of agricultural workers to receive smaller amount of increase compared to those in the commercial and industrial sectors.
"We are all workers who have the same needs thus, we should be given equal increase," he added.