THE Mandaue Chamber of Commerce and Industry (MCCI) has voiced concerns regarding the proposed wage increase in Central Visayas, particularly its potential impact on local businesses and the broader economy.
The discussion is expected to take center stage during the upcoming public hearings scheduled by the Regional Tripartite Wages and Productivity Board (RTWPB) on August 20, 2024.
The RTWPB is scheduled to conduct a series of public hearings starting August across various locations in the region to collect feedback on the proposed minimum wage adjustment.
In a public notice, the Central Visayas wage board announced that the hearings will take place in five parts, covering Cebu, Negros Oriental, and Bohol between August 20 and September 4.
Stakeholders are encouraged to participate in the hearings nearest to their area.
The move follows a directive from the President Ferdinand Marcos Jr., for a thorough review of workers’ wages.
Mark Anthony Ynoc, president of MCCI said on Friday, August 11 that any wage adjustments in Cebu or elsewhere in the Philippines would directly affect inflation rates, customs costs, and ultimately, the employment landscape.
The unemployment rate in Mandaue City stands at 4.1 percent, a slight improvement from the 4.8 percent recorded in August of the previous year.
MCCI expressed concern that a wage hike could potentially reverse these gains, impacting both the employability of workers and the overall economic progress of Mandaue City and the country.
It is estimated that there are over 500 businesses in Mandaue City.
Working hours
Business owners in Mandaue City are apprehensive about how they will cope with a wage increase, said Ynoc.
Some anticipate having to reduce working hours or impose forced leaves to manage costs, he added.
Ynoc noted that any wage increase might eventually be passed on to consumers, thereby affecting the broader economy.
“I trust the RTWPB to carefully consider all factors and brainstorm for the good of everyone involved,” Ynoc said following the P35 increase granted to workers in Metro Manila by the wage board.
Ynoc acknowledged the complexity of determining the “ideal” wage increase, citing the need to balance business sustainability with workers’ welfare.
There is particular concern for small businesses, which may struggle the most to comply with the wage hike.
The final decision will require careful consideration of multiple factors, including the business environment and public needs.
The hearings are anticipated to draw participation from various business owners, with around 500 expected to voice their opinions, said Ynoc.
The outcome of these discussions will be crucial in shaping the future economic landscape of the region, he added. / CAV