Iloilo employers offer P5/day Cola, non-wage benefits
Employers in Iloilo are offering a P5 per day cost of living allowance (Cola) or non-wage benefits instead of a wage increase to workers.
The Iloilo Business Club (IBC) said that while they understand the plight of employees, businesses can only afford to grant the Cola and non-wage benefits because the cost of operating a business has also significantly increased.
"Prices of production inputs and raw materials are now more expensive, thereby affecting volume, demand and retail prices of commodities. Government imposed taxes such as local business taxes/permits have also increased. The cost of fuel worldwide continues to go up with some predictions that oil prices will hit the $200.00 per barrel mark before the year ends," the IBC said in a position paper signed by its executive director Maria Lea Victoria Lara to the Regional Tripartite Wages and Productivity Board (RTWPB) in Western Visayas.
The IBC is one of the biggest business organizations on Panay Island with 83 members engaged in various industries.
Lara said the volatile fuel prices widely affect businesses in Iloilo because majority of the businesses belong to the trading/distribution and wholesale and retail sector.
She said that because of the higher operating and production costs, businesses are considering the suspension of their free delivery service to their customers.
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, earlier 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.
But the IBC said that unlike in other regions, last year's wage increase order in Western Visayas was implemented in three tranches with the last increase to be implemented on September 16.
"Another wage increase will be very untimely considering that business has not fully adjusted to this recent increase," the IBC said.
The RTWPB is expected to issue a resolution on the petition for a wage increase by next month.
The IBC called on the government to expedite the approval of the law which exempts minimum wage earners from paying income taxes.
"This strategy will concretely redound to higher take home pay of employees," the IBC said.
It also urged the government to study the possibility of suspending the implementation of value added tax (VAT) on utilities, medicines and basic commodities.
Governors of Western Visayas had earlier also called for the suspension or reduction of VAT on petroleum products to reduce oil prices.