Government: No wage hike this year

Workers may not be given wage hikes this year even if the country’s economy is improving.

Ciriaco Lagunzad III, executive director of the National Wages Productivity Commission (NWPC), said the 16 Regional Tripartite Wages and Productivity Boards (RTWPBs) nationwide are "unlikely" to grant this year any demand of organized labor for an increase in salaries.

"Unless there are supervening events, the latest wage orders issued by the different RTWPBs would not be disturbed, not in the near future," he said.

However, organized labor may still file petitions for salary hike, he added.

Lagunzad said the country’s economy is improving and there are no factors that would require the granting of another wage adjustment to workers.

"Under the law, RTWPBs are restricted from issuing new wage orders within a year prior the previous wage order unless there are factors that have resulted in the deterioration of the workers’ purchasing power," he said.

Lagunzad said since October last year, 11 wage boards have already issued new wage orders and the remaining five are expected to come out with their decisions within the first quarter of the year.

"Only few commercial establishments have sought exemption from granting the increases provided under the new wage orders issued by RTWPBs," he said.

In Metro Manila, Lagunzad said about 343 commercial firms, mostly small and medium enterprises, have formally filed for exemption from paying the additional daily P30 emergency cost-of-living allowance.

"Commercial establishments in Metro Manila have until Feb. 22 to file formal application for exemption before the NWPC," he said.

But they are no longer expecting the figure to "dramatically" increase, he added.

Lagunzad said the NWPC previously projected an upsurge in the number of companies seeking exemptions because firms which are expecting losses can be exempted for one year from giving out wage hikes.

"The move was intended to help commercial firms to cope with the financial crisis last year, yet based on our records only five of the total applications have cited potential losses as reason," he said.

In the past, only companies experiencing financial problems have been allowed the exemption but the government later included "potential losses" as a reason, he added.

Quoting NWPC data, Lagunzad said few companies in Metro Manila have projected "possible losses" despite the financial crisis last year. — Mayen Jaymalin