Wednesday, May 14, 2008 N. Mindanao wage hike to be announced today By Mark D. Francisco Business Editor
TODAY, the Regional Tripartite Wages and Productivity Board (RTWPB) in Northern Mindanao is expected to issue Wage Order No. 14 in the form of a temporary emergency living allowance.
On Tuesday, various management lobbying groups made a last ditch effort to stop the issuance of a P100-wage increase during the public hearing held for the matter.
This, even as RTWPB Northern Mindanao chair and concurrent Department of Labor and Employment (Dole) director Alan Macaraya already brought with him a draft copy of Wage Order No. 14 leaving the amount of the increase and the signatures of the seven-person board blank.
At least six employers groups - the Cagayan de Oro Chamber of Commerce and Industry Foundation, Inc. (Oro Chamber), Cagayan de Oro Chamber of Industries (composed mostly from the manufacturing sector), Cagayan de Oro Hotels and Restaurants Association (Cohara), Ozamiz City Chamber of Commerce and Industry Foundation, Inc., Ozamiz-Filipino Chinese Chamber of Commerce and Philippine Contractors Association - signified their opposition to a P100-wage increase asked for by the Associated Labor Union - Trade Union Congress of the Philippines (ALU-TUCP).
For its part, the Philippine Contractors Association threatened to automatically increase the rate of existing live construction contracts if a wage hike is pushed through.
"We respectfully pray that RTWPB include a clause that all live construction contracts in the Philippines be deemed automatically adjusted as to its direct and indirect labor costs components," the Philippine Contractors Association stated in their position paper.
Meanwhile, the Oro Chamber stated in their paper that its members could only grant up to a maximum of P11 wage hike to be integrated into the cost of living allowance (Cola).
This sharply runs counter to the proposal of the Rural Transit of Mindanao Employees Union for the current Cola of P26 to be integrated to the basic minimum wage of P244 per day on top of another Cola of P20 that they have asked.
To subsidize the demand of the labor sector, the Oro Chamber is proposing instead for the government to establish what it calls as a "commodity cooperative for rice" to serve as a safety net for undue price increases of the staple.
On the other hand, Cohara headed by Dynasty Court Hotel owner Nelia Lee was firm in its position for a no new wage increase, saying that the industry with 24-hour shifts could not afford it.
Lee claimed that the employees of hotel and restaurants in Cagayan de Oro City are already receiving various perks such as free meals and tips from patrons.
Lee also said their hands are tied because the industry is experiencing a surge in the direct cost of food, beverage and supplies. Sun.Star Cagayan de Oro ran a more detailed story on this issue last month.
Like their Oro Chamber counterpart, the Cagayan de Oro Chamber of Industries stated that it could only afford to pay an increase of P10 daily wage.
The Ozamiz City Chamber of Commerce and Industry Foundation, Inc. and Ozamiz Filipino-Chinese Chamber of Commerce argued along similar lines.
Macaraya was already keen on issuing the wage order Tuesday but the other members of the board recommended that they have a lengthier closed-door discussion on the matter this afternoon.
The wage increase is expected to be announced at 5 p.m. immediately after the RTWPB meeting.
