Northern Mindanao employer, labor groups maintain opposing positions

CAGAYAN DE ORO CITY — Northern Mindanao employers and labor leaders have remained firm in their positions at the final consultation of the regional wage board on Friday.

Labor leaders cited the need to address the impact of rising prices of basic commodities on wages, while the business sector wants more time to recover from the effects of power shortage in the region in recent months.

Nicandro L. Borja, regional vice-president of the Trade Union Congress of the Philippines (TUCP), said there is no guarantee of additional hiring in the coming months if the minimum wage is maintained at current levels.

Northern Mindanao’s minimum wages were last set in 2008 at P256 for non-agriculture workers and P244 for agricultural workers.

Mr. Borja said the P75 across-the-board wage increase is only half of what is due given that there was no wage adjustment last year, a crisis period.

“It is our legitimate right to demand this increase to protect our wage’s eroding purchasing power,” he said.

On the other hand, Ralph U. Paguio, president of the Cagayan de Oro Chamber of Commerce and Industry, said business is not averse to a wage adjustment, but noted that the petition is untimely.

“Coming from 2009, 2010 is supposedly for the recovery of businesses,” he said. “Unfortunately, the power crisis hit us and many businesses have had to cope with additional costs. Buying a power generator set, for example, is one thing. There is still the fuel to run it and the additional technical people to operate it.”

At the height of the power crisis, when Mindanao’s power deficiency was over half of the rated capacity, the business community had adopted a no-layoff policy, he said.

“We are certainly for a wage increase but we should give time for businesses to recover,” Mr. Paguio added.

Supporting the business chamber, veterinarian and entrepreneur Warmelo G. Ching from the Bukidnon Poultry and Livestock Industry Association presented how the power crisis has raised the cost of doing business.

“The petition of TUCP is across-the-board; without consideration for the type of job or industry,” Mr. Ching said. “In our specific case, for example, once the electricity goes out at night, production at the hatchery and broiler facilities goes down.”

“And even if the power comes back in the morning, the damage could not be repaired,” said Mr. Ching, whose group in Bukidnon holds supply contracts with San Miguel Food Corp., Monterey Meat Products, Tyson Foods, Inc. and Swift Foods.

Wage board officials declined to comment until a decision is reached. — Louise G. Dumas, Businessworld