A WAGE increase at this time will only aggravate the situation of the unemployed, Employers Confederation of the Philippines (ECOP) Acting President Sergio Ortiz-Luis Jr. has warned.
The ECOP leadership issued the warning following the spike in inflation that prompted organized labor to press for a new round of wage adjustments. President Rodrigo Duterte has ordered the Department of Labor and Employment (DOLE) to convene the wage boards to revisit wage levels across the country and discuss the effect of the Tax Reform for Acceleration and Inclusion Law on workers.
In Central Visayas, the wage board approved last week an increase of P20 a day for minimum wage-earners in Metro Cebu and P15 a day for other parts of the region, except for firms that employ 10 workers or fewer. For the latter, the approved increase was P10.
In a press statement, Ortiz-Luis Jr. noted that the P800 per day minimum wage nationwide proposed by the Associated Labor Unions-Trade Union Congress of the Philippines (ALU-TUCP) “will continue to neglect the unemployed sector of our labor force.”
Only 8 percent
“The pain of inflation triggered by a wage hike will worsen the plight of the rest of the wage and salary workers,” Ortiz-Luis Jr. said.
The estimated number of minimum wage earners nationwide stands at 3.2 million. This is less than eight percent of the Philippine labor force. In Metro Manila, the estimated number of minimum wage earners stands at 952,485.
“Setting a national minimum wage will greatly impact on enterprises, especially the micro, small, and medium enterprises located in the regions, which provide lower minimum wages as compared to the National Capital Region, and will definitely hamper business operations due to the dramatic increase in minimum wage,” Ortiz-Luis explained.
Based on data from the Philippine Statistics Authority (PSA) as of 2016, there were 911,768 micro, small and medium enterprises. These employed a total of 4,879,179 workers, with micro enterprises accounting for 2,345,992 workers.
Ortiz-Luis Jr. also pointed out that all wage orders may not be disturbed within one year of issuance unless a “supervening condition” is declared by the wage board. The last wage order in Metro Manila issued last Sept. 14, 2017 and took effect on Oct. 5, 2017. (PR)