Two chambers of commerce and three sugar planters groups in Negros Occidental yesterday rejected the call of labor for a new wage increase citing an expected slump in sugar prices because of a supply overhang brought on by smuggling.

The management groups aired their positions at a Regional Tripartite Wages and Productivity Board hearing held in Bacolod City yesterday on a petition filed by the Trade Union Congress of the Philippines for a daily wage increase of P75 in Western Visayas. Negros Occidental Gov. Joseph Marañon said that, in the absence of an order for a wage increase, he is appealing to the business sector to give increases on their own, according to what they can afford.

Peace and harmony can only be attained if there are good relations between the workers and their employers, he said.

Meanwhile, he also said, the national government, through the task force it created, should put a stop to all smuggling.

The Metro Bacolod Chamber of Commerce and Industry, Bacolod-Filipino-Chinese Chamber of Commerce and Industry, Confederation of Sugar Producers, United Sugar Producers Federation of the Philippines, and the National Federation of Sugarcane Planters said they are opposed to any wage increase at this time.

MBCCI president Roberto Montelibano and BFCCCI president James Chua, in a letter to the RTWPB, said that, in consultation with their members, their joint position is that "the business sector cannot afford any wage increase at the present time."

They said, "The wage increase last year was due to the marked increase in the prices of oil of previous years. Therefore, it should not be used this year as a reason for another round of wage increases as there has been no marked increase in the price this year as compared to last year".

DROP IN SUGAR PRICES

They also said they are in agreement with CONFED in rejecting any increase in the minimum wage now, due to the depressed sugar prices this crop year.

"The composite price of sugar this year is lower than that of last year. There is also an oversupply due to over production and smuggling. It is expected that the price of sugar in crop year 2007-2008 will also be depressed due to oversupply," they said.

"As sugar is our main industry in the region, the business community is adversely affected by the market situation," they added.

Montelibano and Chua urged the board to shift its emphasis to productivity based wage increases.

Alfred Reyes of UNIFED, Joseph Ledesma of CONFED and Enrique Rojas of NFSP said they are against to a wage hike now because of an expected slump in sugar prices this crop year caused by smuggling.

We expect prices of sugar to be below P1,000 for a 50-kilo bag of sugar, Rojas said.

LABOR OPPOSING

Wennie Sancho, labor representative on the RTWPB, said he will vehemently oppose the denial of any wage hike at this time, saying it is direly needed by labor. It is imperative that a wage increase is granted to provide immediate relief to the worsening economic condition of the workers, he said.

Economic depression has always been the defense of management in refusing to grant wage increases, he said.

But since when has labor enjoyed economic abundance, he asked. "The truth of the matter is that it is the workers who are getting the brunt of economic depression," he said.

OTHER AREAS GIVING

Unlike in Negros, he said the Iloilo Business Club, Iloilo Multi-Sectoral Business Organization and the Federation of Filipino Chinese Chamber of Commerce of Panay have offered a wage increase of P15. And in Kalibo, Aklan, about 17 of 37 management representatives offered an increase of P22 to 30 a day, he added.

There is no truth to the allegation that there will be massive closures of establishments if a wage hike is granted, he said, because Republic Act 6727 has provided a mechanism for exemption of businesses that cannot afford to pay additional wages.

The RTWPB in Western Visayas has issued 14 wage orders and it is a fact that no massive closures and retrenchments took place, he said.

"The labor sector is determined to get another wage increase despite the opposition of management," Sancho said.

RTWPB SLAMMED

Meanwhile, the National Federation of Sugar Workers and National Federation of Labor Unions-Kilusang Mayor UNO continue to push for a P125 wage increase but have not filed a petition before the RTWPB.

"The RTWPB has done nothing to improve the lot of the working people. It had only bared itself as nothing less than an apologist of the employers and a promoter and defender of cheap and docile Filipino labor," they said in their joint statement.

Labor Regional Director Crispin Dannug said the wage hike hearing in Bacolod was the last in Western Visayas after which the RTWPB will convene to discuss action to be taken.

The RTWPB hearing in Bacolod was presided over by Trade and Industry Regional Director Dominic Abad and joined by labor representatives Sancho and Hernani Braza, with John Peter Milan and Luis Estrella for management.*CPG

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