CEBU, Philippines — The business sector is not at all against any wage hike petition. But Mandaue Chamber of Commerce and Industry president Stanley Go has urged the Regional Tripartite Wages and Productivity Board in Central Visayas (RTWPB–7) to strike a balance between the concerns of the labor and business sectors.
This comes following the P120-wage hike petition of the Associated Labor Union–Trade Union Congress of the Philippines (ALU–TUCP) before the wage board for minimum wage earners in Central Visayas.
"There has just to be a dialogue. The wage board must come up with a decision that is both sustainable to the business sector and labor," Go told The FREEMAN in a phone interview yesterday.
While he understands that wage earners need a pay hike due to the increasing consumer prices, he urges stakeholders to make a decision on wage hike petition that is both sustainable for labor and business.
He, however, warned that any significant increase in wages can't affect business competitiveness.
"Increase in labor costs will affect competitiveness of businesses," he said.
"We have to think of sustainability as far as the business sector is concerned," the MCCI official said.
He noted that local businesses have to be competitive in terms of labor cost considering they are both competing with their local counterparts and globally as well.
"Any wage increase will have impact on prices of goods and services," Go said.
If in any case a wage hike is implemented, he said labor productivity must also increase.
"The labor has to improve productivity," he added.
ALU–TUCP–7 cited the TRAIN (Tax Reform Acceleration and Inclusion) law, which has declined the peso's purchasing power due to its inflationary impact on consumer prices, as one of the factors why it's about time to increase salaries of wage earners.
Workers in Central Visayas are receiving an average minimum wage of P308.34 and not P366, which is the ideal minimum pay, according to the labor group, citing government data.
"If this is realized, various business sectors might close shop or downsize. And this will lead to job losses. A smaller adjustment might be a compromise and win-win solution," MCCI vice president for external affairs Steven Yu also said.
"The TRAIN is not to be blamed on the price increases because there is the factor of peso currency devaluation and external factors such as the increase in crude oil prices. Inflation is still less than 4 percent so we should use this as probable basis," Yu explained.
"The inflation rate is a good barometer. But again, the consideration is multi-sectoral and RTPWB will need to balance the clamor of the business sectors of the region," the businessman further noted.
ALU–TUCP claims to be the largest labor group in the country with 400,000 members.
Last February, the Cebu Labor Coalition (CELAC) also asked for a P155.80 across-the-board wage hike on top of the existing daily minimum wage of P366.