WV employers: Non-wage grants, not wage hike for workers
Amid rising prices of rice and other basic commodities, employers in Western Visayas are only amenable to granting non-wage benefits but not the P50-P125 increase in minimum daily wages being demanded by workers.
Most of the employers in the region voiced this position during the four public consultations of the Regional Tripartite Wage and Productivity Board (RTWPB) held in Antique, Capiz, Aklan and Iloilo.
"Some employers are willing to grant and increase in the daily minimum wage but majority said they could only afford non-wage benefits," said Department of Labor and Employment regional director Aida Estabillo, who also chairs the RTWPB.
Estabillo said the employers are eyeing the granting of benefits and assistance like housing or an increase in the cost of living allowance.
The RTWPB earlier passed a resolution that there is a supervening condition justifying and increase in the minimum wage of workers in the private sector, citing the increase of rice and basic commodities.
Labor groups under the National Congress of Unions in the Sugar Industry of the Philippines-Trade Union Congress of the Philippines have filed a petition for a P50 across-the-board increase in the minimum wage in the region last April 2. Another labor group, the Wage Increase Solidarity-Negros (WINS) has filed a separate petition on May 2 asking for a P125-increase in the minimum daily wage.
Wennie Sancho, labor representative to the RTWPB, said the existing conditions are "more than enough reasons to raise the minimum wages in the region."
He said non-wage benefits will not be included in the computation of the basic salary of employees and in the granting of benefits like retirement pay. The implementation of non-wage benefits are also "difficult to monitor," according to Sancho.
Sancho said the current wage level is way below the P582 per day family living wage, the minimum daily income needed by a family of six to be able to meet their minimum daily needs.
But in the wage board's consultation held in Iloilo City yesterday, employers groups called for more time until a new wage increase order will be implemented. They said last year's wage increase order, which raised the daily minimum wage in the region to P235 has not been fully implemented.
Employers also called for the abolition of the value added tax (VAT) and the reduction of income taxes.
Jun Borres of the Panay Fishing Boat Association, said VAT "is the monster that causes inflation." He said whatever increase in wages "will only be swallowed by taxation.:
Francis Chu of the local chapter of Philippine Retailers Association said VAT is taking a heavy toll on retailers.
Militant labor groups which did not attend the consultation said they have long given up on the regional wage boards to implement substantial increase in wages.
The Kilusang Mayo Uno in Panay called for the abolition of the board and the legislation of a P125 across-the-board increase in the daily minimum wages.
"At most, the wage boards can only give us crumbs while we wallow in hunger and poverty," said Wennie Dubliso, spokersperson of the KMU in Panay.
The RTWPB is set to hold its consultation today in Bacolod City and a regional public hearing at the end of the month.
Estabillo said they would issue a resolution soon after the public hearing is held.