A big blow to wage earners

Once again, the battle for fair wages in the Philippines has taken a predictable turn. Business groups, including the Philippine Chamber of Commerce and Industry (PCCI) and the Employers Confederation of the Philippines (ECOP), have raised their voices in protest against the proposed P200 wage hike currently being pushed in Congress.

Their opposition underscores a recurring theme in labor policy debates — profit protection over people’s welfare. Unfortunately, this latest development is a significant setback for millions of Filipino workers struggling to make ends meet amid rising inflation and economic uncertainty.

The PCCI and ECOP have warned that a mandated wage increase of P200 per day would place undue financial strain on businesses, particularly small and medium enterprises (SMEs). They argue that such an increase could lead to business closures, job losses, and inflationary pressures as companies pass on the added costs to consumers. These groups insist that wage hikes should be left to regional wage boards, which take into account the varying economic conditions across the country.

Their concerns are not entirely baseless. SMEs, which make up the majority of businesses in the Philippines, operate on thin profit margins. A sudden increase in wages without corresponding productivity gains could indeed force some small businesses to cut costs, which could include laying off employees or reducing benefits. Large corporations, on the other hand, have more capacity to absorb the added expense, yet they remain some of the most vocal opponents of the hike.

For the millions of minimum-wage workers in the Philippines, however, the argument against a wage hike is detached from their everyday struggles. Inflation has eroded the purchasing power of workers, with prices of basic goods and services continuously increasing. Rent, transportation, food, and electricity have all become more expensive, leaving many Filipinos with barely enough to survive.

The current minimum wage in many regions remains insufficient to support a family, forcing workers to take on multiple jobs or rely on informal sources of income just to get by.

The argument that businesses will suffer from a wage hike does not account for the reality that workers have long been suffering from stagnant wages. The call for a P200 increase is not just about numbers — it is about restoring dignity to labor and ensuring that those who work tirelessly every day can afford a decent standard of living. If businesses can afford executive bonuses, expansion projects, and rising profits, surely, they can afford to pay their workers a livable wage.

The wage hike debate should not be an “either-or” scenario where businesses thrive at the expense of workers or vice versa. Policymakers must find a balanced approach that ensures both the sustainability of businesses and the well-being of workers. If the concern is that SMEs will be disproportionately affected, the government should explore support mechanisms such as tax breaks, subsidies, or phased implementation strategies.

Wage earners deserve better than token increases that fail to keep up with the cost of living. The opposition from business groups is a stark reminder of the power dynamics at play in Philippine labor policies. If the government truly prioritizes inclusive economic growth, it must listen to the plight of its workers and take decisive action to ensure fair compensation. A just and reasonable wage is not a privilege — it is a right that every hardworking Filipino deserves.