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  • Indigenous exporters want
    new wage-hike exemption 
    By Max V. de Leon
    Reporter

    EVEN before the regional wage boards could promulgate a new wage order, some industries, particularly the exporters now reeling both from the global economic slowdown and peso appreciation, are already sending feelers that they will seek exemptions from a new round of increase in  workers’ daily pay.

    Sergio Ortiz-Luis, president of the Philippine Exporters Confederation Inc. (Philexport) and Employers Confederation of the Philippines (Ecop), said they will ask that indigenous exporters be exempted from another wage hike, as they fear that this embattled sector might be totally wiped out.

    “Even without a wage increase, the indigenous exporters are already closing one by one because of the peso appreciation. With another wage increase, we might lose all of them,” Ortiz-Luis told the BusinessMirror.

    Indigenous exporters depend heavily on local raw materials and, therefore, do not benefit from reduced importation cost due to the stronger peso. They are mainly in the food, handicrafts, fashion and fine-jewelry industries.

    Philexport reported that about 75 of these companies have already closed shop due to the impact of the strong peso and the US economic recession.

    But even the big electronics and chip makers in the country are also wary of another round of wage hike.

    Ernie Santiago, president of the Semiconductor and Electronics Industries of the Philippines Inc. (Seipi), said that because of the slowdown not just in the US but globally, it would also be hard for them to carry another burden of a wage increase.

    “It’s a difficult year for business, so a wage hike is also a difficult proposition,” Santiago said.

    His group might follow the lead of the other industries and seek an exemption from any new wage order to be promulgated by tripartite regional wage boards.

    Anyway, Santiago said the industry is already generous in giving merit increases annually based on their employees’ productivity.

    Also, Santiago said they support calls of different business groups for the grant of nonwage benefits instead.

    The National Wages and Productivity Commission has already started consultations and set public hearings for the petitions for wage increase in different regions.

    Ortiz-Luis said they are ready to accept the wage boards’ decision on whatever number they will deem necessary for the new round of wage increase.

    This is despite the fact that wages in the different regions in the country already range from $2.83 to $8.53, among the highest in the region.

    Ecop said Vietnam’s minimum wage ranges from $1.46 to $1.79; Cambodia, $1.75; Indonesia, $1.98 to $3.69; Beijing, China, $2.14 to  $3.72; and Bangkok, $4.47 to $5.98.

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