‘Business can’t afford P100 increase’

A FORMER president of the Cebu Chamber of Commerce and Industry (CCCI) yesterday warned of business closures if the P100 pay hike petition filed by the Trade Union Congress of the Philippines (TUCP) is granted.

Robert Go, who also owns Prince Warehouse Club, said that several business and manufacturing firms already closed shops last year because of the global economic crisis that started in the United States.

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But TUCP partylist Rep. Raymond Mendoza said that even though they filed a petition for a P100 wage increase last Monday, they are willing to negotiate with the Regional Tripartite Wages and Productivity Board (RTWPB) for an acceptable amount that is not less than half of what they demanded.

Cash flow

“Any increase will drain the already dwindling cash flow of several companies. Several exporters, especially those in the furniture business, closed shops last year. If there is a wage increase, they’ll have a hard time to reopen,” Go said.

According to Go, locators at the Mactan Economic Zone (MEZ) have transferred most of their production to their units in China due to cheaper labor cost.

“So, they downsize here in the Philippines and upsize in China, Thailand, Indonesia and Malaysia. Even Japanese companies revealed that their mother units in Japan sent increasing job orders to their sister companies in China rather than in the Philippines,” Go said.

Last increase

Mendoza, however, said that the last wage increase of P17 on May 22, 2008 was so small that it has been wiped out by the continuing increases in the prices of petroleum products, cost of transportation, basic goods and services.

Mendoza said TUCP refrained from seeking wage hikes for almost two years in consideration of difficulties caused by the global financial crisis. But since companies have started to recover, it is just right for workers to demand a pay hike.