Incentives over wage hike preferred

CEBU, Philippines - Business groups would rather go for productivity bonuses as incentive rather than increasing wages.

“You can ask for the world. Make it P500 daily,” said Philip Tan, Mandaue Chamber of Commerce and Industry president, in criticizing the latest wage adjustment petition filed by various labor groups under the newly-formed Living Wage Coalition-Cebu.

The coalition has asked the Regional Tripartite Wages and Productivity Board (RTWPB)-7 for a daily wage increase of P132 for all workers in Central Visayas the other day.

Tan, whose group has over 200 member companies that are mostly into manufacturing, said filing of the petition was pre-emptive since the last wage hike was on December 7, 2012.

“They cannot file it now. I urged the wage board not to act on this petition kay (because) under the law, they are barred from filing it,” he said.

He was referring to the RTWPB rule that it would not receive any wage increase petition if the previous wage order has not yet reached a year.

The latest RTWPB-7 order adjusting minimum wage by P27 for workers receiving the minimum wage of P305 was issued December last year.

However, labor sector representative Jose Tomongha had said there is also a rule which allows labor unions to file petitions because of supervening conditions, like an extra-ordinary increase in the price for oil, gasoline and basic commodities.

Tan, though, said that the presence of supervening conditions has to be declared first by the RTWPB-7 because this would be its only basis whether to grant any wage increase or not. 

He added that the RTWPB-7 is currently prevented from entertaining petitions since only less than a year has passed since it adjusted minimum wage in the region.

“The supervening conditions still has to be deliberated upon,” Tan said.

Cebu Business Club president Dondi Joseph also said that what the Philippines need to do right now is to create jobs to widen the base of paid workers.

He said increasing salaries would just strain the resources of companies paying decent wages and would forestall their expansion and investments plans needed to create more jobs.

Joseph said Philippine productivity is low he prefers incentives for the labor sector by offering productivity bonuses rather than fixed salary increases.

“We need to be competitive and productive,” he said.

Tan and Joseph said that giving incentives for efficient and productive workers is much better than giving the same salary for both efficient and inefficient workers.

Lito Maderazo, president of the 700-member Cebu Chamber of Commerce and Industry, earlier said that the issue is not about minimum wage but more on employment.

He had said that what is important now is employment generation by providing a conductive business environment to investors.

Among the grounds labor organizations cited for the P132 wage adjustment petition are insufficient increases in the past; reduction of the peso’s purchasing power; oil price hike; inflation; and increases in the prices of basic commodities, tuition, and power rates.

According to labor groups, the current P327 minimum wage is only P241.98 in real terms. (FREEMAN)