Saturday, April 19, 2008 Bizmen reject legislated wage hike
EMPLOYERS on Friday scrapped calls for a legislated wage increase.
Segio Ortiz-Luiz, president of the Employers Confederation of the Philippines (Ecop), said the proposed legislated wage increase would in fact cause more harm to the minimum wage earners in the country.
"Let us no court disaster. A legislated wage increase would do harm than good considering that 84 percent of the country's workforce will not benefit from this and will create disparity in incomes," Luiz said.
He noted that a legislated wage adjustment would only spell doom for the business sector, specifically the small and medium enterprises (SMEs) that account for 99 percent of the commercial establishments nationwide.
"If lawmakers would proceed in giving in to populist demand for a legislated wage hike, many businesses will have no choice but to trim down their workforce as a pay adjustment coupled with surging fuel prices would impact on business vitality," he pointed out.
According to the Ecop president, the employers are not against any salary increase, but this matter should be decided upon by the regional tripartite wages and productivity boards (RTWPBs).
"The wage boards are mandated by law to take into account certain factors and criteria to determine the magnitude of a wage increase which would be fair to stakeholders in the workplace," he explained.
Like Luiz, former Ecop president Donald Dee said they would rather allow the wage boards to decide on the increase, as this is the right and beneficial way to both the employers and the workers.
"We maintain that the wage boards are still the better, faster and most effective process," Dee said.
He added that a legislated wage increase would push many companies to either shut down or retrench workers since they would not be able to comply if Congress enacts a law for a legislated salary adjustment. (MSN/Sunnex)
