P125 ACROSS-THE-BOARD WAGE INCREASE

Officials of the Department of Labor and Employment in Central Visayas (DOLE-7) yesterday defended President Benigno Aquino III’s decision not to approve a P125 across-the-board wage increase.

In an interview, Regional Director Ma. Gloria Tango of the Department of Labor and Employment in Central Visayas (DOLE-7) said the P125 wage increase sought by labor groups is too high and will only discourage investors from setting up business in the country.

Tango reiterated the government’s stance amid Cebu Archbishop Jose Palma’s appeal to the Catholic faithful to “work well” and not be satisfied with mediocrity.

The President earlier ordered the different regional wage boards to fast track the review of the different wage hike petitions and conduct public consultations.  The regional wage board in Central Visayas will meet on May 10.

Tango also said the P125 wage increase will prevent existing companies from expanding their operations and may even result in some of them closing shop.

The regional DOLE-7 chief also announced that there were 301 applicants who were hired on the spot (Hots) out of 6,064 applicants who trooped to the four venues of job fairs in Central Visayas last May 1.

The figure only represents 5 percent of the total registered applicants.  Despite this, Tango said she considers the job fairs successful.

About 30 of them were for overseas employment and 271 were for local employment. There were more available jobs for overseas employment that reached 24,000 as compared to only 4,000 jobs for local employment.

In his Labor Day message last Tuesday, Cebu Archbishop Jose Palma urged employees to do their work well. He said work is synonymous with God and should transform every person into reflecting His nature.

“As we open the Bible, we are immediately introduced to God as creator, as a worker. As the image and likeness of God, man has a vocation to work also. Work is something that belongs to the divine,” the 62-year-old prelate said.

Palma’s message was read by Msgr. Cayetano Gelbolingo, vicar general of the Cebu Archdiocese, during a Mass for laborers and employers at the University of San Carlos-South Campus last Tuesday morning.

In his message, Palma challenged laborers not to settle for mediocrity in doing their works saying that God’s will exhorts believers to work according to His standard and example.

“Laziness and low quality of work is contrary to God’s will and contrary to man’s dignity. It is sinful. Let us spend our time and energy only for the work of God,” he said.

The Catholic Church honored St. Joseph, husband of Mary and foster father of Jesus.   Palma said people should draw inspiration from St. Joseph who worked as a carpenter in Nazareth.

The Eucharistic celebration was preceded by a “solidarity run” participated by government employees, laborers, and employers from the cities of Cebu, Mandaue, Lapu-Lapu and Talisay. They converged at the USC-South Campus’ Rudolf Rahman Cultural Center.

After the Mass, a program was held that was participated by Cebu City Mayor Michael Rama and representatives from other local government units.

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MY REACTION

I have two opposing opinions about this issue. First, is that the government made a right decision not to approve the P125 wage increase. What the government wants to tell to people is that if they approve it there would be a massive inflation in our economy because raising the wages of the workers would increase also their spending power. So, it means higher spending power would give companies the opportunities to increase prices of products. If this will happen people will suffer to high cost of goods they purchase daily. But on the other hand, on the side of the workers increasing their salaries by P125 would give satisfaction to their lives. Then will be able to sustain their daily needs. For example if a family have 5kids a P400 per day will not sustain the needs of those kids, and it is not enough to raise the family. So an additional of 125 in the salaries would lessen their burden of the family and at the same time you will be able to raise your family.

For me I will go with the decision of the government, I’d rather to have a low salary than to have a higher one but prices of goods will have a massive increase on it. What I can suggest on this issue is that government should have a thorough debates and discussions about this.

THE Aquino administration should immediately decide whether to privatize all state-owned power utilities since privatizing some while keeping other power plants under government’s control “might cancel out” each other’s desired benefits. 
Sen.Ralph Recto stressed this point yesterday in reaction to Malacanang’s announcement that it would consider the privatization of the Agus and Pulangi hydropower plants in addressing the power crisis in Mindanao. 
“A piece-meal approach in the power situation in Mindanao might not be the proverbial light at the end of the tunnel. It’s either all power plants are privatized or all should remain under government control,” he said. 
He noted that the government has a “dismal” track record in operating power plants — “a record not bound to improve further once it decides to continue keeping the other power plants under its control.” 
“The government should decide once and for all. A half-baked approach in the Mindanao power situation won’t do,” said Recto, chairman of the Senate ways and means committee. 
He added: “If a wholesale privatization plan is opted, the energy department and the Energy Regulatory Commission should step in to ensure the right energy mix in Mindanao for optimum capacity and efficiency.” 
“We may forego dreaming of reduced power rates soon but we could surely expect a stable supply at steady prices to attract more manufacturing players in Mindanao,” he said. 
“We don’t want very expensive power rates in Mindanao or any part of the country. But if it can’t be lowered soon, we just want the assurance that power rates would remain steady and predictable. Can we maintain power rates at P10 per kWhr until 2016?” Recto said. 
Recto pointed out that this was the reason why during a budget hearing last year, he asked the Department of Energy to submit a power rate scenario “to show how the power rates will look like over the years.” 
“We requested the DoE to plot how the rates will look like in the coming years so that investors will have an idea on the cost of their power requirements in the future,” he said. The senator lamented the DoE never submitted such power rate scenario. 
“It’s not enough to promise fewer or no brownouts, the government must also show how the rates will behave over the years,” Recto said. He suggested that to “placate opposition” from the local government units, the government may offer to remit directly their shares from the power plants’ revenues instead of the present practice of drawing it from the DoE, the national government.  
Recto noted that LGUs hosting a power plant receive a percentage from the revenues of the operators. The government must also address the dire power situation in SPUG (Small Power Utilities Group) areas, which affects 2.5 million households that have no direct access toelectricity, he said.

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Our country faces another problem with regards to the shortage of power supply in Mindanao. Many are suffering from this rotating brownouts that last up to 6 to 8hours. It’s nice to hear in the news that the recent administration is doing a quick response to this problem. One of their prospect solution to this dilemma is to privatize the government owned energy power plants to private investor. They say that privatizing this energy power plants might lessen our monthly electricity dues. Also, our country can convince other investor to invest other energy power plants here in our country.

Like what I experience back in my province, a 6 to 8hours of rotating brownout affects the business of my aunt because it depends a lot on electricity in order for it to operate. So as a part time cashier on my aunt’s business her business slightly incur loss and sometimes a small amount of profit. Privatizing energy power plants may be a big help to us but we don’t have the assurance that the prices in the long run would still be the same or our electricity dues will be lessen.