What Business Groups Think of the PHP 150 Wage Hike
The proposed PHP 150 wage hike may receive approval from the Senate by the end of the year, according to the Senate President himself.
While the National Capital Region (NCR) experienced a PHP 40 wage hike in June, a higher PHP 150 increase is being pushed to happen by the end of the year. However, this is being opposed by different business groups in the country. In fact, these business groups claim that the approval of the PHP 150 wage hike can have negative effects on the economy.
This includes triggering inflation and causing business closures.
According to a report, Employers Confederation of the Philippines (ECOP) President Sergio Ortiz-Luis Jr. said that such a wage hike might only benefit a select number of workers. However, Senate President Juan Miguel Zubiri previously said that the PHP 150 wage hike may push through legislation by the end of the year.
Businesses are Still Recovering from the Pandemic
It has been pointed out by Ortiz-Luis Jr. that many businesses are still trying to recover from their losses in the pandemic. He also added that those who cannot afford the wage hike may be forced to increase their prices.
On the other hand, according to Philippine Chamber of Commerce and Industry President George Barcelon, what the country needs to do instead is to attract foreign investments in order to generate more jobs. He added that the wage hike will not help this cause as high labor costs may discourage investors.
“Labor cost is one of the key inputs, whether we are competitive or not,” he said.
How the Proposed Wage Hike Affects Businesses
Business groups that raised concerns about the proposed PHP 150 wage hike made valid points. For one thing, not all businesses can afford such an increase in wages. Moreover, implementing this can cause them to shut down instead.
As for those who opt not to cease operations, they will have to find funding elsewhere. One way to do this is by increasing the prices of the goods or services they offer, which will negatively affect consumers.
Meanwhile, from the workers’ perspective, a higher salary will undoubtedly motivate them to keep doing their jobs and performing well. This will also help them pay for their expenses, which include food, rent, utilities, and various day-to-day goods, which have all risen in price due to inflation.
This is why, given these two sides, the government should thoroughly study all sides of the situation in order to determine whether or not the wage hike is best for NCR.
