Central Visayas business groups have banded together to express opposition to any and all proposed legislated wage increase, including a Senate bill calling for a P150 daily across-the-board salary hike which they termed as “economic suicide.”
Instead of an across-the-board wage hike, the groups said the government should create a regional industry wage board that will consider the economic situation of each company, large, medium or small, in line with respective resources and performance or support a collective bargaining agreement type of solution per sector.
“An industry-driven wage hike is more realistic. Increasing wages to combat high commodity prices perpetuates a vicious cycle that harms the economy and the vulnerable population. Implementing a wage increase without considering our comparative disadvantage would worsen our international position, hampering our ability to attract investors that would generate much-needed employment and livelihood opportunities,” the groups said in a joint position paper.
They added current investors such as smaller companies may not be able to survive while the bigger companies especially multinational may seek other options/country to transfer business where labor cost is still low compared in the Philippines.
“We recognize and respect the rights and welfare of workers; however, we also deeply believe that a wage increase will not address the plight of the labor sector which is the essence of the proposed bill(s),” the groups said in a joint position paper.
They added increasing wages without addressing the root cause which is inflation will only exacerbate the problem by increasing production costs without increasing productivity and consequently, pushing higher the prices of goods and services into the cycle that results with hardship and increased cost of living.
The groups said forcing an arbitrary wage increase will further undermine the quality of jobs being generated, citing data which highlighted underemployment in the country
In addition, the groups noted that enacting a national legislated wage hike would distort wage rates across different regions.
“A performance and productivity-based wage compensation ensures deserving workers are given their due share of the fruits of their labor,” the groups said.
The groups also vehemently oppose the current petition for a wage adjustment, saying the Philippines has been trailing behind other Asean countries in terms of GDP per capita.
“The fact that the GDP per capita divides a country’s economic output by its total population makes it a good measurement of a country’s standard of living,” they said.
Citing official data, the groups said the Philippines ranked 7th among the 10 Asean in terms of GDP per capita in 2022 at $10,4497, higher only than Laos, Cambodia and Myanmar.
The business groups supported the position of the National Wages and Productivity Commission in questioning the constitutionality of the proposed P150 across-the-board wage increase.
“We believe that the proposed legislated increase infringes the mandated role of the Regional Tripartite Wages and Productivity Board to determine minimum wage increases and is excessive, oppressive, and confiscatory,” they said.
The groups said the government must proactively address inflationary pressures, particularly regarding the prices of basic goods and services, high utility costs (especially power and water), fuel prices, and the importation of goods. It is crucial to boost the agricultural value chain and develop new farming and fishing technologies to improve productivity and reduce dependency on imports. Additionally, the government can enact safety nets to protect labor from exploitation and ensure fair wages. Irma Isip
