Previous non-compliance, not a wage increase issue

My parents and mentors had one commonality, they both espouse the “stick and carrot” principle.  They reward good deeds and constructively penalize the bad ones.  In both ways, the ultimate objective is continuous improvement. 

In business, one of the easily identifiable carrots is wages.  In more professionally managed companies, it is viewed positively as investment not cost.  To some cash-strapped institutions, it is something that they would like to save to survive.  To some miserly affluent companies, however, it is something they made their hapless employees continue to starve.  It is on these opportunists that the minimum wage law is necessary and more significant.

Lately, wages and the Regional Tripartite Wage Board’s (RTWB) unpopular 3-2 decision had been hogging the headlines.  The business and labor sectors (2 representatives each) partially took sides and NEDA’s representative broke the deadlock.  NEDA’s representative took cognizance of the plight of the exporters.  Yes, you heard it right, EXPORTERS. 

Absolutely, I agree wholeheartedly that exporters are in real bad shape today.  The peso’s seemingly uncontrollable exchange rate has pushed them down the pit. Worst, some exporters that are using farm produced are even pushed deeper with the recently imposed agricultural tax.  This same RTWB, however, should be reminded that the region’s businesses are not all exporters.  There are importers as well and most of them are in better shape and can readily afford reasonable increases. 

The sad fact is, they assumed that what prevailed among exporters are obtaining in the entire business sector.  If that’s the rationale, most likely, when the peso devalues to the betterment of the exporters, they will also not recommend wage increases because by then importers will be totally disadvantaged. 

Adding insult to injury, this same board opined that before giving new increases, the previously approved wage increases must be complied first.  Sort of admitting that DOLE’s inefficiencies in effecting compliance have now been used as the valid justification for their decision.  

With these developments, the relative industrial peace we now enjoy might just turn ugly.  What the RTWB should do is consider new formula or approaches on wage increases.