ZAMBOANGA CITY, Philippines With Zamboanga Peninsulas inflation rate hitting 16.3% last month, the highest in 20 years, labor groups are now preparing to file a new wage hike petition.
Jose J. Suan, national vice-president and the regional president of the Trade Union Congress of the Philippines, said in an interview Tuesday they will ask for a P68 across-the-board wage hike at the regional tripartite wage and productivity board meeting next month, citing the continued rise in prices of basic goods and services as supervening circumstances that have made the wage hike that takes effect this month insufficient for workers survival.
The National Statistical Coordination Board (NSCB) earlier said that Zamboanga Peninsulas high inflation rates started in the month of April with 8.4%, surging further to 13.5% last May, and 16.3% in June. "The Food, Beverage, and Tobacco commodity group recorded an inflation rate of 20.8% from 16.7% in May, the highest annual inflation rate during the month. Inflation a year ago was 2.8%," a statement from the NSCB office said.
For its part, the Department of Trade and Industry (DTI) said bulk of the price increases monitored were in construction materials, especially steel products with an increase of 7% from May to June. Samuel V. de los Reyes, officer in charge of the DTIs consumer and welfare division, said the price of steel bar rose to P239 in June from P139 in the same month last year. In addition, the price of cement stood at P205 in June from Mays P198.
Arsenio L. Gonzales, Jr., co-chairman of the Regional Development Council, said the body will form a sub-working group to look at means to cushion the poor and the local economy from the impact of the "abrupt" increase in prices of commodities.
Mr. Suan said they will start an information drive in the region at the end of this month to "revisit" and discuss the wage hike.
The Regional Tripartite Wages and Productivity Board in Zamboanga earlier granted a P15 daily increase for minimum wage earners. The wage increase consists of P5 per day in the basic pay and additional P10 in the cost of living allowance.
The Labor departments regional office said the basic daily wage for nonagricultural workers from the private sector is P240 effective this month. For agricultural workers in plantations, the new wage is P215 and for non-plantation agriculture workers, P195. Workers in retail establishments employing not more than 30 workers are paid P220, and cottage handicraft workers at P195 per day.
Crisanto de la Cruz, chapter president of the Employers Confederation of the Philippines, was not available for comment Tuesday. But business leaders nation-wide have warned that their sector is already reeling from rising prices and wages, which translate to higher operating cost.
Elena Haw, Philippine Chamber of Commerce vice-president for Mindanao, said in a phone interview Tuesday that the sector would likely experience a "double-whammy" with adjusted wages and low sales. "Sales will be affected as consumers will tend to cut back on their expenses, while labor groups would pressure the employers for another wage increase," she said.
Ms. Haw said food production and shipping cost will be the key topics that would be discussed during the Mindanao Business Congress next month in Dipolog City, Zamboanga del Norte.