A BUSINESS leader in Negros Occidental said the P73 to P100 wage increase sought by labor groups is too high and nobody in the Metro Bacolod Chamber of Commerce and Industry (MBCCI) can afford it.
Frank Carbon, chief executive officer of MBCCI, said there is a need to achieve balance in addressing the concerns of the labor and business sectors.
Carbon said the wage issue should not be seen as one way. One should look at not only the need of the employees, but also that of the employers.
“Remember, 60 to 70 percent of the local employers are micro and small and a little of medium enterprises,” he said.
The rising fuel prices will not only impact the purchasing power of the workers but also the revenues of some businesses, he added.
The labor sector earlier said they will file a petition seeking an increase of P73 in the daily minimum wage of private sector workers in Western Visayas region, which is composed of Negros Occidental, Iloilo, Aklan, Antique, Cadiz and Guimaras.
The amount is based on their initial computation of P301.65 in real wage plus the P10 accumulated increases in the prices of petroleum products.
Wennie Sancho, labor representative to the Regional Tripartite Wages and Productivity Board (RTWPB) in Western Visayas, said given that the nominal wage is P365 and the real wage or the purchasing power of the workers is only P301.65, there is a need to restore P63.35 per day.
Sancho, however, said they might consider and include other factors like electricity and water thus, the amount sought will probably increase to at least P100 per day.
Organized labor groups in the province are set to a file a consolidated petition in June, a month before the expiration of Wage Order No. 24 in July this year.
For MBCCI, however, the proposed amount is “way too high,” which provincial businesses cannot afford to grant.
Though they have yet to come up with their own computation, Carbon said “at this point, we are not thinking of minimum wage increase.”
Carbon added that if ever their computation shows that there is a need for an increase, maybe the business sector will just provide a cost of living allowance (Cola).
“Even businesses in Metro Manila may not afford such proposed increase,” he said.
He said that if it’s necessary to provide an increase in the basic wage rate, the amount “is much lower than P73.”
Minimum wage earners in Western Visayas started receiving an additional pay of P13.50 to P41.50 per day in July 2018, a month after Wage Order No. 24 was signed by the members of the Board on June 11.
Under the existing order, the minimum wage in the region which include the Cola ranges from P295 to P365 per day.
Workers in the non-agriculture, industrial and commercial establishments employing more than 10 employees are receiving a minimum wage of P365 per day, an increase of P41.50 from the previous P323.50.
The wage board had granted a basic wage increase of P26.50 and a Cola of P15.
In establishments employing 10 workers and below, the current wage is P295 from the previous P271.50, following an increase of P18.50 plus a Cola of P5, or a total of P23.50.
For the agriculture sector, plantation workers received P8.50 increase and Cola of P5, bringing the current wage to P295. This is P13.50 higher than the previous rate of P281.50.
Those in non-plantations, the existing wage rate is also P295 from the previous P271.50 due to a basic wage increase of P18.50 and P5 worth of Cola, or a total of P23.50.
Like the labor sector, the business group also recognized the possibility of a continuing increase in the prices of petroleum products. It may move to 80 dollars per barrel, from only 60 dollars per barrel, Carbon said.
Given the current fuel situation, with the conflict in oil-producing countries like Libya and the cap set by the Organization of the Petroleum Exporting Countries (Opec), the uptrend in prices may persist.
Higher global fuel prices will bring domestic pump prices up and drive the prices of basic necessities, transportation and food higher, Carbon pointed out.
The business leader explained that non-food businesses will be greatly affected as there will be fewer income opportunities for them.
“Chances are, with smaller revenues, we cannot hire more so there will be no job creation. The amount of money circulating will also reduce thus, economy might shrink,” Carbon said, adding that employers and employees should be partners.
“Without business, they (employees) will die,” he added.