Friday, June 30, 2006

Wage Order: Wage Board in NCR grants P25 wage increase

MINIMUM wage earners in Metro Manila will receive an additional P25 in their basic pay by middle of July, the Department of Labor and Employment (DOLE) today announced.
Acting Labor and Employment Secretary Danilo P. Cruz said the Regional

Tripartite Wages and Productivity Board (RTWPB) in the National Capital Region
(NCR) has approved Wage Order NCR-12, granting the P25 per day increase in the
basic pay of all minimum wage earners in the NCR.

The latest wage order takes effect on July 11, 2006 or 15 days after its
publication in a newspaper of general circulation. It will bring the minimum
wage rates in NCR to P350 per day (P300 basic wage plus P50 ECOLA) for workers
in Non-Agriculture.

"The Board, in approving the Wage Order, intended to provide immediate relief
to workers and their families from the rising cost of living brought about by
the continued rise in the price of oil in the world and domestic markets without
impairing the viability of business enterprises," the acting Labor chief said,
adding that the latest wage order has already surpassed the P125 across the
board wage hike being sought in Congress since it was filed in 1999.

Meanwhile, Undersecretary for Labor Standards Romeo Lagman said that the wage
adjustment represents a 7.7 percent increase in the minimum wage of NCR, which
is higher than the 6.3 percent required to restore the purchasing power of
minimum wage workers in the NCR to the June 2005 level when the previous wage
order was issued.

"This P25 adjustment also translates to an additional P654 per month for
employees working six days a week," Lagman said.

For her part, National Wages and Productivity Commission (NWPC)
Officer-in-Charge Rebecca J. Calzado said that the Order should not be construed
to prevent workers from, bargaining for higher wages and other terms and
conditions of employment.

She said that wage boards in other regions are expected to announce their
decisions in the coming weeks.

DOLE-NCR Director Ricardo Martinez, who also chair the wage board, said they
came up with the P25 increase after conducting public hearing and lengthy
deliberation among wage board members composed of representatives from the
Department of Trade and Industry (DTI), the National Economic and Development
Authority (Neda), labor and employers group.

"In coming up with Wage Order No. 12 for the National Capital Region, the
members of the Regional Board considered the needs of workers as well as the
capacity of the employers to give the needed relief for minimum wage earners,"
he said.

There are an estimated three million minimum wage earners in the country and the
bulk of which are in Metro Manila.


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