Two major labor groups on Monday vowed to hold mass actions to protest the P10-increase in minimum wages in Metro Manila, comparing the amount to “crumbs” and too small to make ends meet. The Kilusang Mayo Uno, for one, said minimum wage was paltry compared to the amount of pork barrel being misused by lawmakers. The Trade Union Congress of the Philippines said its members will hold a protest march around Manila to dramatize their sentiment. The labor groups warned of more protest moves even as the Department of Labor and Employment defended the wage hike. Labor Spokesman Nicon Fameronag said they had to consider if companies would be able to afford the wage increase. Around 99% of businesses in the country are micro, small and medium enterprises, he said. “Among the factors considered is its impact on business. The government has also the mandate to preserve employment, meaning we cannot just decide when the effect of the decision for businesses to be closing or layoffs,” Fameronag said in a television interview said. He said the government have implemented 12 wage increases in Metro Manila since 1999, with a total increase of over P200 a day. “If there is a large increase in minimum wage, there will be a large distortion… There is pressure for the company is to raise the wage for others in the hierarchy. So there is very careful act of deciding, the amount of increase should be ordered by the wage board so that not so much distortion can happen in the labor market,” Fameronag said. The Employers Confederation of the Philippines v reiterated that the Philippines has the highest wage compared to several Southeast Asian countries. ECOP president Ed Lacson said increasing the minimum wage may discourage foreign companies from investing in the Philippines. “We have the highest minimum wage in Asia, among 8 countries. In the Philippines, it’s $10.25 (P456) a day. Malaysia is $9.75, Thailand is $9.75, Indonesia is $7.46, Vietnam is $3.15, Cambodia is $2.03 and this is surprising, Myanmar is only $0.52,” he said. “If we keep on increasing the minimum wage, we are sending a very wrong message for all investors to come,” Lacson added. But TUCP spokesman Alan Tanjusay said it’s not fair to compare the wages of Filipino workers to those in other Southeast Asian countries because of the different economic and political conditions. “If we have the highest wage among Asians, how come foreign investors still invest in South Korea? Or, Japan? Which were the wage rate is much higher?” he asked.
Posted on: Tue, 10 Sep 2013 02:23:38 +0000
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