Trade chief: Wage hike must be ‘minimal’
Trade Secretary Ramon Lopez on Wednesday said wage hikes should be “minimal” to avoid the rise in production costs and consumer prices.
“If you ask me, there can be a minimal adjustment but that should not be more than what is necessary,” Lopez said in a Palace briefing.
“The reality is not all are wage earners. If we increase the wage, costs will increase,” Lopez added.
The trade chief warned that a wage increase would be “dangerous.”
“Because you will create a strong pressure on inflation,” he said.
Wage adjustment, he said, should be dependent on inflation in certain regions.
“In some regions, if there is no inflation, then there should not be any wage adjustment,” he said.
Lopez said he would allow the regional tripartite wage boards to decide on the wage increases.
“We will let the regional tripartite wage board handle the different economic situation in the different regions,” he said.
“If I would be asked, I don’t want it. I’m not against labor but what will happen is the entire nation would be affected by the inflation,” he said. /ee
