DAVAO CITY–A banana firm executive called on the government to help ailing industries in securing exemptions from wage increase implementations, and come up with mechanism that will cushion the impact of the Tax Reform for Acceleration and Inclusion (TRAIN) on the banana sector.
In a press statement on Thursday, Stephen Antig, the Executive Director of the Pilipino Banana Growers and Exporters Association (PBGEA), warned that the proposed salary adjustment of PHP56.43 to the current wage levels will adversely affect the banana industry.
Antig described the proposed wage hike as unreasonable, saying the move is not well thought of “considering that the banana industry itself has also been affected by TRAIN.”
“The consultation done by the regional wage board with industry sectors was not thorough, thereby recommending another round of discussion to arrive at a reasonable compromise after all the industry figures have been appreciated,” Antig maintained.
He said the banana industry has been experiencing market and production problems, citing the adverse effects of the United States’ sanction against Iran–a key Philippine banana markets.
“There is wisdom in finding a middle ground to help laborers as industrial partners in earning an added income but finds the haste in implementing a new round of wage increase as untenable and inconsistent with the policy of creating permanent jobs”.
Based on data from the Philippine Statistical Authority (PSA), Antig said the Cavendish banana industry employs the highest number of workers in the agricultural sector.
He said any effort “to burden further an industry that has been paying heavy taxes to the government, sooner or later, can result in dislocation, unemployment, and retrenchment of workers who are dependent on the banana sector for jobs and livelihood.”
“There should be timing in instituting the proposed new round of wage increase,” he added. (Digna D. Banzon/PNA)
