RTWPB: Wage hike needed

CEBU, Philippines - The Regional Tripartite Wages and Productivity Board 7 can now start to act on the wage hike petitions filed by two labor unions after it declared yesterday the presence of supervening conditions that require wage increase.

“This is a victory for us,” said Jose Tomongha, one of the labor representatives to the wage board.

A declaration of supervening condition is needed to pave the way for possible salary adjustments because RTWPB-7 only approved an increase in wages in September last year.

Under the rules, wage boards are not allowed to enforce salary increase within one year since the previous wage increase order.

The Associated Labor Unions-Trade Union Congress of the Philippines filed a P90 per day wage hike while the Alliance for Progressive Labor filed a wage adjustment of P121.84 daily for all the workers in Central Visayas.

Tomongha said the increasing inflation rate and consumer price index are the factors that convinced the majority of the board members to make the declaration.Tomongha said that inflation rate increased from 1.9 percent in March to 6.1 percent in July this year while the consumer price index increased from 123 percent to 130.2 percent during the same period.

Inflation rate is defined as the percentage rate of change in price level over time while the consumer price index is defined as an inflationary indicator that measures the change in the cost of a fixed basket of products and services, including housing, electricity, food, and transportation.

The “supervening condition” was strongly debated for the past months by the seven members of RTWPB.

Present during the meeting yesterday aside from Tomongha were Department of Labor and Employment Regional Director and chairman of the board Gloria Tango, National Economic Development Administration Regional Director and the vice chairman of the board Buenaventura Gosoco, labor representative Atty. Ernesto Carreon, management representative Atty. Hedelito Pascual and two government representatives.

Department of Trade and Industry Regional Director Asteria Caberte and management representative Charles Streegan failed to attend yesterday’s meeting.

Mandaue Chamber of Commerce and Industry President Philip Tan welcomes the decision of the wage board but noted that both parties should come up with a compromise.

He said the medium, small and micro enterprises (MSMEs), which comprise around 90% of the business sector, will be badly affected by the wage hike.

The effects on larger companies would be lesser since their employees are receiving more than the minimum wage. — with Grace Melanie I. Lacamiento/MBG