PCCI tells Congress: Let wage boards decide on wage hikes

The Philippine Chamber of Commerce and Industry (PCCI), the country's largest business organization, called on lawmakers Wednesday to leave the responsibility of deciding matters concerning wages to the regional wage boards.

In a statement, PCCI president Enunina Mangio said the proposed P100 daily minimum wage hike, approved on third and final reading by the Senate, would only benefit 5 million workers versus 47 million others that are in the informal sector.

"The P100 proposed wage will not even be enough when inflation goes up. Why don't we instead legislate measures to address the rising cost in food prices and other issues that hamper our economic growth?" Mangio asked.

Labor Secretary Bienvenido Laguesma had also warned that a P100 legislated minimum wage hike may trigger higher prices of basic goods and services.

The Employers Confederation of the Philippines (ECOP) had also voiced its concern that raising the minimum wage would compel companies to increase the cost of their products or reduce manpower.

The Foundation for Economic Freedom Inc. (FEF), likewise, had opposed the measure, saying this would "turbocharge" inflation.

Mangio, meanwhile, said the proposed wage hike would shun foreign investors away from doing business in the Philippines.

"No one would ever try to look at the Philippines once they see that legislators can enact wage hikes anytime even disregarding the authority of the National Wage Board," she said.

With this, the PCCI president said that Congress should let the National Wages and Productivity Commission and Regional Tripartite Wages and Productivity Boards decide on wage increases rather than legislate a bill "that would only benefit a few and disenfranchise other members of the labor force."

Deaf ears?

Mangio said that senators did not even consider nor listen to the position of the employers and the business community.

GMA News Online has requested comment from Senator Jinggoy Estrada, chairperson of the Senate labor, employment, and human resources development committee, regarding PCCI's comments.

In a related development, the local chambers of the PCCI also expressed opposition to the proposed P100 legislated daily minimum wage increase.

"The proposed legislation directly infringes upon the Regional Tripartite Wages and Productivity Board (RTWPB) mandate to regulate wage adjustments regionally based on economic conditions. Centralizing wage determination undermines the board's ability to tailor wage policies to regional economic realities, thereby risking economic imbalances," said PCCI South Luzon.

PCCI Visayas recommend the following to the government: prioritize expanding economic activities and attracting investments to complement labor and local productivity; proactively address inflationary pressures; and enact safety nets to protect labor from exploitation and ensure fair wages.

The decision to grant or deny wage increases is in the hands of the Regional Tripartite Wages and Productivity Boards—composed of representatives from DOLE, Department of Trade and Industry, National Economic and Development and Development Authority in their respective regions and representatives from the employers and workers sectors.

Just last year, Regional Tripartite Wages and Productivity Boards issued wage orders for increases in the minimum wage of employees in the National Capital Region, Northern Mindanao, Zamboanga Peninsula, Cagayan Valley, Central Luzon, SOCCSKSARGEN, and Central Visayas, among others.

Wage hikes per region

House appropriations panel senior vice chairperson Stella Quimbo on Wednesday said that instead of a uniform legislated wage hike, implementing the same but with amounts varying per region would help ensure parity and fairness.

"I would say that such [varying increases depending on the region] is a more rational approach. Because if it is the across-the-board P100, mahirap mag-work (it would be difficult to work), whether it is from a consumers’ or business owners’ point of view," said Quimbo.

Quimbo, an economist, noted that a P100 wage hike in the National Capital Region would be equivalent to a 16%-increase, but for Region 9 or the Zamboanga Peninsula, this would already be a 26%-adjustment.

She added that the prices of basic commodities also vary per region, with milkfish costing P160 per kilo in Zamboanga compared to P170 per kilo in Metro Manila.

"It is clear that those in the NCR would be shortchanged, and a P100 wage hike for NCR workers is not enough. In the same vein, businesses in Zamboanga would need to spend more to keep their business running," Quimbo said.

"Kaya mas maganda na mag-isip ng wage hike that is appropriate, sufficient, fair, sa bawat lugar. Hindi siya madali, at iyon talaga ang pinakamahirap [i-determine]. It really requires careful study, and that is what we will do on Tuesday [Feb. 27]," Quimbo said, referring to the upcoming deliberation of the House labor and employment panel on pending bills for a legislated wage hike.

(It is really better to come up with a wage hike that is appropriate, sufficient, and fair for every area. It is not easy, and that is the most difficult to determine, actually. It really requires careful study, and that is what we will do on Tuesday [Feb. 27].)

'Wage hike, not Cha-cha'

Meanwhile, the Kilusang Mayo Uno (KMU) on Wednesday staged a protest action outside the House of Representatives to call on legislators to prioritize a legislated wage hike instead of Charter change.

The Senate has already approved on third reading a proposed bill to grant a P100 across the board wage increase to all private sector workers.

The KMU called on the House of Representatives to do the same.

Photo by: Tina Panganiban Perez

"Maliit 'yung P100 pero kailangan na ngayon 'yan. Dapat atupagin na ngayon ng House of Representatives," KMU Secretary General Jerome Adonis told reporters.

(A P100-wage hike is small but it is needed now. The House of Representatives needs to work on this now.)

Adonis said the 1987 Constitution guarantees a living wage for workers, which he explained is based on prices of commodities.

"Kung ngayon po, ang family living wage natin ay umaabot sa halos P1,200. Hindi pa 'yon ang hinihingi namin. One hundred pa lang. Pero kami ay magtutuloy-tuloy sa panawagan na dapat ang Kongreso ay magdagdag ng significant wage increase. Kung kaya nila, mas itaas pa sa P100 'yung kinakailangang dagdag-sahod,” Adonis stressed.

(The family living wage today is almost at P1,200. We're not even asking for that. Only P100. But we are continuing our call that Congress should approve a significant wage increase. If they can, give more than a P100-wage hike.)

Workers' productivity

Adonis also said a wage increase need not result in price increases as he cited a study by the IBON Foundation, which shows that even small businesses can afford the P100 legislated wage hike.

"Kaya kami nanghihingi ng dagdag na sahod, dahil kailangan naming mabuhay 'yung pamilya namin. Ikalawa, 'yung dagdag na sahod, kayang-kaya nu'ng mga micro, nu'ng maliliit. May studies na po ang IBON Foundation na ang mababawas lang sa tubo ay 7.1%. Kaya maling-mali na tataas ang presyo kasi ang gusto namin, ang bawasin, doon sa kita ng kumpanya at hindi ipasa sa pagtaas ng presyo ng mga bilihin," Adonis explained.

He also cited how unfair the labor situation is because surveys show that employees' productivity rises every year but wages do not.

"Napaka-unfair eh. Taon-taon, lumabalas 'yung survey na tumaas 'yung productivity ng mga manggagawa. Ang ibig sabihin noon, nagtrabaho tayo pare-pareho. Nagpagod tayo. Pero 'yung sahod natin, hirap na hirap tayo para mabuhay ang pamilya," Adonis lamented.

(It's very unfair. Every year, surveys show that workers' productivity has improved. That means we all did the hard work. But we have a very tough time providing for our families with our wages.) — VDV, GMA Integrated News