More biz groups oppose bill on P200 daily wage hike
More business groups have come forward to oppose plans to legislate a P200 wage hike, signaling a growing disapproval from a wide range of industries in the country.
A joint letter signed by ten major trade organizations dated Feb. 4 was sent to House of Representatives labor committee Chair Juan Fidel Felipe Nograles voicing their “strong opposition” to the proposed law on an across-the-board wage hike that was recently approved.
“While we acknowledge and respect the desire to improve the welfare of workers, we believe that the sweeping nature of this proposal will have devastating effects on business owners, particularly small and micro enterprises, and the Philippine economy in its entirety,” the letter read.
The business groups which signed the letter include the Employers Confederation of the Philippines, Philippine Chamber of Commerce and Industry, Philippine Exporters Confederation, Philippine Hotel Owners Association, Philippine Association of Legitimate Service Contractors, Philippine Retailers Association, Federation of Filipino-Chinese Chambers of Commerce and Industry, Philippine Constructors Association, People Management Association of the Philippines, and the Semiconductor and Electronics Industries in the Philippines.
Micro, small and medium enterprises (MSMEs) “are already struggling with rising operational costs, limited access to credit, and the ongoing challenges posed by economic instability, including the aftermath of the COVID-19 pandemic and inflation,” the letter read.
“Mandating a blanket wage increase of P200 a day will disproportionately burden these businesses, many of which are operating with slim margins and lack the financial flexibility to absorb such a significant increase in labor costs,” it added.
