Labor vs capital: Wage hike disputed

TAGBILARAN CITY, Philippines — Increasing daily minimum wage for workers employed in private sector remains a contentious issue between labor and capital ever since.

Employers in Bohol wanted the wage increase frozen while labor groups demanded for it even as the Regional Tripartite Wages and Productivity Board (RTWPB) and the Department of Labor and Employment tackled the issue at hand during the public consultation held here last week.

DOLE-7 Regional Director Exequiel Sarcaoga, who led the RTWPB in the consultation, reminded the employers to acknowledge the workers' efforts since they are partners in business.

He said this time around maybe it's payback time and appealed to them to help President Duterte's administration succeed. "Workers tend to be loyal if their employers don't violate labor laws," he said.

The different labor groups in Central Visayas have submitted proposals for varied daily wage hikes.

The Trade Union Congress of the Philippines (TUCP) wanted a P161 hike, while SENTRO/Alliance of Progressive Labor (APL), Cebu Midtown Hotel Employees Union, Cebu Labor Coalition and others endorsed P140 across-the-board increase.

Philipine Agricultural, Commercial and Industrial Workers Union batted for a hike of P101.34 (agricultural); P90.61 (commercial) and P86.87/day (industrial) for all workers in the private sector of Negros Island Region, comprising Negros Oriental, Negros Occidental.

Though he did not have a written proposal, Jun Monreal of the Bohol Light Comanpy Inc. presented other options for a lower amount aside from those being submitted.

But the Bohol Chamber of Commerce and Industry (BCCI), the Panglao Island Chamber of Commerce and Industry (PICCI), and the Bohol Association of Hotels, Resorts and Restaurants (BAHRR) proposed to the board for a "moratorium" on wage hikes.

In its position paper issued on December 1, and signed by BCCI head Engr. Albrt M. Uy and PICCI president Bellevue manager Rommel Gonzales said that it's still "untimely" for an increase, citing among others inflation rate, decreasing poverty.

"Wage increase at this time would create an alarming destabilization in the employers level that could result into downsizing or relieving of employees, pirce inflation, closure of business, loan defaults and loss of investments; acts that might create economic mayhem in the province; a kind of scenario demonstrating that untimely wage increase is more detrimental rather than beneficial."

It also cited as reason their recovery efforts from the earthquake that struck Bohol three years ago but it did not say how many were adversely affected or how many still renovating their respective businesses. It further said Bohol is dependent on power supply from geothermal in Leyte province, which incur their businesses additional costs in procuring generating sets to keep them afloat.

It further gave a comparison of daily minimum wage with other places saying that, while Bohol is already giving P310 per day, private establishments in General Santos City gives P275; Zamboanga City, P280; Davao City, P317; and Bicol region, P265.

"Economic activities in the province rely heavily on retail and services that support the needs of the tourism sector; there is no other industry in the province that would generate income and employment. Thus, it is imperative not to injure this sunshine industry and improve our industries to ensure competitiveness and resiliency to shocks," the businessmen's group manifesto stated.

When asked by Sarcaoga if they have other options as to the amount, BCCI, PCCI and BAHRR stood pat in its position, said Dominic Butalid who represented the groups.

The public hearing on proposed minimum wage hike, including the househelps, as provided for by Republic Act 10361, will be held in Cebu City on December 09. (FREEMAN)