Recent calamities should not be used as a reason to block wage hike petitions.
This was the message of the labor sector to business groups opposing a proposed mnimum wage hike during yesterday’s public hearing.
Several business chambers citing the 7.2-magnitude earthquake last October 15 and supertyphoon Yolanda said increasing the minimum wage in Central Visayas now would be untimely and counterproductive.
This stand was echoed by exporters, hotels, manufacturers, the academe, hardware companies and sugar planters who are pushing for a wage hike moratorium.
The Coalition for Living Wage (CLW) filed in Sept. 27, 2013 a petition for a P132 daily wage adjustment while ALU-TUCP filed in October last year for an adjustment of P90 daily.
Ernesto Carreon, one of two labor representatives in the Regional Tripartite Wages and Productivity Board (RTWPB) 7 said the calamities, in fact, benefited business in Cebu.
Cebu, he said supplied rice, canned goods and other needs to earthquake-affected Bohol and to Yolanda-stricken Eastern Visayas.
Business viability
Philip Tan, president of the Mandaue Chamber of Commerce and Industry who is one of two management sector representatives in the board, said the viability of business should be considered.
“Labor will have their own interest, management will always have our own interest also, but in the end, no one can survive alone. As a rule, it is the survival between labor and management that will count”, Tan said.
The Philexport, Mactan Export Processing Zone Employers Confederation (Mepzem), Cebu and Mandaue business chambers, and the hotel industry also opposed the two petitions for wage increase.
While the Bogo Medellin Sugarcane Planters Association opposed the two petitions, it agreed to a five-percent across the board increase for all wage classifications.
Dodon Montesclaros of Mepzem gave three reasons supporting a moratorium.
Mepzem has 140 companies and support groups in Mactan, Cebu Business Park, Naga, Danao and Balamban with over 80,000 direct employees and 40,000 indirect employees.
“The survey of 30 countries on productivity of workers placed the Philippines last. We are not only expensive, we are also least productive. And another survey of 143 countries ranked us 59th in terms of competitiveness”, Montesclaros said.
He said quake and typhoon forced their companies to stop operation for several days as suffer brownouts brought by the power shortage after the typhoon.
CLW representative Metudio L. Belarmino said the minimum wage of P327 in Metro Cebu is not enough for a family of six which needs P867 daily to cover basic needs.
Wage board chairman and Department of Labor and Employment Regional Director Chona M. Mantilla said the board will consider all input from stakeholders and come up with a decision that is best for both labor and employers.