By IRMA ISIP
Twenty business groups are calling on Senate to rethink a proposed legislated wage increase saying it will hurt companies while benefitting only a few workers.
The business groups in a position paper being routed for signature and addressed to senators through Senate President Juan Miguel Zubiri, said that instead of focusing solely on wage increases, policymakers, particularly members of the Senate, should adopt a more comprehensive approach to addressing economic inequality.
This involves investing more in education, skills development, and infrastructure, as well as creating an enabling environment for business growth and job creation, they said.
The groups said Congress should pass legislation that would once and for all solve low productivity, poor governance, excessive regulations, worsening poverty and serious income inequality which characterize a country with a large informal sector.
“Another wage hike through legislation coming at the heels of the recently implemented minimum wage adjustments through the wage boards is not the appropriate solution to address the underlying challenges faced by our Filipino workers,” they said.
The groups noted 15 of the 16 of these regional boards have just granted last year another round of increase in minimum wages for the very same people that this proposed P100 legislated minimum wage increase aims to assist.
The business groups further noted legislated wages, hurt especially the micro, small and medium enterprises and will worsen the plight of the informal sector and its 47-million strong workforce.
In contrast, only the 5 million minimum wage earners will benefit from any legislated wage hike.
Business has consistently and strongly opposed attempts to legislate minimum wage increases as this mandate has been in the hands the Regional Tripartite Wages and Productivity Boards.
The implementation of a legislated wage hike without careful consideration of the consequent economic impact would do more harm than good to both businesses and employees, the groups said.
The signatories of the joint position paper include the heads of the Employers Confederation of the Philippines, Philippine Chamber of Commerce and Industry, Philippine Exporters Confederation Inc., Management Association of the Philippines, among others.
