MAP: High costs, not low wages, are the real issue

The Management Association of the Philippines (MAP) has urged the House of Representatives and the Senate to conduct further consultations with all stakeholders affected by the recently passed P200 legislated wage hike, emphasizing that they do not support the proposal as it stands.

“Since setting a minimum wage is a very complex process where many factors have to be taken into account, we call on the Bicameral Conference Committee of the House and the Senate to conduct further consultations with all affected sectors, like employers, employees, consumers, involved agencies, among others, before reaching a decision,” the group said in a statement on Monday. The statement was signed by MAP President Al Panlilio and MAP National Issues Committee chairman.

A total of 171 congressmen signed in favor of the bill seeking to increase the minimum daily wage for private sector workers by P200, with one lawmaker abstaining.

MAP further urged the Bicameral Conference Committee to carefully consider the potential impact of the P200 daily wage increase on inflation and business sustainability — especially for millions of small enterprises struggling to survive.

They also recommended studying whether setting a national minimum wage or regional wage levels would be more appropriate.

“Our basic problem is not low wages, but high costs. We believe that attention should be given to the wage-to-cost ratio, not just wages. We have the third-highest minimum wage in Asia, and some of the highest costs, especially for food, power, transportation, and housing,” MAP stated.

The group encouraged both the Executive and Legislative branches to focus on reducing these costs to make the country more export-competitive, while addressing inefficiencies across all sectors to improve productivity and reduce waste.

“We also appeal to employers to help alleviate the plight of minimum-wage earners by implementing urgent measures, like paying employees’ shares in SSS, Pag-IBIG, and PhilHealth contributions, sharing at least 20 percent of their organizations’ net income before tax with employees, among others,” the statement added.

MAP reaffirmed its support for initiatives that improve the lives of minimum-wage-earning Filipino workers and their families, but remains opposed to the P200 daily wage increase as currently proposed.

Earlier, the Employers Confederation of the Philippines and the Philippine Chamber of Commerce also voiced opposition to the P200 legislated wage hike proposal.

Malacañang Palace, meanwhile, assured that President Ferdinand Marcos Jr. will consider the economic implications of the bill and will consult with the wage boards — bodies created by Congress — to ensure that all stakeholder concerns are scrutinized and addressed.