Thursday, February 08, 2007
Legislated wage hike will not lead to biz closures: lawmaker
By Jane Cadalig
HOUSE minority leader and senatorial candidate Francis Escudero defended Congress in passing the P125 legislated wage increase.
In a press conference here last week, the opposition congressman advised the business sector, the main critic in the passage of the law, to stop assailing Congress for approving the measure.
Business groups in the country have opposed the passage of the bill which mandates employers to grant their workers an increase in their salaries that would total to P125 in the next three years.
The business groups warned that once this is implemented, several laborers would loose their jobs, since most companies would not be able to grant the increase.
But Escudero disagreed saying that increasing salaries of minimum wage earners is not actually the main concern that bugs the conduct of business in the country.
"Based on surveys, it is not really the salaries of employees that cause businesses to close. Instead, it is the high price of electricity, competition and instability or the absence of a predictable business climate," he said.
"I just do not understand why they are fighting against the P125 wage increase. They should have made the same objection when the expanded value-added tax was approved and implemented," he added.
Baguio City Representative Mauricio Domogan earlier opposed the proposed P125 wage increase saying it would be a burden to employers.
He said although he supports the granting of an increase in the wage of laborers, he is not in favor of giving P125 as increase but it should be a gradual hike of at least P20 to P30.For more Philippine news, visit Sun.Star Bacolod. (February 7, 2007 issue)
Write letter to the editor. Click here.
Join the Sun.Star message board. Click here. |
