House eyes P80 legislated wage hike

The House is eyeing an across-the-board legislated wage hike of P80 as a compromise proposal to the P125 increase sought by its labor committee and militant members.

An ad hoc group tasked to come up with a compromise suggested P80 as the rate of adjustment after the chamber finally approved on Monday night a bill that seeks to exempt minimum wage workers from paying income tax.

Rep. Roseller Barinaga, labor and employment committee chairman and head of the ad hoc group, assured workers yesterday that a legislated wake increase is forthcoming despite opposition from business leaders.

"We are looking at a possible increase of P80, plus tax exemption," he said.

He said businessmen should do their share in helping workers cope with the rising cost of living.

"Mass layoff and business closure are always being used as scare tactics every time the wage hike issue is up, but we did not see these grim scenarios happen in the past," he said.

He added that he expects the House to approve the wage increase bill on third and final reading today.

Tarlac Rep. Jesli Lapus, an ad hoc group member who heads the ways and means committee, told reporters yesterday that benefits from the tax exemption bill would more than make up for the P25 difference from the proposed P125 wage increase.

"The proposed tax exemption will effectively translate into savings of P30 per day. That will cost government some P3 billion in foregone revenues per year," he said.

"The House is duty-bound to promote the interest of workers who are instrumental to the country’s development. Workers serve as the engine of business, which won’t run without them," he stressed.

In the Senate, there is a pending bill seeking a P125 wage increase.

The expected approval by the House of a wage adjustment would be a victory for militant labor and their representatives and allies in Congress who have been pushing for a legislated salary hike.

Employers are against a legislated increase, though.

"It will be harmful to the economy, especially if the industry to be burdened by a wage increase has the potential capacity of generating revenues for the government, creating jobs and providing income for the labor force," said Employers’ Confederation of the Philippines president Rene Soriano on Monday.

He said a legislated wage adjustment that would be applied to all sectors of the economy would force many businesses to close shop.

Last May 1, Labor Day, President Arroyo expressed preference for the wage issue to be resolved by the regional wage boards, not by Congress.