Businesses think of ways to ease wage hike impact

CEBU, Philippines — Businesses must increase their productivity to soften the impact of the current wage hike to their financial health.

The newly approved minimum wages for Cebu and Central Visayas workers will be in effect starting August 3.

Mandaue Chamber of Commerce and Industry vice president Steven Yu urged companies to become more productive and efficient in their operations.

"The business sector will comply with the newly approved minimum wage rates starting Aug. 3 and is encouraged to look into efficiency and productivity measures to soften its effect to the bottomline," the businessman told The FREEMAN yesterday.

The Department of Labor and Employment has asked employers to voluntarily comply with the newly approved P20 wage hike in the private sector.

Hotel, Resort and Restaurant Association of Cebu (HRRAC) president Carlo Suarez pointed out the mandated wage hike might affect the operations of some businesses.

The hospitality sector is among the key employers in Cebu.

"Actually, we have no issues with the direction of giving better lives for our people. And if it is thru increase in wages, it's a direct solution. But our concern as business owners is the manner it is implemented," Suarez told The FREEMAN in a separate interview.

"Like is it still fair and apt to increase more than twice or thrice a year the minimum wage? The pace of implementation is too drastic that we, employers and business owners,  didn't project this increase," said Suarez, who is general manager of Cebu Grand Hotel.

It can be recalled the Regional Tripartite Wages and Productivity Board in Central Visayas had also approved in February last year a P13 wage hike and this time the latest P20 raise.

"Aside from the multiple salary hikes we need to address the endo issues," Suarez also asserted.

During his recent State of the Nation Address, President Duterte urged the Congress to pass a law that will finally end contractual employment or "endo" in the country.

Duterte had signed Executive Order No. 51 last Labor Day after several postponements in an attempt to prohibit illegal contracting and subcontracting.

But this order can't totally stop contractualization.

"I think it is too much for now from our end.

We have so many things to address wage hikes, endo, easement, plus operations issues.

"We are getting so much drastic changes that will affect our operations and financials but limited information and assistance from these agencies to help or listen to our concerns," Suarez pointed out.

"Sana naman these agencies will take it slow on us and or give time to listen and implement these drastic changes," he added.

DOLE regional head Alvin Villamor pointed out the agency has ways to find out non-compliant businesses.

He said voluntary compliance to labor laws is always a better option for employers.  

Workers in class A cities and municipalities will see their daily wage rate rise to P386 starting Aug. 3. However employers who have less than 10 workers have to pay a daily wage of P376.

Cebu's class A areas include the cities of Carcar, Cebu, Danao, Lapu-Lapu, Mandaue, Naga, Talisay as well as the municipalities of Compostela, Consolacion, Cordova, Liloan, Minglanilla, and San Fernando.

Class B workers or those employed in the cities of Toledo, Bogo and the rest of the municipalities in Cebu, except Bantayan and Camotes islands, would receive P348 per day.

Employers in the provinces of Bohol and Negros Oriental are mandated to pay their workers P338 daily wage.

While workers in Siquijor province and the municipalities in the islands of Bantayan and Camotes islands are to receive P323 daily pay.