
Originally Posted by
marke
Malacañang shoots down House’s wage hike plan
06/05/2006
Malacañang yesterday expressed further disagreement with the House of Representatives’ proposal of a P125 across-the-board increase legislated wage hike, saying rhis is not needed at this time as a “well-balanced environment for investors and workers” should be given priority at the moment.
In a statement, Press Secretary and concurrent presidential spokesman Ignacio Bunye said: “We don’t have to make a spat out of the wage issue because all stakeholders agree that we have to preserve jobs and create more, and accord some relief to our workers while keeping inflation under control.”
This only means two things:
1. Government is not sincere in helping the workers.
2. Our economy is really in bad shape that employers cant afford to pay a decent wage, contrary to what Malacanang is saying that our economy is the best in years.
1. A legislated across-the-board wage hike means that many workers might be losing their jobs because their company cannot afford to keep more workers at a higher wage rate. To sustain the higher wage rates for its workers, some companies might have to lay off some of them.
The need for wage hikes can be more properly addressed by regional wage tripartite boards. In these wage boards, both sides will be more adequately represented. The capacity of employers should be balanced with the needs of the workers to come to a compromise. Since not all employers can afford to shoulder the cost of higher salaries, some businesses may have to lay off workers or shut down entirely. This would be unfair to those who stand to lose their jobs in the event of a legislated wage hike.
A legislated wage hike might not only lead to the lay off of many workers, but also to the closure of business, particularly small and medium enterprises (SMEs) which are the driving force of the economy.
This is what the administration is trying to prevent, that is why it is pushing for regional wage boards to address this issue and strike a balance between workers' needs and their employers' capacity. Much better than a mere legislated wage hike which might cause many workers to lose their jobs and might have an adverse effect on the economy.
2. Our economy is indeed doing better than it has been in years, but world oil prices are still rising. That's what causes the costs of doing business to also rise. While our economy is growing, it is not yet at a stage wherein a legislated across-the-board wage hike can be justified. The majority of businesses in the country comprise in SMEs which cannot afford wage hikes at this time. It's regional wage boards which should determine which companies can sustain higher wages for their workers. That way, the interests of both sides are better represented.