Business sector willing to comply with new wage hike
Lea Lara, executive director of the Iloilo Business Club, said the business sector is willing to comply with the newly approved minimum wage hike for Western Visayas.
Lara, however, said they still have to wait for the order to come out because what they got was only a hint from their management representative.
However, despite the compliance she expressed apprehension on the possible impact of the increase to businesses.
“Retrenchment, rationalized hours or closure are just some of the options for businesses to cope. Projects for expansion or training to improve productivity will probably be sacrificed,” she said.
Last Monday, the Department of Labor and Employment announced the approval by the Regional Tripartite Wages and Productivity Board of an additional P15 daily wage for Western Visayas.
Wage Order No. RB–VI-18 signed by DOLE Regional Director Manuel Roldan, chairperson of the RTWPB 6, on July 19 set the minimum wage for non-agricultural establishments with more than 10 workers at P265; P223 for non-agricultural establishments with 10 workers or less; P233 for workers in the agricultural plantation sector; and P223 for workers in the non-plantation sector.
Labor Assistant Regional Director Crispin Dannug Jr. said the new minimum wage was reached after a series of consultations undertaken by tripartite board starting February this year.
The Board composed of two representatives each from the management and labor groups and regional directors of the National Economic and Development Authority, Department of Trade and Industry, and the DOLE with the RTWPB as secretariat met third week of July for the final discussion.
The Board is again set to meet on August 4 to discuss the implementing rules of the order which would include among others issues on what business are covered or not by the new minimum wage and seeking exemption.
The effectivity of the wage increase would still be 15 days after its publication in newspapers with regional circulation.
The P15 daily wage hike was based on a petition filed by the Trade Union Congress of the Philippines seeking for a P50 increase per day.
Dannug said that aside from the “wage fixing” which is a “tripartite action in minimum wage determination,” other increases can be achieved in several ways which are also being encouraged.
It can be through a collective bargaining agreement for workers with labor unions while it may also depend on the company’s “liberality and capacity to pay and productivity gain sharing policy.” PNA
