Eastern Visayas, Davao boards raise wages

REPORT FROM BUSINESSWORLD Tacloban/Davao -- The Regional Tripartite Wages and Productivity Boards (RTWPB) in the Eastern Visayas and Davao regions have issued new wage orders, with Eastern Visayas increasing the daily minimum wage to a high of P206 from the current high of P188, plus a cost of living allowance (COLA) of P14; and Davao Region adjusting the minimum wage to as much as P224 from the current high of P209, and a COLA of P16. REGION VIII The Eastern Visayas RTWPB issued Wage Order No. 13 last Monday, incorporating the P18 COLA into the prevailing rates and adding a P14 COLA. Hence, a selection of industries with new totals, with COLA, include: -P220 for non-agriculture workers from the prevailing 206; -P198 for cottage/handicraft workers from the current range of P182 to P184; -P201 for the agriculture (non-sugar) workers from the current range of P182 to 187; -P222 for sugar mill workers, from the current P208; -P195 for sugar plantation workers from the current P176 to 181; and -P180 for sugar non-plantation workers, from the current P166.50. Forter Puguon, Department of Labor and Employment (DoLE) regional director and RTWPB chairman, said his office will find ways to cushion the impact of the new wage rates on businesses. "While we provided ease to the demand of the minimum wage earners in Eastern Visayas for a wage increase, we will also implement programs that would not cripple the business sector here, but instead encourage a more business-friendly environment," Mr. Puguon told reporters in a press conference. "We should address the productivity issue because Eastern Visayas is among the regions with the lowest productivity level in the country today," he added, saying the Leyte Chamber of Commerce and Industry agreed to work closely with the wage board and DoLE on programs to promote productivity among the workers. Mr. Puguon said they have simplified the wage structure by deleting several sub-categories in the agricultural and non-agricultural industries. "To make it easier for us to implement and to make it easier for the business sector to follow, we simplified the wage structure in the region from 20 minimum wage rates to eight minimum wage rates. This is one resolution that we approved in the new wage order," he said. Mr. Puguon said they were still waiting for the formal transmittal of the new wage order from the central office. The order will take effect 15 days after publication. REGION XI In Davao City, DoLE regional director Gloria Tango, chairman of the wage board, said the new wage order in Davao Region, which takes effect on July 27, incorporates the previous P15 COLA into the minimum wage while adding another P16. Under this new wage order, all employees will receive P16 in COLA in addition to the daily minimum wage, whose rates vary according to sector, and whether one is in a city or outside it. In the cities within the region, namely, Davao, Tagum, Digos and Panabo, as well as Samal island, the minimum wage will be: -P224 daily for those working in the non-agricultural sector, ’ from the current P209; -P214 for workers in agricultural plantations that are at least 24 hectares or employ at least 20 workers, from the current P199; -P193 for non-plantation workers, from the current 178; -P224 for those in retail and services with more than 10 workers, from the current P209; and -P193 for employees in retail and services establishment with no more than 10 workers, from the current P178. For employees outside the cities, in the rest of the provinces of Davao del Norte, Davao del Sur, Davao Oriental and Compostela Valley, the new minimum wage rates will be P2 less than what was granted to workers in the cities. Currently, these rates (exclusive of P15 COLA) outside the cities are: P207 for non-agriculture workers, as well as for those in retail or services employing no more than 10 workers; P197 for agriculture workers in plantations measuring more than 24 has. or employing at least 20 workers; and P176 for non-plantation workers and for those in retail or services employing no more than 10 workers. However, representatives of the labor sector in the wage board said the P16 COLA is "very small." Virginia Camus, one of the representatives of the labor sector to the wage board, said the situation was lamentable because the minimum wage is not even half of the ideal living daily wage of P623 of a family of six. Ms. Camus argued that the minimum wage is not calculated to cover house rent, bills on water and power, or tuition fees. Although she said it is almost impossible for companies to pay the ideal living wage, Ms. Camus said it would have been better had the wage board come up with "a reasonable amount" for the wage adjustment. She pointed out that had inflation been considered, the daily increase in the minimum wage would have reached P19. Jorge Alegarbes, national vice-president of the Trade Union Congress of the Philippines and another labor representative to the wage board, said it would have been better had the wage board added more to the minimum wage -- which is the basis of computing overtime and 13ths-month pays, instead of providing a COLA. However, representatives of management in the wage board said the new wage order was acceptable. "They [wage board] heard the plea of the business that the adjustment be on COLA," said Bienvenido Cariaga, president of the Davao City Chamber of Commerce and Industry, pointing out that even Manila and other highly urbanized areas cannot afford the so-called ideal living wage. Mr. Cariaga said that had the wage board raised the minimum wage to a level higher than its latest order, then it might trigger closure of small and medium enterprises, which are less equipped to provide added wages and which comprise the bulk of businesses. -- L. L. Pagliawan in Tacloban City and C. Q. Francisco in Davao City/BusinessWorld