Bello wary of proposed wage hike: It needs careful study

Labor Secretary Silvestre Bello III on Thursday said the proposed hike in minimum wage has to be studied carefully due to its possible impact on businesses still reeling from the economic fallout of the COVID-19 pandemic.

Bello said the government has to balance the interests of the workers and the employers.

“Kailangan dito masusing pag-aaral. Can the employers afford it, if they can, then by all means we will recommend, we will adopt it, the petition of the workers,” he said at the Laging Handa briefing.

“But if they cannot, then we have to be very careful, otherwise, we will again increase the unemployment rate and that is the worst situation as far as our employees are concerned.”

He also said workers put more value to job security than wage increase amid the pandemic.

“Ang tingin namin sa mga workers, mas importante iyong kanilang status of employment, mas mahalaga sa kanila na hindi nawawala iyong kanilang status as employees,” he said.

Sergio Ortiz-Luis Jr., president of the Employers Confederation of the Philippines (ECOP), said on Sunday that it might not be the best time to take up requests for wage increases even as he sympathized with employees who are burdened by the rising prices of basic goods.

Ortiz-Luis said that enterprises faced losses and possible closures due to the pandemic.

“Now, if we will grant or recommend the approval of the petition na tataasan iyong suweldo from P537 to P700 or P750, baka hindi makayanan ng mga employers,” Bello said.

The Kilusang Mayo Uno earlier reiterated its call for a wage hike and passage of a P750 national minimum wage law. — BM, GMA News