For workers in Central Visayas: Wage board OKs P33 hike

CEBU, Philippines — The Regional Tripartite Wages and Productivity Board (RTWPB)-7 has approved a P33 uniform increase for all minimum wage earners in private establishments in Central Visayas.

The wage order will take effect after 15 days from publication or on October 01, 2023.

In a statement, the RTWPB-7 said the increase will bring the minimum wages in non-agriculture establishments to a range of P420-468, and P415-PP458 in agriculture and non-agriculture establishments with less than ten workers depending on geographical classification.

The wage board, in their five-page Wage Order No. 24, said that minimum wage rates prescribed shall be for the normal working hours which shall not exceed eight hours of work a day.

It also said that wage increase prescribed shall apply to all minimum wage earners in the private sector within the region, regardless of their position, designation or status and irrespective of the method by which their wages are paid.

About 346,946 minimum wage earners in the region will directly benefit from the increase while about 399,572 workers may also indirectly benefit from the correction of wage distortions, RTWPB said.

The increase was a result of the three petitions for minimum wage increase filed before RTWPB-7.

Basis for increase

The wage board cited that after a thorough review and evaluation of the existing socio-economic conditions in the region, the following findings were established:

The Consumer Price Index (CPI) in the region was at 110.9 in June 2022 and rose to 116.6 in July 2023

The average inflation rate from the effectivity of the last wage increase on June 14, 2022 up to July 2023 is 6.71%. In the same period, the region experienced the highest inflation rate in December 2022 at 8.5%

The beginning of 2023 saw the inflation rates easing up. July 2023 Philippine Statistics Authority (PSA) data registered Region VII s inflation rate at 4.1%

The poverty threshold based on the latest available data provided by the PSA for an average family size of five in 2021 is in the amount of P13,008 or P 428 per day;

The Purchasing Power of the Peso at the time of the effectivity of the wage order was at 0.90, in July 2023 it has gone down to 0.86; and

Region VIl's Gross Regional Domestic Product (GRDP) has increased from 5.4% growth in 2021 to 7.6% in 2022.

After due consideration of the results of the public hearing and a thorough review and evaluation of the existing socio-economic conditions in the region, the Board agrees to adjust the prevailing dally wage rates of workers/employees in the region to enable them to cope with the rising cost of living without impairing the viability of business and industry, read part of the order.

The Board, which is tripartite in composition, conducted a series of public hearings last July 10 in Northern Cebu, July 26 in Metro Cebu, August 1 in Southern Cebu, August 10 in Bohol and August 11 in Dumaguete (for Negros Oriental and Siquijor).

Wage deliberations were scheduled last August 29, September 2 and September 5, 2023.

Pursuant to the Omnibus Rules on Minimum Wage Determination, the wage order was submitted to the National Wages and Productivity Commission on September 6, 2023. The Commission affirmed the same on September 12, 2023.

Businesses not covered

As provided for under the Omnibus Rules on Minimum Wage Determination, retail/ service establishments employing not more than 10 workers and establishments adversely affected by natural calamities and/or human-induced disasters may apply for exemption from the wage increase.

Establishments registered as Barangay Micro Business Enterprises (BMBE) are not covered by the minimum wage law pursuant to Republic Act 9178.

Following the increase, the RTWPB-7 shall conduct information campaigns in the region to ensure compliance to the wage order and shall provide assistance to enterprises in correcting wage distortions.

Increase too small

The Partido Manggagawa (PM) and Sentro ng mga Nagkakaisa at Progresibong Manggagawa (Sentro) said the P33 wage increase failed to meet the principal demands for wage recovery and living wage of the wage petitioners in the region which amount to P100 per day.

Kuwang ni nga umento kay di ni kapalit bisag usa ka kilo nga bugas matag adlaw. The P33 cannot even match the P41-P45/kg price cap for rice as it is only a third of close to P100 lost value of wages in the region. Dili ni kabawi sa nagpadayon nga pag-us-os sa balor sa among sweldo sa rehiyon. Mao sa kining increase, ang tinuod nga balor (real wage value) sa minimum wage karon sa Region 7 kay P370,  said PM Cebu Spokesman Dennis Derige.

Derige also criticized the numerous wage classifications in the region that make enforcement and compliance very complicated.

Murag bugas nga naay regular, well-milled, ug premium na klasipikasyon ang sistema ng pasweldo sa nasud mahitungod nga bisag naa ra sa susama nga kahimtang sa kinabuhi ang mga mamumuo sa usa ka rehiyon ay managlahi ang balor sa ilang sweldo, said Derige.

PM and Sentro argued that the wage hike in Central Visayas, and earlier the P40 in NCR, and P35-P50 in Calabarzon mirror the structural defects of the prevailing wage system in the country under RA 6727 where the financial health of employers is given more importance than the workers capacity to live and their right to a rising standard of living.

PM and Sentro fears the Central Visayas, NCR and Calabarzon wage orders will become the template for other regions, thus, the need to shift to battle for a legislated wage hike and reforms in the wage-setting mechanisms in the country.

Pending before Congress are the P150-P750 wage hike bills.

Senators, including Senate President Juan Miguel Zubiri, vowed to pass the measure while the House of Representatives has yet to conduct hearings on the pending wage hike bills.

The wage board is composed of Antonio Cuizon and Atty. Nora Demeterio-Diego, representing the workers sector; Dr. Philip Tan and Atty. Joseph Tanco, representing the employers  sector; National Economic and Development Authority-7 Regional Director Jennicer Breta a as Vice Chairperson, Department of Trade and Industry-7 Regional Director Maria Elena Arbon as Vice Chairperson and Department of Labor and Employment-7 Regional Director as chairperson, from the government s sector.  — /GAN (FREEMAN)