₱200 Wage Hike Could Trigger Economic Disaster, Warns Cebu Business Leader

A Cebu business leader has warned that the proposed ₱200 across-the-board daily wage increase could lead to economic disaster, resulting in business closures, bankruptcies, and job losses.

Mark Anthony Ynoc, president of the Mandaue Chamber of Commerce and Industry (MCCI), expressed concerns that the wage hike would trigger high inflation and reduce the competitiveness of businesses in the region.

“The passage of the ₱200 daily wage increase would lead to high inflation, make companies and businesses less competitive, and result in job losses. This shall bring potential economic disasters that will cause company closures and bankruptcies,” Ynoc said in a statement.

Labor Group Disagrees: “It’s an Investment, Not an Expense”

In contrast, Carlos Miguel Onate, legislative officer of the Trade Union Congress of the Philippines (TUCP), dismissed claims that the wage hike would harm businesses.

Onate cited the 1989 wage increase, where the minimum wage rose by 40% from ₱64 to ₱89, noting that no significant business closures occurred at the time.

“Employers should view the ₱200 wage increase not as an expense, but as an investment in their workers. Higher salaries lead to higher productivity,” Onate explained.

Alternative Economic Strategies Proposed

Ynoc urged the government to prioritize economic growth through other means instead of legislated wage hikes.

“The government should focus on strengthening the country’s economy through ease of doing business, globally competitive training and education, infrastructure development, and attracting foreign direct investments,” he said.

Ynoc suggested that businesses be encouraged to implement their own incentive programs for workers, arguing that this approach would better support the country’s GDP growth without the risk of inflation or business instability.

Debate Continues as Congress Considers Wage Hike

The debate over the ₱200 wage hike continues as Congress deliberates on legislation to adjust the minimum wage in response to rising inflation and living costs. Proponents argue that the wage hike is essential for improving workers’ quality of life, while business leaders warn of the potential economic repercussions.