New wage order out in June

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Wednesday, May 22, 2013

WAGE order 17 will soon be implemented on June, but the amount of the new wage hike can't be divulged yet pending the result of the National Wages and Productivity Commission (NWPC) en banc meeting.

The Regional Tripartite Wages and Productivity Board (RTWPB) will implement this new wage order after the deliberations of the two wage petitions it will submit to NWPC for finalization.

“On Monday they (NWPC) will be having an en banc meeting to look into the deliberations for the finishing touches,” said lawyer Johnson Cañete, RTWPB chair and regional director of the Department of Labor and Employment in Northern Mindanao (Dole 10).


However, Cañete refused to divulge the amount of the increase pending the result of the NWPC en banc meeting.

“I still cannot divulge yet pending the final recommendations of NWPC but for sure, before the end of May or early June, we can inform the exact amount of the increase,” he said.

Cañete added both the labor and management have spoken and agreed to have another increase starting from P10 to P40.

Petitions for P80 and P88 wage increase were filed in March 2012 and April 2013, respectively, by the Associated Labor Union–Trade Union Congress of the Philippines (ALU).

Nicandro Borja, regional vice chair of ALU-TUCP, said the computation of the four-page P88 wage increase filed by ALU-TUCP was based on the P19.98 actual increase in the consumer price index (CPI) plus P20.02 projected change in the cost of living especially with the expected repercussions of the power crisis in Mindanao, plus P48 equity supplement for the past 24 years share of the Gross Regional Domestic Product (GRDP).

Need for wage increase

Meanwhile, the Cagayan de Or Chamber of Commerce and Industry Foundation, Inc. (Oro Chamber) earlier expressed the need for another wage adjustment.

Lordilie Enjambre, Oro Chamber’s executive director, earlier said the chamber is amenable to only P12 per day wage increase, “a more balanced and affordable salary increase across Region 10.”

Enjambre said that out of the 391 member-companies, 78 percent saw the need for wage adjustments.

In their position paper submitted to Dole-10, it stated that after conducting a quick survey they found out that they are not against any wage increase.

“We found out that they (member-companies) are not against any wage increase this year and is amenable to a rate of P12 increase per day as a more balanced and affordable salary increase across region 10,” Enjambre said.

But the other member-companies, 22 percent of its members, expressed they cannot afford to have another increase as they are still recovering from the effects of typhoons Sendong and Pablo in 2011 and 2012, respectively.

“We believe that such would allow businesses to completely recover from the devastations caused by the two typhoons,” she said.

Nonetheless, Cañete said he saw a mature relationship between the management and the labor sector and the board in Northern Mindanao.

“This is so because the labor sectors have also been so considerate,” Cañete told Sun.Star Cagayan de Oro.

“Compared to other regions, matured ang relationship ngari nga ang labor sector mismo nakasabot sa management ilabina human sa duha ka mga bagyo nga nasinati ug nakita usab sa management nga angay na pod hatagan increase ang trabahante (Compared to other regions, there is a mature relationship here, the labor sector itself understands the management especially after the two typhoons that the city experienced while the management also see the need for the increase of the workers’ salary,” Canete added.

The RTWPB issued Wage Order 16 on July 24, 2011 that granted P17 increase from the daily minimum wage of P269 for wage category I making the daily minimum wage to P286.

Wage category I covers the cities of Cagayan de Oro, Iligan and the municipalities of Tagoloan, Villanueva and Jasaan.

Published in the Sun.Star Cagayan de Oro newspaper on May 23, 2013.

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