Employers see gloomy Christmas for workers

Employers see a "gloomy Christmas" for workers this year, predicting that a new increase in the minimum wage would jeopardize the survival of companies.

Donald Dee, president of the Employers’ Confederation of the Philippines (ECOP), said in a statement yesterday any legislated wage increase would only serve to exacerbate the existing equity of income and wealth distribution between organized labor and other workers.

Dee said the economic crisis coupled with an adjustment in minimum wage rates will prevent most businesses from building up their inventories even during the holiday season.

"The Yuletide season is the time of year when the demand for products surges as consumers go on a buying spree but the economic activity during the remainder of the year could be sluggish and thus hiring of contractual workers would also slump," he said.

Dee said an ECOP survey of member companies showed a drop in the employment rate for both salaried and non-wage workers.

"The seasonal hiring of workers might not happen this year," he said.

Dee said the country’s employment rate is diving and will worsen if another increase in salaries is implemented as demanded by organized labor.

"An additional burden (for) companies like a new round of adjustments in minimum wage rates would jeopardize the survival of companies," he said.

On the other hand, J.B. Santos, Nestlé Philippines Inc. chairman and chief executive officer, said in an official statement yesterday the company remains resilient and able to cope with the present trading situation.

Santos said Nestlé will invest some P3 billion in the country in the next two years, the bulk of which will go into the expansion of the Cabuyao, Laguna and Cagayan de Oro factories.

Santos said while some companies have relocated manufacturing operations abroad, Nestlé will expand its Cabuyao and Cagayan de Oro factories to serve as ASEAN supply centers for infant nutrition and filled milk powder.

As supply centers, both factories are now exporting Philippine-manufactured products to Nestlé markets abroad, he added.

Santos said 619 former employees at Nestlé’s Alabang factory have been offered jobs in the company’s other factories –298 (48 percent) accepted the job offer, while a majority (323 or 52 percent) availed of the redundancy package.

Earlier, Nestlé announced the consolidation of its coffee manufacturing in the Cagayan de Oro factory, transforming it into a single manufacturing facility for NESCAFE in the country.

As a result of the consolidation, and as part of Nestlé’s overall manufacturing strategy, the company closed its Alabang factory last May 31, the announcement said.

Meanwhile, fragmented labor unions are set to unite to demand that Congress pass a law increasing the daily minimum wage by P125.

The call was made yesterday by officials of Bukluran ng Manggagawang Pilipino (BMP), Kilusang Mayo Uno (KMU), and Partido ng Manggagawa (PM).

Renato Magtubo, PM chairman, told reporters yesterday sectarian concerns should not divide and weaken the power of labor to bargain collectively.

"Even the P25 across-the-board legislated wage increase in 1989, the last such increase attained by the labor movement prior to the formation of the regional wage boards, was attained through a unified struggle," he said.

Victor Briz, BMP national president, said they and their allied organizations are willing to form a united front with other labor unions.

"If joint actions with the KMU and Labor Solidarity Movement will not be possible at the moment, then we are amenable to having parallel campaigns for the common wage demand," he said.

KMU spokesman Sammy Malunes told reporters yesterday they are pushing for a legislated wage hike for all workers nationwide regardless of their political persuasion.

"KMU has spearheaded the workers’ fight for a P125 wage hike since 1999," he said. "And since then, it has been able to win two wage hike orders for workers –for P25.50 in November 1999 and for P26.50 in November 2000."

The Labor Solidarity Movement, an alliance of moderate labor groups, and the Trade Union Congress of the Philippines have not yet made any official statement on the call for a common stand among labor unions.

Sen. Juan Flavier has filed a bill that would seek a minimum monthly salary of P15,841 for public school teachers in the elementary and secondary schools.

Flavier said the present entry pay for Teacher 1 is P9,318 monthly; Teacher 2, P10,530; and Teacher 3, 11,167 a month. – Mayen Jaymalin, Romel Bagares, Sandy Araneta