THE labor groups and business community presented opposing views on the proposed wage hike, during the first round of public hearings for wage adjustments in Central Visayas on Tuesday, Aug. 20, 2024.
The labor groups recommended a P150 increase across the board, while the business community opposed any wage increase. Both sides cited rising inflationary pressures as the main reason for their differing positions.
The Regional Tripartite Wages and Productivity Board in Central Visayas (RTWPB 7) held the initial hearing on Tuesday, Aug. 20, 2024, at the Department of Education (DepEd) - Ecotech Center in Barangay Lahug, Cebu City.
Additional hearings for the provinces of Bohol, Cebu, Negros Oriental, and Siquijor are scheduled in the coming weeks.
Labor group’s proposal
The Associated Labor Union-Trade Union Congress of the Philippines (ALU-TUCP), Partidong Manggagawa (PM)-Cebu, and the Alyansa sa mga Mamumuo sa Sugbo-Kilusang Mayo Uno (AMA Sugbo KMU) have proposed a P150 increase to the current minimum daily wage of P468 in Central Visayas.
Lawyer Michael Hubahib of ALU-TUCP said during the hearing that ordinary workers are struggling due to rising inflation, which has diminished the value of the existing minimum wage.
If approved, the proposed increase would help restore the purchasing power and value of daily minimum wages, addressing the impact of inflation and the lack of recent wage adjustments in the region, Hubahib said.
Hubahib said the existing daily minimum wage was not on par with the provision of the 1987 Constitution in which Filipino families were entitled to “living wages.”
“One of the criteria for the determination of the minimum wage is the demand for the living wage. Mao na ang among gi-push (That’s what we are promoting) nga let us try to compete or ipasaka gamay nga duol-duol ta sa living wage (or raise it a bit closer to the living wage). That is why we are asking at least P150,” Hubahib said.
However, Dennis Derige of the PM-Cebu and Howelle Villacrusis of the AMA Sugbo KMU said the Congress and not the Regional Wage Board must determine the wage adjustment.
Derige and Villacrusis called for the approval of the pending P150 wage increase bill in Congress.
Businesses’ woes
The business community in Metro Cebu, including various chambers of commerce and industry, as well as sectors such as hotel accommodation, restaurants, manufacturing, retail, and export, has expressed opposition to another wage increase, citing its negative impact on production costs.
Kelie Ko, past president of the Mandaue Chamber of Commerce and Industry (MCCI), said during the forum that most of their members are Micro, Small, and Medium Enterprises (MSMEs) that would be adversely affected by potential wage hikes.
Ko explained that the business community is already grappling with high inflation, which has increased production costs and could lead to higher prices for goods and services.
He added that the current situation of the local economy, geopolitics landscape, and potential wage hikes might make the country less attractive to foreign investors and with less investment might result in less job creation.
Ko said it will also drive the companies to opt for alternative measures, such as automation and AI to decrease manpower due to high expenses on top of the already high production cost.
“The petitions for wage adjustment should not just solely account inflation rate but should also consider cost of living, production cost, goods and services prices, subsistence standard, business’ ability to pay, labor productivity, GDP, and economic and social conditions,” Ko said.
“The inflation increase alone is insufficient to be considered a reason for wage increase,” he added.
New wage order
RTWPB 7 chairperson and Department of Labor and Employment in Central Visayas (DOLE 7) Director Lilia Estillore said the regional wage board will strike a balance between the needs of the labor sector and business community.
However, she stressed that based on the past wage orders there is a constant hike in the minimum daily wage.
Once the five public hearings conclude, the members of the wage board will deliberate all inputs to determine if there will be wage increase and how much.
“Wala pa ta amount (sa wage hike) kay first pa man ni nga hearing,” Estillore said.
Estillore said this review aligns with President Ferdinand Marcos Jr.’s mandate from May 1, directing the National Wages and Productivity Commission to assess rules and minimum daily wages in light of basic commodity prices.
She added that, if approved by the NWPC, RTWPB 7 plans to issue a new wage order by September 2024, with implementation possibly starting after Oct. 1, the anniversary of last year’s wage hike. / EHP