Makabayan bloc tells businesses: Prove wage hike will hit bottom line

The Makabayan bloc in the House of Representatives on Thursday challenged big businesses to show proof that they will suffer losses if Congress approves a legislated wage hike.

Pending before the House of Representatives are several wage hike proposals ranging from P150 to the Makabayan bloc's P750.

Makabayan lawmakers had earlier filed a bill for a P750-wage increase that would supposedly allow workers to cope with the daily cost of living.

"Kailangang magbigay dito ng pruweba 'yung malalaking negosyo, korporasyon kung talagang nalulugi nga ba sila. Magsasara nga ba sila kung magtataas ng suweldo 'yung mga manggagawa? Napatunayan naman sa statistika, kahit sa pandemya, lumaki ang kita ng malalaking korporasyon. Kaya magbigay naman kayo ng kaunti. Sabi nga, moderate your greed," ACT Teachers Representative France Castro said in a press conference.

(Big businesses and corporations have to show proof that they would really lose money. Will they really close shop if they raise workers' salaries? Statistics have shown, even during the pandemic, that big corporations increase their profits. So they should give some to their workers. As they say, moderate your greed.)

The Makabayan lawmakers stressed that a wage hike is neither harmful to the economy nor micro, small and medium enterprises (MSMEs).

"Hindi po harmful sa ekonomiya ang pagdagdag ng sahod ng mga manggagawa. Lagi kasing sinasabi sa atin, 'yung MSMEs, mahihirapan silang magbigay ng dagdag-sahod. Ang sagot natin diyan, mas malaki pa rin 'yung mga malalaking kumpanya o korporasyon na nagpapasahod ng mga manggagawa. Mas maraming manggagawa pa rin ang under sa kanila as compared to MSMEs," Gabriela Representative Arlene Brosas said.

(Raising workers' wages is not harmful to the economy. We are always told that MSMEs will have a hard time implementing this. Our response is, there are more employees getting their salaries from big companies compared to MSMEs.)

"Sa MSMEs po, sinabi natin diyan, may probisyon tayo para sa subsidy o wage subsidy na tinatawag na maaring gawin ng gobyerno, na pupuwede naman niyang ayusin ang General Appropriations Act at maglaan ng wage subsidy para sa mga MSME," Brosas added.

(As for MSMEs, there are provisions for the government to allot subsidies or wage subsidies for MSMEs that can be included in the General Appropriations Act.)

For his part, Kabataan Representative Raoul Manuel said, "Ang wage hike daw ay harmful, sabi ng ilan. Harmful talaga siya, harmful sa mga greedy big businesses na ginagamit ang mga small and micro enterprises para i-justify 'yung pagtutol nila sa wage hike."

(Some say a wage hike would be harmful to the economy. Indeed, it will be harmful — harmful to greedy, big businesses that use small and micro enterprises to justify their opposition to the wage hike.)

"At sinasabing detrimental sa economy ang wage hike. Sino ba 'yung nagbubuhat ng ekonomiya? Mga manggagawa natin," Manuel added.

(So a wage hike is supposed to be detrimental to the economy. Who lifts our economy? Our country's workers.)

GMA News Online has sought comment from the Philippine Chamber of Commerce and Industry (PCCI), the country's largest business organization, regarding the Makabayan bloc's statements.

Meanwhile, the Makabayan bloc stressed that higher wages would result in increased workers' motivation and higher productivity.

It also added that businesses have been given a tax cut from 30% to 20% under the Corporate Recovery and Tax Incentives for Enterprises or CREATE law.

"Tax incentives at mga batas na crineate natin dito sa Kongreso para maalwanan, mabigyan ng kaalwanan 'yung ating mga businesses and corporation. Precisely meron nga tayong CREATE para sabi mag-hire ng mas maraming mga manggagawa. Puwede ring magamit 'yon sa pagpapataas ng suweldo," Castro added.

(Congress has created tax incentives and laws to provide relief to businesses and corporations. CREATE is in place precisely to hire more workers; that can also be used to hike wages.)

The House Committee on Labor and Employment is currently tackling legislated wage hike proposals.

Earlier, the Employers Confederation of the Philippines (ECOP) warned that a P100-wage hike would be a "catastrophe" because it would compel companies to increase the cost of products or reduce manpower.

Presidential adviser Joey Concepcion, Private Sector Advisory Council (PSAC) head for jobs, had said that not all businesses have the means for the P100 wage hike. Some would even be forced to lay off workers, Concepcion had said, to comply with the measure.

The PCCI called on lawmakers last week to leave the responsibility of deciding matters concerning wages to the regional wage boards. — VDV, GMA Integrated News