Decision on Metro Manila minimum wage out early-April

THE STATE BODY that sets the daily minimum wage in the country’s capital is expected to decide by the first week of next month if an increase from the current P429-466 is warranted.

The Regional Tripartite Wages and Productivity Board of the National Capital Region (RTWPB-NCR) held a public hearing on Friday -- the last of four consultations since January -- for all parties with interest in two petitions to raise the daily floor wage.

The Labor department’s National Wages and Productivity Commission requires regional boards to come up with a wage order within 30 days from the last public hearing.

Alberto R. Quimpo, RTWPB-NCR board member representing employers, said the first board meeting to discuss results of public consultations has been set tentatively on March 16.

RTWPB-NCR has received two petitions since November last year which will be used among bases for the seven-member body to come up with a decision, board chairman Alex V. Avila said in an interview at the sidelines of the public hearing in Pasay City. “[T]he board will deliberate on the petitions. We will consider all the position papers, the petitions, and the outputs of these three consultations and the public hearing,” Mr. Avila said.

The Trade Union Congress of the Philippines-Nagkaisa (TUCP) faction has asked for a P136 across-the-board wage hike, while another group, the Association of Minimum Wage Earners and Advocates (AMWEA), sought a P734 increase to be implemented in five equal tranches.

Both groups cited increasing utility rates and fare hikes for Metro Manila’s railway systems that took effect Jan. 4.

During the public hearing on Friday, TUCP Spokesman Alan A. Tanjusay added that the looming increase in tuition fees would be an added burden to workers. “The real value of P466 is P356.64… because of inflation,” Mr. Tanjusay said. “We need the P136 to restore the purchasing power of workers in NCR.”

AMWEA representative Margarita A. Greofaldio told the board in Filipino: “The board should provide a realistic wage… We all know the current minimum wage is not enough to live decently, much less for a family.”

She also asked the wage board to show computations leading to its decision “so it will not appear that what they approved was arbitrary.”

Speaking on behalf of employers, Mr. Quimpo opposed both petitions, saying in an interview: “It cannot be... it’s impossible”, even as he clarified that the Employers Confederation of the Philippines has yet to make a formal stand.

Ma. Elena G. Francisco, legal counsel of the Philippine Constructors’ Association, warned of capital flight and massive retrenchment should labor costs shoot up.

“We should instead look at how to increase employment opportunities for majority of workers (not just minimum wage earners),” Ms. Francisco said in Filipino.

“Not all employers are profitable enough to pay higher salaries. There are also small- and medium-scale enterprises that could close up shop if labor cost rises too much,” she explained.

“Others can afford to pull out their businesses, so we will see capital flight. If these investors, who employ many, flee to other economies where labor is more friendly, what will happen to us? Our economy will suffer,” she continued.

“So, let us weigh all considerations.”

Metro Manila’s minimum wage was last adjusted in September 2013, involving a P10 hike in basic pay after two TUCP factions filed for increases of P83 and P85. Other regions followed suit in adjusting floor wages. - By Melissa Luz T. Lopez BusinessWorld