Retailers buck fresh wage hike

MANILA  -A trade association of retailers has warned against another round of wage hikes, saying tens of thousands of people could be laid off should lawmakers force the issue through legislation.

Roberto Claudio Sr., president of Philippine Retailers Association (PRA), estimates that about 10 percent of the 500,000 workers in the local sector will be at risk as micro, small and medium-sized enterprises (MSMEs) may not be able to afford a wage hike.

“If you raise the minimum wage, there will be more people who will lose jobs because most of the businesses, if they have to comply with higher wages, will simply reduce employment,” Claudio told reporters on the sidelines of the 29th National Retail Conference and Expo at SMX Convention Center in Pasay last week.

The PRA official also said there would be a ripple effect in raising the minimum wage, with employers needing to adjust the wages of other more skilled workers.

“Even with the [latest] round of wage hike that was approved, businesses are already adjusting. They are trying to find ways to respond to the approved hike. Anything more, instead of giving higher wages or benefits, they will just cut down the number of employees,” he added.

Claudio said that around 95 percent to 97 percent of retailers are MSMEs, businesses, which are hard-pressed to shoulder more costs.

Sought for comment on what will be a better alternative than a legislated minimum wage hike, the PRA official said that the matter should be left to the discretion of employers and employees’ unions who can discuss and negotiate. INQ

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