Wage hike likely — DOLE

Amid efforts to block the proposal for a P125 legislated wage increase, workers across the country can look forward to another round of salary adjustments.

Labor Undersecretary Romeo Lagman said the 17 Regional Tripartite Wages and Productivity Boards (RTWPBs) are now assessing the current economic situation and are expected to grant increase in the prevailing minimum wage rates in their respective areas.

Lagman noted Labor Secretary Arturo Brion had ordered the wage boards across the country to look into the possible salary hike in case the proposed legislated wage bill will not be passed.

"Secretary Brion convened the wage boards in preparation for another round of wage increase in case the bill is not enacted into law," Lagman said.

While the boards are prohibited from granting consecutive salary increases within a period of one year, Lagman said the wage boards are still likely to raise the minimum wage rates in their respective areas at the soonest possible time.

"Historically, the boards grant salary increase every year so based on that we expect that there would be another round of salary hike," Lagman said.

Since it was established 17 years ago, the RTWPBs did not grant any wage adjustment except in 2003 due to economic crisis that hit the country.

Aside from reviewing the possibility of salary hike, Lagman said the labor secretary had also directed the RTWPBs to assess the impact of the P125 legislated wage increase in their respective regions.

"The board were given a week to submit their assessment and we will give our recommendation to the Senate based on their report," Lagman said.

Lagman though reiterated the position of the Department of Labor and Employment (DOLE) against the enactment of a legislated wage since it would be more disadvantageous for both workers and employers.

National Wages and Productivity Commission (NWPC) officer-in-charge Esther Guirao said the legislated wage increase would cost the employers some P473.6 billion or half of the country’s national budget for 2007.

"The proposed legislated wage hike is very attractive to workers because it will immediately provide them with additional spending money. However, in the long run it may work against the workers," Guirao pointed out.

The Employers Confederation of the Philippines (ECOP) and other business groups are strongly against the passage of the P125 wage bill, which they claimed would force a majority of firms in the country to close shop.