WITH the proposed legislated wage increase still pending in the Senate, the Nagkaisa Labor Coalition (Nagkaisa) yesterday assailed businessmen opposing the measure looking to provide a P150 increase in the daily minimum wage of all workers.
In a statement, Nagkaisa denounced the continued efforts of the business sector in preventing workers from getting fair wages.
“The Nagkaisa Labor Coalition refutes strongly preposterous and misleading arguments put forth by certain business groups,” said Nagkaisa.
“They are hoping that by painting this ‘little-to-no effect’ and hyperinflation scenario, lawmakers would reconsider passing a legislated wage measure,” it added.
Nagkaisa was referring to the letter sent to Sen. Jinggoy Estrada by some business groups claiming that the wage adjustment will largely adversely affect micro, small, and medium enterprises (MSMEs).
The business groups claimed that once the proposal for increased wages is approved, MSMEs will have to increase the prices of their products, reduce the number of their workers, or simply close down operations.
But according to the labor group, what the business groups refused to consider is that having wage increases can lead to broader economic effects and drive sustainable growth.
“Contrary to their claims, raising wages will have a significant positive impact on the economy and the majority of Filipino workers,” said Nagkaisa.
The labor sector said higher wages will mean workers having more money at their disposal, which means increased purchasing power and thus drive consumer demand.
Nagkaisa said higher wages can foster employee loyalty, motivation, and improved productivity that, in turn, can enhance business efficiency and output.
It stressed that having a workforce with higher wages projects market stability and can help attract investments.
“It is, therefore, crucial for policymakers and businesses to recognize that investing in workers, through higher wages, yields significant long-term benefits,” said Nagkaisa.
