MANILA, Philippines — Wage hikes should just be "minimal" to prevent price spikes and job losses, the Trade department said on Wednesday.
Trade Secretary Ramon Lopez said a wage increase that is more than necessary is "dangerous" because it could create a "strong pressure" on inflation.
"The reality is not everyone is a wage earner. If we increase the wage, costs will increase. Once the cost increase, this may push prices also to increase... the prices of products will increase," Lopez said in a press briefing in Malacañang.
"If you ask me there can be a minimal adjustment but that should not be more than what is necessary," he added.
Lopez said he is leaving it up to the regional wage boards to decide on the wage adjustments, which he said should be dependent on the price movements in their respective areas.
"There should not be any wage adjustments if there is no inflation in some regions," the trade chief said.
"If I would be asked, I don't want it. I'm not against the labor but what will happen is the inflation might affect the public. That's our concern," he said.
Lopez warned that imposing steep wage increases could put too much pressure on businesses and might result in job losses.
Lopez said peace and order, rule of law and good business environment would help increase wages because they would encourage investors to create more jobs.
President Rodrigo Duterte has ordered regional wage boards to convene and discuss possible wage adjustments because of rising prices of goods. — Alexis Romero and Job Manahan