NORDIS WEEKLY
November 13, 2005

 

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EVAT ups price but not basis for wage hikes — DTI

KMU says wage hike overdue

BAGUIO CITY (Nov. 10) — The officer-in-charge of the Department of Trade and Industry-Cordillera Administrative Region (DTI-CAR) said that price hikes in basic commodities due to the implementation of a new tax measure is not enough basis for a wage hike. However, Kilusang Mayo Uno (KMU) maintains that a legislated wage increase is long overdue. DTI-CAR is part of the Regional Tripartite Wage and Productivity Board (RTWPB).

DTI-CAR Officer-in-charge Marites Damian said that the expanded value added tax (E-VAT) would affect basic goods and services, but it is not enough bases for a wage hike. She added that it is even too early to assess the impact of E-VAT on basic goods and services. She added that the implementation of E-VAT should be given at least two months to come up with a better impact assessment. However, she said that DTI is gathering data for evaluation for a possible wage hike.

Department of Labor and Employment (DOLE) Undersec-retary Danilo Cruz, a local daily reports, said that workers might be given a pay hike but not a legislated P125 wage increase.

KMU Spokesperson Lorico Espejo, Jr. stressed that their demand for a P125 across-the-board wage increase started in 1998, when E-VAT was not yet implemented. He said that even without E-VAT, the wages of workers are barely enough to feed their families.

According to Espejo, with the relentless increase in basic commodities and services and the recent implementation of E-VAT, “the P125 across the board wage hike we are asking is no longer enough because it was based on the cost of living in 1998”.

Espejo further said that since 1998 the prices of commodities and city services have drastically increased, while workers did not get any legislated wage hike. He admitted that there were wage increases but were just measly benefits.

Espejo also criticized the regional wage board for taking side with business over the workers. He said that the said agency does not really consider the plight of the workers.

Moreover, in a statement, KMU-Cordillera condemned Gloria Macapagal-Arroyo (GMA) for recently retracting her earlier statement supporting a legislated wage increase. (Please see related story on page 6.) # Kim Quitasol for NORDIS


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