Views clash in hearing of wage hike petitions

CEBU, Philippines - Contentions clashed in yesterday’s public hearing of the wage hike petitions in Central Visayas facilitated by the Regional Wage Tripartite Wages and Productivity Board 7.

RTWPB-7 Chairman Exequiel Sarcauga said the academe, transport groups, and labor sector were represented in the hearing.

The labor sector contended it is high time to increase the salary of workers because of the continued increase in the prices of basic commodities, fuel, as well as the cost of public transportation.

There are two wage hike petitions pending before RTWPB – one was filed by the Associated Labor Unions-Trade Congress of the Philippines and another was filed by the Alliance of Progressive Labor. 

ALU-TUCP is asking for a P100 across-the-board increase CV while APL is asking for a P120 across-the-board increase in daily wages.

In its position paper, however, the Cebu Chamber of Commerce and Industry (CCCI) said an increase in wage is but a temporary solution.

“The demand for a salary increase would just be a temporary solution to the entirety of the problem that has been confronting all of us in this country.  We need to create more jobs to be able to address our basic needs and to improve our economy,” CCCI said.

CCCI said the business community is not opposing the proposed wage increase, but it reportedly critical to understand that a wage increase is untimely and will add insult to injury because Central Visayas has not been spared from the effects of the global financial crisis.

CCCI added that with a 4.8 - 5.8 percent GDP growth in the first quarter of 2011 as reported by the National Statistical Coordination Board, economic growth in Central Visayas remains challenged by “artificial pressure” caused by the instability in the oil-producing countries and consumer prices, exchange rate fluctuations and the narrowing sources of investment. All of these reportedly caused bumps in the economy’s recovery. 

Furthermore, the downgrading of the United States credit rating can reportedly cause unimaginable repercussions on the part of exporters considering that the US is one of the biggest markets of Philippine exporters. CCCI said the strengthening of the peso – P42 to 1US – that bankers expect to last for three years more is reportedly actually hitting Philippine exporters like “double whammy.”

“Our surviving exporters are still trying to cope with the effects of the global recession while there are still no clear signs of a sustainable market recovery. When exports are low, our economy also gets a wallop, and everyone will suffer as a consequence,” the CCCI position paper reads.

It added that the micro, small and medium enterprises (MSMEs), which comprise about 99.34 percent of businesses in Central Visayas, were severely affected by the global crisis are still recovering.  

Thus, the proposed across-the-board wage increase would do more harm than good as this may lead to another sacrifice that could translate into temporary or permanent shutdown for the MSME companies and downsizing, and most notably major retrenchments, CCCI contended.

Meanwhile, the Hotel, Resort and Restaurant Association in Cebu (HRRAC) said a wage increase is not justified at this point when efforts to further push for local tourism, real estate, hotels, restaurants and resorts are still ongoing.

Sarcauga said the board will deliberate the matter this Thursday to assess the petitions, taking into consideration the sentiments of the sectors that participated in the hearing. — (FREEMAN)