By Junex Doronio
MANILA — No less than Department of Labor and Employment (DOLE) Secretary Bienvenido Laguesma on Tuesday (12 Feb 2024) rejected a proposed P100 legislated minimum wage increase, saying it could lead to a 15 to 25 percent increase in employee costs especially for small companies.
The DOLE chief noted that the previous round of wage hikes implemented by Regional Tripartite Wage and Productivity Boards (RTWPBs) showed minimal impact on employment levels.
“Meron ding mga nawalan ng hanapbuhay pero hindi naman ganon karami at kayang mabigyan ng paggabay para makabalik ‘yung mga manggagawang napinsala,” Laguesma said in his TeleRadyo Serbisyo interview.
He pointed out that any talk of a wage hike sets off an inflationary chain reaction starting with increases in transportation costs.
“Sa dakong huli maaari ‘yung karagdagang purchasing power ay baka ma-erode pa. Imbes na maging stable, baka maaaring magkaroon ng adverse na epekto,” Laguesma further said.
He also cautioned that micro, small, and medium enterprises (MSMEs) in the countryside could also have a harder time attracting investors if wages are too high.
Meanwhile, Albay 2nd district Representative Joey Salceda and Marikina City 2nd district Rep. Stella Alabastro-Quimbo said allowing foreign capital ownership in vital industries by amending the 1987 Constitution will address this lack of funding for a legislated wage hike.
Salceda said foreign enterprises give wages that are 74% higher than that of Filipino companies while Quimbo maintained that increasing the minimum wage is only possible if there is a productivity increase with the entry of foreign firms.
(el Amigo/MNM)
