ECOP warns vs legislated wage hike consequences

MANILA, Philippines — The proposed measure for a P200 across-the-board increase in the daily minimum wage of private sector workers is counterproductive and could have unwanted consequences on the economy, according to the country’s umbrella group of employers.

In a telephone interview yesterday, Employers Confederation of the Philippines president Sergio Ortiz-Luis Jr. said legislating an increase of P200 in the daily minimum wage of private sector workers would be counterproductive.

“It sounds good but in reality, it will just benefit a few,” Ortiz-Luis said, noting many workers belong to the informal sector.

The House committee on labor and employment approved yesterday the proposed P200 across-the-board increase in the daily salary of workers in the private sector.

Ortiz-Luis explained the proposal could have negative consequences on the economy, as many micro and small enterprises making up the bulk of the country’s registered businesses would find it difficult to implement a P200-increase in the minimum wage.

“Whenever there is a wage hike, businesses think about where to get this. What companies do is to either raise their prices or let go of people,” he said, adding that when rice increases are implemented, it is the consumers who suffer.

With the Philippines already having the highest minimum wage in Southeast Asia, the business leader said the proposal could also turn off investors looking at the Philippines for their expansion.

He also said it is best to leave the decision on wages to the regional wage boards where the government, employers and workers are represented.

The House approval came a day after Speaker Martin Romualdez, Deputy Speaker and TUCP party-list Rep. Democrito Raymond Mendoza and Assistant Majority Leader and Tingog party-list Rep. Jude Acidre met with labor leaders where Romualdez affirmed the House’s commitment to fast-track the proposed P200 increase in salaries of workers in the private sector.

The committee, chaired by Rizal 2nd District Rep. Juan Fidel Felipe Nograles, approved a motion of Cotabato 3rd District Rep. Ma. Alana Samantha Santos to pass the substitute bill for the “P200 Daily Across-the-Board Wage Increase Act,”