NCR starts new round of wage hike pleas

THE COUNTRY’s biggest labor group has formally asked for a P184 increase in daily minimum wage of private sector workers in the National Capital Region (NCR) — much higher than the P157 it had intended last month — setting off a fresh round of similar applications in the country’s 17 other regions.

The Associated Labor Unions-Trade Union Congress of the Philippines (ALUTUCP) filed the petition yesterday at the Regional Tripartite Wages and Productivity Board-National Capital Region (RTWPB-NCR) office in Malate, Manila.

“Ngayong umaga ay nagtungo kami sa NCR wage board para maghain ng P184 na dagdag sahod para sa Metro Manila ( We went to the NCR wage board this morning to ask for a P184 increase in daily minimum wage for Metro Manila),” Alan A. Tanjusay, spokesperson of the ALU-TUCP, said in an interview after the filing.

In the petition, copies of which were distributed to reporters, the labor group said that the “P184 daily wage increase in NCR is essential if workers are to cope with the increasing cost of living, meet the basic needs of workers and their families, even if only partially, and give meaning and substance to the country’s policy of equitable distribution of income and wealth.”

The ALU-TUCP had said in April that it would seek a P157 wage increase for private sector workers in Metro Manila.

However, Eva. B. Arcos, national vicepresident of ALU, said that her group had to raise its petition since the “purchasing power” of the current P491 wage has dropped to P357.09 from P361 previously.

The Philippine Statistics Authority last May 5 reported latest annual inflation data showing that prices of widely used goods and services, making up the consumer price index (CPI), increased by 3.6% in NCR, or Metro Manila, as of April, faster than the 3.2% nationwide for the same four months.

“Nakapag-prepare na kami dati ng draft petition, ang kaso nung Lunes nagupdate ang NWPC ng figures: ang real wage na ay P357.09 sa dating P361, so in- adjust na namin ( We had already prepared a draft petition, but the National Wages and Productivity Commission updated its figures last Monday: the real wage is now P357.09 from P361 previously, so we adjusted our petition),” Ms. Arcos told reporters.

The proposed P184 wage increase will add to the current daily minimum wage, which in Metro Manila — whose rates set the bar for the country’s 17 other regions — amounts to P454 for agriculture as well as small manufacturing, retail and other service establishments, and to P491 for other non- agriculture businesses, including private hospitals with up to 100-bed capacity.

These rates in Metro Manila took effect on June 2 last year, and the NWPC is constrained by law from making new adjustments within a year of the last wage order in each of the country’s 18 regions.

Mr. Tanjusay said that his group will file wage hike petitions in other regions as well.

“Traditionally, practice naman ng ALU ‘ yan na hindi lang naman sa NCR kami nagfa- file ng wage hike petition kundi na rin sa ibang regions (Traditionally, it has been ALU’s practice to file a wake hike petition not only in the NCR but also in other regions),” he said.

Ms. Arcos said her group has already computed “what is needed by each region in terms of wage increase based on CPI.”

“So from NCR hanggang sa ( up to) Mindanao. Expect that from the NCR, we will file wage increase petition in other regions,” she added, saying that the group will file applications once the prescribed one-year period for a moratorium on floor pay hike lapses per region.

The wage board system is designed to customize daily minimum wage to conditions unique to each of the country’s 18 regions.

Johnson G. Cañete, RTWPBNCR chairman and Department of Labor and Employment regional director for Metro Manila, said in a mobile phone message that he has yet to get a copy of the petition.

But Mr. Cañete said the board cannot consult sectors affected by the wage hike petition until the one-year ban on floor pay adjustments lapses on June 2 for Metro Manila.

“Mag- one year na ‘ yung wage order sa June 2, so prior to that, wala pa tayong pwedeng pag-usapan kahit may petition na na- file (The current wage order for Metro Manila will mark its first year of implementation on June 2, so prior to that we cannot talk about anything even if a petition has been filed,” he said.

Mr. Cañete said inflation rate is a key consideration of the regional wage board, which has representatives from the Department of Trade and Industry (DTI) and National Economic and Development Authority (NEDA).

“We should look at the prices of prime and basic commodities, kaya andyan ang DTI (that is why there is a DTI representative). Andyan din ang NEDA (There is also a NEDA representative) to tell us about inflation in the country. Those are the reasons for granting another round of increase: kung ‘ yung mga (if ) conditions are already ripe for allowing another wage increase,” he said.

Two representatives each from employers and labor groups also sit in the wage board as members. “Since the board is also composed of both labor and management representatives, magbibigay din sila ng insights nila (they will also give insights),” he said.

Sought for comment, Donald G. Dee, president of the Employers’ Confederation of the Philippines that has two officials in the RTWPB-NCR, replied: “As far as we are concerned we will look at the movement of the consumer price index and we will make a recommendation based on that.”

“Obviously, wages in the country are relatively higher than (those of ) our neighbors in the region. For labor-intensive (sectors), mahihirapan tayo (will find it difficult to get investors). That is why we are not attracting investments in that area, and this proposal is really contrary to the objective of the President which is to create jobs,” said Mr. Dee.

Economists have warned that wage hikes more than what is warranted by inflation tend to drive up prices further, in turn increasing pressures to raise floor pay again and risking a repeat of this cycle. The consequent increase in production cost could force many smalland medium-scale enterprises — which make up bulk of the business sector — to shutter.

“What they are doing is counterproductive. What is good in increasing wages if there are no jobs anyway?” Mr. Dee noted.

“The other thing is that we have to understand that, as of the moment, what we should be focusing on is how to reduce the cost of living para maging (in order to be) competitive tayo.”

John D. Forbes, senior adviser of the American Chamber of Commerce of the Philippines, said yesterday that the wage hike petition is a “perennial TUCP request” that could aggravate joblessness if the request were granted.

“If it is ever approved, it will increase unemployment in the Philippines as employers hire less and increase imports from VN ( Vietnam) and other ASEAN competitors where production costs are lower,” he said via text.