Central Visayas wage board grants P15 wage hike

Workers in the Central Visayas region will soon get an additional P12 to P15 in their daily minimum wage following an order from the regional wage board there Friday.

But trade union representatives in the seven-member panel complained that the increase was far from the P113 hike they had been seeking.

Wage board secretary Exequiel Sarcauga said the wage order will take effect 15 days after it is announced in a major regional newspaper.

Workers will get an increase of P12 to P15 depending on their category.

The Associated Labor Unions-Trade Union Congress of the Philippines wanted an increase of P78 while the Alliance of Progressive Labor asked for P113.

However, the labor position was whittled down during negotiations from P113 to P35, then to P30, then to P22 and, finally, to P17.

Late Thursday, employer sector representatives Charles Streegan and Hidelito Pascual offered P15.

Labor representatives Ferdinand Pepito Jr. and Marianito Ventura haggled for P17 but were outvoted 4-2 during the resumption of deliberations the following day.

The wage board has two representatives each from the labor and employers sectors and three from the government, one of whom did not attend the deliberations.

The dissenting opinions of Pepito and Ventura were noted in the wage order.

"The increase is very small," said Michael Mendoza, the vice president for the Visayas of the Associated Labor Unions. "But it is better than nothing."

Militant labor groups said the P15 hike was so small, it was insulting.

"This is unfair. This is an insult to workers who can hardly eat three decent meals a day," said Joe Tomongha, Central Visayas chairman of the Alliance of Progressive Labor.

Nicasio Igot, regional chairman of the Kilusang Mayo Uno, said the increase will not make a difference because of rising prices.

Citing data from the National Economic and Development Authority, Bryan Nadua, spokesman for the Partido ng Manggagawa, said the ideal minimum wage for a family of six in the region is P641.

On the other hand, the Cebu Chamber of Commerce and Industry said this was too high for small businesses to afford.

Under the new wage order, so-called "class A" non-agricultural workers will get a P15 increase, while workers in classes B to D will get P12.

All agricultural workers will be entitled to a P15 daily increase.

"Class A" includes the cities of Cebu, Danao, Lapu-Lapu, Mandaue and Talisay, and the towns of Carcar, Compostela, Consolacion, Cordova, Liloan, Minglanilla, Naga and San Fernando, all in Cebu.

"Class B" includes the city of Toledo and the rest of Cebu’s municipalities, except for those on the islands of Bantayan and Camotes.

"Class C" includes all the cities and towns in Bohol and Negros Oriental provinces.

"Class D" includes the municipalities in Siquijor and Cebu islands of Bantayan and Camotes.

Earlier, the Central Luzon and the Cordillera Autonomous Region wage boards both granted a P20 increase in the cost of living allowance (COLA) — not the basic daily wage — of workers in those regions.

Labor unions, however, called the increase insufficient.

Meanwhile, Malacañang justified the meager adjustments yesterday. "The wage boards had to strike a balance between providing benefits to workers, stabilizing prices, preserving jobs and keeping small businesses above water," Press Secretary Ignacio Bunye said. "The government acknowledges the plight of workers and consumers during these tough times."

Ciriaco Lagunzad, executive director of the National Wages and Productivity Commission, said the increase in the COLA is sufficient to cover increases of prices.

Bunye added better jobs and pay can be expected when the economy "revs up."

"We have the following factors on our side — falling oil prices, positive international outlook on the Philippines, declining interest rates and anticipated fiscal stability," he said. "All of these will translate into more investments, more business, more jobs and increased social services."

Last Thursday, investment rating agency Fitch Ratings revised its outlook on the Philippines’ long-term foreign and local currency ratings from "negative" to "stable" after President Arroyo signed the expanded value-added tax bill into law last Tuesday.

Fitch also affirmed the Philippines’ long-term foreign currency and long-term local currency ratings to "BB" and "BB-plus," respectively. It also affirmed the country’s short-term foreign currency rating at "B" and the foreign currency ceiling at "BB."

Fitch said the outlook revisions reflect the recent passage of tax laws that are aimed at boosting the country’s fiscal position.

The agency pointed out, however, that the "stable" outlook is based on the assumption that the Arroyo administration’s fiscal reform efforts will continue. — Freeman News Service, Aurea Calica