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BY GLENDA SOLOGASTOA
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Tuesday, March 14, 2017
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ILOILO City – Business leaders in Western Visayas are appealing for a reduced minimum wage raise among workers.
They urged the Regional Tripartite Wages and Productivity Board (RTWPB) to seriously consider adopting a P12 wage increase.
“The business sector in Western Visayas is reeling and still in shock over the new Wage Order No. RBVI-23 released last March 2, 2017,” they wrote the RTWPB on March 8.
The new wage order raised the minimum pay in the nonagricultural/industrial/commercial sector in Region 6 and Negros Occidental by P25 for those in companies with more than 10 employees and P15 for those in companies with less than 10 employees.
Western Visayas does not have big industries, and yet it is one of the top six regions with the highest wages, the business leaders said.
Other reasons they cited in seeking a lower wage hike are: (1) On average, inflation rate was 1.4 percent in 2015 and 1.8 percent in 2016; (2) Region 6 has the most number of wage increases in the country; (3) the increase will have serious implication on skills and productivity; (4) growth and investments will be stunted.
They also claimed that “scientific studies” have identified the following as direct and indirect effects of increased minimum wage:
* increasing the likelihood and prolonged duration of unemployment for low-wage workers, particularly during economic downturns
* encouraging employers to cut worker training
* increasing job turnover
* discouraging part-time work and reducing school attendance
* driving workers into uncovered jobs, thus reducing wages in those sectors
* encouraging employers to cut back on fringe benefits
* encouraging employers to install labor-saving devices
* increasing teenage crime rates as a result of higher unemployment
* encouraging employers to hire illegal aliens
With the high wage hike, “we lose sight of our vision to have strong and independent regional economy where people have jobs,” they said.
The RTWPB may mean well, but the workers who will be out of jobs will be “robbed” of the chance to improve lives; the businesses, to serve customers and provide quality products and services; and the investors, to invest in the region, they said.
Signatories include Iloilo Business Club, Inc. chairman Juan Jose Jamora III; Philippine Chamber of Commerce and Industry, Inc. president Donna Rose Ratilla; Iloilo Multi-Sectoral Business Org. president Fanny Uy; Federation of Filipino-Chinese Chamber of Commerce of Panay, Inc. president Ramon Cua Locsin;
Philippine Retailers Association – Iloilo president Francis Chung; Iloilo Hotels, Restaurants and Resorts Association president Happy Abenir; Panay Organic Producers Association president Dawn Jamandre; Ilonggo Producers Association president Valerie Maravilla; and Chamber of Real Estate Builders Association – Iloilo Chapter president Herminio Maravilla.
Iloilo Business Club executive director Lea Lara disclosed they are already considering a second appeal.
“We might move for two years nga i-break sia: P12.50 now, P12.50 next year para ma-[lessen] ang impact niya,” Lara said.
She also revealed they are looking to nominate a management representative from Panay Island.
“Right now ang management representation naton is from Negros,” said Lara. “We respect it…but the real situation sang aton economy basi indi nila ma-convey sa discussion kon ngaa amo na ang aton rate.”/PN
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