THE head of the Regional Tripartite Wages and Productivity Board (RTWPB) in Western Visayas reaffirmed that the recently approved Wage Order setting higher daily minimum wage rates in the region is flexible as it also provides remedies like exemption.
RTWPB-Western Visayas Chairman Johnson Cañete, also the regional director of the Department of Labor and Employment (Dole) in Western Visayas, said the new Wage Order covers the region as a whole and it has no classification for municipalities and cities.
This is in reaction to the pronouncement of a local business chamber that the P41.50 basic wage hike and cost of living allowance (Cola) for workers in the non-agriculture, industrial and commercial sector establishments employing more than 10 employees will hit businesses in the third and fourth class municipalities.
"If business establishments in these areas can really show that they have no capacity to implement the increase then we can grant an exemption," he said, adding that exemption is just part of the remedies allowed by the Wage Order.
Under Wage Order No. 24, signed by members of RTWPB-Western Visayas last June 11 in Bacolod City, workers in the non-agriculture, industrial and commercial establishments employing more than 10 employees will receive a minimum wage of P365 per day.
From the previous P323.50, the RTWPB-Western Visayas has come up with an increase of P26.50 on basic wage plus a Cola of P15.
Those employing 10 workers and below, the new wage rate is P295 from only P271.50. It is derived from an increase of P18.50 plus a Cola worth P5, or a total of P23.50.
For agriculture sector, plantation workers will receive P8.50 increase and Cola of P5 thus, the new wage rate is P295. This is P13.50 higher than the previous P281.50.
Those in non-plantations, the new wage rate is also P295 from the previous P271.50 due to an increase of P18.50 and P5 worth of Cola, or a total of P23.50.
The effectivity is seen in August, the soonest is on the 15th.
Frank Carbon, regional governor of Philippine Chamber of Commerce and Industry (PCCI) for Western Visayas, earlier told SunStar Bacolod that the wage increase is "reasonable" particularly to those establishments employing more than 10 workers and operating within Metro Bacolod areas including those in cities of Talisay, Silay, and Bago.
Carbon, also the chief executive officer Metro Bacolod Chamber of Commerce and Industry (MBCCI), said these enterprises have the capacity to recover the additional wage since businesses are centered there.
"But for those in third and fourth class municipalities, they have a lower earning capacity," he said, adding that they will study first the Wage Order and may appeal for lower wage rate for them.
For the Wage Board, employers may appeal within 10 days from publication.
Cañete, however, said it will still depend to the Board whether, or not, to grant the application for exemption after studying the basis of the appeal.
Cañete said it is the prerogative of the company. There are "authorize causes" which they might reduce, redundate, or lessen workforce if they find the wage increase too high.
"That is the management's prerogative though they have to balance the profitability of the company," he said, stressing that "there should be basis because 30 days prior to doing so they will report it to the Dole."
The agency will then come up with a quick response team to find out why establishments redundiated or retrenched employees amid the issuance of the new Wage Order.
Cañete earlier said that under Section 8, companies may seek exemptions from the implementation of the Wage Order as long as they fall into three exceptional circumstances.
These are if establishments are distressed, if they are new business enterprises, and affected by calamities.
Same as exemptions, any party aggrieved may file an appeal to the National Wages and Productivity Commission through the Wage Board 10 days after the publication.
"They should show proof aside from just claiming that it is difficult to implement the increase or else, they cannot avail of the exemption remedy," he pointed out.