WV WAGE INCREASE ILL-TIMED – BIZMEN
Group warns of layoffs, business shutdowns
ILOILO City – The Iloilo Business Club ( IBC) accused the Regional Tripartite Wages and Productivity Board ( RTWPB) of ignoring economic r ealities when the latter ordered an increase in the daily minimum wage of workers in Western Visayas.
“The IBC strongly objects to the recently approved minimum wage hike for Region 6, which would impose an increase of P55 to P110 on top of the current rates,” the group said in a statement released by its executive director, Atty. Eunice Guadalope.
This increase by 13.92% to 35%, according to IBC, is not only “very ill-timed” but also “blatantly
disregards the economic realities being faced by the business community in the province and city of Iloilo.”
Local businesses are just starting to recover from the adverse economic effects of the coronavirus pandemic, it pointed out.
IBC also described as “alarming” the increase of P95 for the minimum wage of agricultural workers, which meant an increase by 30% from the current rate.
“This might derail the economic recovery of Region 6, which will ultimately hurt all of us, from the employers to the employees and the public,” warned the business club.
It pointed out that most of the businesses in Iloilo City and province are micro, small and medium enterprises, and “they will be severely hit.”
“By imposing the P110 ( wage) increase on private establishments with 10 or less workers, they may be forced to suspend operations, lay off their workers or even shut down their doors because it would be too much for them,” according to the IBC.
The approved minimum wage hike for the region is even higher than the National Capital Region’s, which only imposed an increase of P33, it noted.
“The IBC calls on the RTWPB to take a second look at the financial realities of the region and to reconsider the impact their decision would bring on the economy of Region 6,” the group said.
Wage Order No. RBVI-26 set the following rates:
For Non-agricultural/ Industrial/Commercial
a. those employing more than 10 workers – from P395 minimum wage per day to P450 minimum wage per day (P55 increase)
b. those employing 10 workers or less – from P310 minimum wage per day to P420 minimum wage per day (P110 increase)
For Agricultural
a. P410 minimum wage per day from P315 minimum (P95 increase)
Iloilo City’s Mayor Jerry Treñas acknowledged the sentiments of the IBC and other groups in the business sector.
“Kon gusto nila, they can always meet me. I am ready to sit down with them,” said
Treñas.
He said he understands the concerns of the business community especially at this time when businesses are just starting to recover from other two years of pandemici nduced l ockdowns and restrictions.
The other day in Bacolod, the Metro Bacolod Chamber of Commerce and Industry (MBCCI) voiced disapproval, too, to the wage order.
MBCCI chief executive officer Frank Carbon said he felt he was going to faint after hearing the increases.
MBCCI will be asking the RTWPB to recall the wage order, which has already been submitted to the National Wages and Productivity Commission for review.
Carbon said his group would also be pressing for more deliberations at the RTWPB and even seek a Temporary Restraining Order from the court against the wage hike order.
Carbon clarified t hat MBCCI is concerned with the plight of employees. However, he said, RTWPB should also consider the f i n a n c i a l c a p a c i t y o f employers in this time of coronavirus pandemic./