Business groups have cautioned the Regional Tripartite Wages and Productivity Board- National Capital Region (RTWPB-NCR) against “politicizing” the decision over the wage hike petitions filed by various groups in view of the forthcoming elections.
In a joint position paper dated May 4, 2022 to Sarah Buena Mirasol, RTWPB-NCR chair, the heads of the Employers Confederation of the Philippines (ECOP), the Philippine Chamber of Commerce and Industry (PCCI), and the Philippine Exporters Confederation Inc.
(Philexport) requested the body to seriously consider various socio-economic indicators when tackling the wage hike petitions “as they impact on ordinary workers and employers, especially the micro, small and medium enterprises (MSMEs).”
The groups were reacting to the petitions filed by the Unity for Wage Increase last Nov. 25, 2019 for a P213- increase; Metro East Labor Federation P213, March 4, 2022; Solidarity of Unions in the Philippines for Empowerment and Reforms P213 to P250, March 4, 2022 and; Trade Union Congress of the Philippines, P470, April 4, 2022.
The groups warned a wage hike could lead to business closures, job losses and increased cost of products.
“Even if such increase is limited to minimum wage earners, it actually leads to wage distortion, a situation could lead to the obliteration of the prevailing salary structure within the company,” the business groups said.
They said what is more crucial is job preservation and job creation which “cannot be addressed by adding to the cost of doing business fueled by a wage increase.”
The groups also urged government to be “more aggressive in providing cash and non-cash
assistance to the minimum wage earners including the members of the informal economy.
“We understand the basis for the petitions. The consultative process embedded in our existing wage determination should allow the wage board to balance the interests of both employers, who provide jobs and livelihoods, and the workers, especially the minimum wage earners,” the groups said.
They said the Philippines continues to be one of the most severely affected countries by the pandemic in Asia, incurring a national government debt of a record P12 trillion coupled by soaring fuel prices and posting 3.13 million unemployed individuals.
“MSMEs have been hit hardest by the pandemic. Many of them have temporarily closed, have permanently closed shop, or are barely surviving. We call on government to find ways for MSMEs to remain solvent and be able to meet their financial requirements. Supporting small businesses by creating opportunities for MSMEs to thrive is essential to increase productivity, create jobs, and boost our national economy,” they added.
The groups reiterated earlier findings which showed only 700,000 are receiving daily minimum wage in the formal economy and most workers in the informal economy are not covered by minimum wage increases.
“A wage increase would only benefit a very small portion of workers in the NCR. A sad reality that we hope the government will address in the near future. Unfortunately, an increase in the minimum wage may prove to be a disincentive to formalization and may in fact drive those in the formal economy towards informalization,” the joint position said.
The document was signed by Edgardo Lacson, ECOP chairman; George Barcelon, PCCI president and; Sergio Ortiz-Luis, Philexport president.
