The Metro Bacolod Chamber of Commerce and Industry is asking for a status quo amid the wage hike petition of the labor sector in Western Visayas.
MBCCI through Frank Carbon stated in their appeal to maintain a status quo and preserve the present minimum wage, institutionalize wage control mechanisms to prevent drastic and arbitrary adjustment of wages.
One is to peg the ceiling of the minimum wage increase not higher than the average regional inflation rate starting in a year - 2025.
In 2022, the Region 6 Wage Board increased the minimum wage of the non-agricultural sector, micro, and small enterprises ( 95% of registered enterprises)by 110 pesos per day and the agricultural sector by 95 pesos per day.
The one-year increase in both non-agricultural and agricultural sectors in Region 6 is over and above the combined two-year increase of 31pesos and 33pesos in 2022 and 2023, respectively, in Region 7.
In short, Region 6 has already paid in advance (paid in 2022) its minimum wage increase for the year 2024, Carbon emphasized. Thus, the RTWPB Region 6 should defer any minimum wage increase in 2024.
Carbon added the 110pesos minimum wage increase in 2022 was 36% over the previous year as compared to an 8% increase in Region 7 which has a much higher GDP than Region 6.
Furthermore, the 36% minimum wage increase in 2022 was 450% higher than the Region 6 inflation rate of 8%. The drastic increase pushed the inflation rate in Region 6 to 3.4% in September 2024, the highest among the regions (wage/power push inflation).
The other regions range from 0.6% to 2.8% (source: PSA) Thus, we recommend that Region 6 RTWPB institutes Wage Control Mechanisms to prevent drastic and arbitrary adjustment of wages, Carbon added. (TDE)