P10-12 wage hike in Central Luzon eyed

SAN FERNANDO, Pampanga, Philippines – The Central Luzon director of the Department of Labor and Employment is suggesting a daily minimum wage increase of about P10 to P12 in the region amid reports showing that prices of basic commodities have increased by this much since two years ago in his jurisdiction.

DOLE regional director Ernesto Bihis, however, said the labor sector has not filed any petition for a wage increase before the Regional Tripartite Productivity and Wage Board.

“Despite this, we will convene the board next week to tackle the possibility of a wage increase,” he said.

But Bihis said many factors would have to be considered before deciding on any wage increase, noting a decline in the “export performance” of the Subic and Clark freeports in Zambales and Pampanga, respectively, and the Bataan export processing zone.

“We must consider the capacity of employers to absorb increases. We don’t want factories to close and cause displacement and unemployment,” he said.

In the past, the Central Luzon wage board had exempted the garment industry from wage increases due to a significant slowdown in foreign markets.

In the National Capital Region (NCR), the approved P22 increase in minimum wage sparked criticisms.

Kilusang Mayo Uno vice chairman Lito Ostares said the hike was an “insult” to minimum wage workers who have long fought for a substantial pay increase.

Bihis though noted that the labor sector in Central Luzon tends to be more “open-minded” about wage increases.

“Unlike in the NCR and Southern Tagalog where most workers are migrants, workers in Central Luzon have a different culture since they are mostly residents of the region and go home daily to their families, so they have less expenses than migrants (who) spend for board and lodging,” he said.

Bihis added that in Central Luzon, “we usually are ahead in coming out with wage increase proposals which we continuously study regardless of any petition for wage hike.”

“So even without a demand from our labor sector, we issue wage orders,” he said.

Bihis cited studies from the regional National Economic Development Authority and the Department of Trade and Industry showing that the prices of basic commodities in Central Luzon have risen by P10 to P12 over two years.