CEBU, Philippines - An across-the-board wage increase is never a good idea because it destroys the economy.
This was the statement of businessman Robert Go, director of the Philippine Retailers Association-Cebu, on the plan of the Cebu Labor Coalition to a petition for a P100 to P150 across-the-board increase in wage.
“Job creation is better than job destruction. Hunger is caused by having no job, not because of minimum wage. Increased wage will just result to less available jobs, which has more evil. Increasing the wages this time will just deplete jobs,” Go said.
Go said workers also needs to take into consideration the number of jobs that the Philippines has lost to other countries because of their cheap labor.
“We keep losing jobs because manufacturers keep on transferring to China, Vietnam, Malaysia and Thailand because of our high wages,” Go said.
Tire manufacturer Goodyear used to operate in the Philippines, but eventually closed shop. Even Japanese companies that used to operate at the Mactan Export Processing Zone (MEPZ) reportedly transferred most of its work to China.
The CLC, headed by the Alliance of Progressive Labor, plans to file a wage hike petition within the month, amidst the rising cost of transportation and basic commodities.
September last year, the Regional Tripartite Wages and Productivity Board (RTWPB) passed Wage Order No. 15, which increased the daily minimum wage rate in Central Visayas by P18.00 in all classes.
At present, the minimum wage rate is P285 (Class A), P265 (Class B), P255 (Class C) and P240 (Class D).
Class A comprises the cities of Carcar, Cebu, Danao, Lapu-Lapu, Mandaue, Naga and Talisay, and the Municipalities of Compostela, Consolacion, Cordova, Liloan, Minglanilla, and San Fernando (or expanded Metro Cebu).
Class B is composed of the city of Toledo and the town of Bogo, and the rest of the Municipalities in the Province of Cebu except the Municipalities in the Islands of Bantayan and Camotes.
Class C comprises the cities and municipalities in the Provinces of Bohol and Negros Oriental while Class D is composed of the municipalities in the Province of Siquijor and municipalities in the Islands of Bantayan and Camotes.
Central Visayas has between 85,000 to 100,000 workers. —(FREEMAN)