ILOILO City – A Panay-based business group and a labor union have divergent views on the proposed P150 increase in the daily wage of private sector workers nationwide.
The Iloilo Business Club, Inc. (IBC) objects to the proposal which, for them, disregards the real economic outlook of the country.
The business group believes the proposal will bring negative impacts such as job losses, poverty, and high inflation as businesses will be compelled to increase the prices of their products and services to dodge bankruptcy and maintain profitability.
“Increasing the minimum wage might derail the economic recovery of Region VI which will ultimately hurt all of us, from employers to employees and the public,” the group said.
Senate President Juan Miguel Zubiri filed a bill that seeks to increase minimum wages of private employees nationwide by P150, citing the red-hot inflation that hit a 14-year high in January.
“A decent life costs a decent wage… If workers are putting in hours and hours of labor, day after day, and yet are still unable to afford their rent, bills and basic necessities, then there is a problem,” Zubiri said.
IBC lamented that here in the city, most of the businesses are micro, small and medium enterprises (MSMEs). They may be forced to suspend operations, lay off their workers or even shut down their operations.
The IBC urged the Regional Tripartite Wages and Productivity Board (RTWPB) in Region 6 to take a second look at the financial realities of the region and to reconsider the impact of their decision to the local economy.
On the other hand, the Kilusang Mayo Uno (KMU)-Panay welcomed the wage hike proposal, emphasizing it as imperative to the survival of workers and beneficial to the economy.
The labor group, citing the huge jump of the country’s inflation rate that has become a heavy burden for many workers.
KMU-Panay also stressed that contrary to the general belief of capitalist economics, wage hikes are not inflationary.
They believe it is more beneficial since workers are now afforded the financial capability of engaging more in economic activities and therefore reversing the market deadlock brought about by severe economic crisis.
“Aside from market revival it is also crucial for the survival of workers and their families. In fact it should not be mere survival that our society should base the amount and value of its wages. Humane and decent family wages should be considered and therefore it should push for wages that allows families to live a life with security,” they added.
The group encourages all workers, unions, federations, and groups or organizations to call and support different initiatives to increase wages such as through CBA negotiations and signature campaigns.
They further call on President Ferdinand Marcos Jr. to certify as urgent and sign the proposed wage bills in order to elevate workers from their dire situations./PN
