OROCHAMBER bats temporary assistance to employees

The country’s Hall of Fame Most Outstanding Chamber of Commerce– the Cagayan de Oro Chamber of Commerce and Industry Foundation, Inc. (Oro Chamber) presented its position paper Friday (June 24) to the Board members of the Regional Tripartite Wages and Productivity Board in the region (RTWPB 10). 

The same paper revealed that 62% of member local companies are not in favor of implementing a wage increase this year reflecting on the following common concerns:  

1. The problem is only temporary in nature and a long range solution is not yet necessary at this time. 2. Any wage increase will also increase the overhead expenses of business establishments.
3. Cannot afford to pay wage increase at this time as businesses are also affected by price increases.
4. Our company is not making any profit at all.  We just want to keep the employees since many are old already. 5. A wage hike will increase the costs of service making us less competitive in the BPO industry.

   

 6. Government should find ways to lower the prices of commodities instead.

 7. The current minimum wage is already very high.

OROCHAMBER President Antonio D. Uy said that the business community in the area is aware that the prices of basic commodities such as rice, bread, canned goods, vegetables, sugar, oil and local transportation included have increased as a result of the fuel price increases. 

“We have to consider that such increases in the prices of goods and services have an effect on both employees and employers, not to mention that this predicament is temporary which is due to the political instability of oil producing countries located in the Middle East,” Mr. Uy continued. 

The implementation of mitigating measures is critical.  Mr. Uy said that what is needed right now is for Government to re-establish the Oil Stabilization Fund to cushion future sudden fuel price increases and to look for ways and means to keep within bounds the increase in power and water rates through the reduction of taxes or efficiency incentives.

On the other hand, local companies should also extend temporary cash or in–kind assistance to employees to soften the impact of the increases in the prices of basic goods.  The assistance could be in the form of rice subsidy, transportation allowance, grocery or COLA.  

To strengthen labor and management relationship, we should encourage a freer employer-employee wage adjustment based on performance.  Thus, the institutionalization of a productivity-based Incentive Income Scheme (IIS) at the workplaces which will extend additional cash benefit to employees whenever they surpass work targets is in order.  

Separately, sister Chamber Ozamiz backed by the Ozamiz Filipino-Chinese Chamber (OFCCC), Misamis Occidental Chamber of Commerce and Industry and Oroquieta Filipino Chinese Chamber proposed for a Php 5 daily wage hike.  

The RTWPB 10 Board is composed of DOLE 10 Dir. Allan Macaraya, NEDA 10 Dir. Leon Dacanay, DTI 10 Alicia Eusena, Management representatives Arsenio Sebastian (OROCHAMBER) and Ptr. Prudencio Plaza (Chamber of Industries), and Labor representatives Jose Ares and Milbert Macarambon (ALU/AWATU-TUCP).