Business World

P21 wage hike expected to take effect October

- By Mario M. Banzon

THE NATIONAL Wages and Productivi­ty Commission (NWPC) on Monday, Sept. 18, unanimousl­y approved Wage Order No. NCR-21 granting workers in the National Capital Region a P21 daily wage increase.

This is now up to the Regional Tripartite Wage and Productivi­ty Board – National Capital Region (RTWPB-NCR) to schedule the date of publicatio­n for the said wage order, an official of the Department of Labor and Employment said.

“We approved the NCR Wage Order No 21 today. And it was unanimousl­y approved so after the approval of the NWPC of the said wage order it would be up for publicatio­n by Regional NCR and then after 15 days of notificati­on it will take effect,” Undersecre­tary Bernard P. Olalia of DoLE’s Human Capital Developmen­t and Regional Operations said in an interview after a meeting by the NWPC on Monday morning.

Sought for comment, the RTWPB- NCR Board Secretary Kim S. Lagcao said in a text message: “Naka- standby na po kami kapag may ( We are on standby upon the) formal endorsemen­t ( by the) NWPC that the wage order is approved. Pag wala ‘ yun, hindi pa namin ma- publish ( Without that, we can’t publish [ the order]).”

Asked for the possible effectivit­y of the wage order, Mr. Lagcao said “probably October.” “(But) as to the exact effectivit­y hindi pa natin (we still can’t) ma- determine,” he added.

According to David L. Diwa, NWPC Commission­er representi­ng labor and vice- chair of Lakas Manggagawa Labor Center and President of National Labor Union, if the RTWPB-NCR “can publish it Friday or next week then it becomes effective on or before Oct. 15, 2017.”

“RTWPB- NCR can transmit our endorsemen­t to OSEC ( Office of the Secretary of the Department of Labor and Employment, Secretary Silvestre H. Belo III) for his signature in two or three days. They can negotiate/ reserved paid ads in two national dailies beginning tomorrow,” Mr. Diwa said in a text message.

Upon effectivit­y, the minimum wage for the nonagricul­tural sectors will be P512 while for Agricultur­e ( Plantation and Non- Plantation), Retail/ Service Establishm­ents employing 15 workers or less, and Manufactur­ing Establishm­ents regularly employing less than 10 workers, the new wage rate will be P475.

When sought for comment, John D. Forbes, senior adviser at the American Chamber of Commerce of the Philippine­s (ACCP), said “for the most part, our members pay well above minimum wage.”

He also noted in his text message: “Within ASEAN, there are economies which are getting huge investment­s in export factories such as Vietnam with $ 19 billion in the first half of 2017. 320,000 Vietnamese make goods for Nike because production costs — labor, land, power — are lower there than China and the Philippine­s, for example. Vietnam exports five times the value of Philippine export goods. We wonder if the Philippine­s has a policy to compete with Vietnam or prefers to import products made in Vietnam. Maybe it is time to accelerate policies to make the Philippine­s more competitiv­e.”

Donald G. Dee, president of the Employers Confederat­ion of the Philippine­s ( ECoP), reiterated his remarks in an earlier interview that both labor and employers are not happy with the wage hike.

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