CITY OF SAN FERNANDO – The Regional Tripartite Wage and Productivity Board (RTWPB) in Central Luzon said yesterday the management sector in the region is open to granting “reasonable” minimum wage increase, but the labor sector has yet to file any wage hike petition.
RTWPW secretary Elizabeth Teves told Punto that most businesses in Central Luzon have not really recovered yet from the impact of the global financial crises and that some of them are expected to file temporary exemptions from any round of minimum wage increases.
“What’s relieving is that the labor sector in the region seems to understand the situation of the management sector and they are aware any in some cases, closure of companies could arise from the imposition of new wage levels,” she said.
Teves said that management and labor sector representatives to the RTWPB have been meeting once every two weeks to tackle the possibility of wage hikes.
“But so far, the labor has not filed any formal petition for wage increase,” she noted.
She stressed that a wage hike decision could be reached only based on a formal petition for it. “In such case, the petition must be acted upon within 120 days,” she said.
While Department of Labor and Employment (DOLE) regional director Ernesto Bihis said he favored a wage increase of about P12 in his region, Teves said that the RTWPB still has to come out with its figures based on a “formula.”
This formula, she noted, takes into consideration the needs of workers, comparative wage scales, capacity of the management to absorb wage increase, and the economic development in the region.
Despite the lack of any petition so far, Teves said she expected wage increase within this year, although she expected some sectors in the management, particularly those in the automotive and garments industries, to file for temporary exemptions as they are the most affected by slump in global sales.
Bihis also noted “export performance decline at the freeports in Subic in Zambales and Clark in Pampanga, as well as the Bataan export 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 National Capital Region, a P22 spike in minimum wage sparked criticisms. Kilusang Mayo Uno vice-chairman Lito Ostares said the P22 wage increase was an “insult” to minimum wage workers who have long fought for a substantial wage increase.
However, Bihis said that the labor sector in Central Luzon tend to be more “open-minded” about wage increases.
“Unlike in the NCR and Southern Tagalog were 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 to spend for board and lodging,” he noted.
Bihis also noted 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 demand from our labor sector, we issue wage orders,” he noted.
Bihis cited studies from the regional National Economic Development Authority (NEDA) and the Department of Industry (DTI) indicating that prices of basic commodities in Central Luzon rose by P10 to P12 over two years.
“This we will use a benchmark for any possible wage hike in the region. Personally, I would espouse a minimum wage increase of P10 to P12,” he said.
Last year, no wage increase was implemented in Central Luzon, although some companies offered instead other benefits such as more medical assistance to their workers.
The last wage order in Central Luzon was dated June 16, 2008. The present wage rates in the region’s provinces, except Aurora, is P302 for non-agricultural workers of firms with assets worth P30 million or more, P294.50 for workers for firms with less assets and P272 for agricultural plantation workers and P256 for non-plantation workers.
In hospitals with 20 or more beds, the minimum wage is P293, while those in hospitals with less beds get P278. Retail outlets with 16 or more workers give a minimum pay of P291 while those with less workers pay them P277. Cottage industry workers get a minimum of P256.
In Aurora, which is regarded as most rural in the region, the pay for workers is P251 in the non-agriculture sector and in agriculture, P236 for plantation workers and P216 for non-plantation workers, while retail industry workers get P173. Those in the cottage industry get a pay of P224.
This, even as the party-list group Trade Union Congress of the Philippines (TUCP) said it will push for a P75-a-day legislated wake increase in the incoming 15th Congress.
TUCP Rep. Raymond Mendoza said that the P22 adjustment given by the regional wage board for Metro Manila “is a measly sum and is an insult to workers who sustained the country’s economic growth in the last nine years.”
“The amount is too low and cannot even cover for the increases in the prices of essential goods and services,” he said.
The current minimum daily wage in Metro Manila is P382. The P22 adjustment will bring it to P404.
Many employers, however, insisted they could not afford the P22 hike since they have not fully recovered from the economic slowdown, as they warned of possible lay offs.
RTWPW secretary Elizabeth Teves told Punto that most businesses in Central Luzon have not really recovered yet from the impact of the global financial crises and that some of them are expected to file temporary exemptions from any round of minimum wage increases.
“What’s relieving is that the labor sector in the region seems to understand the situation of the management sector and they are aware any in some cases, closure of companies could arise from the imposition of new wage levels,” she said.
Teves said that management and labor sector representatives to the RTWPB have been meeting once every two weeks to tackle the possibility of wage hikes.
“But so far, the labor has not filed any formal petition for wage increase,” she noted.
She stressed that a wage hike decision could be reached only based on a formal petition for it. “In such case, the petition must be acted upon within 120 days,” she said.
While Department of Labor and Employment (DOLE) regional director Ernesto Bihis said he favored a wage increase of about P12 in his region, Teves said that the RTWPB still has to come out with its figures based on a “formula.”
This formula, she noted, takes into consideration the needs of workers, comparative wage scales, capacity of the management to absorb wage increase, and the economic development in the region.
Despite the lack of any petition so far, Teves said she expected wage increase within this year, although she expected some sectors in the management, particularly those in the automotive and garments industries, to file for temporary exemptions as they are the most affected by slump in global sales.
Bihis also noted “export performance decline at the freeports in Subic in Zambales and Clark in Pampanga, as well as the Bataan export 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 National Capital Region, a P22 spike in minimum wage sparked criticisms. Kilusang Mayo Uno vice-chairman Lito Ostares said the P22 wage increase was an “insult” to minimum wage workers who have long fought for a substantial wage increase.
However, Bihis said that the labor sector in Central Luzon tend to be more “open-minded” about wage increases.
“Unlike in the NCR and Southern Tagalog were 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 to spend for board and lodging,” he noted.
Bihis also noted 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 demand from our labor sector, we issue wage orders,” he noted.
Bihis cited studies from the regional National Economic Development Authority (NEDA) and the Department of Industry (DTI) indicating that prices of basic commodities in Central Luzon rose by P10 to P12 over two years.
“This we will use a benchmark for any possible wage hike in the region. Personally, I would espouse a minimum wage increase of P10 to P12,” he said.
Last year, no wage increase was implemented in Central Luzon, although some companies offered instead other benefits such as more medical assistance to their workers.
The last wage order in Central Luzon was dated June 16, 2008. The present wage rates in the region’s provinces, except Aurora, is P302 for non-agricultural workers of firms with assets worth P30 million or more, P294.50 for workers for firms with less assets and P272 for agricultural plantation workers and P256 for non-plantation workers.
In hospitals with 20 or more beds, the minimum wage is P293, while those in hospitals with less beds get P278. Retail outlets with 16 or more workers give a minimum pay of P291 while those with less workers pay them P277. Cottage industry workers get a minimum of P256.
In Aurora, which is regarded as most rural in the region, the pay for workers is P251 in the non-agriculture sector and in agriculture, P236 for plantation workers and P216 for non-plantation workers, while retail industry workers get P173. Those in the cottage industry get a pay of P224.
This, even as the party-list group Trade Union Congress of the Philippines (TUCP) said it will push for a P75-a-day legislated wake increase in the incoming 15th Congress.
TUCP Rep. Raymond Mendoza said that the P22 adjustment given by the regional wage board for Metro Manila “is a measly sum and is an insult to workers who sustained the country’s economic growth in the last nine years.”
“The amount is too low and cannot even cover for the increases in the prices of essential goods and services,” he said.
The current minimum daily wage in Metro Manila is P382. The P22 adjustment will bring it to P404.
Many employers, however, insisted they could not afford the P22 hike since they have not fully recovered from the economic slowdown, as they warned of possible lay offs.
