Filipino-Chinese group bucks P200 legislated wage hike
A local group of Filipino-Chinese businessmen on Friday reiterated its call for the government to reconsider the plan to implement a P200 across-the-board-wage hike, highlighting the trade group’s opposition to the measure seen hurting businesses.
In a statement, the head of the Federation of Filipino-Chinese Chambers of Commerce and Industry (FFCCCII) said that while they recognize the need for meaningful wage adjustments, they also uphold the principle of “balanced progress.”
“A wage increase is a laudable goal, but an abrupt nationwide implementation of a P200 hike may have dire unintended consequences,” FFCCCII president Cecillio Pedro warned.
“Studies show that such a measure could drive up inflation, raise the cost of goods, and strain small businesses, which account for 66.97 percent of total Philippine employment,” he added.
Instead of a blanket nationwide wage increase, Pedro said that wage-setting should consider regional economic conditions.
“The cost of living varies significantly across the country, and a uniform P200 hike may disproportionately affect businesses in lower-cost regions, leading to closures and job losses,” he said.
Fair adjustments
He said that regional wage boards, which are composed of labor, business and government representatives, are in the best position to determine “fair and sustainable” wage adjustments.
Additionally, the FFCCCII official said that the planned legislated wage hike comes at a time of global economic volatility and high borrowing costs.
Pedro said these difficulties would particularly affect workers in the informal sector, which he said accounts for 84 percent of the country’s workforce.
“If wages rise too high unilaterally and too drastically, we the businesses here in the Philippines might lose our global competitiveness. More [micro, small and medium enterprises] might suffer and many workers may even face retrenchment,” he said.
In conclusion, Pedro urged the government and Congress to conduct thorough studies and consult all sectors before enacting a new wage increase.
