By Junex Doronio
MANILA — Saying the wage hikes could accelerate inflation further, the Foundation for Economic Freedom Inc. (FEF) on Sunday (18 Feb 2024) expressed its opposition to a Senate bill seeking to hike the minimum wage of private sector workers by P100.
The economic group said the proposed wage increase would push companies to charge higher prices, driving a wage-price spiral that would then lower the purchasing power of the public.
“We are not against wage increases but we urge the Senate not to tamper with the existing mechanism of regional wage boards to adjust wages if needed,” the FEF said in a statement.
Last weekend, the Senate approved on second reading Senate Bill 2534 or “An Act Providing for a 100 Pesos Daily Minimum Wage Increase for Employees and Workers in the Private Sector.”
The FEF explained that the wage hikes could “turbocharge” inflation further and force the Bangko Sentral ng Pilipinas (BSP) to hike interest rates, causing companies to cut down on investments and lower employment.
“Regional wage boards take into account the interests of both employers and workers and the different cost and employment situations of various regions,” the economic group noted.
(el Amigo/MNM)