Need for wage hike in 7 areas confirmed

Seven regional wage boards declared "supervening conditions" that justify an immediate increase in the daily take-home pay of workers in their respective areas.

Labor Undersecretary and spokesman Benedicto Ernesto Bitonio said seven of the 17 regional tripartite wages and productivity boards (RTWPBs) have confirmed that supervening conditions prevail and that a salary hike should be granted.

"With the declaration, there is no more legal impediment against a salary increase," Bitonio said. He added that the boards must now wait for the approval of the National Wages and Productivity Commission (NWPC) so they can come out with a wage order.

Upon the NWPC’s approval, the RTWPBs will proceed to determine the amount, coverage, form and effectivity of the wage grant, Bitonio said.

According to him, most of the RTWPBs are legally prohibited from issuing a wage hike because, under the law, wage orders should not be altered within 12 months of their implementation.

With the declaration of the supervening conditions, however, the RTWPBs are already allowed to grant increases in the daily take-home pay in the form of salary adjustments or emergency cost of living allowances (ECOLA), he said.

Supervening conditions mean that there is an extraordinary increase in the prices of petroleum products and other essential commodities.

The National Capital Region (NCR), the Ilocos Region, Central Luzon, the Western Visayas, Caraga, Central Visayas and Southern Mindanao were the regions that declared supervening conditions.

Bitonio said the NWPC will deliberate on the findings of the seven RTWPBs, adding that the NWPC is expected to decide whether or not to confirm the declaration on Monday.

Meanwhile, more workers are seeking an immediate wage increase to help them cope with the scheduled increase in transport fares and a hike in the prices of essential commodities.

Acting Labor Secretary Manuel Imson said six of the country’s 17 RTWPBs have received petitions seeking increases in the daily wage ranging from P78 to P113.

Even without the pending salary petitions, Imson said, all wage boards are already deliberating on the matter and are expected to come out with a decision granting a wage hike within the next two weeks.

Meanwhile, Malacañang welcomed yesterday the House of Representatives’ move for a legislated P125 wage hike but said it would wait for the regional wage boards’ decision on the amount of increase in workers’ minimum compensation.

"That is the initiative of the House. On the side of the executive, the regional wage boards will just allow both processes to continue," Press Secretary Ignacio Bunye said.

"Some of the regional wage boards will be coming up with wage orders next week," he said.

Bunye said both initiatives were not "mutually exclusive," since it is possible to effect a wage hike based on an order issued by the regional wage boards or a law passed by the legislature.

On May 1, President Arroyo ordered the regional wage boards to come up with the recommendations within 30 days to determine a "reasonable" wage hike that could be given to the workers.

Some employers say they cannot afford large wage increases at this time and should not be forced to grant the hikes. Employers warned that any wage hike that is beyond their capacity to pay may cause their firms to close. — With Aurea Calica