Traders push benefits in lieu of wage hike

INSTEAD of a wage increase, Bohol businessmen pushed for benefits like medicines and tax incentives to workers.

The Bohol Chamber of Commerce and Industry (BCCI) made the proposal during a public hearing on the wage hike petition held by the Regional Tripartite Wages and Productivity Board (RTWPB) in Montebello Hotel, Cebu City.

While the Bohol chamber was adamant against the wage increase petition of labor groups, the Cebu Chamber of Commerce and Industry (CCCI) was more diplomatic saying they are not opposing a wage hike.

But like the Bohol chamber, the Cebu business community said granting a wage increase this year is “untimely.”

Labor, business and government were represented in yesterday’s public hearing.

The Alliance of Progressive Labor (APL) filed a P120 wage hike petition last February while the Trade Union of the Philippines petitioned for a 100 wage increase last April.

Central Visayas workers are paid a P285 minimum daily wage and received an additional P18 increase in September last year.

Cebu businessmen said the local market is still recovering from the effects of the 2008 global financial crisis.

Coupled with the drop in regional gross domestic product (GDP), businessmen said a wage increase at this time will force establishments to shut down or lay off workers.

“The proposed across-the-board wage increase would do more harm than good. A salary increase would just be a temporary solution,” the CCCI said.

Other businessmen said not all provinces in Region 7 need a wage hike due to their lower cost of living standards.

Engineer Fortunato Lim of the Bohol Chamber of Commerce and Industry said a wage increase will affect foreign investments in Bohol, which is dependent on its tourism industry.

“With the petition, investors will not come to Bohol or might move to other areas with lower labor cost,” Lim said.

Instead of a wage hike, Lim suggested that productivity-driven benefits like allowances, local and foreign seminars and higher medical coverage should be given.

A wage adjustment would also push down the revenue of export industries that might result to their closure, businessmen argued.

“What would you prefer, lack of income or no income at all?” said Porferio Montesclaros, board secretary of the Mactan Export Processing Zone Chamber of Exporters and Manufacturers (MEPZCEM).

Philexport Cebu, the umbrella organization of exporting industries in Central Visayas, asked for a moratorium on the impending wage increase within six months after implementation of a wage increase.

“If granted, this will surely give the industry a lifeline and limit the number of workers that will be retrenched if global conditions do not improve,” their statement said.

In response, Joy Lim of the Association of Labor Union-TUCP said the business sector should not use the economic recession as an excuse to deprive the laborers of a right salary.

“Just give the workers what is due to them and let’s see the economy. It will grow,” Lim said in an interview.

She said the workers, who comprise the majority of consumers, will buy more due to their increased salaries resulting in profits for the companies.

She said they agreed with the proposal to give additional benefits so long as they are  fairly implemented.

APL president Jo Tumungha said the 2.9-million workers in Central Visayas deserve a wage increase since the economy is “doing well.”

He said the P18 wage increase given by the wage board last September was “meager.”

The wage board is made up of two representatives from the labor sector and two representatives from the management sector.

Also sitting in the board were one representative each from the Department of Labor and Employment (DOLE-7), Department of Trade and Industry (DTI-7) and National Economic Development Authority (NEDA-7)

DOLE-7 Director and board chairman Excequil Sarcauga said the board will meet tomorrow to deliberate on the output of yesterday’s hearing.

“Hopefully, we can already settle this by tomorrow,” he said.

Sarcuaga said  the board would try to resolve the wage hike petition next month. Reporter Candeze R. Mongaya