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PIA Press Release
2005/01/18

Business sector seeking 2-tiered minimum wage

Davao City (18 January) -- Local businessmen are clamoring for a two-tiered minimum wage before the Regional Tripartite Wage and Productivity Board (RTWPB) which opened discussions on the minimum wage issue yesterday (January 17).

In a press statement, Atty Bienvenido Cariaga, new president of the Davao City Chamber of Commerce and Industry, Inc. (DCCCII) and management representative of the RTPWPB-XI), said the clamor is strong among businessmen for new labor entrants to receive less than those already employed.

He said the management sector strongly endorsed the position in public hearings held in Davao City on December 20, 2004 and in Tagum City the next day.

According to Atty. Cariaga, the rationale behind this two-tiered minimum wage is that the new entrant is still very young, and may be a fresh graduate, and usually does not have a family of six to support.

In fact, he said, the new entrant usually does not have a family of six to support. He also said the new entrant usually stays with his or her parents so that he or she has less or practically no expenses for house rental, light and water or house repair.

Thus, the P195.00 minimum wage in this region for non-agricultural old employees fixed by the regional board is computed on the basis of the assumption that the family of an employee consists of six members.

According to him, this manner of fixing minimum wage will eliminate the wage distortion between the new entrant and those already employed and are still receiving the old minimum wage rate. (DCCCII/P.Pabelic) [top]

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