Business anxious over pay hike, labor groups disappointed

CEBU, Philippines - While the workers are not happy with the P20-minimum wage increase, the business sector also expressed apprehension over the Regional Tripartite Wages and Productivity Board’s (RTWPB) decision.

The new minimum wage rates will apply to all minimum wage earners in the private sector in the region regardless of their position, designation, or status of employment, and method by which they are paid.

Samuel L. Chioson, president of the Cebu Chamber of Commerce and Industry (CCCI), said the increase in the minimum wage to P305 from the current P285 is beyond their expectations.

“Some can absorb but most are having a hard time and besides, it will not encourage foreign investors,” Chioson said in his text message sent to The FREEMAN.

According to Chioson, the country stands to lose competitiveness among Asian neighbors as the Philippines has the highest minimum wage among Asian countries like Thailand, Vietnam, Indonesia, Thailand and China

Chioson said that there members might not be able to afford the amount, especially the exporters and small and medium enterprises.

The group, however said it would urge its members to comply, if there will be an order for its implementation within this month.

Ferdinand Jumapao, the Area Vice President of the Associated Labor Union (ALU), told The FREEMAN that the actual wages are clearly not enough to provide for a family’s basic needs.

Jumapao cited that parents earning minimum wage are still short of meeting the family’s decent living requirements, prompting them to either take a second job or send their children working for additional income.  (FREEMAN)