DOLE is now focus on increasing productivity. Mandaue Chamber of Commerce said they respect the wage board’s decision. What is now important is to increase labor productivity.
In this news, wage order no. 24 was published on June 27 and shall take effect on July 12.
The wage order contains exemptions such as small businesses. But the employer concerned will still have to file an application for exemption.
Employers who are not compliant will be penalized with double indemnity by DOLE.
In Businessworld, DOLE said they might come up with another Top 20 by mid-July. Of particular interest was the TV networks where DOLE commented that they might regularize 7,000 workers there.
In CNN Philippines, there was a proposal to subsidize P200 monthly miniumum wage. This is a compromise from the government amidst the proposed bill to set up a nationwide minimum wage of P750.
It’s good news for minimum wage earners in Cebu.
The wage board increased minimum wage to P386 in Metro Cebu. This will lessen the impact of drastic increase in price of commodities in favor of the workers.
A month ago, as far as I can recall, the gas price is P51 per liter. Now, it’s hovering within P56. The increase in gas price has a ripple effect. It increases almost everything. This P386 increase will cushion the drastic impact of inflation.
What will workers do if the minimum wage is not complied?
This is not the first post on P750 Nationwide Minimum Wage. In my previous post, I commented on the one-sided argument for the P750 Nationwide Minimum Wage in favor of the Bill.
In this news, Employer group said that mass layoffs would result from a nationwide increase in minimum wage. Such an increase will increase production cost and therefore adversely affect the competitiveness of businesses.
This commentary by Gerardo P. Sicat (Philippine Star) is spot on. Labor groups wanted to legislate the increase of minimum wage, which will apply nationwide. To put this in proper context, this came about in the midst of rising prices of good and services. In fact, the May 2018 inflation hits 6.5%, an new 5-year high.
Understandably, the drastic rise in prices of goods and services greatly affected the minimum wage earners. Labor groups responded to this situation by trying to put a nationwide minimum wage.