Leyte. INQUIRER FILES
TACLOBAN CITY — The business sector in Leyte province has criticized the proposed P100 wage increase for daily minimum wage workers.
Eugene Tan, president of the Philippine Chamber of Commerce and Industry-Tacloban Leyte chapter, said implementing this huge increase would not benefit the workers but could lead to unemployment.
READ: Employers: A catastrophe to grant P100 wage hike
Tan expressed hopes that legislators would reconsider the wage proposal which could also lead to business closure.
“We have submitted our position paper, including those in the Western and Central Visayas, on this proposed P100 legislated increase as this could lead to more repercussions than benefits to our workers,” he said in a phone interview on Feb. 22.
While the Senate has already approved the proposal, he said they want the House of Representatives to realize the bad side of the proposed measure.
READ: Data shows employers can afford P100 wage hike – IBON
According to Tan, a P100 daily wage increase is huge for small and micro businesses to absorb, considering that they also have to pay other operational expenses and taxes to national and local governments.
“We hope that our (legislators) will reconsider this proposal as this could lead to possible losses of employment and closure of businesses,” he said.
Tan said that if there would be an increase in unemployment, peace and order could be affected.
“The crime rate in the country could increase,” he said.
Any wage adjustment, he said, is better left to regional wage boards and not by an act of Congress.
“We have the regional wage boards which are more equipped in determining any wage adjustments,” he said.
The Regional Tripartite Wages and Productivity Board (RWPB) in Eastern Visayas approved last November a P30 wage increase, putting the daily wage at P405.