Solon explains delay in P200 wage hike approval amid concerns

Eyebrows were raised regarding the suspected suspicious timing of the approval of the proposed P200 across-the-board wage hike in the House of Representatives. However, a House leader asserted on Friday that bickering should not take precedence at this time so the bill can pass into law.

Rizal Rep. Fidel Nograles, chairperson of the House Committee on Labor and Employment, admitted there was indeed a delay in the approval of the bill but attributed it to the series of consultations with various stakeholders, including employers’ groups, who have reportedly been unresponsive to the demand for a wage hike.

"The wage hike bill is a much-needed measure that could bring relief to millions of minimum wage workers across the country. It's more important that we stand up and unite to finally enact this than fighting," the chair stated in Filipino.

On Thursday, the committee unanimously approved an unnumbered bill for the proposed P200 wage hike, consolidating four similar measures, some of which had been pending for nearly two years.

The bill's approval came one day after a meeting between Speaker Martin Romualdez and other House leaders with major labor groups to push for the passage of the long-standing demand for a legislated wage hike for workers in the private sector.

Critics, however, suspected that the approval might be another form of grandstanding by legislators, accusing them of exploiting the issue for political gain during the upcoming elections.

In an ambush interview on Thursday, Nograles explained that the delay was due to “intense discussion and examination” among all concerned sectors regarding the proposed salary increase.

“Because we need to give sufficient opportunities to all groups — investors, employers, workers, and our government,” he told the media.

Gabriela Rep. Arlene Brosas, one of the bill’s proponents, argued that the wage hike, being a timely issue ahead of the mid-term elections, also presents an advantage.

“This is really an election issue because [this would help] workers vote, and they should vote for those who remembered their condition,” she said in an interview on Friday.

According to Sergio Ortiz-Luis Jr., president of the Employers Confederation of the Philippines (ECOP), Congress’ "unpredictable" decision to approve a legislated wage hike might “frighten” investors, leading to potential bankruptcies or job cuts.

“Their remedy for that (wage hike) is they will increase the prices of goods if the market can afford it, or if not, reduce people. Otherwise, [businesses] will just close,” he lamented.

The ECOP has consistently rejected the clamor for a wage increase, arguing it would disproportionately affect micro, small, and medium enterprises (MSMEs), which would bear the brunt without receiving any benefits in return.

Some employer groups have also opposed the calls for legislated wage hikes, fearing that it could lead to layoffs or force small businesses to shut down.

However, Deputy Speaker and TUCP Rep. Raymond Democrito Mendoza argued that the much-needed wage hike for private employees is long overdue, urging President Ferdinand Marcos Jr. to certify the bill as urgent.

“Let's put [our] words into action. Mr. President, you said 'no one should be left behind.' But we have been left behind, the Filipino workers have been left behind. We should pass this [bill] this time. P200 is a big help for a worker,” Mendoza told reporters in an ambush interview on Thursday.

The last legislated wage increase was enacted more than three decades ago under the Wage Rationalization Act of 1989, which Mendoza highlighted successfully augmented the minimum wage by 40 percent without causing massive inflation, unemployment, or business collapse.

Efforts to secure another salary raise have been made over the years but were unsuccessful due to various factors, mainly opposition from business sectors who fear they would bear the brunt of the wage increase.

The Senate passed a P100 legislated wage increase for private employees in February last year, but Senate President Francis "Chiz" Escudero said the chamber is open to working on the P200 proposal from the House.

The current minimum wage for private workers in the National Capital Region is P645, following the last P35 increase approved in July last year.

If the proposed P200 daily minimum wage hike is approved, it will raise the daily minimum wage to P845.