For minimum wage earners in CV wage board OKs P22 salary hike

CEBU, Philippines - Fifteen days from now, the minimum wage for Central Visayas would be up by P22 per day.

The Regional Tripartite Wages and Productivity Board (RTWPB)-7 yesterday approved the increase yesterday, the second day of their marathon hearing.

Surprisingly, there was no heated discussion among management and labor representatives to the board as the two sides readily agreed on the amount.

The board will meet again today to come up with the final resolution that will be forwarded to the National Wages and Productivity Commission for approval.

Three days after, this will be given back to RTWPB-7 for publication in a newspaper of general circulation.

Jose Tomongha, one of the labor representatives to the board, said that the P22-per-day salary adjustment is “very small” but is much better than the original position of the management representatives which was zero.

Tomongha, who is also the chairman of the Alliance of Progressive Labor, said that 15 days after publication, the new wage increase will be implemented.

APL and its allied organizations sought a P121.85-per-day wage adjustment while the Associated Labor Unions-Trade Union Congress of the Philippines pushed for a P94-hike in the daily wage for all workers in Region 7.

Last month, five different business chambers in Cebu vehemently opposed any wage increase for Central Visayas during the Regional Public Hearing on the petition for minimum wage adjustment.

The five are the Cebu Chamber of Commerce and Industry (CCCI), the Man-daue Chamber of Commerce and Industry (MCCI), the Employers Confederation of the Philippines-Cebu Chapter, the Mepzcem Chamber, Inc. and the Confederation of Philippine Exporters-Cebu Chapter.

The labor sector and consumers group, however, insisted on the increase.

ALU-TUCP Vice President Ferdinand Jumapao said that the increase is a mere pittance.

“Gamay ra gyud na pero unsaon man dawaton na lang kay nagkinahanglan gyud ang mga workers ana nga increase,” Jumapao said. (That’s small but there’s nothing we can do, we have to accept that.)

Dennis Derige, Partido ng Manggagawa-Cebu spokesperson, said that the P22 wage increase is not enough. He said the amount is equivalent only to half a kilo of Ganador rice or 1/4 kilo of Budburon or three instant noodles. This means, he said, the increase is far beyond the need of every worker’s family to cope with the rising cost of living.

Derige added that the minimum wage now, at P327 per day, is only 33 percent of the daily cost of living in Cebu for a family of six.  Vicente Sapio, president of the Consumers Rights Welfare and Protection, also said that the recent wage hike is very small.

“Menos ra kaayo na. Dili gyud na paigo to cope up sa nagkamahal na nga palaliton. But maayo na lang na kaysa wala gyud,” Sapio added. (That’s small but better than nothing.)

Prudencio Gesta, president of Cebu Chamber of Commerce and Industry, said that they are against the increase as this will be a big burden to the Small and Medium Enterprise sector which comprise 90 percent of the business while the remaining 10 percent may have no effect at all since almost all are paying more than the minimum wage.

Gesta said that he is not underestimating the SMEs but the increase will have a big impact on their finances especially the export sector which has been suffering for years now due to low orders compounded by peso appreciation.

“Thus, the increase maybe untimely,” he said. Gesta added that the business sector’s efforts to create jobs may be scaled down due to the latest wage increase.

SMEs accounts more than 90 percent of the country’s enterprises and provide more than 60 percent of jobs in the country.

Philip  Tan, president of the Mandaue Chamber of Commerce and Industry, said that while management tried its best to elevate the standards of living of the labor sector, compliance by SMEs to survive will be the biggest challenge to remain competitive and profitable.

Tan said that productivity gain sharing is the best alternative to fixing wages and rewarding more to employees that are highly skilled and output driven.

Robert Go, director of Philippine Retailers Association, is hoping that the latest wage increase will not scare foreign direct investment since we are giving them a double whammy.

“We have the highest electricity rate and low productivity,” Go said.

The business chambers, in a joint position paper, had opposed any increase of the minimum wage at this time.

The Philexport-Cebu, which is composed of nine export sectors in Central Visayas, appealed for a “wage freeze” for their sector until their recovery is “imminent and sustainable.”

Philexport-Cebu is into electronics, industrial goods, furniture, seaweed, food, fashion accessories, gifts, toys and housewares, garments and medical tourism.

The MEPZCEM Chamber’s Inc. also expressed opposition to any wage hike contending that the current business conditions in Europe and the United Sattes of America are on a downswing, causing a downward spiral of their production demand.

Meanwhile, Filipino Cebuano Business Club (FILCEB) President Rey Calooy welcomed the salary increase for minimum wage earners.

“We welcome it, since it was already passed a thorough deliberation, what we can do is to share the impact,” he said. He also cited that most of FILCEB members belong to the MSME sector with an asset size of less than P3 million and are registered under the Barangay Micro Business Enterprise that are exempted of the minimum wage law.

However, he added that the prices of products and services have to be adjusted for companies to shoulder the salary expenses wherein mostly 60% to 70% of the gross profit in the business is allotted for. — /JPM (FREEMAN)