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,” consolidating House Bill Nos. 514, 7568 and 7871.

If enacted, the measure would require all private businesses, regardless of size or industry, to implement a P200 daily pay increase for their workers.

The legislation prohibits employers from offsetting the increase with previously granted wage adjustments unless these were explicitly anticipated under collective bargaining agreements. Existing benefits and allowances cannot be reduced as a result of the pay increase.

The Department of Labor and Employment (DOLE) is tasked to implement the wage increase and conduct inspections to ensure employers’ compliance.

Employers who violate the law face fines of P50,000 to P100,000 or imprisonment of up to four years. Violators will also be required to pay double the amount of unpaid benefits owed to their workers.

The bill will now move to the House plenary for further deliberation.

Wage hike could hurt economy – employers

Long overdue

Organized labor yesterday hailed the congressional approval of the proposed P200 across-the-board wage increase for workers nationwide.

Workers, however, admitted that even if it gets passed on second reading, the proposed wage hike bill is still racing against time since Congress is set to go on recess next week to give way to the campaign period.

The Federation of Free Workers (FFW) and NAGKAISA labor coalition said the ?200 daily wage hike nationwide is “much-needed and long-overdue relief” for workers.

Members of Kilusang Mayo Uno staged a protest action in front of the House of Representatives to reiterate the workers’ demand for P1,200 family living wage for all workers nationwide.

The Teachers’ Dignity Coalition is calling on candidates running for legislative offices to prioritize the P15,000 salary

hike for public school teachers in their legislative agenda. Akbayan party-list Rep.

Perci Cendaña and Gabriela party-list Rep. Arlene Brosas urged the government to pri- oritize the wage hike.

Senate President Francis Escudero welcomed the de- velopment, while Sen. Juan Miguel Zubiri called the approval historic. – Jose Rodel Clapano, Mayen Jaymalin, Neil Jayson Servallos, Mark Ernest Villeza, Marc Jayson Cayab