Biz group bucks another wage hike in West Visayas
INQUIRER.net FILES
ILOILO CITY—The Metro Bacolod Chamber of Commerce and Industry (MBCCI) is against any wage increase for private sector employees, saying it could worsen the economic struggles in Western Visayas.
Instead of increasing the salary of employees, Frank Carbon, chief executive officer of MBCCI, said the government should focus on addressing the “core issues” of high costs of basic goods and electricity, as well as bank lending rates.
He criticized the government’s approach to the economic issues currently plaguing the region by addressing it with a fresh round of wage increases.
“Our government is barking up the wrong tree. They are pursuing the wrong course of action to the present economic problems besetting the country,” he said in an interview last week.
Carbon made his group’s position clear after the Regional Tripartite Wages and Productivity Board (RTWPB) in Western Visayas announced the public consultations it set to hold this month to assess a potential wage increase for private sector employees.
Article continues after this advertisementNo public hearings yet
The consultations, set on Sept. 17 in Roxas City in Capiz and Sept. 23 in Victorias City in Negros Occidental, will give both labor and management sectors a platform to express their views, the RTWPB said.
Article continues after this advertisementLawyer Sixto Rodriguez Jr., regional director of the Department of Labor and Employment and RTWPB chairperson, said the discussions will guide the board’s decision on whether to recommend a wage increase.
“Should there be a need or demand for another wage increase, we will then proceed to deliberate and conduct public hearings,” he said.
The current wage order in the region, which took effect in November last year, mandates a minimum daily wage of P480 for nonagricultural workers in businesses with over 10 employees, P450 for those with fewer personnel and P440 for the agricultural sector.
This order is set to expire on Nov. 16 this year, leaving room for potential adjustments depending on the outcome of the consultations.
Business woes
But Carbon argued that raising wages now could lead to job losses, higher food prices and reduced investor interest.
“Our labor and power costs are already among the highest in Asia,” he said, stressing that “additional increases could be detrimental to businesses already struggling with high operational expenses.”
Instead of focusing on wages, Carbon suggested that the government prioritize lowering food prices, particularly through boosting local food production.
