GROUPS: WAGE BOARDS SHOULD DECIDE HIKES
SOME business groups have expressed concern over the P100 daily pay increase for minimum wage earners in the private sector which the Senate greenlighted, saying the wage hike should instead be determined by the Regional Tripartite Wages and Productivity Boards (RTWPBS) to avoid being tainted by politics.
“The Regional Wage and Productivity Boards established by law have worked very well to set wages. Wage setting by legislation is largely determined by politics rather than economics. We should therefore let the RTWPBS do their work in determining wages,” Philippine Chamber of Commerce and Industry (PCCI) President Enunina Mangio told the Businessmirror in a Viber message on Tuesday.
For his part, the head of the retail sector in the country agreed that wage-setting should be determined by the RTWPBS as wages vary across the country depending on the cost of living.
“PRA’S position on the wage hike should be better evaluated and recommended by the Wage Tripartite Regional Boards to determine the acceptable amount,” Philippine Retailers Association (PR A) President Roberto S. Claudio Sr. told the Businessmirror in a viber message.
The PRA chief emphasized that “We cannot determine a single amount, due to the differences of cost of living in different areas in the Philippines,” adding that wage increases are “inflationary.” Hence, “This will redound to across-the-board price increases on both products and services.”
Claudio also noted that increasing the minimum wage creates a “wage distortion all the way up in any organization.”
Claudio said “PRA is against any legislated and across-the board wage increases. We hope the House does not support it ...And for Congress to veto the bill. All economic managers are against it too.”
The Senate, voting 20-0-0, on Monday, approved on third and final reading a bill mandating a P100 daily pay increase for minimum wage earners in the private sector, amid last-minute appeals by major business groups to hold it. (Full story here: https://businessmirror.com.ph/2024/02/20/ignoring-business-groups-senate-approves-wage-hike/)