MANILA. The government should impose a P80 pay hike for workers in Metro Manila as prices of fuel, rice and other basic goods continue to rise, a labor group said yesterday.

Ernesto Herrera, a former senator and secretary-general of the Trade Union Congress of the Philippines, said the P80 pay hike would raise the daily minimum wage of Metro Manila workers from P362 to P442.

"In our study, what we need is a P80 increase [which will cover] expenditures like education, transportation and for small savings," Herrera said in an interview on ABS-CBN's morning show "Umagang Kay Ganda."

Herrera said the P80 pay hike is lower than the proposed 125 across-the-board wage hike, which has been pending at the House of Representatives since 1999. He added that the P125 wage hike could force some companies to lay off employees or even close down.

The former senator said the actual wage increase may be lower based on TUCP's past experience with the Regional Tripartite Wages and Productivity Board (RTWPB) in the National Capital Region. He said the last time TUCP presented a P100 minimum wage increase proposal, the wage board approved a P12 increase.

President Arroyo on Monday ordered regional wage boards across the country to raise the minimum wage of workers in the private sector.

Budget Secretary Rolando Andaya said national government workers will also get a 10 percent pay hike this year. The increase, effective from July 1 and similar to one granted in 2007, will cost around P24 billion (about $575 million) per year.

"The wage hike will cover all national government employees, including uniformed personnel like soldiers and policemen, and casual and contractual employees," he told radio dzMM.

BUSINESS SECTOR PROPOSES BENEFITS PACKAGE

Donald Dee, president of the Philippine Chamber of Commerce and Industry and a participant of the RTWPB, said the business sector would not be able to support outright TUCP's proposal.

Dee said that instead of an increase, the business sector will propose to the government a "package" that will help mitigate the effects of the increasing prices of basic commodities.

He said the package includes tax exemption that will give Metro Manila workers at least P30 in daily savings. Another item included in the package, he said, is a promise from the business sector to "invest in farmlands."

He said the business sector will also suggest steps for the government to increase domestic food production and measures to prevent hoarding of agricultural products.

LABOR DAY PROTEST
CENTERS ON PAY HIKE

Labor group Kalipunan ng Damayang Mahihirap, meanwhile, said it will go to poor communities in Metro Manila to drum up support for a massive street protest on Labor Day for the proposed wage hike.

KADAMAY vice-president Bea Arellano said the May 1 rally seeks to pressure the government to implement the P125 wage increase to offset rising inflation. She added that KADAMAY will go door-to-door to encourage poor people to join the rally.

The Kilusang Mayo Uno said it is also planning to conduct a protest on April 21 to coincide with the opening of sessions at the House of Representatives.

The workers' group said the government should implement a legislated wage increase and not through the regional wage boards. "All workers need to eat and live regardless of their location in the Philippines," the group said.