The head of the Employers Confederation of the Philippines (ECOP), Sergio Ortiz-Luis Jr., has voiced his opposition to the Senate’s proposal to implement a P100 across-the-board increase in the daily minimum wage for the private sector. Speaking at the “Pandesal Forum” in Quezon City, Ortiz-Luis urged senators to reconsider their decision to start plenary debates on the bill mandating the wage hike.
Ortiz-Luis’ stance was supported by Arturo “Butch” Guerrero, the Philippine Chamber of Commerce and Industry (PCCI) Labor and Employment Committee Chairman, and Atty. Marge Ordiales-Martinez, the Chief Executive Officer of CSI-MHO Foundations and CSI Professionals Inc., based in Los Angeles. During the forum, Guerrero and Ordiales-Martinez emphasized the importance of multisectoral consultations to address the issue of labor wages.
Both Ortiz-Luis and Guerrero highlighted the potential inflationary risks associated with the proposed legislated wage increase. They also expressed concerns about the impact on businesses that are still recovering from the recent pandemic crisis and other challenges faced by the country. They specifically pointed out the vulnerability of micro, small, and medium-sized enterprises (MSMEs), which make up over 90 percent of the country’s workforce.
According to the ECOP executives, implementing the wage hike would have a significant impact on these vulnerable groups, as it would lead to an increase in commodity prices. They urged lawmakers to avoid bypassing the Regional Wage Boards and instead allow them to analyze and determine appropriate wage adjustments, as they have done in the past. Their intention is to prevent the wage increase issue from becoming politicized and to safeguard the stability of the Philippine economy.
The Senate, consisting of 24 members, recently announced its plan to commence plenary debates on a bill that mandates a P100 daily minimum wage increase in the private sector. The Senate Committee on Labor, Employment, and Human Resources Development endorsed the passage of Senate Bill (SB) 2534, which proposes this increase for all workers in the private sector, regardless of whether they are in agriculture or non-agriculture sectors.
SB 2534 is primarily authored by Senate President Juan Miguel “Migz” Zubiri, along with Senators Ramon “Bong” Revilla Jr., Lorna Regina “Loren” Legara, Maria Lourdes “Nancy” Binay, Christopher “Bong” Go, and Jose “Jinggoy” Estrada. The bill also allows the Regional Tripartite Wages and Productivity Board to grant additional increases to workers and employees based on their determination under the “Wage Rationalization Act,” as amended.
In conclusion, the Employers Confederation of the Philippines, led by Sergio Ortiz-Luis Jr., has rejected the Senate’s proposal for a P100 daily minimum wage increase in the private sector. Ortiz-Luis, along with Arturo Guerrero and Atty. Marge Ordiales-Martinez, emphasized the need for multisectoral consultations and warned of potential inflationary dangers and adverse effects on businesses, particularly micro, small, and medium-sized enterprises. They urged lawmakers to involve the Regional Wage Boards in determining appropriate wage adjustments and to prevent the issue from becoming politicized to protect the stability of the Philippine economy.
Source: The Manila Times
