Business Groups Voice Concerns Over Proposed P200 Wage Hike

Two major business organizations have expressed apprehension over the proposed P200 daily minimum wage increase, cautioning that it could lead to higher operational costs and negatively affect the Philippines’ competitiveness in the global market.

Cecilio Pedro, president of the Federation of Filipino-Chinese Chambers of Commerce and Industry, acknowledged the need for wage adjustments but questioned whether the proposed hike had been thoroughly evaluated.

“Hindi ako tutol itaas ang sweldo dahil nahihirapan talaga yung laborers natin… Takot kami na hindi pinag-aralan bago nila sasabihin na P200. Saan naggaling ang P200?” Pedro said in an interview with Super Radyo dzBB.
(I’m not against a wage hike, but has the P200 increase been properly studied? Where did this figure come from?)

Pedro warned that higher wages could lead to increased prices for goods and services, ultimately putting a strain on consumers.

Impact on Competitiveness and Employment

George Barcelon, chairperson of the Philippine Chamber of Commerce and Industry (PCCI), echoed similar concerns, emphasizing that a steep wage increase could undermine the country’s economic competitiveness.

“Pag sobrang taas, we will lose our competitiveness. Pag dadagdagan mo ng P200, tataas yung cost natin. Lalong ma-re-retrench. Wag naman sana,” Barcelon said.
(If the increase is too high, we will lose our competitiveness. Adding P200 will raise our costs and could lead to more retrenchments. Hopefully, that won’t happen.)

Barcelon suggested that the wage hike might force businesses to cut jobs or reduce hiring, especially for small and medium-sized enterprises already grappling with inflation and rising operational costs.

Legislative Developments

The House Committee on Labor and Employment recently approved the P200 across-the-board wage hike for private sector workers, with strong backing from both lawmakers and labor groups.

House Deputy Speaker Rep. Democrito Raymond Mendoza, a co-author of the bill, defended the proposal, stating that it could help lift around 5 million minimum wage workers out of poverty.

Despite the concerns raised by the business community, labor groups continue to urge President Ferdinand Marcos Jr. to certify the wage hike as urgent, emphasizing the rising cost of living and the need for immediate economic relief for workers.

As discussions continue, the National Wages and Productivity Commission is being urged to conduct a comprehensive review of the proposal to ensure that the increase is both sustainable for businesses and sufficient to address workers’ needs.