ILOILO City – Transport cooperatives in Western Visayas are seeking temporary exemption from the newly approved P40 to P45 daily minimum wage increase, warning that additional labor costs could push financially distressed operators deeper into losses amid soaring fuel prices and mounting loan obligations.
Western Visayas Transport Cooperative (WVTC) president Raymundo “Boyet” Parcon described the wage adjustment as ill-timed, saying transport operators are already struggling to sustain daily operations because of rising diesel prices aggravated by the Middle East crisis.
“Tama ka untimely kay subong sige pa ang saka sang diesel, nagakapierdihan kami,” Parcon told Panay News.
Parcon said the cooperative would convene its board this Tuesday, October 27, to discuss the preparation of a position paper or petition requesting the Regional Tripartite Wages and Productivity Board (RTWPB) to temporarily exempt transport cooperatives and corporations from the implementation of Wage Order No. RBVI-30.
The proposed exemption would provide financially struggling transport operators breathing room to recover from losses before absorbing additional payroll expenses, said Parcon.
The financial burden would be particularly heavy for WVTC, which employs 380 personnel, including drivers, passenger assistance officers (PAOs), office employees, and workers assigned to motor pools and terminals, said Parcon.
The cooperative’s daily operating expenses have nearly matched its revenues, she claimed, with fuel consumption reaching 35 to 40 liters, costing approximately P4,000 daily, on top of salaries and other personnel expenses.
Parcon said the cooperative had already slipped into negative earnings, a sharp reversal from previous months when operations remained profitable.
“Nagapatas-patas lang kami sang amon kita ikumparar sang nagligad nga binulan nga wala sang crisis nga may ara pa kami income. Pero sa subong negative gid kami. Amo na gani nga ang benefits sang gobyerno nga ginhatag sa amon ginbayad namon sa mga SSS (Social Security System) kag other benefits sang aton drivers and conductor para magamit nila for emergency nila nga kinahanglanon,” Parcon said.
Compounding the cooperative’s financial difficulties are outstanding bank amortizations for its 95 modernized public utility vehicles.
Parcon disclosed that WVTC continues to struggle with its monthly loan payments after suffering losses of approximately P100,000 daily between February and April this year, when diesel prices reportedly reached P150 per liter.
The substantial operating losses during that period prevented the cooperative from meeting its monthly bank obligations, he said.
With another increase in labor expenses looming, Parcon expressed concern that transport cooperatives could face even greater financial pressure unless temporary relief is granted.
He urged other transport cooperatives and corporations across Western Visayas to submit similar position papers to the regional wage board, seeking exemption until their operations recover from the financial impact of elevated fuel prices.
The appeal comes as the government moves toward implementing the latest minimum wage adjustment intended to help workers cope with the rising cost of living.
The RTWPB transmitted Wage Order No. RBVI-30 to the National Wages and Productivity Commission (NWPC) on October 21 for review and reaffirmation.
Department of Labor and Employment (DOLE) Region 6 director Atty. Sixto Rodriguez Jr., who chairs the regional wage board, confirmed the submission.
Following the required approval and publication process, the new wage order will take effect 15 days after publication.
Under the approved adjustment, the daily minimum wage for workers in non-agricultural establishments employing more than 10 workers will increase by P40, from P550 to P590.
Employees of non-agricultural establishments with fewer than 10 workers will likewise receive a P40 increase, raising their daily minimum wage from P525 to P565.
Agricultural workers, meanwhile, will receive a P45 daily increase, bringing their minimum wage from P520 to P565.
The adjustments represent increases of approximately 7.3 percent for employees of larger non-agricultural establishments, 7.6 percent for those in smaller establishments, and 8.7 percent for agricultural workers.
While the wage increase is intended to provide relief to minimum wage earners amid persistent inflationary pressures, transport cooperatives maintain that their deteriorating financial condition makes the timing particularly difficult.
The transport groups’ planned petition now places the regional wage board before competing concerns: improving workers’’ purchasing power while addressing the financial capacity of transport operators already burdened by rising fuel expenses and loan repayments./PN
