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CEBU CITY—Business
leaders here reiterated their opposition to the proposal
of a legislated wage hike, pushing instead for the
exemption of minimum-wage earners from payment of income
tax. They aired their position at the annual membership
meeting and induction of the new officers of the Cebu
Chamber of Commerce and Industry (CCCI).
Philippine Chamber of Commerce and Industry chairman
Miguel Varela, in a speech, said forcing companies to
increase the minimum wage would affect the smaller
businesses first.
“A
legislated wage increase would do more harm than good as
out of the 32 million of the country’s work force, only
4.2 million will benefit from an increase. The rest are
involved in informal sectors, and will further create
disparity in their incomes,” said Varela, who is also
the president of the Employers Confederation of the
Philippines.
“We all
feel the heavy burden imposed by the very high cost of
doing business. A comfortable profit margin for many has
become an elusive dream. Survival is now the first
priority; growth is an added blessing,” Varela said.
He
proposes leaving the wage-hike issues to the regional
wage boards; and for the government to consider the
business sector’s proposal to exempt minimum-wage
earners from income taxes.
New CCCI
president Edward Gaisano said increasing wages by
whatever means will only force smaller companies to
either go underground or fire their employees if forced
to hike wages.
“The
companies need the cash to meet their payrolls first.
Everybody wants to give something, but where will they
get the money?” Gaisano told reporters. |
