Bacolod-based biz group not filing appeal, exemption on wage wike

RECOGNIZING the need to strengthen the purchasing power of the middle class, a local business group is not filing an appeal or exemption on the implementation of wage increase in Western Visayas.

Frank Carbon, chief executive officer of Metro Bacolod Chamber of Commerce and Industry (MBCCI), said on Sunday, July 15, the middle class, like business, also need money.

"It is money versus money," Carbon said, adding that "if we starve workers, we will also starve."

Starting July 12, there was already a new basic minimum wage rate for private sector workers in the region.

Wage Order No. 24 started to take effect, 15 days after it was published last June 27. It replaced Wage Order No. 23 that expired in March this year.

Signed by members of the Regional Tripartite Wages and Productivity Board (RTWPB) in Western Visayas in Bacolod City last June 11, the order provides workers in the non-agriculture, industrial and commercial establishments employing more than 10 employees a minimum wage of P365 per day.

From the previous P323.50, the Board has come up with an increase of P26.50 on basic wage plus a cost of living allowance (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 five pesos, or a total of P23.50.

For the agriculture sector, plantation workers will receive P8.50 increase and COLA of five pesos 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 five pesos worth of COLA, or a total of P23.50.

RTWPB-Western Visayas Chairman Johnson Cañete, also the regional director of the Department of Labor and Employment (Dole)-Western Visayas, earlier said aggrieved parties and companies may submit an appeal or seek exemptions, respectively, within 10 days from the start of its effectivity.

Companies may seek exemptions as long as they fall into three exceptional circumstances such as if establishments are distressed, if they are new business enterprises, and affected by calamities.

Cañete said on Thursday, July 12, the Board has not yet received any appeal or application for a petition.

What it is set to tackle during its next Board meeting probably in August is the manifestation of the Iloilo Business Club, which earlier pushed for only P8 increase, he added.

For MBCCI, wage increase on top of tax exemptions under the tax reform law is seen to strengthen the purchasing power of the middle class including the minimum wage earners.

Carbon said the middle class comprises 70 to 80 percent of the entire population. Thus, starving them would also affect businesses.

"We need to help them grow and boosting their purchasing power through wage adjustment is one opportunity to do so," he said, adding that "for our economic growth to be inclusive, the working class should be strengthened."

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