3 labor groups ask for wage hike

CEBU, Philippines — Three labor groups in Cebu yesterday formally sought significant wage increases during the public hearing on minimum wage in Central Visayas conducted by the Regional Tripartite Wages and Productivity Board (RTWPB-7).

The Alyansa sa Mamumuo-ong Kontraktwal sa Sugbo (ALSA Kontraktwal-Cebu) filed a petition for a ?999 daily wage increase, while the CENAPRO Chemical Employees’ Association and the Mehitabel Furniture Employees’ Union each pushed for a ?699 daily increase.

Meanwhile, the Bukluran ng Manggagawang Pilipino (BMP) announced that it will file a separate petition, also seeking a ?999 daily wage hike.

ALSA Kontraktwal-Cebu says that if their petition is granted this will make the minimum wage in Central Visayas ?1,500 per day from the current minimum wage of ?501 per day, while CENAPRO and Mehitabel said if their petition is approved the minimum wage in Central Visayas will be ?1,200 per day.

Petitioners said there is a pressing need to raise minimum wages due to rising costs of basic goods, services, and transportation fares and that their proposed minimum wage adjustment would boost workers’ purchasing power and stimulate the regional economy.

They further stressed that granting the wage increase would not cripple businesses, saying these would only lose “a portion of their net profits” while workers would finally attain a decent standard of living.

The Sugboanong Mamumuo Naakahiusa Alang sa Living Wage (SANA-ALL), an alliance of labor federations in Cebu, supported the petitioners saying current minimum wage rates are “grossly insufficient” to meet the rising cost of living.

SANA-ALL said thousands of minimum wage earners in Cebu and Bohol remain trapped in inhumane conditions, with wages falling below the poverty threshold set by government itself, contradicting the constitutional mandate for humane work conditions and a living wage.

Meanwhile, major business groups in Cebu opposed the proposed wage increase in Central Visayas, warning that such a move could destabilize industries, hurt micro, small, and medium enterprises (MSMEs), and weaken the region’s investment competitiveness.

The Cebu Chamber of Commerce and Industry reiterated support for a “balanced and evidence-based wage policy” shaped through the RTWPB-7 and said wage adjustments must reflect economic realities while ensuring long-term business resilience.

The Mandaue Chamber of Commerce and Industry, representing over 550 member companies --80% of which are MSMEs-- stressed that a tiered approach is needed instead of a one-size-fits-all wage hike.

They said that an untimely and steep wage adjustment risks driving away investors seeking stable and business-friendly environments, thereby limiting opportunities to create more jobs.

The Mactan Export Processing Zone Chamber of Exporters and Manufacturers, Inc. and the Japanese Chamber of Commerce and Industry of Cebu, Inc. likewise opposed the petition, citing high electricity costs, logistics expenses, and the new 20% U.S. tariff on Philippine exports effective August 1, 2025.

They warned the proposed hike could lead to “disruption in salary structures, loss of competitiveness, and possible relocation of firms to lower-cost countries like Vietnam.”

Philexport-Cebu said foreign investors continue to favor neighbors such as Vietnam, Malaysia, and Thailand due to their lower costs and streamlined regulations.

“If labor dies, management will die. If management dies, labor will die,” it said urging regulators to carefully weigh the burden on exporters and local suppliers.

Meanwhile, the Philippine Retailers Association-Cebu Chapter acknowledged the need to uplift workers’ welfare but warned that excessive wage hikes could undermine investor confidence and disrupt job creation.

“Compassion must be guided by reasoned practicality,” the group said.

Business leaders urged government to adopt a holistic approach, addressing structural drivers of high living costs and focusing on reforms that improve ease of doing business, reduce utility burdens, and sustain economic competitiveness alongside fair worker compensation.

The RTWPB-7 underscored that the process of setting the minimum wage goes beyond numbers, describing it as a vital dialogue that must remain fair, equitable, and responsive to both workers and employers.

RTWPB-7 vice chairwoman Jennifer Bretaña emphasized during the first leg of minimum wage public hearing today says that the minimum wage deliberations carry with them the responsibility of striking a delicate balance.

At the same time, Bretaña noted that the interests of employers must also be safeguarded to sustain business viability and job creation.

Aside from yesterday’s public hearing, three more are set. The next one will be on August 28 in Dumaguete City, Negros Oriental; August 29 in Tagbilaran City, Bohol; and August 31 in Minglanilla, Cebu.  BRP (CEBU NEWS)