Exporters want wage hike order exemption

CEBU CITY—The export sector here wants to be exempted from the recent wage order that grants a P22-adjustment on minimum wages on private sector workers in Central Visayas.

Allan Suarez, chairman of PhilExport-Cebu, pointed out that the export sector was still reeling from the effects of the global economic crisis.

Aside from this, he added the exporters also had to deal with a strong peso against the dollar.

Suarez said that since they expected the next two years to be challenging to the export sector, it would be better if the minimum wage remained at the present rate.

He said the PhilExport chapter in Cebu would meet to discuss and plan their next move in the wake of the recent minimum wage adjustment.

While the wage increase is not across the board, the workers receiving more than the minimum wage should also receive a raise to avoid wage distortion, he added.

At present, the minimum wage for Metro Cebu workers are pegged at P305 a day. The present minimum wage in other areas depending on their classification range from P240 (for nonsugar agriculture workers in Class D areas) to P285 (for nonagriculture workers for Class B areas).

But once the new wage order takes effect, the minimum wage in Metro Cebu will go up to P327.

Wage distortion

Ma. Gloria Tango, Department of Labor and Employment in Central Visayas director who also chairs the wage board, said the increase would apply only to minimum wage earners in all classes in the Central Visayas, meaning those who are receiving P305 or below would get the additional pay.

The companies with employees receiving a little over P305 were required to implement the increase to avoid wage distortion, she added.

Tango said the Regional Tripartite Wages and Productivity Board in Central Visayas may allow exemption to companies that are either in distress, newly established or are in the retail and service establishment employing not more than 10 employees.

But she added it was no longer feasible at this time to give an exemption to a certain sector because they had already finalized Wage Order No. 17.

But an individual establishment from any sector could file a petition for exemption but should provide proof that their company was in financial straits.

Robert Go, Visayas director of the Supermarket Association in the Philippines, said the adjustment would be an additional burden to businessmen especially those engaged in small and medium businesses.

“Although it is difficult, we accept what is being approved by the wage board,” he said.