Despite rising prices of rice and other basic commodities, employers in Western Visayas are amenable only to granting non-wage benefits and not the P50 to P125 increase in minimum daily wages being demanded by workers.

Most of the employers in the region voiced this position during the four public consultations of the Regional Tripartite Wage and Productivity Board held in Antique, Capiz, Aklan and Iloilo.

“Some employers are willing to grant an increase in the daily minimum wage but majority said they could only afford non-wage benefits,” Department of Labor and Employment regional director, Aida Estabillo, who also chairs the RTWPB, said.

Estabillo said the employers are eyeing the granting of benefits and assistance like housing or an increase in the cost of living allowance.

The RTWPB will hold another consultation in Bacolod City today, 9:30 a.m., at the Business Inn.  

However, the Metro Bacolod Chamber of Commerce and Industry already declared yesterday that they are only amenable to an additional P10 in the Cost of Living Allowance.

“We propose not more than P10 (increase) in COLA,” MBCCI president Roberto Montelibano said.

He said that, previously, the RTWPB had considered a higher amount but the inflation rate in Western Visayas of five to six percent can justify only a P10 increase.

The RTWPB had earlier passed a resolution that there is a supervening condition justifying and increase in the minimum wage of workers in the private sector, citing the increase of rice and basic commodities.

Labor groups under the National Congress of Unions in the Sugar Industry of the Philippines-Trade Union Congress of the Philippines filed a petition for a P50 across-the-board increase in the minimum wage in the region on April 2. Another labor group, the Wage Increase Solidarity-Negros filed a separate petition on May 2 asking for a P125-increase in the minimum daily wage.

Wennie Sancho, labor representative to the RTWPB, said the existing conditions are “more than enough reasons to raise the minimum wages in the region.”

He said non-wage benefits will not be included in the computation of the basic salary of employees and in the granting of benefits like retirement pay. The implementation of non-wage benefits are also “difficult to monitor,” according to Sancho.

Sancho said the current wage level is way below the P582 per day family living wage, the minimum daily income needed by a family of six to be able to meet their minimum daily needs.

But in the wage board's consultation held in Iloilo City yesterday, employers groups called for more time until a new wage increase order will be implemented. They said last year's wage increase order, which raised the daily minimum wage in the region to P235 has not been fully implemented.

Employers also called for the abolition of the value-added tax and the reduction of income taxes.

Jun Borres of the Panay Fishing Boat Association said VAT is “the monster that causes inflation.” He said any increase in wages “will only be swallowed by taxation”.

Francis Chu of the local chapter of Philippine Retailers Association said VAT is taking a heavy toll on retailers.

Militant labor groups, who did not attend the consultation, said they have long given up on the regional wage boards implementing a substantial increase in wages.

The Kilusang Mayo Uno in Panay called for the abolition of the board and the legislation of a P125 across-the-board increase in the daily minimum wages.

“At most, the wage boards can only give us crumbs while we wallow in hunger and poverty,” Wennie Dubliso, spokersperson of the KMU in Panay, said.

“It’s a given that the employers will not agree to a P50 wage hike.  We are already expecting that RTWPB will approve a P15 wage hike,” Ben Solilapsi, national secretary general of Lumaya Ka, said.

Solilapsi said that, for this reason, their group supports other means to help workers cope with the economic difficulties such as non-wage benefits like tax exemption,  subsidy for SSS and GSIS payment, rice subsidy, and profit sharing.*NPB/NLG

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