Employers divided over calls for hike in wages

MANILA, Philippines- Employers are divided over the issue of increasing the salaries of employees amid soaring prices of basic food and goods. Some employers interviewed by GMANews.TV said now is the right time to motivate their employees into greater productivity with higher wages. Still, others employers see no need to give additional pay to their employees in the midst of industry weakness owing to the strong peso. Rufino Luis Manotok, Ayala Corp senior managing director and chief finance officer, said it may be time for employees to finally reap the benefits of an expanding economy like the Philippines'. “I go along with the Palace move on the wage hike. This will also be part of the trickle down effect of improved economic fundamentals," he said. Ayala Corp., which has interests in real estate, water supply, telecommunications, car distribution, among others, is the country's largest conglomerate. Rolando Hortaleza, the chairman and chief executive officer of listed personal care company Splash Corp., said higher salaries may translate into a more productive workforce, which could lead to higher profit for the company. He noted that labor cost will only have a minimal impact to the company's profitability. “I'm ok with that, considering that labor component in our cost structure is not much to disturb our strategy. I'm all for motivating my workforce and make them happy and productive to negate whatever impact it will create in our profitability," Hortaleza said. However, he added, that start-up companies would have to be given a break considering their “different operating landscape." The entire Splash Group has 1,500 employees. Arthur Tan, president and chief executive officer of Integrated Microelectronics Inc., however sees no need for a wage hike due to the strength of the peso. “Inflation is still in check due to strong peso so there is no need for a wage hike," Tan said. IMI is the electronics manufacturing unit of conglomerate Ayala Corp. The firm employs at least 13,000 people. Evelyn Lao-Yap, founder and president of importer Benby Enterprises Inc., said that she felt that the proposed wage hike was too soon after the P12- increase in salary that Metro Manila workers were given in August last year. “Not yet (time for another wage hike). It's been less than a year since the last wage hike," she said. Benby has 650 employees in its payroll, Lao-Yap said. Labor groups have called for a wage hike to help wage earners cope with the rising costs of living. Some groups have asked for a P60 to P80 a day wage hike, while militant workers want P125 across-the-board. The Employers Confederation of the Philippines has announced that it will be supporting a wage hike for workers, noting that the consumer prices have been growing at a rate faster than government's projection of 3 percent to 5 percent for this year. - GMANews.TV