Iloilo, Guimaras employers turn down P125 hike on wages
Citing poor business environment, employers in Iloilo and Guimaras are offering a maximum P15 increase in the daily minimum wage of workers, way below the P75-P125 being demanded by labor groups.
Representatives of employers groups who attended a consultation of the Regional Tripartite Wage and Productivity Board (RTWPB) yesterday said that granting an increase more than this amount could risk the collapse of the local economy.
The Iloilo Multi-Sectoral Business Organization Inc. (IMSBOI), composed of nine organizations and with more than 500 members, said the P75 being petitioned by moderate labor groups is "untimely and not viable."
IMSBOI President Fanny Uy said in a position paper that many local firms have closed shop because the economy is facing stiff competition from other countries that offer cheap labor and "more attractive support packages to business."
She said there is a need to "seriously focus on efforts to improve local business environment."
Other business groups share the IMSBOI position.
Arnaldo Borres, secretary of the Panay Fishing Boat Association, said taxes, particularly the Expanded Value Added Tax (EVAT), are heavily burdening businesses which also affect their employees.
"Our company pays P600,000 per month for VAT when this could have instead lined up the pockets of our employees. We must stop this VAT," he said during the consultation.
The Trade Union Congress of the Philippines filed the petition seeking for P75- increase in the daily minimum wages in the region.
Labor representatives to the wage board Wennie Sancho and Hernane Braza said in a position paper that their petition for increase is justified based on the needs of workers in Western Visayas.
They pointed out that the present P222 per day minimum wage (for commercial establishments) in the region is way below the "living wage" for a family of six in Western Visayas pegged at P512 per day as of July 2005.
They said that even if a P75-increase is granted, the minimum daily wage would still be only P297.
The increase is "essential if workers are to cope with the increasing prices of commodities, basic services and cost of living in order to meet the basic needs of their families...," the labor representatives said.
"Clearly labor is taking the brunt of sacrifice and belt-tightening," they said in their position paper.
Militant labor groups boycotted and protested the holding of the consultation and called for the abolition of the seven-member RTWPB.
Winifredo Dubliso, spokesperson of the Kilusang Mayo Uno in Panay, said that since the regional boards were formed in 1989, the RTWPB "has not significantly improved the situation of workers and has even become a tool of business owners to press down wage rates."
Members of the KMU and other militant groups held a picket in front of the Residence Hotel here where the consultation was held.
The KMU and the Bukluran ng Manggagawang Pilipino are both pushing for a legislated and nationwide P125 increase in the daily minimum wage.
The House in December last year passed HB 345 which grants a P125-across the board wage increase for private sector workers to be implemented in three years. But this not been officially transmitted to the Senate and is facing opposition from Malacañang.
RWTPB chair and Department of Labor and Employment regional director Aida Estabillo said the board will still conduct public consultations in Roxas City, Capiz, Kalibo town, Aklan, Boracay Island, Aklan and in San Jose town, Antique before deciding on the petition. The board held the first consultation in Bacolod City on June 26.