board meets on feb. 14: Productivity-based bonus, lower wage hike backed

Regional Director Chona M. Mantilla of the Department of Labor and Employment (3rd from left) and other wage board members listen to labor leaders and business representatives’ stand on the proposed wage increases during the Jan. 30 public at the Sarrosa International Hotel. (CDN file)

A BUSINESS leader is pushing for a productivity-based bonus for workers workers, and a P10 to P20 wage increase.
Gordon Alan “Dondi” Joseph, Cebu Business Club president, gave his proposal after two labor organizations asked the wage board to grant them a P90 to P132 increase.

Joseph also called on the government to attract more investors to the country which will create more jobs.

“It should be a bonus. The company should give the workers a bonus for their good performance. There should be a formula for this, so that the employees can also share in the profits of the company,” he said.

Joseph said he is open to a wage adjustment in the  P10 to P20 range because the  P90 to P132 range is too high.
“I’m open to adjustment. P10 to P15 I think so. P20, I think that’s still okay to my mind. But that’s my personal opinion,”  Joseph answered when asked the rate increase he preferred.

The Regional Tripartite Wages and Productivity Board (RTWPB) 7 will start the deliberation on the pending petitions for wage increase on February 14, Valentines day.

The board will take up on the P90 wage increase filed by the Associated Labor Unions-Trade Union Congress of the Philippines (ALU TUCP) and the P132 across the board increase filed by the Coalition for Living Wage.

The board had conducted a series of public hearings in Tagbilaran City, Dumaguete City and Cebu City in the month of January.
Joseph for his part said what the government should do is attract more investments in order to create more jobs.

He noted that the unemployment and underemployment rate of the country has reached 30 percent.
“If the Philippines wants to be competitive and attract more investments to create more jobs, you can’t increase salaries by too much at this point in time. The Philippines is one of the

worst performers in attracting foreign investments compared to Indonesia, Malaysia, Thailand and Vietnam,” Joseph said.

“What the country needs are jobs and if we have more jobs, then you will see that the standard of living of everyone increase and that’s the time the wages will also increase like what they’re doing in China Thailand and Malaysia,” he added.

Increasing the wage in bigger amounts would send a negative message to potentials investors and they might invest in other countries, Joseph said.
If that will happen, he said, we could not solve our unemployment problem.