Businesses say no to wage increase

CEBU, Philippines - The business community is opposing any movement in the minimum wages of workers as the workers remained optimistic that the Regional Tripartite Wage and Productivity Board-7 will grant wage adjustments for all workers in Central Visayas.

Philexport-Cebu, in its position paper, stated that the export industry has been reeling from the effects of the 17 months (April 2015 to August 2016) of successive decline.

"What has attributed to the weakness of the Philippine export performance are the huge cost of direct labor, power, raw materials, doing business and the non-trade barriers which put a big dent on this competitiveness," position reads.

It said that the Philippines' minimum daily wage is the fourth highest in Asia at P510.11 per day.

"The export sector cannot afford any increase in the minimum daily wage at this moment. The export industry prays for a 12-month moratorium on any form of across-the-board wage increase in order for it to recover from the dire effects of weak global condition," Philexport-Cebu added.

The Cebu Furniture Industries Foundation Inc., in its position paper, appealed that government, private enterprise and labor instead focus on job generation rather than on mandated across-the-board wage adjustments.

"Though we are fully sympathetic to the plight of workers, it is also to the interest and survival of these workers that we also have to assure our own survival as employees," the document read.

However, if the wage hike is implemented, it said, everyone in the supply chain will be affected such that higher cost of materials will mean higher cost of end products, and the more it will drop in the global market.

Cebu labor leaders (ALU-TUCP, National Federation of Labor, Sentro, Cebu Labor Coalition, Alliance of Progressive Labor, among others) submitted their "Statement of Unity" during the public consultation praying for the granting of a wage increase as well as ending contractualization.

"We all seek the needed wage adjustment and the end of contractualization. We want the wage board to consider the facts submitted by the labor groups who filed the petition for wage adjustment. We also want the wage board to prioritize the Endo because, for so long a time, every means for ending the Endo has been frustrated and every avenue for ending Endo has been blocked," the statement reads.

On the other hand, in a Joint Manifesto from the business community ( Cebu Chamber of Commerce and Industry, Mactan Export Processing Zone Chamber of Exporters and Manufacturers, Confederation of Philippine Exporters-Cebu and the Mandaue  Chamber of Commerce and Industry) said that the government's plan for a mandated across-the-board wage increase has struck fear in the hearts of Cebu business as it is bound to result in further closures, unemployment, price inflation, loan defaults, loss of investments, losses in the stock exchange and on the value of the Philippine peso.

The joint manifesto asked for a moratorium on the proposed implementation of a P125 across-the-board wage increase, which would prove catastrophic as the wage bill could bloat by P5.9 billion  per year, excluding overtime pay, night differential, among others.

Instead, they suggested the promotion of a dialogue between the business community and the labor sector to discuss a win-win mechanism where productivity and competitiveness can be achieved in order to survive external shocks and intense competition from other countries.

The wage board has still to conduct three more public consultations in Region 7 before conducting a public hearing on December 9.

Yesterday's first of four public hearings bogged down after some sectors that were invited failed to attend due to time constraints, while some of those who attended failed to submit their respective position papers as they were only informed about the consultation just a day before the event.

 Also included in the public consultation was the discussion on the review of the Kasambahay Law, but no kasambahay or domestic helpers attended the consultation.

"This is our problem. We are tasked to review the law and come up with a recommendation but only after public consultation with the kasambahays. Pero kinsa man atong konsultahon nga wala may manunga," lamented RTWPB-7 Chairman and Department of Labor and Employment-7 Regional Director Exequiel Sarcauga.

Sarcauga only hopes that during the public hearing next month, many domestic helpers will appear and to appeal to their employers to allow them to join. (FREEMAN)