The markets also took note of this; yesterday the peso and stocks conti-nued their rally.
President Arroyo was understandably elated, voicing hopes that international agencies will soon upgrade the country’s credit rating from negative to stable.
The positive developments are helped along by the traditional increase in remittances of overseas Filipino workers as Christmas approaches.
The administration has reason to rejoice, but it’s early days yet, and the government must avoid overdoing the celebration. Populist stunts must also be avoided, because these can set back whatever gains may be achieved from the EVAT.
Telling Congress to legislate a wage increase is one such stunt.
Opposition congressmen are right – if Malacañang really wants a legislated wage increase ASAP, it should certify a wage hike bill as urgent. Without that certification, all those statements from Malacañang are nothing but hot air.
Does Malacañang really want a legislated wage increase? The last thing the administration should want is to politicize wage-fixing again, and to impose wage increases across the board. The cost of living and the needs of workers and employers differ by region. Fixing wages around the country is too nuanced to leave in the hands of lawmakers, many of whom have a propensity for grandstanding. This is why we have tripartite wages and productivity boards in every region. Protecting workers without driving away investors requires a delicate balancing act that lawmakers busy with politicking cannot handle.
Malacañang should also listen to the voices of employers, who are warning that a legislated wage increase could force many enterprises to fold up. A recent report from the Department of Labor and Employment showed that as it is, more than half of businesses in the country are not complying with wage rates.
Productivity rises when workers are happy. But first the government must make sure jobs are preserved and new employment opportunities generated. Any gains from the EVAT will fly out the window if investors start packing up due to rising labor costs.