Friday, May 30, 2008

Davao Banana Plantation Complies Minimum Wage Order

Davao City Philippines | Philippine News Agency: The Lapanday Agriculture and Development Corp. (LADECO) in Davao del Norte will be complying with the new wage order issued by the Regional Wage and Tripartite Board (RWTB) Southern Mindanao last week.

Lapanday human resources manager Gerardo Ongkingco said the company will give the P15 increase in the Cost of Living Allowance (Cola) and the integration of the current P26 Cola into the minimum wage.

"We will be complying with the new wage order," Ongkingco said.

Lapanday was one of the first companies to have announced the implementation of the new wage order.

Late last year, the company closed one of its banana plantations in Mandug, Davao City. The area will be converted into an industrial and residential area.

Although the company's closure of their Mandug plantation is part of their long term plans, it also said that it has been hastened due to the rising costs and low productivity of the area.

Stephen Antig, president of the Pilipino Banana Growers and Exporters Association (PBGEA) said some companies in the banana industry may have to "rightsize" their structures with the implementation of the P15 increase in the Cola and the integration of the current P26 Cola into the basic pay of the minimum wage earners as stated by the wage order.

No comments: