Salary increase based on productivity pushed

Business leaders yesterday called for a productivity-based wage increase.

“We should correct the system on salary increase. And this should only be based on productivity and capability,” said Eric Ng, president of the Mandaue Chamber of Commerce and Industry (MCCI).

“What concerns the business sector is our ability to compete globally. The ideal pay raise should be introduced only depending on the capability of the industry and the business. This is because any pay raise without productivity-based rewards encourages more employees to be unproductive,” said Ng on the two wage proposals filed at the Regional Tripartite Wages and Productivity Board for Central Visayas (RTWPB-7).

The ALU-TUCP was asking for a P100-wage increase for workers in regiona seven while the Cebu Labor Coalition sought an increase of P128.60.

Elias B. Cayanong, Department of Labor and Employment in Central Visayas director who sits as chairman of the wage board, said they were summarizing all the inputs that they got from different groups that include business and labor groups.

“We are still summarizing everything and once we’re done with that we expect to come up with the decision within the month. That’s the target,” Cayanong said.

He said business groups were opposed to the proposed wage increase.

“Their points are all valid. Some even pointed out that the prices of fuel and power have increased and they can’t afford to give salary increases,” said Cayanong.

Businessmen also complained that they were paying high power bills while trying to bounce back from the crisis.

Rey Calooy, Filipino-Cebuano Business Club president, said he had consulted most members of his group who were micro, small and medium enterprises (MSME) entrepreneurs.

“Some say no to the increase while others push for the wage increase-based on productivity. Some even complained that another wage increase would increase the prices of their products making it difficult for them to cope with expenses because salary comprises about 60 percent of the total operating expenses of a business,” he said.

Calooy, however, called on both parties to negotiate and come up with a win-win solution.

Gordon Alan “Dondi” Joseph, president of the Cebu Business Club, said the CBC was still preparing their position paper on the issue.

But Joseph said this was not the right time to impose wage adjustment. Instead, he said focus should be made on attracting investments to create more jobs.

“It is wrong time for this. We need to attract local and foreign investments to create jobs. Increasing wages will discourage investments and job creation. Creating jobs should be everyone’s focus including the labor sector,” Joseph said in a text message to CEBU DAILY NEWS.

Ng agreed.

“We should not commit the mistake of increasing pay as some companies are still recovering from the economic slowdown last year. More employment opportunities should be the better solution to keep many if not all the ability to have jobs,” said Ng.

In the meantime, the RTWPB 7 head Cayanong said they would schedule the actual deliberations for the wage proposal within the month.

“We have already blocked these days in our calendar, July 16, 19, 21 and 23, either on these dates,” he said.

The board met yesterday for their regular meeting and will meet again on July 14, for the assessment of all the position papers they have received.

The deadline on the submission of the position papers was July 7 or last Wednesday. –Aileen Garcia-Yap, Cebu Daily News