Chinoy biz group in favor of 'well thought' wage increase

Amid apprehensions from major business organizations and business owners, the Federation of Filipino Chinese Chambers of Commerce and Industry Inc. said they are in favor of a wage increase so long that regional wage boards will perform it.

“I am in favor of salary wages going up because it’s in the majority's best interest so that those poor people down there can sustain their lives. It is important to uplift the majority, or those who are earning minimum wage,” said Dr. Cecilio Pedro, the president of FFCCCII in a press conference on Thursday in Makati City.

“But we prefer it to be discussed by a tripartite community or organization in such a way that every other aspect of business will be considered,” Pedro maintained.

Also, he said that maybe it is not the right time to increase wages and wait for everything to stabilize.

“Right now, the wage is at P600 plus, if you raise it by P100 then it's 15 to 16 percent, which is very high. So pag-isipan natin yan kung ano ang nararapat. And this is best talked about through tripartite wage boards,” he explained.

Despite this, he urged the government to focus on job creation by bringing in more foreign investments, echoing the sentiments of Go Negosyo chairperson Joey Concepcion.

Earlier, the Employer’s Confederation of the Philippines, or ECOP, termed the passage of a Senate bill seeking a P100 daily minimum wage increase for private sector workers as “out of sync with reality,” “anti-climactic,” while being “outrageous and anti-economic progress.”

Besides the P100 wage hike of the Senate, the House of Representatives has its P150 to P350 daily minimum wage hike proposals meant for private employees, as House Majority Leader Manuel Jose Dalipe said the House leadership is already studying proposals for it.

PhilHealth contribution hike

Meanwhile, Pedro has called on the government to defer the implementation of the PhilHealth contribution hike, treating it as a “double whammy” for employers amid the looming wage hike.

“Again, we are seeking discussions and ways to address this concern. However, even we are benefitting from PhilHealth. But let me put emphasis… huwag naman sabay-sabay dahil lalong mahihirapan ang mga employers. But I think the President is studying it. There should be a sort of balance. Kapag di naman nagtaas, PhilHealth will suffer as their funds are now depleting, makakasama naman sa mga beneficiaries,” according to Dr. Pedro.

Earlier, major business groups ECOP, the Philippine Chamber of Commerce and Industry, and Philippine Exporters Confederation Inc. asked President Ferdinand Marcos Jr. to defer the implementation of the five percent hike in members' contribution to Philhealth.

In a letter to Marcos Jr. signed by Edgardo Lacson, chairperson of ECOP; Enunina Mangio, president of PCCI, and Sergio Ortiz-Luis Jr., president of PhilExport, they said they unanimously support Department of Health Secretary Teodoro Herbosa’s call, who also serves as the chairperson of the agency, to suspend the five percent premium increase in 2024.

Earlier, Herbosa said that the proposed action would not significantly impact PhilHealth’s financial standing, considering that the agency has sufficient funds to continue providing benefits and services to its members.

“Notably, PhilHealth President and Chief Executive Officer Emmanuel Ledesma has affirmed this claim, stating that even if the said proposal is implemented, PhilHealth’s fund will not be depleted. Furthermore, the Universal Health Care Law of the Philippines, while aiming to offer comprehensive healthcare coverage for all citizens, faces various challenges, especially for our Filipino workers. Researchers from the Philippine Institute for Development Studies emphasize ongoing issues related to access and affordability,” the signatories of the letter stressed.

The three business leaders maintained that despite being PhilHealth members, individuals still shoulder a significant portion of hospital expenses themselves, a situation that will particularly impacts vulnerable groups, including the elderly, women, and those in rural and impoverished areas, who disproportionately shoulder the burden due to limitations in national health insurance coverage.

“In light of these circumstances, we humbly propose that PhilHealth momentarily redirect its focus on service enhancement, delaying the hike until 2025. This reprieve would provide much-needed relief to the majority of vulnerable micro and small establishments, as well as Filipino workers who find it challenging to comply with the proposed premium hike, especially with the rising prices of commodities,” they said.