Employers’ group asks President Marcos: Veto P100 wage hike law
Credit to Author: Bella Cariaso| Date: Sat, 17 Feb 2024 00:00:00 +0800
MANILA, Philippines — President Marcos should veto a proposed measure legislating a P100 daily across-the-board increase for the private sector as there is no way that small businesses can comply with the legislated wage hike, Employers Confederation of the Philippines (ECOP) chairman Sergio Ortiz-Luis Jr. said yesterday.
“The President can veto it, and I personally believe that the President listens to his economic managers, as all of them are against the proposed measure,” Ortiz-Luis, newly reelected Philippine Exporters Confederation president, said during the Pandesal Forum in Quezon City.
Senators unanimously approved Senate Bill 2534 under Committee Report No. 190, a measure which, if it becomes law, could be the first since 1989 that a legislated pay hike would be implemented nationwide.
Senate President Juan Miguel Zubiri said he expects the measure to hurdle third and final reading next week and appealed to members of the House of Representatives to do their part and pass a counterpart measure.
Ortiz-Luis noted that 15 of the 16 regional wage boards have just granted another round of increase in minimum wages.
“It will worsen the plight of the informal sector and its overwhelming 47 million strong presence in the workforce and contribution to the economy,” he added.
Ortiz-Luis added that lawmakers should adopt a more comprehensive approach to address economic equality instead of focusing solely on wage increases.
He also denied that employers were against the wage hike because it would decrease their profits. Rather, 90 percent of the country’s 52 million workforce are employed by micro, small and medium enterprises, which could face difficulties in complying with the measure.
“It is not a question of lower earnings as big companies can afford to give more perks. The problem is the micro enterprises. There is no way small businesses can provide that,” Ortiz-Luis said.
On the other hand, the Nagkaisa labor coalition debunked claims from employers that the proposed P100 wage increase would have negative effects on the economy and businesses.
It said a wage hike higher than P100 can be absorbed by the economy, stressing that “historical evidence and regional comparisons support the benefits of wage increases.”
“The P25 wage increase nationwide enacted in 1989 is a good example. Despite such a substantial wage hike of about 40 percent nationwide and the coup attempts that followed, contrary to employers’ logic, it did not lead to substantial job losses,” Nagkaisa said. — Rhodina Villanueva