EMPLOYER’S CORNER P100
The P100/day wage hike passed by the Senate is a tired old issue debated ad nauseam by several protagonists on both sides
To a labor leader, P100 is ingeniously described as a petty amount that cannot decently feed a family or sustain the nutritional needs of a worker for a day.
He is joined by a sympathetic broadcaster who reports that P100 is just enough to buy hogwash.
This false narrative is repeatedly aired by some labor leaders and their media allies, in Goebbels-like fashion, to make it sound true and to squeeze the last ounce of pity for the “lowly” paid workers and gain the loyalty of union members.
But contextually, the P100/day wage hike bill passed by the Senate on successive readings provides a minimum wage earner an additional P2,860 per month inclusive of increases on related compensation required by law.
The senators might be interested in knowing the serious impact of the bill on a single semiconductor company based in CALABARZON that employs 15,000 minimumwage workers. The P100/day translates to an incremental P557.7 million yearly, including the mandatory 13th-month pay and the consequent increase in overtime pay, retirement benefits, holiday premiums, and statutory contributions to SSS and PhilHealth.
This yearly rise in payroll cost excludes the mandated upward salary distortion adjustments for above-minimum-wage workers under a formula provided by law.
Interestingly, this company (and all enterprises in the same industry) earns a few centavos per finished product it produces and exports to foreign buyers. With declining orders due to fierce price competition from other countries, this company needs to generate billions of new orders just to cover the incremental payroll cost.
The P100/day wage hike passed by the Senate is a tired old issue debated ad nauseam by several protagonists on both sides.
Those who are against the bill are notable economists, government economic managers, all business groups, and learned legislators in Congress.
They are viciously branded as anti-poor, rent-seeking, greedy, opportunists, abusive and heartless.
Senator Miguel Zubiri mockingly chided the resisting employers with his unoriginal ribbing, “Moderate your greed.”
Those supporting his bill are painted as white knights, pro-poor, compassionate, humanitarian, do-gooders, altruistic, generous and heaven-sent.
These self-proclaimed champions of the masses and the poor probably know the havoc on our economy caused by the legislated P100 wage hike. Still, they continue to pursue it for dubious reasons.