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Manila Bulletin devider Philippines devider Luzon devider Bizmen in Northern Mindanao oppose P150 wage hike

Bizmen in Northern Mindanao oppose P150 wage hike

Published Aug 20, 2023 04:39 am

CAGAYAN DE ORO CITY – A non-government and business organization in Northern Mindanao opposed the proposed P150 across-the-board daily wage increase in the country as it could be burdensome for the business sector.

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SENATE President Juan Miguel F. Zubiri answers questions from the media after the turnover ceremony of the 53 disaster response and rescue vehicles at Pueblo de Oro, Upper Carmen, Cagayan de Oro City, on Friday, August 18. (Franck Dick Rosete)

Ruben Vegafria, regional governor of the Philippine Chamber of Commerce and Industry (PCCI), said the wage increase should be based on the market and should not be legislated as other parts of the country have different costs of living.

"If we allow the P150 across-the-board (wage increase), No. 1, many employees would lose their jobs and many companies would close? Which one do you prefer?" he said in an interview during the Kahimunan Northern Mindanao trade fair launching here on Friday, August 18.

Implementing wage increases, Vegafria said, should be managed by the Regional Tripartite Wages and Productivity Board (RTWPB), since it has knowledge of the actual situation of every regional economy.

The RTWPB is mandated under Republic Act No. 6727, the Wage Rationalization Act, to periodically assess wage rates and conduct continuing studies in the determination of the minimum wage applicable in the region or industry.

In Region 10 or Northern Mindanao, minimum wage earners in the non-agriculture sector under Wage Category 1 and 3 received an increase totaling P40 effective December 16, 2022.

This made their current minimum wage P405, while those under Wage Category 2 and 4 received a P47 increase to make their minimum wage P390.

On the other hand,  the minimum wage in the agriculture sector under Wage Category 1 and 2 is P393, while it is P378 for Wage Category 3 and 4 after following a similar wage increase.

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RUBEN Vegafria, regional governor of the Philippine Chamber of Commerce and Industry (PCCI), answers questions from the media during the Kahimunan Northern Mindanao Regional Trade Fair 2023 launching at SM Cagayan de Oro City Uptown on Friday, August 18. (Franck Dick Rosete)

Vegafria stressed that implementing a wage increase is "ineffective" if the prices of basic goods is also increasing. He urged the government to find ways to address increasing prices of goods.

One of the current issues in the country is the increase in rice prices but President Ferdinand R. Marcos Jr. said that prices will stabilize once supply goes up when harvest starts in Nueva Ecija, Isabela, and North Cotabato.

In an interview on Friday, Senate President Juan Miguel F. Zubiri said that he really wants to pursue Senate Bill No. 2018 or the P150 Daily Wage Increase Act still pending on the committee level to help laborers.

"That’s why we wanted the across-the-board (wage increase) in order for our workers and laborers to be free all throughout the country, not just in the NCR (National Capital Region)," he said.

Zubiri hopes that before the end of this year, the proposed wage increase will be approved in the Senate. Once it is approved, he said he will "convince and beg" Marcos to approve the proposal.

 

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PCCI Senate President Juan Miguel F.  Zubiri Wage hike Northern Mindanao
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