Poor sales force firms to seek pay hike exemption

Unable to cope with plummeting sales, many businesses in Metro Manila have sought exemption from a wage order issued earlier this year decreeing a P25-increase hike in workers’ basic pay.

Lourdes Trasmonte, head of the Regional Tripartite Wages and Productivity Board-National Capital Region, said they are currently deliberating on petitions filed by 220 establishments seeking exemption because of financial difficulties.

Trasmonte said most of the firms are in manufacturing, producing garments and other products. Exemptions may be granted by the wage board if the applicant firm meets the criteria set by the National Wages and Productivity Commission.

Esther Guirao, the commission’s acting executive director, said wage boards allow pay hike exemptions to help troubled firms cope.

Guirao, however, stressed that exemption is only for a period of one year, after which firms will be required to comply with the wage order, specifically Wage Order No. NCR-12, which took effect in July.

The wage order also allows exemptions for businesses facing potential losses, retail and service establishments employing not more than 10 workers, and firms with total assets are not more than P3 million.

Trasmonte said the wage board will do its best to resolve the petitions at the soonest possible time.