P150 wage hike pushed

CEBU, Philippines — Labor groups are seeking a P150-per-day wage increase, while majority of the business groups want a zero-wage adjustment—sentiments that both camps expressed in yesterday’s public hearing, which is the first of five that would be held in Central Visayas.

Regional Tripartite Wages and Productivity Board-7 Chairperson Lilia Estillore said they are expected to issue a new order before the end of September. As to how much, she said, this is something that the board members still have to deliberate on.

Atty. Michael Francis Hubahib, Associated Labor Unions (ALU)-Central Visayas chief legal counsel, said they lobbied for a P150-wage increase per day, due to rising inflation and to help workers recover their take-home pay.

The Alyansa sa mga Mamumuo sa Sugbo-Kilusang Mayo Uno also called for the same amount.

The Partido Manggagawa (PM)-Cebu, on the other hand, said that the current P468 minimum wage in Cebu is now only worth P383.92, or an P84 negative difference between the minimum wage and its real value.

“We have already brought to Congress the proposal for a Php150 wage increase to help workers recover their take home pay, which has been eroded by the rising prices of goods and services, as well as the review of the mechanism and law that sets the minimum wage in the country,” PM-Cebu said.

Meanwhile, Mandaue Chamber of Commerce and Industry (MCCI); the City of Talisay Chamber of Commerce, Trade, and Industry (CTCCTI); and the Philippine Retailers Association-Cebu Chapter wants a zero-wage increase citing various reasons.

“While we admit that the business sector and the economy in Cebu are already fully operational and are over the hump after the pandemic and typhoon Odette, things have not really gone back to previous levels. The challenges have even become more intense. There are changes in the global landscape and geopolitics and we cannot say that this has not affected us,” MCCI president Mark Anthony Ynoc stated in their position paper.

MCCI said that the increasing inflation rate has also increased production input, including power, raw materials, and services.

“While we are open to reviewing the minimum wage, amid the continuing rise in fuel prices and their anticipated impact on the economy, we are worried that smaller enterprises may not be able to afford a pay increase for workers at this time,” MCCI said.

“Companies who are unable to recover the increased cost of production would have no other choice but to downsize or worse, close shop, or simply go underground to avoid penalties. Or do what the other companies are doing, automate, use artificial intelligence and robotics to decrease manpower,” it added.

“We must reject the proposed salary increase at this time. Implementing such an increase would be inflationary and detrimental to our business operations, particularly for Micro, Small, and Medium Enterprises (MSMEs),” also said PRA-Cebu Chapter president Christina Paroan.

Currently, Paroan said, most of their members are MSMEs, and many have already faced closures during and after the pandemic, due to “inflationary pressures on their bottom lines”.

“The additional burden of a salary increase could lead to further closures, exacerbating the already challenging business environment. The last salary increase was last October, 2023 and it would be exacting to the businesses, most especially the MSMEs, who are still coping to survive,” he said.

The Hotel Resort and Restaurant Association Inc. also said that “another wage hike coming at the heels of the recently implemented minimum wage adjustments is not the right solution to counter the underlying challenges faced by the wage earners”.

“While the intent behind these measures is to improve worker welfare, we believe they could have adverse effects on local bripesses, particularly small and medium enterprises (SMEs),” CTCCTI said, in its position paper.

It said that while the proposed minimum wage adjustment and wage reclassification aim to enhance worker welfare, “the potential negative impacts on businesses and the local economy must be carefully considered.”

“We urge the Department of Labor and Employment (DOLE) to reconsider these proposals and explore alternative solutions that balance the needs of workers with the economic realities faced by businesses. We appreciate your attention to this important issue and look forward to collaborating on solutions that promote economic stability and growth for Talisay City,” CTCCTI said.

For its part, Confederation of Wearable Exporters of the Philippines (CONWEP) executive director Maritess Jocson-Agoncillo said that should an increase be really granted, it would not be the P150.

“The wage adjustment should not exceed or should be at least be half of the regional inflation rate. In Region VII, this means applying the regional inflation rate of 4.5% (per PSA report for July) to the current minimum wage range of Php 420 to Php 468, resulting in a maximum wage increase of P21,” she said.

The Cebu Chamber of Commerce and Industry, on the other hand, they will just wait on the outcome of the P150 legislated wage hike proposed by some labor groups before the House of the Representatives and the Senate.

The Confederation of Philippine Exporters in Cebu, through its official Fred Escalona, and the Philippine Aquapak Industries, Inc., both favored a wage increase, while the Mactan Export Processing Zone Chamber of Exporters and Manufacturers said that it is up to the wage board to decide on this matter.

The next public hearings will be on Aug. 28 in Balamban town, Cebu; Aug. 30 in Bogo City, Cebu; Sept. 3 in Dumaguete City, Negros Oriental; and Sep. 4 in Tagbilaran City, Bohol.

The public hearing is part of the RTWPB’s mandate to periodically review the minimum wages in the region and if warranted, to issue a new wage order.

While a P33-per-day wage increase was implemented on October 1, 2023, Estillore said the wage board is most likely to grant another round of wage increase this October. — (FREEMAN)