CV wage hike may fuel price hikes — MCCI

The Regional Tripartite Wages and Productivity Board in Central Visayas (RTWPB-7) announced on 16 September minimum wage increases ranging from P33 to P43 daily.

But the Mandaue Chamber of Commerce and Industry (MCCI) said wage increase will result to businesses increasing prices, thus fueling inflation.

“This increase will highly contribute to the increase of companies’ operating expenses thus consequently, they will pass this on to their customers,” MCCI president Mark Anthony Ynoc told DAILY TRIBUNE.

“There might also be potential job losses since this is the major cost in most industries. Companies especially the SMEs are forced to cut jobs to maintain profitability and competitiveness,” he disclosed.

He emphasized that the government should instead find ways to manage inflation rates to bring down costs of basic necessities “so we do not have to resort to regular wage hikes.”

The increase will take effect by 2 October this year.

The increase has pegged the minimum wage in the region with range between P453 to P501.

The members of the RTWPB-7 cited reasons to the increase and pointed out the rise of the cost of goods as well as the weakening purchasing power of the Philippine peso.