The Employers Confederation of the Philippines (ECOP) soundly rejected the call of workers’ groups for the Philippine President to certify as urgent a P200 legislated wage hike, saying the huge increase would benefit only a minority of workers while leaving millions of others including informal laborers and struggling businesses at a serious disadvantage.

In a recent interview with Radyo Pilipinas, ECOP president Sergio R. Ortiz-Luis Jr. slammed the workers’ demand for a big pay adjustment as inconsiderate of other determining factors.

He said the employers’ group is strongly opposed to the legislated wage hike proposal because only 10 percent to 16 percent of the country’s total 52 million workers stand to benefit from it, leaving 84 percent with no increase to look forward to but forced to contend with the ensuing inflation.

Of the 52 million, 84 percent have no employers so farmers, fisherfolk, jeepney drivers, tricycle drivers, and market vendors won’t benefit from the increase, Ortiz-Luis said.

Moreover, higher wages will further raise the operating costs of micro, small, and family-run businesses and force them to raise their prices, fire some workers, or even close down if they can no longer meet the minimum wage requirement.

In the end, these disenfranchised sectors will have to turn to the government for support to cope with the higher cost of living.

Only the minority benefits

“Nakikinabang ang konti, the minority as against the whole of the majority (Only the minority benefits as against the majority),” Ortiz-Luis said.

The executive said that instead of a legislated increase, jobs and investments are what are urgently needed to keep the economy growing.

However, he noted that with the Philippines having the highest wages in the region, capitalists are now avoiding the Philippines in favor of neighboring countries.

He also emphasied that it is the regional wage board — whose representatives include employers, workers and relevant government agencies like the trade and labor departments — that should do the salary review as it can best balance the needs of all key sectors of society.

“Ang wage board pinag-uusapan nila anong kaya ng ekonomiya, anong kaya ng merkado at binabalanse yan. Kaya nga from pinakamababa tayo, unti-unti, taon-taon ay pinakamataas na tayo ngayon dito sa ASEAN (The wage board assesses and balances what the economy and market can take. From having the lowest wages in ASEAN, through small increases annually, we now have the highest salary rates in the region),” Ortiz-Luis said.