Wage hikes may not happen at this time –ECOP

Despite calls from workers affected by the rising prices of basic commodities, wage increases may not happen at this time considering the impact of the COVID-19 pandemic on companies and business enterprises as well, the president of a business group said yesterday.

In a Dobol B sa News TV interview, Sergio OrtizLuis Jr., president of the Employers Confederation of the Philippines (ECOP), said that while he sympathizes with employees who are burdened by the high prices of basic goods, it may not be the best time to take up requests for wage increases.

Ortiz-Luis said that enterprises themselves are facing losses and possible closure due to the economic impact of the COVID-19 pandemic.

“Ninety percent ng ating mga enterprises ay micro [enterprises]. Kalahati doon nagsara na at ‘yung iba doon, nagiisip na magsara o nahihirapan,” he said.

“Kahit malalaking kompanya ngayon nagsasara, at ang dami, nakita ko ang mga listahan ng mga nagbebenta ng mga hotel at mga kompanya na nagbabalak magsara,” he added.

Ortiz-Luis said that even before the pandemic struck, workers had been trying to call for wage increases. But it may be more difficult to provide that now as businesses are also suffering from the global health crisis, he said.

“Medyo malabo siguro makalusot ‘yan dahil siyempre ang prayoridad natin ay to maintain the jobs. Wala kang make-create na jobs ngayon except ‘yung ilan-ilan, ‘yung nagluluto ng pagkain, nagdedeliver, ilan lang ‘yun,” he added.

Ortiz-Luis also pointed out that if the government considers a policy to increase wages at this time, it may only drive away possible investors.

“’Yung mabalita lang ‘yan sa ibang bayan na tayo seriously ay magtataas ng suweldo ng time na ito, baka makaka-turn off na ‘yan,” he said.

“Dapat ‘yan hindi masyadong tinutulak ngayon ‘yan lalo na kapag nakita ng mga investors sa ibang bansa na dito sa Pilipinas, salungat sa mga ginagawa ng iba, e nagtataas pa tayo ng suweldo, e baka lalo tayong mawalan ng trabaho,” he added.

For now, what the government can do is to ensure that prices of basic goods are kept at the minimum to help employees affected by the pandemic, the ECOP president said.

REDUCING UNEMPLOYMENT RATE

In a separate interview with Dobol B sa News TV, Cabinet Secretary Karlo Nograles said the government is focusing now on reducing the unemployment rate in the country.

Nograles said that as of October 2020, the unemployment rate in the country is at 8.7%, higher than the 4.6% recorded in October 2019.

“So ito ‘yung dapat natin mafocus, ‘yung unemployment rate, na mas marami sa mga kababayan natin ang makakapaghanap at makakapagtrabaho,” he said.

Food prices in Metro Manila markets are on the rise because food supply had dropped due to the series of lockdowns and successive typhoons, among other factors.

Senator Francis Pangilinan has earlier expressed concern

Employers Confederation of the Philippines President Sergio Ortiz-Luis Jr. says that while he sympathizes with employees who are burdened by the high prices of basic goods, it may not be the best time to take up requests for wage increases. over the continuing increase of prices of commodities in the market.

He wants the Senate to look into the rising food prices in the country to determine needed interventions to ensure people’s access to adequate and affordable food.