Marcos says wage hike needs further study
The across-the-board wage hike ranging from P100 to P200 for private sector workers that legislators are proposing should undergo further study, President Marcos said on Friday.
In an interview with reporters in Pasay City, Mr. Marcos acknowledged the need to institute measures to help workers cope with the high prices of goods, but that other factors should be considered.
“The thing is, we have a tripartite board that actually determines the increase in the wage. So, we still have to study it further to see how that will work together,” he said.
The House of Representatives approved on Thursday at the committee level the substitute bill providing for a P200 daily wage hike, while the Senate approved a similar measure last year proposing a P100 pay increase.
The timing of the measure’s approval, particularly in the House, has been questioned considering the midterm polls are only three months away.
Mr. Marcos said a legislated wage hike is “certainly something that we have to think about” but that “there are many sides” to the issue.
‘Disaster’ warning
“The employers are worried, especially small employers like sari-sari stores, beauty parlors, etc. If the minimum wage is increased, they might cut down on employees. It’s because they won’t be getting more money to pay for the higher wage,” the President said.
“I think there is a way to increase it. But we have to resolve the legal issues, we have to resolve the economic issues. So it still deserves a great deal of study,” he added.
In Cebu, Mark Anthony Ynoc, president of the Mandaue Chamber of Commerce and Industry, warned of a potential economic disaster resulting in business closures and bankruptcy if the proposed wage hike passes.
“[It] would lead to high inflation, make companies and businesses less competitive, and result in job losses. This shall bring potential economic disasters that will cause company closures and bankruptcies,” he said in a statement.
He added that the government should instead focus on implementing programs that will boost the economy, attract foreign investors and encourage businesses to implement incentive programs for their workers.
“The government should shift their focus on strengthening the country’s economy through ease of doing business, establishing globally competitive training and education, infrastructure building, and attracting foreign direct investors while encouraging existing businesses to implement incentive programs. This way we may boost the country’s GDP growth,” Ynoc said.
Carlos Miguel Onate, legislative officer of the Trade Union Congress of the Philippines (TUCP), on the other hand, said that, based on research, a legislated wage hike would not necessarily result in business closures or unemployment.
Relief for 5M workers
He recalled that no business closures happened in 1989 when the TUCP moved for the legislated wage hike of P25, raising the minimum wage by at least 40 percent from P64 to P89.
Onate asked employers to consider a wage increase as an investment as a high salary will result in high productivity.
The House committee on labor and employment unanimously approved on Thursday the substitute bill, which also prohibits employers from offsetting the increase with previous wage adjustments unless explicitly anticipated under collective bargaining agreements.
Rizal Rep. Fidel Nograles, committee chair, called on the public to rally behind the bill rather than “throw brickbats” over the supposed timing and intent in pushing for it.
He added that the measure could bring relief to at least 5 million minimum wage workers nationwide.
“We believe that the wage hike measure is an important intervention because of the runaway rise in the cost of commodities. This is a direct response to the appeal of our workers for more support so they can eke out a living,” Nograles said.
The Philippine Statistics Authority has reported that inflation rose to 2.9 percent in December, higher than the 2.5 percent recorded in November, due mainly to higher housing and energy costs.
Make it urgent
At the Senate, Sen. Joel Villanueva urged Mr. Marcos to certify as urgent Senate Bill No. 2534 mandating a P100 across-the-board wage hike for private sector workers. The chamber approved it in February last year.
“The window for the 19th Congress is slowly closing, which is why we need to speed up discussions and ensure the bill’s enactment before we adjourn,” Villanueva, chair of the Senate committee on labor, employment and human resource development, said in a statement.
Congress will go on a legislative break on Feb. 7 ahead of the midterm elections in May.
“At the end of the day, what is important is that we can (set) our workers’ wages (as a) living wage,” Villanueva said.
He added that the labor sector should benefit from the improvement in the country’s economy, which grew by 5.6 percent in 2024. —KRIXIA SUBINGSUBING AND MARLON RAMOS
