WAGE HIKE TO TAKE EFFECT ON AUG. 3

Labor department says it will conduct productivity training for companies

The Department of Labor and Employment (Dole) 7 yesterday said the new minimum wage order by the Regional Tripartite Wages and Productivity Board (RTWPB) will take effect on Aug. 3.

With this, the Department of Labor and Employment (Dole) will conduct productivity incentive training for companies.

Dole 7 Director Alvin Villamor said the increases is P20 pesos for Metro Cebu and P15 and P10, respectively for the areas, outside Metro Cebu.

He said it was a “consensus” and not a form of “voting” to come up with the new wage order considering that there are two labor representatives and one management representative in RTWPB 7. On the side of the government, the other LTFRB 7 members are the Department of Trade and Industry (DTI) director and the National Economic and Development Authority (NEDA) 7 director. Villamor is the chairman.

When asked to comment, Cebu Chamber of Commerce (CCCI) President Antonio Chiu said they have to accept the decision even though the increase is too high.

“The large sector is already paying above the minimum wage. But most of the industries are medium and small of which they will be affected by any increase in salary,” Chiu said.

He said the position of the CCCI Board was P15 increase. But they cannot anymore suggest it because LTFRB 7 already approved it.

“CCCI is composed of different industries and mostly within the level of Small and Medium Enterprises (SMEs). The big industries has no problem. But the retail and handicraft, among others or the small businesses are affected,” Chiu said.

He said that in helping the economy to grow, SMEs deserve by us and the government.

For his part, businessman Stanley Go, the president of the Mandaue Chamber of Commerce and Industry (MCCI), said they respect the decision of the wage board.

“It is important that through the wage board, there has been discussion on what is sustainable for both labor and business. The dialogue led towards what is deemed fair given the current inflation and what is sustainable for business. We now need to focus on labor productivity for business to be competitive globally,” Go said.

Villamor, said they want to help the companies through theircampaign.