BACOLOD City – The Metro Bacolod Chamber of Commerce and Industry (MBCCI) has strongly opposed the recently approved House Bill No. 11376, or the proposed Wage Hike for Minimum Wage Workers Act, calling it a “disaster waiting to happen.”
The bill, which mandates a P200 daily wage increase for all minimum wage workers in the private sector, was passed on third and final reading in the House of Representatives.
Frank Carbon, MBCCI vice president for government affairs, warned that the bill is “a very dangerous and expensive smokescreen or ruse at the expense of those who labor hard to provide jobs.”
He argued that instead of increasing the purchasing power of workers, the wage hike would trigger a rise in the prices of food and basic necessities, ultimately hurting the very people it intends to help.
“The biggest losers here will be families in the low-income bracket — around 50 percent of the population,” Carbon said. “The breadwinner may lose their job, or there will be less food on the table.”
Carbon criticized proponents of the bill for pushing it forward without proper consultation with stakeholders, stating that a more inclusive approach should have been taken.
He also cited the Philippine Chamber of Commerce and Industry (PCCI), which released a statement expressing serious concern over Congress’ move to legislate a national wage hike on two fronts.
First, the PCCI noted that the bill was passed unilaterally, with little regard for its broad economic implications — including the effect on the price of goods and services, on the informal labor sector (which accounts for 50–60 percent of the population), and on micro and small enterprises (MSEs), which make up 96 percent of all businesses in the country.
The chamber warned that increased labor costs would lead to higher production expenses, eventually causing inflation. While workers in the formal sector may receive higher wages, the inflationary impact could erode their purchasing power, defeating the purpose of the wage hike.
Moreover, those in the informal sector, who are not covered by the minimum wage law, would bear the brunt of inflation without any increase in income.
Second, the PCCI said the bill undermines the mandate of the Regional Tripartite Wages and Productivity Boards (RTWPBs), which were established under Republic Act No. 6727 or the Wage Rationalization Act to determine region-specific wage levels based on local cost-of-living indicators.
The proposed bill states: “Upon the effectivity of this Act, the daily rate of all minimum wage workers in the private sector, regardless of employment status — including those in contractual and sub-contractual arrangements, whether agricultural or non-agricultural — shall be increased by two hundred pesos (P200) per day.”
It also adds: “Nothing in this Act shall prevent the respective Regional Tripartite Wages and Productivity Boards from granting additional increases to the workers and employees, as may be determined in accordance with their mandate under Republic Act No. 6727, otherwise known as the Wage Rationalization Act, as amended.”
Despite its intentions, business groups believe that the bill, if enacted, may do more harm than good, particularly to small businesses and marginalized workers./PN
