Downsizing, lay-offs feared: Businessman warns vs P13 salary hike

CEBU, Philippines – A business leader has warned that downsizing and lay-offs of workers are expected once the P13 per day wage adjustment would be implemented.

Robert Go, Philippine Retailers Association-Cebu Chapter president, said retailers will obey and implement the additional amount, but Small and Medium Enterprises would do this by cutting cost by hiring fewer people.

“We are law-abiding businessmen and would just follow even if the small and medium size retailer will have a hard time (surviving),” he said.

“There will be budget adjustments to stay ‘break even’ for small retailers… belt tightening for some. The better trained will be retained and first in last out. We will retain ‘few good men’,” he added.

Theresa Chan, Cebu Chamber of Commerce and Industry president, said their members would follow what is the mandated wage adjustment.

“We will follow. Okay ra to ang mga companies nga gamay ra og mga empleyado. But those companies nga daghan og mga employees, maglisud gyud. Possible mag-reduce gyud sa workforce,” Chan said.

Last Thursday, the Regional Tripartite Wage and Productivity Board-7 agreed during a deliberation to grant a P13-per-day increase for minimum wage earners in Metro Cebu only.  Metro Cebu covers areas from Cebu City to Danao City in the north and from Cebu city to Carcar City in the south.

RTWPB-7 chairman Exequiel Sarcauga said a copy of their decision was already forwarded to the National Wage Regulatory Board for review.

He said that once they receive the copy of the NWRB decision, they will have it published in a newspaper of general circulation.

The new order, Sarcauga said, will take effect 15 days after its publication.

Jose Tomongha, labor representative to the wage board, earlier said that they are not happy with the P13-per-day wage adjustment.

He said the amount is not even enough to compensate for and improve the workers’ purchasing power.

The Living Wage Coalition have filed a wage adjustment of P145.00 per day while the Associated Labor Unions-Trade Union Congress of the Philippines asked for P92.00 per day for all the workers in Central Visayas early this year

ALU-TUCP said they do not want businesses to go bankrupt, close down, and lay-off workers, as what they want is for minimum wage earners to also get a decent wage to afford decent life.

Seven labor unions, on the other hand, said a P145-per-day wage adjustment will provide wage earners the necessary “safety net” to keep them from falling into the poverty line.

During the public hearing last August 13, however, various business chambers and associations in Central Visayas expressed opposition to any move meant to increase the worker’s pay. —/RHM (FREEMAN)