By Antonio Colina
DAVAO CITY – Private groups expressed fear that many workers will be retrenched if the implementation of the two-tiered wage increase in Davao Region would be implemented.
Davao City Chamber of Commerce and Industry Inc. president Arturo Milan said the wage increase would burden particularly the micro and small businesses, comprising 95 percent of the total businesses in the region.
Milan said business would also affected by the 10 percent in local business tax and impact of the Tax Reform for Acceleration and Inclusion Act (TRAIN) on their operations.
“I really hope this will not result in retrenchment just for businesses to survive,” he said.
Philippine Banana Growers and Exporters Association (PBGEA) executive director Stephen Antig expressed similar fear that the R30 daily wage increase starting Aug. 16 and another R26 on Feb. 16, 2019 is just too high which would consequently result to retrenchment.
The Regional Tripartite Wages and Productivity Board (RTWPB) 11 would implement the new wage order after it determined “the need to restore lost purchasing power of minimum wage earners in Davao Region for them to cope with the rising cost of living without impairing the productivity and viability of business and industries therein.”
The wage order, signed on June 27 but released to the media on Aug. 1, stated that the increase came after the region-wide public hearing on June 6, covering the areas of Davao City, Digos City, Mati City, Panabo City, Island Garden City of Samal, Tagum City, Compostela Valley, Davao del Norte, Davao Occidental, Davao Oriental and Davao del Sur.
The daily wage earners in non-agriculture/industrial/commercial and retail/service industry employing more than 10 workers would receive R370; agricultural workers would receive R365; and R355 for retail/service employing not more than 10 workers, starting Aug. 16.
Upon implementation of the second tranche at R26 daily on Feb. 16, 2019, the wage would be increased to R396 for workers in non-agriculture/industrial/ commercial and retail/service industry employing more than 10 employees; R391 for agriculture; and R381 for retail/service employing not more than 10 workers.
