PCCI warns subsidies to low-wage earners hard to track

A BUSINESS group said subsidies that the government intends to provide to low-wage workers will be difficult to track, suggesting that many payouts could go to undeserving recipients.

“It’s hard to track who will receive the money,” said Philippine Chamber of Commerce and Industry (PCCI) Chairman George T. Barcelon. “It’s government money, it’s taxpayer money.”

The Department of Labor and Employment (DoLE) said earlier this week that it plans to provide subsidies to 4.1 million minimum wage earners, a proposal which is still subject to approval by the Office of the President. The subsidy is P200 monthly over the next three years.

Mr. Barcelon said he prefers helping workers via wage hikes that undergo the legal process and consider the competitiveness of the Philippines compared to other countries.

“There is a process in tripartism so follow the process,” he said when asked for comment about regions where wage increases are being sought.

“But have in mind our competitiveness. Let’s not lose sight of that,” he added.

“I’m very open to talking (about) increasing salary but bear in mind, what is the impact?” Mr. Barcelon said in an interview with reporters on Thursday.

He stressed that DoLE should concentrate on creating jobs for Filipinos, besides focusing on wages.

“It’s not DoLE’s only job to be concerned with those employed. DoLE should help the unemployed by making it easier for them to get jobs,” Mr. Barcelon said.

He added that inflation is a valid reason for a wage increase though he warned against a sense of “entitlement” to large wage adjustments.

“When you add it all up, there is 13th month pay, paid vacation and sick leave,” he said.

Regional Tripartite Wage and Productivity Boards (RTWPBs) are expected to submit by July their recommendations for their regions’ wage adjustments.

Labor Secretary Silvestre H. Bello III said he expects some boards to announce supervening conditions and increase minimum wages before the anniversary of their last wage order.

Wage boards cannot act on petitions filed less than one year since they issued their last order. —