Biz group rejects new wage hike in Western Visayas

INQUIRER.net files

ILOILO CITY, Philippines — A group of businessmen in Bacolod City in Negros Occidental has opposed a proposed wage hike in Western Visayas.

The Metro Bacolod Chamber of Commerce and Industry (MBCCI) led by chief executive officer Frank Carbon said the group has filed its objection to a new round of salary increases before the Regional Tripartite Wages and Productivity Board (RTWPB) on Oct. 15.

The RTWPB, which has set a hearing at the Negros Occidental provincial capitol’s social hall in Bacolod City on Monday, would decide if any wage adjustments are needed at this time in the region.

READ: 1.2M private workers in Calabarzon, Central Visayas to get pay hike

As of now, the daily minimum wage rates in Western Visayas stand as follows: nonagricultural (more than 10 workers), P480; nonagricultural (10 workers or less), P450; agricultural, P440.

These rates apply to the provinces of Aklan, Antique, Capiz, Guimaras, Iloilo, and Negros Occidental, along with the cities of Iloilo and Bacolod.

MBCCI asked the wage board to maintain the current minimum wage rates, expressing concerns that further increases could stifle business growth and severely impact the region’s economic health.

Their position paper also proposed a wage control mechanism, recommending that any future wage hikes be limited to the regional inflation rate starting in 2025.

The group argued that unregulated wage hikes have led to economic instability.

Carbon emphasized the effects of the 2022 wage hike, which he said triggered a rise in inflation and made the region less competitive for businesses.

“Without wage control, we’re risking job cuts and reduced work hours,” he said, pointing to the 3.4-percent inflation rate in Western Visayas recorded in September 2024, the highest in the country.

It also urged the wage board to shift focus toward addressing inflation and increasing worker productivity to ensure economic stability.

Premature

Wennie Sancho, a former labor representative to the RTWPB Western Visayas, criticized the early discussions of wage hikes as “premature and confusing” as no specific amount has been proposed yet for the Oct. 21 hearing.

Lawyer Sixto Rodriguez Jr., the Department of Labor and Employment in Western Visayas director who chairs the RTWPB, said the decision to hold hearings for a new wage hike was decided after the consultations conducted in September in Roxas City and Negros Occidental.

“We have already conducted the public consultations, and based on the results, we determined that there is a necessity to issue a wage increase order,” he said during a regional wage hearing on Oct. 10.

He said the discussion on the wage hike stemmed from various factors, including the demand from workers, inflationary pressures and the diminishing purchasing power of the peso.