Economic indicators show “supervening condition”

CEBU, Philippines –  Few days ago the members of the Regional Tripartite Wages and Productivity in Central Visayas met to determine whether or not a supervening condition is present to warrant an increase in the minimum wage.

The meeting ended in a deadlock with one of the government sector representatives supporting the management sector that there is no supervening condition to warrant wage increase.

Following the deadlock, RTWPB-7 agreed to hold public consultation on the issue. During the consultation yesterday, an economic situationer was presented by various government agencies, which show an increase in prices of prime commodities, a condition required in the declaration of supervening condition.

Among those which made the presentation was the Department of Trade and Industry whose regional director, Asteria Caberte, earlier voted against the declaration of supervening condition.

Contrary to Caberte’s position in the RTWPB, her own agency reported, based on their weekly price monitoring, that majority of the prime commodities have increased its prices.

According to the DTI report, the prices of canned goods, noodles, processed milk, pork meat and chicken have gone up. Caberte herself admitted that the price of flour has increased although they noted that the prices of loaf bread in at least three bakeshops have remained the same.

The Bureau of Agricultural Statistics also said that the prices of basic food commodities such as regular milled rice, corn grits yellow/white have increase while prices of selected vegetables fluctuates. Although there was no reported increase in cooking oil and sugar.

The Department of Energy also presented the trend in pricing of petroleum products in Cebu City from January 2011 to May 24, 2011 wherein it was noted that the prices of unleaded and regular gasoline, diesel, kerosene and liquefied petroleum gas have increased.

The National Economic Development Authority reported that Central Visayas exports rebounded in 2010 as compared to two years ago. Tourist arrival as well as air transportation activities already picked including the shipping industry.

Other industries such as the Information Technology, construction and real estate, retail trade, banking and financial services continue to expand with the banking industry realizing a double-digit increase in net loans and deposits.

NEDA however noted that the labor market remains unstable.

RTWPB needs to declare a supervening condition first before they can take actions on the pending petitions for wage increase because of the one year period prohibition. Wage boards are prohibited to issue wage order within one year from its last wage order unless there is a supervening condition.

At least two petitions for wage hike are now pending before the RTWPB. The Associated Labor Unions-Trade Congress of the Philippines and the Alliance of Progressive Labor have filed a separate petitions seeking for P100 and P120 across the board wage hike in Central Visayas, respectively.

The Cebu Chamber of Commerce and Industry, in their position paper, said that the business community is not opposing the proposed wage increase. However, the group said that at this critical time where Central Visayas is still recovering from the effects of the global financial crisis, the proposed wage increase is untimely and adding insult to injury.

CCCI recommends to the RTWPB to dissect the matter more exhaustively, taking into account the real advantage and disadvantages of an across-the-board wage increase to both parties.

CCCI added that the micro, small and medium enterprises which comprise about 99.34 percent of businesses in Central Visayas were severely affected by the global crisis and are still recovering.

“Thus, the proposed across-the-board wage increase would do more than good as this may lead to another sacrifice like temporary or permanent shutdown for the MSMEs and flexible working arrangements or if not job termination,” the position paper reads. (FREEMAN)