Salary increases are better left with wage boards and collective bargaining as mandating these will be disastrous to industries, according to the Philippine Retailers Association (PRA).
PRA projects employment losses of as much as half a million in retail mostly from micro, small and medium enterprises should a new round of wage hike is implemented.
After the wage increase implemented recently, another round is being pushed through legislation.
“Even with the round that has been approved, businesses are still adjusting. They are trying to find ways to (meet) the one that has already been approved. The legislated wage hike must be synchronized with inflation and ability to generate investments.
Businesses which are not able to comply with the higher wages will simply reduce employment. In retailing, wage (hikes) may just bring up our labor problems especially now with high underemployment,” said Roberto Claudio, PRA president.
Claudio finds it unwise to raise wages while sacrificing the viability of companies.
He said wage adjustments can be best worked out by employers with their labor unions.
“ In the past, we have been able to adjust our wages using our wage board and the CBA (collective bargaining agreement. If you mandate the increase with the law, you are forcing others who are not in the position to give additional wages or adjustment in their wages,” Claudio said. – Irma Isip
