NEDA Regional Office VIII, Government Center, 6501 Palo, Leyte, Philippines.Tel No. (63) (53) 323-3090, 323-3092, 323-3095, 323-2975, 323-4118, 323-2147, 323-4159. Tel/Fax No. (63)(53) 3233093. URL www.evis.net.ph
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Wage increases
May 3, 2006

        
The matter of wage increases is like the summer sun always a hot topic in May, particularly due to the Labor Day celebration in May 1.

As usual, there is a clamor for wage increases from labor groups particularly the unions, and a resistance from management and owners of establishments.

The government is caught in the middle of this conflict.

The high cost of fuel that has triggered increases in the prices of prime commodities such as food and clothing is a major reason for labor groups to seek higher wages.

It should be noted that the government through the Regional Tripartite Wage and Productivity Board (RTWPB) sets only the minimum wages. Wages above the minimum are products of the bargaining negotiations between labor and management.

Nevertheless, because a large member of workers earn only the minimum wage, the task of the RTWPB is important.

It is, therefore, expected that within the next few months the RTWPB will again review the minimum wage rates in Eastern Visayas and determine whether an increase is needed and to what extent. The process of determining whether there are supervening events that can justify a wage increase will have to be decided on by the RTWPB. If fuel prices go down in June, for instance and the peso-dollar rate remains stable, moves to effect wage increases may be halted. Thus, time is needed to assess whether present conditions hold.

Let us hope that a thorough analysis of the economic and social situations on this region is made and that both labor and management come to a mutual agreement that will be fair to both.

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