Legislation in aid of election is the only description possible for the P200 legislated wage hike that hurdled second reading at the House of Representatives.

The bill also surfaced amid the controversy surrounding the blank items in the Bicameral Conference Committee report, in which members of the legislature are being pinpointed as culprits.

While the validity of the General Appropriations Act (GAA) has been certified by the signature of President Ferdinand Marcos Jr. after an exhaustive review, the Bicam report blanks remain a mystery.

The bill is all wrong. Wages are now decided through Regional Tripartite Wages and Productivity Boards (RTWPBs) that determine pay adjustments based on the specific situations, mainly the cost of living, in each region of the country.

RTWPBs are composed of representatives from business, labor, and government and were specifically created to set region-specific rates based on the local cost of living.

Trade chambers are up in arms against what they describe as a looming economic storm due to the sudden mandated wage increase.

Philippine Chamber of Commerce and Industry president Enunina Mangio said a blanket national minimum wage does not take into account the unique needs of businesses based on specific industry, location and type of labor required.

The wage hike bill is a populist move, but it will lead to higher labor costs to the detriment of micro, small and medium-sized enterprises (MSMEs), which make up 90 percent of the economy.

Massive job losses may result if MSMEs are covered by the bill.

Exempting MSMEs, as some of its proponents argue, raises the question of the bill’s purpose since large firms are already paying beyond the minimum wage.

Cebu industrialist John Gaisano Jr. voiced one of the strongest oppositions to the measure. The move will create more poverty than politicians intended, according to Gaisano.

“Why? Many businesses will suffer. A number of businesses will close. More people will be unemployed. And inflation will rise to offset the increasing costs,” he explained.

Gaisano said locally produced goods will become even less competitive, increasing the need for imports.

“This is an economic crisis in the making. Our country is better off producing what we need than importing.”

Gaisano warned that the legislators’ ploy is short-sighted since the simple solution to reducing poverty, lowering unemployment, and improving the standard of living is to provide a conducive environment for small and medium-scale businesses to grow and prosper.

A better formula to boost business and thus raise wages is to lower power costs, improve health care and enhance education standards.

Improved infrastructure and transportation are also needed, according to Gaisano.

The leadership should appoint more engineers and fewer politicians in government, and sufficient, better, and affordable housing for middle- and low-income people must be provided.

Addressing these basic concerns will create an environment that will naturally raise wage levels.

A P200 legislated wage increase will make Filipinos suffer even more.

“We may not see this immediately, but we will suffer in no less than six months,” Gaisano warned.

“Our leaders need to address the fundamentals and plan long term. China and Singapore did that, and they succeeded. Short-term policies almost always bring down their countries.”

A legislative wage hike is counterproductive and serves only to add political brownie points to its proponents.