Wage hike concerns hit as 鈥榝ear-mongering鈥�
Composite image: Jerome Cristobal from PDI, Reuters INQ file photos
MANILA, Philippines — Trade unions on Sunday dismissed claims of big businesses and employers that implementing the P200 daily wage increase would cause massive layoffs and bigger economic problems.
“These fear-mongering claims always come out every time workers are calling for wage hikes,” Josua Mata, secretary general of the national labor center Sentro ng mga Nagkakaisa at Progresibong Manggagawa (Sentro), said over dzBB.
“But when will these employers finally fix the measly salaries of their workers? When will we correct this historical injustice? For 36 years, our minimum wage earners are living off salaries, which are even lower than the poverty threshold for a family of five,” he said.
READ: P200 wage hike to cause layoffs, PH retailers warn
The Philippine Chamber of Commerce and Industry (PCCI), the country’s biggest business group, earlier expressed opposition to the P200 legislated wage hike in the lower House of Congress under House Bill No. 11376.
The group urged the lawmakers to leave it up to the regional wage boards (RWBs) to determine wage adjustments.
The proposed legislation would exempt barangay microbusiness enterprises and allow retail or service establishments regularly employing not more than 10 workers, as well as establishments “adversely affected by natural calamities or human-induced disasters,” to apply for exemption.
The PCCI noted that the wage hike would lead to higher labor costs, particularly for micro, small, and medium-sized enterprises (MSMEs).
The Philippine Retailers Association also warned of mass layoffs should the wage hike be implemented.
But Mata said these big businesses were “running away from their responsibilities by hiding behind MSMEs.” He noted that micro- and small-enterprises are exempted from complying with the minimum wage rules. /cb
