Mayen Jaymalin
Philippine Star

Instead of an increase in basic pay, workers in Metro Manila are likely to get a daily additional P15.50 allowance.

The Regional Tripartite Wages and Productivity Board (RTWPB) in Metro Manila is reportedly considering the granting of P15.50 cost-of-living allowance (COLA) for workers in the region.

“The granting of P15.50 COLA is the possible compromise that the board is considering at this point,” a wage board insider told The STAR in an interview.

The RTWPB official, who requested anonymity, explained that the wage board is opting for COLA because it would provide immediate economic relief for workers while not putting too much economic burden on employers.

“Unlike an increase in basic pay, COLA won’t cost too much for employers, who are also reeling from economic difficulty at this time,” the official pointed out.

But National Wages and Productivity Commission (NWPC) executive director Ciriaco Lagunzad said the wage board is yet to determine the amount and form of increase to be given to workers in Metro Manila.

“The wage board would still have to deliberate on the amount and form shortly after the public hearing to be conducted on Tuesday (May 13),” Lagunzad disclosed.

He ruled out further increase in prices of commodities and possible closure of commercial establishments even with the impending adjustments in take home pay of workers nationwide.

According to Lagunzad, increase in minimum wage has no effect on the inflation rate.

“Based on our monitoring, increase in minimum wage has no effect on inflation rate and employment ever since,” Lagunzad said.

But he noted that a study of National Economic and Development Authority (NEDA) indicated that across-the-board wage increases have an effect on businesses.

Various labor groups led by the Trade Union Congress of the Philippines (TUCP) have filed petitions seeking salary increases ranging from P80 to P150 but the Employers Confederation of the Philippines (ECOP) warned against excessive adjustments.

Some employers are pushing for the granting of P15 emergency cost of living allowance for workers in Metro Manila.

Last year, the National Capital Region wage board granted a P12 wage hike and incorporated the then P50 ECOLA into the basic pay.

Business not amenable to increase

Meanwhile, the Philippine Chamber of Commerce and Industry (PCCI), the country’s largest business organization, said they are not in favor of increasing wages of employees and instead suggested that employers be given the option to grant special emergency allowance.

“I think a faster way to deal with the current crisis is just to give special allowances,” PCCI president Sammie Lim said in an interview.

According to Lim, companies can immediately help their employees by giving special allowance instead of waiting for the wage board to make a decision.

However, last Labor Day, the ECOP said there will be no special allowance for employees.

“We will not give any special allowance to employees,” ECOP president Sergio Ortiz-Luis said.

“That has been overridden by events because the wage board will already be fast-tracking their decision to increase salaries,” he added.

He said they have not planned any wage benefits for employees.

“We will wait for the wage board because their decision is expected within the month,” he explained.

He said the decision is to go through the wage board. When asked what help the employers will give to their workers in the meantime, he said the government is already giving non-wage benefits.

Last month, the Department of Trade and Industry (DTI) asked local and foreign businessmen to give special allowances to their employees while waiting for the wage board to decide on how much salaries will increase.

“I made an appeal to the foreign chamber and the local business if they can help increase the wage of employees or even give a special allowance while the tripartite wage board is still deciding,” Trade Secretary Peter Favila said.

“In times like this when the prices of basic commodities are increasing, employers must be considerate to their employees,” he added.

According to the secretary, this plea is especially for companies that are given tax perks and incentives by the government.

He said companies that receive tax breaks should lead in giving special allowances to the employees.

However, Favila said he understands that the emergency allowance may not be that big given the business climate in the country.

“There are some companies that are doing well so they should give more, but we also understand that there are some who are also just breaking even,” the secretary noted.

– Ma. Elisa Osorio