"THE employers cannot afford any increase in wages at this time."
This was stressed by Metro Bacolod Chamber of Commerce and Industry (MBCCI) Chief Executive Officer Frank Carbon in reaction to the earlier pronouncement of the labor sector that it will push for P80 to P100 daily salary hike for minimum wage workers in Western Visayas including Negros Occidental.
Carbon said the business sector is currently working with local government units (LGUs) and national government agencies (NGAs) to increase and protect the purchasing power of the workers.
"Through one, cash-for-work program and financial assistance to micro-businesses," he said, adding that the business groups have also been pushing for the imposition of suggested retail prices (SRPs) or passing a price freeze ordinance for basic necessities.
On Thursday, a labor leader in Negros Occidental said they called on the government to protect the real wages from falling by providing necessary wage increase to the workers.
Wennie Sancho, secretary-general of General Alliance of Workers Associations (Gawa), said wage is the price of labor in the production of goods and services.
Sancho, also the labor representative to the Regional Tripartite Wages and Productivity Board (RTWPB) in Western Visayas, said wage is the remuneration for all forms of human endeavors.
"Despite the pandemic, unemployment and economic recession, workers have the right to a living wage," he said, adding that "there is no denying the fact that the prices of basic goods and services are now steadily increasing."
The labor leader lamented that the purchasing power of the worker's peso is very much reduced and the real wage is falling.
Sancho said in Western Visayas, the purchasing power of the peso is P0.79, which means the daily minimum wage of P395 has a real value of P314.
The erosion of the worker's purchasing power is about P81 per day. The worker has lost about P2,106 per month if multiplied by 26 working days, he said.
Sancho said with the eroding value of real wage and a continuous rise in the prices of basic goods and services amid the pandemic, it is just but legitimate for labor to demand a wage increase commensurate to the needs of the workers and their families.
"When wages are not enough to buy the bare necessities, even of frugal living, the worker's situation has indeed reached a point of being dehumanizing," he added.
At present, minimum wage workers in the region earn from P310 to P395 per day depending on their classification.
Under Wage Order No. 25, which took effect in November 2019, a P30 daily pay hike was provided for workers among non-agriculture, industrial and commercial establishments employing more than 10 employees.
From the previous P350 plus cost of living allowance (Cola) of P15, totaling P365 per day, the prevailing rate is P395.
Employees from establishments with less than 10 workers are receiving additional P15, making the wage rate P310 per day.
For the agricultural sector, plantation workers received a P20 increase. From the previous P295 per day, the existing minimum wage rate under this sector is P315.
For the business leader, however, "we should heal as one," as he stressed that the situations of both employers and employees have to be considered.
Carbon said while there are employees that have not returned to work, there are also businesses that have yet to reopen.
"We should work together, government, labor and management to bring back economic activity to pre-pandemic level," he added.
For the business sector's part, Carbon said they are mapping strategies to remove the hesitation of banks to extend business loans so they could bring back their workers who are still out of work.
"The idea is to create more job opportunities for the greater number," he said, adding that "it should be 'heal as one' concept."