DOLE defends P22 COLA amid criticisms from workers, employers

Amid criticisms from both workers and employers, the Department of Labor and Employment (DOLE) on Tuesday defended its decision to grant a P22 cost-of-living allowance (COLA) to minimum-wage workers in Metro Manila. DOLE Secretary Rosalinda Baldoz also said the P22 COLA will be implemented 15 days after it is published even though people may still file protests against it. "Meron pang apela sa National Wages and Productivity Commission pero di mahihinto ang effectivity niyan kahit magapela," she said. "Yung P22 mas closer sa sinabi ng Bangko Sentral ng Pilipinas na hindi magiging inflationary, hindi mag-exceed ng P25 ang ibibigay," Baldoz said in an interview on dzBB radio. "Base rin yan sa inflation restoration ng what has been eroded especially sa increase noong July 2010," Baldoz added. Representatives of both employers and workers expressed "dissatisfaction" over the move. However, Baldoz said with the P22 COLA, the minimum-wage workers' daily salaries will go up from P404 to P426. On the other hand, she said the P22 hike was in a COLA and not in the minimum wage to shield employers from "implications" in employees' benefits. Baldoz said there will be a "multiplier effects" if the P22 is added to the minimum wage because it will affect overtime, differential, and 13th-month pay. She added that the additional COLA would also affect premiums for Social Security System, Pag-IBIG, PhilHealth (health insurance), and employee compensation benefits. Employers: Additional COLA a heavy burden The Employers Confederation of the Philippines (ECOP) said the P22 is a heavy burden to bear. "Mabigat yan pero moot and academic. Those who can afford, we comply. Those who cannot afford, we ask exemption," ECOP president Edgardo Lacson said in an interview on dzXL radio. Lacson warned that the move may force some businesses to join the underground economy and not register their businesses anymore. "Doon sasama ang ekonomiya dahil nawawala ang tax base," he said. Militants condemn COLA Meanwhile, the militant Kilusang Mayo Uno (KMU) said the P22 COLA was outrageous. "Hindi na ito nakakagulat, pero nakakagalit pa rin," it said in a statement. The KMU said the P22 COLA is a far cry from the P125 across-the-board daily wage hike it has been seeking for workers. "Malinaw na patunay ito na tuta ang rehimeng Aquino ng malalaking kapitalistang lokal at dayuhan. Malinaw na puro pakitang-tao, pantawid at pa-pogi lang ang kaya nitong gawin – hindi ang magpatupad ng maka-manggagawang reporma," it said. The KMU also said the P22 COLA also shows the regional wage board is a "capitalist instrument." It warned of more protests to demand a substantial wage adjustment. "Nagsisimula pa lamang kami. Sa mga susunod na araw, linggo at buwan, tuluy-tuloy kaming maglulunsad ng mga kilos-protesta para igiit sa rehimeng Aquino ang makabuluhang dagdag-sahod," it said. - VVP, GMA News