Metro employers to seek COLA exemption

Some 50,000 workers in Metro Manila are unlikely to receive a daily P30 emergency cost of living allowance (COLA) as employers may soon seek exemption from giving out the mandated non-wage benefit.

The National Wages and Productivity Commission (NWPC) said yesterday the number of companies expected to formally apply for an exemption could be bigger than in previous years.

"This is due to the prevailing economic crisis," said NWPC officer-in-charge Esther Guirao while declining to give an estimate on the number of firms.

She stressed, however, that close to a million workers are projected to benefit from the COLA.

Last year, 852 companies sought exemption from giving workers a P26.50 salary increase as granted by the Regional Tripartite Wages and Productivity Board (RTWPB) in October. Of the total applicants, 542 companies employing some 44,000 workers were granted the exemption.

The government approved the P30 COLA last week, saying it would be implemented in two stages – the first P15 to be granted effective Nov. 5 and the remaining P15 to take effect Feb. 1 next year.

The amount is non-taxable and would not be included in the workers’ basic pay.

Guirao pointed out that owners of commercial establishments in Metro Manila have until Jan. 15 to submit their applications to the NWPC.

She appealed to labor groups to go slow on protest actions so as not to aggravate the current economic crisis.

Militant groups insisted that P30 is not enough to enable wage earners to cope with rising costs of living. They are preparing protests and rallies to demand the immediate enactment of a measure that would grant a P125 across-the-board wage increase.

Guirao said an across-the-board wage hike will only push up inflation rates and could trigger mass layoffs and retrenchments.

Earlier this week, the House committee on labor and employment unanimously endorsed a bill seeking a legislated P125 daily wage increase.

President Arroyo has appealed to workers in Metro Manila to accept the P30 COLA approved as a non-wage benefit, saying another wage hike is possible through the regional wage boards or through a new minimum wage law to be passed by Congress when economic conditions have improved.

Villar proposes wage formula

In Baguio City, Senator Manny Villar proposed yesterday an attainable formula for a wage hike to appease disgruntled workers nationwide.

Villar said a P50-P60 wage increase would be a compromise between the demand of workers and the prevailing business situation.

"I don’t think we can give the P125 because a lot of workers may lose jobs and work opportunities," the senator told The STAR.

He explained that for the proposal to work several steps should be taken, including the lowering of interest rates to offset the increase in salaries.

"Any increase would have a huge effect on companies, especially those struggling in these times of crisis," Villar said.

Earlier, firms at the Philippine Export Processing Zone along Loakan Road threatened to cease operations in the event of wage hike order.