Business groups concerned over proposed P200 wage hike

Two major business groups expressed concern over the proposed P200 daily minimum wage increase, warning of its potential impact on costs and competitiveness.

Cecilio Pedro, president of the Federation of Filipino-Chinese Chambers of Commerce and Industry, worried that higher wages would lead to increased prices for goods and services, ultimately burdening consumers.

“Hindi ako tutol itaas ang sweldo dahil nahihirapan talaga yung laborers natin... Takot kami na hindi pinagaralan bago nila sasabihin na P200. San naggaling ang P200?” Pedro said in a Super Radyo dzBB interview, urging the National Wages and Productivity Commission to review the proposal.

(I’m not against a wage hike, but has the P200 increase been properly studied? Where did this figure come from?)

Meanwhile, Philippine Chamber of Commerce and Industry (PCCI) Chairperson George Barcelon echoed similar concerns, stating that a steep wage increase could reduce the country's competitiveness and force businesses to cut jobs or hire fewer employees.

“Pag sobrang taas, we will lose our competitiveness. Pag dadagdagan mo ng P200, tataas yung cost natin. Lalong ma re-retrench. Wag naman sana,” Barcelon said.

The House Committee on Labor and Employment recently approved the P200 across-the-board wage hike for private sector workers, with lawmakers and labor groups agreeing on the rate. 

House Deputy Speaker Rep. Democrito Raymond Mendoza, a co-author of the measure, argued that the increase would lift around 5 million minimum wage workers out of poverty. — DVM, GMA Integrated News