PhilExport-Cebu calls on government to review mandated wage hike

CEBU, Philippines -  The nine export groups in Cebu, under the umbrella of the Confederation of Philippine Exporters Foundation (Cebu) Inc (PhilExport-Cebu) is calling on the government to re-consider the mandated minimum wage increase.

In a position paper released yesterday, PhilExport-Cebu representing the several export industry groups, such as electronics, industrial goods, furniture, seaweed, food, fashion accessories, gifts, toys and house-wares, garments, and medical tourism, emphasized its stand to convince the RTWRB-VII to act prudently and reasonably on any wage increases or cost of living adjustments, taking into consideration the mutually assured survival of both employers and workers.

PhilExport-Cebu appealed that the government should resume its support for the SME members of the industry “who are still languishing in the doldrums due to the global economic crisis.”

With this, the group asked reiterated its call to the government to reinstate the Export Support Fund, and that a two- tier rate adjustment be granted, one for the sunshine industries (higher) and one for the “challenged” industries (lower).

“That government, private enterprise and labor instead focus on job generation rather than on mandated across-the-board wage adjustments,” it emphasized.

On May 5, 2011, President Benigno s. Aquino, speaking before employers during the 32nd National Conference of Employers, suggested to the top employers to grant some kind of productivity incentive or profit-sharing schemes to workers as a relief from soaring fuel and food prices.

The labor groups have been petitioning for across-the-board wage hikes from P75 to P125 per day.

President Aquino further added that he has no intention of asking Congress for a legislated wage hike but added that the Bangko Sentral ng Pilipinas (BSP) believes that a “certain kind of wage adjustment” can be absorbed by the economy. The adjustment, the BSP suggests, may be determined by the respective Regional Tripartite Wage and Productivity Boards (RTWPBs).

“In our opinion the RTWPB in Region VII, based on its performance in the past 5 years under the stewardship of DOLE Regional Director Elias Cayanong and DTI Regional Director Aster Caberte, has acted fairly towards business and labor. During the times of crisis the RTWPB-VII, cognizant of the plight of exporters and workers, has granted minimum wage adjustments that we in the export sector deemed as fair and reasonable,” the exporters’ position paper indicated.

According to the group, the exporters in the past wage hikes have accepted all the decisions of the RTWPB-VII without complaint as the impact of these increases were then mitigated by the financial support given by government in the form of export support funds. The grant of these funds has so far been suspended since the start of the 2011.

In view of the circumstances stated above, including the sector’s struggle against the unpredictability of the foreign exchange, still recovering global market, high cost of doing business, among others, group is asking a thorough review on the implementation of another wage hike.

“Though we are fully sympathetic to the plight of workers, and the continuous rise in the cost of basic commodities, it is also to the interest and survival of these workers that we ensure as well our own survival as employers. As stated earlier our real concern is really job generation or retention rather than wage adjustments that could cause a further deterioration of the jobs situation. We strongly urge all parties concerned to lean favorably in considering our prayers and position,” the exporters’ position paper concluded. (FREEMAN)