Fil-Chinese business group favors ‘wellthought out’ wage hike
‘We favor wages going up because it is important to uplift minimum wage earners but we prefer that this be discussed by a tripartite community or organization in such a way that all other aspects of business will be considered’ — FFCCCII president Dr. Cec
Amid the apprehension that a hike in wages is causing the business sector in general, the Federation of Filipino Chinese Chambers of Commerce and Industry Inc. said it is in favor of a wage increase as long as the regional wage boards and not Congress will decide upon the matter.
“‘We favor salary wages going up because it’s in the majority’s best interest so that the poor are able to sustain their lives. It is important to uplift the majority, that is, the minimum wage earners,” said FFCCCII president, Dr. Cecilio Pedro in a press conference on Thursday in Makati City.
“But we prefer that this be discussed by a tripartite community or organization in such a way that all other aspects of business will be considered,” Pedro maintained.
Not the right time
Also, he said that maybe it is not the right time to increase wages. “Right now, the wage is at P600 plus, and if you raise it by P100 then it’s 15 to 16 percent, which is very high. So we should think well about what is right. And this is best discussed through tripartite wage boards,” explained Pedro.
Still, Pedro is urging the government to focus on job creation by bringing in more foreign investments, a position similar to Go Negosyo chairperson Joey Concepcion’s.
Earlier, the Employer’s Confederation of the Philippines, or ECOP, termed the passage of a Senate bill seeking a P100 daily minimum wage increase for private sector workers as “out of sync with reality,” while being “outrageous and anti-economic progress.”
Besides the P100-wage hike sought by the Senate, the House of Representatives has come up with P150 to P350 daily minimum wage proposals, with House Majority Leader Manuel Jose Dalipe indicating that the House leadership is already studying these proposals.
PhilHealth contribution hike
Meanwhile, Pedro is calling on the government to defer the implementation of the PhilHealth contribution hike, as, according to him, this would be like a “double whammy” for employers amid the looming wage hike.
“Again,” stressed the FFCCCII head, “we are seeking discussions and ways to address this concern. However, even we are benefiting from PhilHealth. But let me emphasize, let’s not do all these at the same time as this would overburden employers.
Pedro said he thinks “the President is studying this; there should be some sort of balance because if PhilHealth contributions are not increased, the agency will suffer because its funds are being depleted and this would also impact beneficiaries negatively.”
Earlier, major business groups including ECOP, the Philippine Chamber of Commerce and Industry, and the Philippine Exporters Confederation Inc. asked President Ferdinand Marcos Jr. to defer the implementation of the five percent hike in members’ contribution to PhilHealth.
Signatories
In a letter to Marcos, the signatories, ECOP chairperson Edgardo Lacson; PCCI president Enunina Mangio; and PhilExport president Sergio Ortiz-Luis Jr., said they were unanimous in supporting Department of Health Secretary and PhilHealth chairperson Teodoro Herbosa’s call to suspend the five percent premium increase in 2024.
Herbosa contended that the proposed action would not significantly impact PhilHealth’s financial standing since the agency has sufficient funds to continue providing benefits and services to its members.
Stressed aforesaid letter’s signatories, “Notably, PhilHealth president and chief executive officer Emmanuel Ledesma has affirmed this claim, stating that even if the proposal is implemented, PhilHealth’s fund will not be depleted. Furthermore, the Universal Health Care Law of the Philippines, while aiming to offer comprehensive healthcare coverage for all citizens, faces various challenges, especially for our Filipino workers. Researchers from the Philippine Institute for Development Studies emphasize ongoing issues related to access and affordability.”
The three business leaders maintained that despite being PhilHealth members, individuals still shoulder a significant portion of hospital expenses themselves, a situation that will particularly impact vulnerable groups, including the elderly, women, and those in rural and impoverished areas who disproportionately shoulder the burden due to limitations in national health insurance coverage.
“In light of these circumstances, we humbly propose that PhilHealth momentarily redirect its focus on service enhancement, delaying the hike until 2025. This reprieve would provide much-needed relief to the majority of vulnerable micro and small establishments, as well as Filipino workers who find it challenging to comply with the proposed premium hike, especially with the rising prices of commodities,” they said.