Employers told to give non-wage benefits to typhoon victims

MANILA, Philippines – The National Wages and Productivity Commission (NWPC) yesterday called on employers to grant their workers non-wage benefits in the absence of salary hikes.

“We are reminding employers if they have the capacity to grant their own non-wage benefits like rice subsidy that could help their workers, particularly, those from typhoon-affected areas,” said NWPC executive secretary Ciriaco Lagunzad III.

Lagunzad issued the reminders to employers after he previously reported that the 17 different Regional Tripartite Wages and Productivity Boards (RTWPBs) are unlikely to grant any wage adjustments for the rest of the year.

According to Lagunzad, a majority of companies, particularly small and medium enterprises (SMEs), do not have the capacity to provide wage adjustments due to the financial crisis.

He said many SMEs might be forced to lay off workers and close shop if mandated by the wage boards to grant salary increases to their workers at this time.

He said SMEs comprised more than 90 percent of commercial establishments nationwide.

At this time when the country’s economy remains fragile, Lagunzad said the priority program of the government and the wage boards is to preserve the workers’ employment.

However, the Trade Union Congress of the Philippines (TUCP) maintained that workers are not abandoning their option to officially seek higher wages.

The TUCP said workers are in dire need of additional income considering the recent calamities that left many workers homeless.

But instead of salary hikes, Lagunzad said it would be better if employers provide instead non-wage benefits, that is if they have the capacity to do so.

He explained that non-wage benefits like rice subsidy would not cost employers too much unlike wage increases. –Mayen Jaymalin (The Philippine Star)