Unions wary of employer backlash to wage hikes

UNIONS said workers need to organize in case employers respond to proposed wage hikes with staffing reductions and the increased use of casual workers.

In a conference organized by the Trade Union Congress of the Philippines (TUCP) to discuss House Bill 7871 or the Wage Recovery Act, Joanna Bernice S. Coronacion, deputy secretary general of the Sentro ng mga Nagkakaisa at Progresibong Manggagawa (SENTRO) said organizing helps workers practice their collective bargaining rights via unions.

Business groups have warned that legislated wage hikes or further increases in the minimum wage could force companies to reduce staffing levels.

Ms. Coronacion also encouraged workers to know their rights under the Labor Code to counter practices like the resort to more informal work arrangements should employers refuse to pay the higher wages.

“When you look at Scandinavian countries… wage negotiations are at the national level… We don’t have that right now because of our low union density. As a result, the gap between rich and the poor is wider,” Mr. Coronacion told BusinessWorld on the sidelines of the conference.

Separately, Kilusang Mayo Uno (KMU) general secretary Jerome Adonis said employers should absorb the cost of higher pay and not pass on the expense in the form of higher prices, arguing that increased purchasing power in the hands of workers will drive economic growth.

The Senate has approved on third and final reading Senate Bill 2534, which proposes a P100 increase in the daily minimum wage for the private sector.

Also participating in the conference were the Bukluran ng Manggagawang Pilipino, Federation of Free Workers, KMU, SENTRO, and the TUCP. The conference was organized in conjunction with a union march on the House of Representatives to call for the immediate passage of the legislated wage hike bills. —