The Federation of Filipino-Chinese Chamber of Commerce and Industry Inc. (FFCCCII) yesterday said a wage increase combined with a hike in the premium of the Philippine Health Insurance Corp. will be a double whammy for businesses which will have no choice but to raise prices, lay off workers or worse, close shop.

Cecilio Pedro, FFCCCII president, called on the need to establish a stable business environment to attract investments when sought for his comments on charter change.
“What we need is proper implementation. We cannot even properly implement the old laws, and now we want to change it,” Pedro said, adding investors “want to stability.”
Pedro said this is not the right time for a wage hike as this is now opportunity to stabilize inflation.
“Price increase is inevitable because interest rates, logistics and electricity costs are high and a wage hike is a reason to increase prices,” Pedro said in a luncheon with media yesterday.
He added: “Legislated wage hike is the worst. The regional wage boards are the most reasonable way to determine wage adjustments.”
He said companies will try to comply with the adjustments by cutting down their workforce while those on the verge of closure will eventually shut down.
For Pedro, focus should instead be on investments and on job creation.
He said the wage hike along with the increase on Philhealth premiums should be studied carefully.
“We have to look for ways to address this concern (on Philhealth). Philhealth provides assistance to the health needs of Filipinos and it needs to beef up its funds,” Pedro said.