Wage hike may derail W. Visayas’ economic recovery

The Iloilo Business Club (IBC) has expressed opposition to the recent approval of salary increase in Western Visayas region, saying it “might derail the economic recovery” of the region.

“This will ultimately hurt all of us, from the employers to the employees and the public,” said IBC in a statement.

On Friday, May 13, the Regional Tripartite Wages and Productivity Board (RTWPB-6) under the Department of Labor and Employment (DOLE-6) approved the ₱55 to ₱110 increase in the daily salary of workers.

“This meant an increase by 13.92 percent to 35 percent, which is not only very ill-timed, but it blatantly disregards the economic realities being faced by the business community in the province and city of Iloilo, especially since our local businesses are just starting to recover from the effects of the pandemic,” emphasized IBC.

Currently, the daily salary in the non-agriculture sector is ₱395 for companies with more than 10 workers, and ₱310 for companies with fewer than 10 workers. In the agriculture sector, the

current daily salary is ₱310.

The group also noted the negative impact of a salary hike on the micro, small, and medium enterprises (MSMEs) in Iloilo City and the province, which has 42 towns and a component city.

“They [MSMEs] will be severely hit,” the group stressed. “By imposing the ₱110 increase on private establishments with 10 or fewer workers, they may be forced to suspend operations, lay off their workers, or even shut down their doors because it would be too much for them.”

While the wage hike is yet to be implemented, IBC is calling on RTWPB-6 to take a second look.

“The RTWPB-6 should reconsider the impact of their decision on the local economy here in Region 6,” IBC added.