No problem with minimum wage review — ECOP
MANILA, Philippines — The Employers Confederation of the Philippines (ECOP) said Saturday it sees no problem with the review of the minimum wage across the country amid rising fuel prices, but noted that there are “realities” that need to be considered.
“Wala naman kaming problema doon sa review… Sinabi naman ni Secretary Bello, there is a compelling reason. Alam naman natin iyon. Tumataas talaga ang presyo at lalo na ‘yang giyera sa Ukraine ay talagang kailangan siguro i-review kaya lang mayroon lang mga realities,” ECOP president Sergio Ortiz-Luis Jr. said at the Laging Handa public briefing.
(We don’t have a problem with the review… Secretary Bello said there is a compelling reason, and we understand that. Fuel prices are increasing and the situation is worsening in Ukraine so maybe we need to review it. However, there are certain realities.)
However, Ortiz-Luis noted that there seems to be a “false expectation” among workers.
He pointed out that out of the 44 million workers, only 16 percent are in the formal sector who will be affected by the possible wage increase. He also said that not all informal workers are minimum wage earners, which means that only around 10 percent of 44 million employees may be affected by the wage hike.
If the minimum wage of formal workers is increased, affected companies will then adjust the prices of their goods and services, which will later affect the consumers belonging to the informal sector.
Ortiz-Luis also noted that of the enterprises in the country, 90 percent are micro businesses which mostly closed due to the pandemic.
Labor Secretary Silvestre Bello III earlier ordered a review of the minimum wage across the country amid the continuous increase in fuel prices. All Regional Tripartite Wages and Productivity Boards have been directed to submit their recommendations by April following Bello’s order.
