The wage public hearing recently held here tackled issues on employee productivity apart from the positions of various groups on the proposed across-the-board increase in the minimum pay of private sector workers in Central Visayas.
Representatives of sub-sectors under the employment sector in Negros Oriental and Siqujor moved for the status quo implementation of the minimum wage for employees in private companies in the region and raised productivity concerns before members of the Regional Tripartite Wage and Productivity Board (RTWB-7) which conducted the activity on Sept. 17, 2019, at Bethel Guest House.
This is the first public hearing held by RTWPB-7 in relation to the petition of Cebu Labor Coalition (CELAC) and other labor groups in Cebu to adjust the minimum wage of private employees to P341.75.
Philippine Chamber of Commerce and Industry (PCCI) Regional Governor for Central Visayas and former Negros Oriental Chamber of Commerce (NOCCI) President Ed Du reiterated the chamber’s opposition to the proposal, pointing out that there is no guarantee of the proportional increase in productivity when there is a wage increase.
To this, Du said there should be more discussions on enhancing employee productivity rather than annual wage hikes especially in Negros Oriental which is an agricultural province.
“The government should focus its efforts on inclusive growth rather than annual wage hikes. We have to create more jobs, conduct more skills training, and hopefully increase productivity especially in the agri-marine sector,” Du echoed the opinion of the business chamber.
Negros Oriental Tripartite Industrial Council (TIPC) Vice Chair for Management and Construction Industry Representative Absalita Teves also called for the full enforcement of the “Tulong-Trabaho Act” which institutionalizes a Philippine labor force competitiveness program and free access to technical-vocational education and training program for skilled workers.
Teves said TESDA should also further expand their reach in training and certifying more Filipino workers, in the construction sector for instance, so that the move for wage increase is justified.
She said she understands the reason for the said proposal but added that she is in favor for the status quo implementation for now, citing that increasing the minimum wage should also boost the productivity and competitiveness of employees.
“Wala akong pinapanigan. Nasa gitna ako. Lahat itong mga problema na ito ma-sosolve natin ito. Iyong mga wage increase because kailangan natin na taasan ang sahod natin due to our needs and demand. Hindi problema iyong hinihingi kung ang trabahante natin is productive and competitive (I am taking no sides. I stand on neutral ground. I believe we can solve this problem on wage increase. I understand the need for it due to our needs and demands. This will not be a problem if it can guarantee to boost the productiveness and competitiveness of our workers),” Teves explained.
RTWPB-7 Management Sector Representative Philip Tan said to solve this concern on productivity, employers should also invest in their people in the proper way through development interventions.
“Putting in place productivity is not simple as just giving out money for this and for that. You really have to invest on your people and doing it properly. Selecting the right people is not just selecting the right people. Right people is one that you can create culture of your company. With the right culture, kung ikaw as employer may simpatiya ka sa employee mo (as employer you have a heart for your employee) that will be reciprocated,” Tan said.
Tan also encouraged representatives of management sub-sector to avail DOLE’s workplace productivity programs and services to further address this concern.
On the other hand, representatives of the Siquijor Chamber of Commerce and Industry (SCCI) and Siquijor Hotels, Restaurants, and Travel Agencies Association said they are also in favor for status quo implementation, for now, noting several reasons such as supply and cost of water and cost of logistics in transporting goods which affect the income of businesses in the island.
Siquijor’s main economic driver is tourism which is only seasonal and with this, the income of most businesses are unstable and unreliable, therefore they cannot provide for an additional increase in the minimum wage for their employees.
In addition, Du also enumerated several factors to reinforce their call for status quo implementation to the proposed wage adjustment.
Du said prices of basic commodities in Negros Oriental has remained the same from November 2014 to March 2019 as per the Consumer Price Index obtained in the Philippine Statistics Authority (PSA) Quickstat Website.
Moreover, the inflation rate in the province is pegged at 3.1 percent.
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Although it went up on certain months in 2018 due to the implementation of TRAIN Law, it eventually went back to normal, Du added.
Aside from this, no major increase in the pump prices of oil, gasoline, and diesel took place in the past three years.
Negros Oriental TIPC Management Sector and Private Education Sector Representative Lilanie Dumalaon also expressed concerns on the increased employers’ share on the Social Security System (SSS) monthly contributions and other social benefit packages contributions with the pending wage increased petition.
The members of the RTWPB-7 assured participants of the public hearing that the issues tackled during the activity are noted and will be considered when they deliberate and decide on the minimum wage adjustment.
CELAC and other labor groups in Cebu filed the petition to increase the minimum wage for private employees on the basis of increasing prices of basic commodities which eroded the purchasing power of Philippine Peso, implementation of the TRAIN Law, and increase prices of petroleum and oil products.
The groups also quoted a study that debunks the claim of management sector representatives noting that wages and commensurate compensation equals better and productive workers and low wages equal to low productivity level for workers.
, TIPC-Negros Oriental Labor Sector Representative Felizardo Calimpong requested the Board to also review the classification of cities and municipalities when they deliberate for the wage increase.
“I don’t know what are the parameters or bases in giving this classification. As you know, Dumaguete City is quite different from other municipalities in Negros Oriental like La Libertad, Ayungon, Tayasan which are very small municipalities compared to Dumaguete City. Dumaguete can be compared to the municipalities of Compostela (and) Toledo but why is it we belong to Class C?” Calimpong asked.
Calimpong mentioned that Compostela and Toledo belonged to Class A and Class B city and municipality, respectively.
Dumaguete City is the capital city of Negros Oriental and has been identified as one of the best places to retire.
Department of Labor and Employment (DOLE-7) Regional Director Salome Siaton welcomed this point and said this will be considered when they deliberate on the wage increase.
Other members of the board who were present were Department of Trade and Industry (DTI-7) Regional Director Asteria Caberte, National Economic and Development Authority (NEDA-7) Regional Director Efren Carreon, Board Secretary Grace Carreon, and Labor Representative to the Board Jose Tomongha.
In an interview after the public hearing, Salome noted that the public hearing was well attended and participated by labor and management sector representatives in the provinces and lauded the peaceful exchange of inputs including the issue on productivity.
“It doesn’t mean that when we are looking into productivity, we disagree with the petition but in addition to what the wage board will be doing, it would also be a plus in terms of productivity because we are after the two-tiered minimum wage. The first is minimum wage compliance, the second tier is productivity,” Salome told members of the media.
“We are looking at the statistics. Tininingnan natin in terms of secondary data available in our offices. The Philippine Statistics Authority (PSA) is producing the data plus the data of DTI, data of NEDA, and lahat ng regional economic indicators we are looking into plus the GDP, consumer price index, plus the position paper. These are all the factors that we are going to consider,” Salome added.
RTWPB-7 will continue to receive position papers from other sub-sectors which were not able to attend in the public hearing until Oct. 11, 2019.
These can be sent through e-mail at [email protected].
Aside from Dumaguete, the board will also conduct public hearings in Bogo City and Cebu City and in Bohol. (ral/PIA7-Negros Oriental)
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