Palace thumbs down P125 wage hike proposal

Malacañang on Tuesday thumbed down a proposed across-the-board daily wage increase set to be approved in the labor committee of the House of Representatives, saying it was up to the wage boards and the labor department to determine any need for a wage adjustment.

Deputy presidential spokesperson Abigail Valte said the proposed P125 increase in daily wages was too high.

“It will not be practicable,” Valte also said of any wage adjustment through legislation.

She said she had consulted President Aquino on his stand on the proposed P125 daily wage hike.

At a press briefing, Valte said the proposed increase in daily wages would translate to a monthly wage increase of P3,250.

“While all of us want an increase in pay, instead of trying to help many, its possible that many workers will lose their jobs if this will be the amount of the legislated wage hike,” Valte told reporters.

The House committee on labor is set to approve an across-the-board daily wage increase of P125 for workers and bring it to a plenary vote in May.

Layoffs feared

Northern Samar Rep. Emil Ong, labor committee chair, said he was certain that House Bill No. 375, filed by Anakpawis party-list Rep. Rafael Mariano, would be approved by the committee but was not sure about its passage in the plenary.

Valte wondered whether companies were capable of paying the amount to their workers if the legislated wage hike bill were approved.

“We know that if the businessman says he could not pay such a raise, their next question is how many jobs should they reduce,” she said.

Asked whether the Palace saw the need for a pay raise for workers, especially in the face of high oil prices, Valte said: “Ideally, wages should go up.”

With some labor groups filing wage increase petitions before the wage boards, Valte said the Palace would leave it to the wage boards and the Department of Labor and Employment to make the determination.

It was also up to employers to decide whether to provide non-wage benefits to workers, according to the deputy presidential spokesperson.