NOTE: THIS STORY WAS FIRST PUBLISHED BY THE BOHOL CHRONICLE’S SUNDAY PRINT EDITION.
The Bohol Chamber of Commerce and Industry (BCCI) strongly opposed the move of the Senate granting a P150 across-the-board increase in the daily minimum wage regardless of their place of work in the country.
In a five-page position paper jointly signed by 15 business groups in the Visayas, the manifesto said the proposed wage adjustment will result in increased costs of producing goods while companies will be forced to pass on to the consumers the additional labor cost.
BCCI President Dominic Butalid who is one of the signatories said the proposed huge wage hike can be considered as an “economic suicide” as increasing wages perpetuates a vicious cycle that harms the economy and the vulnerable population.
The P150 per day hike will create a ripple effect as the additional labor cost could lead to headcount reduction or layoffs and business resizing.
In Tagbilaran City, the daily wage would hike to P547 from the present P397.
The business groups stressed the P150 hike would really hurt the companies’ financial security and can lead to the closures of business firms which will worsen the unemployment level and loss of income to those who will be retrenched from their jobs.
Butalid said the businessmen’s groups will file a strong opposition particularly to Senate Bill 2002 or Across-the-Board Wage Increase Act of 2023 which provides a P150 daily increase in the salary rates of employees and workers in the private sector.
He said the official stand which is agreed in principle by the 15 groups will soon be submitted to Philippine Chamber Assistant Vice President for Visayas Frank Carbon for submission to the Philippine Chamber of Commerce and Industry national board.
UNCONSTITUTIONAL
The businessmen’s groups are adopting the position of the National Wages and Productivity Commission in questioning the constitutionality of the proposed across-the-board wage increase.
They called the Senate to “uphold the legislative mandate outlined in Section 122, paragraph b of RA 6727 which grants the Regional Tripartite Wages and Productivity Boards the power to determine and fix minimum wage rates applicable to their respective regions, provinces or industries.
These boards should be empowered to issue wage orders in accordance with the guidelines of the National Wages and Productivity Commission, the businessmen urged.
“There should be a balanced approach that considers the needs of both workers and businessmen to maintain a healthy and sustainable economy, ” the manifesto concluded.
WORKERS’ RIGHTS
The BCCI president said the businessmen’s groups recognize the rights and welfare of workers to receive fair compensation for their labor.
Instead of an across-the-board increase, the groups counter proposed for an “industry driven hike” which they viewed as more realistic, the BCCI president stated.
They called on the government to consider creating a regional industry wage board that will consider the economic situation of each company, large, medium or small.
A Collective Bargaining Agreement type of solution per sector was likewise proposed by the group.
OPTIONS NEED BE CONSIDERED
The businessmen’s position paper advised the government to “prioritize expanding economic activity” while attracting investments to complement labor and local productivity. This can be achieved through innovative investment promotion strategies and efforts to enhance the ease of doing business in the provinces.
“By attracting foreign and domestic investments, we can create more job openings and stimulate economic growth,” the businessmen said.
The government was also called to proactively address inflationary pressures particularly regarding the prices of basic goods and services, high utility costs (power and water), fuel prices and the importation of goods.
“The agricultural value chain and developing farming and fishing technologies can improve productivity and reduce dependency on imports,” their manifesto concluded.
UNITED STAND
The position paper will be submitted momentarily to the national board of the Philippine Chamber of Commerce and Industry in Manila.
Melanie Ng, PCCI regional governor for Central Visayas spearheads the groups which include the Cebu Chamber of Commerce and Industry, Inc (CCCI), Mandaue Chamber of Commerce and Industry (MCCI), Mactan Export Processing Zone Chamber of Exporters and Manufacturers (MEPZCEM), Japanese Chamber of Commerce and Indtsurt, Inc (JCCICI), Philippine Retailers Association (PRA-Cebu), Philippine Exporters Confederation (PhilExport) Cebu, Cebu Furniture Foundation, Inc (CFIF), Bohol Chamber of Commerce and Industry (BCCI), Negros Oriental Chamber of Commerce and Industry (NOCCI), Siquior Chamber of Commerce and Industry (SCCI), Hotel, Resort & Restaurant Association of Cebu (HRACCI), Bohol Association of Hoitels, Resorts and Restaurants (BAHRR), People Management Association of the Phil (PMAP-Cebu) and Panglao Chamber of Commerce and Industry (PCCI).