Employers recommend tax breaks for workers, but not pay hike

MANILA, Philippines – Company owners yesterday said the demand of workers for another salary increase is not the solution to the economic problems of the labor sector.

The Employers Confederation of the Philippines (ECOP) advised workers nationwide to consider seeking non-wage benefits to help them cope with the rising cost of essential commodities, instead of seeking a salary hike.

Employers have recommended to the government more tax breaks for workers.

ECOP president Sergio Ortiz-Luiz Jr. said organized labor should go slow in demanding another wage adjustment amid the rising prices of rice and petroleum products.

“Wage hike is not the solution to the current economic woes as the disadvantaged sector of society will suffer all the more as they will not benefit from any adjustment in the minimum wage,” Ortiz-Luiz pointed out.

Ortiz-Luiz said the current setup where wages are set and raised by the regional tripartite wages and productivity boards (RTWPBs) only provides benefit for those in the formal labor sector, especially the minimum wage earners.

“The marginalized or those who do not have fixed or steady source of income like the drivers, vendors, mechanics, welders, plumbers, electricians, etc. will not enjoy any wage adjustment at all,” he said.

Ortiz-Luiz said a new round of wage adjustments would only aggravate the income disparity between those in the formal sector and the informal sector.

Citing data from the Department of Labor and Employment (DOLE), Ortiz-Luiz said that out of the 32.965 million employed, only 4.984 million comprised the formal sector.

“This is the sad reality. While the wages of those who benefit from mandated wage adjustments increase every year, the wages of the marginalized sector remain stagnant and hence, they become all the more marginalized,” Ortiz-Luiz emphasized.

He then called on the government to provide a safety net for the marginalized sectors to cushion the impact of higher prices of basic commodities.

Employers are willing to thresh out measures with government to ease the plight of workers without hurting business, he added.   – Mayen Jaymalin