Zamboanga business sector open to wage hike but…
THE ZAMBOANGA Peninsula business sector is not completely opposed to an increase in the minimum wage rates, but it raises the question of how it would impact on the region’s competitiveness and productivity. Pedro Rufo N. Soliven, president of the Zamboanga City and President, Zamboanga City Chamber of Commerce and Industry Foundation, Inc. said the decision on a pay increase must be guided by the economic fundamentals of the region such as inflation rate, consumer price index, family income expenditures, as well as the latest gross regional domestic product (GRDP) growth rate, which slowed down in 2017 to 2.3% from 4.6% the previous year. “The question from the business community is if we can afford to pay the increase considering the deceleration (in the GRDP)? Another issue is productivity and competitiveness,” Mr. Soliven, who also chairs the economic development committee of the Regional Development Council, said in an e-mail interview with BusinessWorld. The Regional Tripartite Wages and Productivity Board (RTWPB-9) conducted a series of consultations earlier this year for the possible increase in minimum wage rates in light of the Tax Reform for Acceleration and Inclusion law’s implementation beginning this year. Mr. Soliven said they are also looking at alternatives such as providing incentives for increased productivity and proposing the suspension of the excise tax on petroleum products. —