THE higher minimum wage in Central Visayas could further squeeze micro, small and medium enterprises (MSMEs) already grappling with rising operating costs, the Talisay Chamber of Commerce and Industry said.
Talisay Chamber president Carl Cabusas said the increase would add to pressures from higher electricity, raw material, transportation, rent and other business costs, leaving firms with thinner margins.
“We understand the need to protect the purchasing power and welfare of our workers. However, we must also recognize the growing pressure on MSMEs, which make up a large part of our local business community,” Cabusas said.
He said some businesses may resort to shorter operating hours, fewer workdays or workforce rationalization to manage costs and preserve jobs.
“In the worst cases,” he said, businesses could be forced to close.
Cabusas said wage adjustments should be accompanied by measures to lower the cost of doing business and contain inflation.
“The more sustainable solution must therefore go beyond repeatedly adjusting wages,” he said. “Government must work aggressively to bring inflation and the cost of basic goods, power, transportation and doing business under control.”
Lowering the cost of living would help improve workers’ purchasing power without placing the full burden of adjustment on employers, he said.
“We want better incomes for our workers, but we also need businesses — especially MSMEs — to remain viable enough to continue providing those jobs,” Cabusas said.
“There has to be a balance between protecting workers and protecting the enterprises that employ them.”
Under the wage adjustment approved by the National Wages and Productivity Commission, the minimum daily wage in Class A areas will increase by P42 to P582 from P540, while the rate in Class B areas will rise to P542 from P500.
The new rates are expected to take effect 15 days after publication of the wage order. The order was scheduled for publication on Sept. 28.
Class A covers the expanded Metro Cebu area, including Cebu City, Mandaue, Lapu-Lapu, Talisay, Naga, Carcar and Danao, as well as Compostela, Consolacion, Cordova, Liloan, Minglanilla and San Fernando.
Acting Labor Secretary Francis Tolentino said more than 300,000 minimum wage workers are expected to benefit from the increase. Tolentino said the adjustment reflects the current inflation rate in Cebu. / KOC