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  • Business: inflation hurting labor hurts us
    By Max V. de Leon
    Reporter

    EMPLOYER groups see the agitation for wage hikes as inevitable, but have asked the government and labor to consider also that the same price spikes making life miserable for workers have swollen business costs and could imperil the operations of some members.

    The Philippine Chamber of Commerce and Industry (PCCI), Employers’ Confederation of the Philippines (Ecop) and the Philippine Exporters Confederation (Philexport) said Monday, though, they will follow any decision from the regional tripartite wage boards.

    The groups said any increase in the daily earnings of employees should not further erode the competitiveness of Philippine firms and cause the shrinking of the formal sector.

    Samie Lim, PCCI president, said putting the burden on the business sector every time the prices of basic commodities rise is not the right approach.

    “The wage increase should not be tied to the rice issue because we believe this is just a temporary problem that also requires temporary measures,” he told the BusinessMirror.

    The government, Lim said, should be the one taking care of the rice problem, particularly since funds are being allocated every year for the state’s rice-production agenda.

    Should the wage boards find it necessary to give workers a reprieve due solely to the escalating prices of commodities, Lim said the business sector would prefer to provide emergency allowances or give rice subsidies and coupons for the time being.

    “I think these measures are better than raising workers’ wages, which becomes permanent. I mean, have you seen a wage rollback when there is a rollback in oil prices?” he said.

    Earlier, Speaker Prospero C. Nograles expressed support for a new wage increase “amid the spiraling food and fuel prices that is causing tremendous pressure to every Filipino’s ability to cope with their day-to-day needs.”

    Sergio Ortiz-Luis, Ecop and Philexport president, said the employers will follow the decision of the wage boards for any wage increase depending on their assessments of the situation per region. He, however, said implementing the increase would be difficult if it is not based on productivity, and might just force more companies to go to the informal sector.

    Currently, Ortiz-Luis said only 16 percent, or about 5 million, of the country’s labor force belong to the formal sector, which is protected by the state.

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