ILOILO City – The P41.50 increase in the daily minimum wage of workers in non-agriculture, industrial and commercial establishments employing more than 10 personnel has shaken Iloilo businessmen.
The National Wages and Productivity Commission will be reviewing the increase approved by the Regional Tripartite Wages and Productivity Board (RTWPB) of Western Visayas on June 11.
“We are shocked. Indi gid manami tanan ang reaction,” said Iloilo Business Club (IBC) executive director Lea Lara.
The RTWPB should explain how it came up with the increase, she said.
Under Wage Order No. 24, the new daily minimum wage would be P365 in non-agriculture, industrial and commercial establishments with over 10 workers. This is P41.50 higher than the current P323.50 minimum daily wage.
“That amount was way beyond what we were expecting,” said Lara.
On the other hand, the daily minimum wage in the non-agriculture, industrial and commercial establishments employing less than 10 workers is P295 – P23.50 higher than the current P271.50.
“Kabudlay nâ ya. Next year basî mag-entertain naman wage increase, we might not recover again,” warned Lara.
In the agriculture sector, the new minimum daily wage would be P295 both for plantation and non-plantation workers. Currently, the minimum daily wages of plantation and non-plantation workers are P281.50 and P271.50, respectively.
According to Lara, IBC’s position paper submitted to the RTWPB last month sought a wage hike moratorium.
“We believe that the closure of Boracay Island is a supervening event enough to seek a moratorium. Businessmen here are suffering, too, especially those who have dealings with Boracay-based businesses. We had hoped the wage board would consider this, too,” said Lara.
Wage Order No. 24 covers 360,544 business establishments all over Region 6, according to Winnie Sancho, the labor sector representative to the RTWPB.
While businessmen found the new wage adjustment too high, Sancho said it may not satisfy all workers in Region 6 as it is “far below the mandated living wage.”
“Nevertheless, we tried our best to defend the interest of the workers with the issuance of the new wage order,” said Sancho.
The wage hike petition was filed by the Philippine Agricultural, Commercial and Industrial Workers Union – Trade Union Congress of the Philippines. It sought the following increases in the daily wage:
* P150 for workers in businesses with over 10 workers
* P140 for workers in agricultural plantations
* P130 for workers in establishments with less than 10 workers
No businessman could afford those increases, said Lara.
It was only last year when the RTWPB approved a wage, she added.
“We would like to create a very good climate to attract investors,” said Lara.
Two successive wage increases were not the way to do it, she stressed.
Lara also claimed the current P323.50 minimum wage in Western Visayas is already higher than those of other regions./PN
