MANILA – President Gloria Macapagal-Arroyo yesterday, asked private corporations to do more to ease the effects of rising food and fuel prices on their workers.

This came even as the Department of Labor conceded the government could not order a hike in wages by May 1 -- Labor Day -- despite widespread calls for salary increases.

"We encourage and urge big private companies to make available to their employees non-wage benefits like rice, canned goods, shuttle service and other benefits, especially specific sectors which have posted big earnings like the telecommunications sector, and oil companies and others," Arroyo said.

Addressing government workers just outside the capital, Arroyo also thanked the Flour Millers Association for committing to supply bread for the poor, to be sold at cost.

"We are totally sensitive to the fact that a large segment of the Philippine population is price sensitive. We feel deeply for our poorest who... are subjected to pain and setbacks as a result of high fuel and rice prices," she said.

However she denied the government had been unprepared for this situation and said the Philippines had been negotiating with Vietnam and Thailand for rice supplies even before the crisis hit the headlines.

Arroyo said the government was continuing to work with civic groups and the church in making subsidized rice available to the poor while simultaneously cracking down on rice hoarders and price manipulators.

The Philippines, one of the world's largest rice importers, has been struggling to deal with the worldwide increase in food prices which in turn, has fueled calls for a hike in salaries.

Labor undersecretary Romeo Lagman said meanwhile his department was preparing a package of benefits for workers to be unveiled on May 1, that would help make up for the failure to raise wages.

"There is no final list yet, but we are preparing the possible package of benefits which we will present to the president for her approval," Lagman said.

Possible benefits being considered include tax exemptions and deployment of special stores to sell cheap rice and other foodstuffs.*AFP

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