BACOLOD City – The Metro Bacolod Chamber of Commerce and Industry (MBCCI) requested the Department of Labor and Employment (DOLE) to establish a “one-stop-shop” or fast lane for businesses seeking exemption from the recently approved wage increase order.
Starting November 17, private establishments in Western Visayas are required to follow Wage Order No. RBVI-38, setting new minimum daily wage rates for workers.
Under the order, non-agriculture, industrial, and commercial sectors employing more than 10 workers must raise daily wages from P480 to P513, reflecting a P33 increase.
For businesses with 10 or fewer employees, wages will rise from P450 to P485, an increase of P35.
The agriculture sector will also see an increase, with daily wages moving from P440 to P480.
Frank Carbon, MBCCI chief executive officer, announced that the organization is working to obtain DOLE’s exemption guidelines and has encouraged the Local Investment and Economic Development Information and Promotion Office (LIEDIPO) to assist financially distressed businesses in applying for exemptions.
Carbon emphasized the need for a “fast lane” to expedite these applications, potentially in coordination with the Anti-Red Tape Authority (ARTA) to ensure efficiency.
In explaining the exemption process, Carbon noted that distressed companies could seek relief from DOLE if the wage increase threatens their financial stability.
He also highlighted three primary factors critical in setting the minimum wage: the region’s dominant industry and its economic condition, businesses’ wage-paying capacity, and a comparative analysis of wage rates with other Visayan regions.
Carbon underscored the sugar industry’s current challenges due to the recent El Niño phenomenon, suggesting that the P40 increase in agricultural wages did not consider the industry’s ongoing recovery efforts, which may not see improvement until 2026. He warned that such increases could further delay recovery.
Region 6’s minimum wage for the non-agricultural sector is currently P513, higher than Region 7’s P501. While this P12 difference might seem minor, Carbon argued that businesses with larger workforces would face significantly higher labor costs, impacting profitability and market competitiveness.
With inflation rates in Region 6 among the highest in the country, Carbon expressed concern that the wage hike could worsen inflation and potentially lead to food insecurity. He further warned that increased labor costs could disincentivize businesses from hiring additional workers, affecting the overall regional economy./PN