Some employer groups oppose P85 wage hike in NCR

Some employer groups expressed their opposition to the P85 wage increase for workers in Metro Manila, but the Department of Labor and Employment (DOLE) noted that there’s an exemption to the wage order.

According to Raffy Tima’s report in “24 Oras” on Wednesday, the Employers Confederation of the Philippines (ECOP) said that while businesses recognize the need for a salary hike, they argue that the underlying formula used was incorrect.

“Unfortunately, we dissented kasi ‘yung mga formulang ginagamit natin, which is regular - ‘yung inflation, ‘yung mga measures, marami ‘yan eh. Palagay namin mali dahil ngayon kasi it is not a normal situation,” said ECOP president Sergio Ortiz-Luis, Jr.

(Unfortunately, we dissented because the standard formulas we use—which involve various measures like inflation—are quite a lot. We believe it's wrong because we are currently not in a normal situation.)

“Meron giyera, tumaas ang gasolina, tumaas ang inflation. So ‘pag in-average ‘yung inflation, nag-aantay sa 6.8 eh. Hindi naman normal ‘yun,” he added.

(There is a war, gas prices went up, and inflation rose. So when you average out the inflation rate, it hovers around 6.8. That is definitely not normal.)

ECOP said that their proposal to the Tripartite Board was a P60 increase, which would also be implemented in two tranches.

The group also pointed out that only a fraction of the workforce will benefit from the mandated wage hike, noting that 84% of the country’s labor force belongs to the informal sector.

Of the remaining 16%, 90% are employed by micro-enterprises, which ECOP claims cannot afford the P85 wage increase.

“Ilan lang yung kayang-kaya yan, baka yung large na wala pang 1 % saka yung medium na 1%. Even this small na 9%, hindi kaya yan this time lalo pa ngayon na ika nga ang investors natin nangawala na, pwede turista. Lalagyan mo pa na ganyan kalaki, lalo mawawala yung investment,” said Ortiz-Luis, Jr.

(Only a few can easily afford that—perhaps the large enterprises which make up less than 1 percent, and the medium enterprises at 1 percent. Even the small businesses at 9 percent cannot handle this right now, especially at a time when we are already losing investors, though tourists might still come. If you impose a hike this large, we will lose even more investment.)

It is also highly likely that some companies will pass these additional costs onto their consumers.

For its part, the Federation of Philippine Industries (FPI) noted that while the manufacturing industry is only beginning to see a slight recovery, it is already facing immediate added pressure due to the mandated wage hike.

The FPI added that this comes on top of rising energy and logistics costs, which will ultimately dictate whether companies can retain their employees and remain competitive.

According to Labor Secretary Francis Tolentino, however, exemptions are provided under the wage order.

“So ‘yung mga may 15 employees and below can seek an exemption. Ano ‘yun — mga pumapasok sa barangay, micro enterprises law, P3M and below ang kanilang capitalization, hindi kasama ‘yun. So ‘yung mga maliliit ay kinilala talaga ng wage order,” said Tolentino.

(So those with 15 employees and below can seek an exemption. What are those? Those falling under the barangay micro-business enterprises law, with a capitalization of P3 million and below—they are excluded. So the small businesses were truly recognized and considered by the wage order.)

Tolentino maintained that the Tripartite Board considered all factors when making its decision, including the ongoing conflict in the Middle East.

“Number 1 consideration, ‘yung pagkahirap lalo na ng ating mga manggagawa lalong-lalo na sa pang-araw-araw na gastusin at bilihin. Hindi pa tapos ‘yung sa Middle East, ’di ba? So lahat ‘yun kinonsider,” he said.

(The number one consideration was the growing hardship faced by our workers, especially regarding daily expenses and basic goods. The situation in the Middle East isn't over yet, right? So all of those factors were considered.) –Vince Angelo Ferreras/NB, GMA News