LOCAL workers in the private sector have been clamoring for higher wages to ease the financial difficulties that they have been experiencing. It is no secret that the minimum wage (P454-P491) is barely enough to meet the needs of a big family. In response, Labor Secretary Silvestre H. Bello III will be filing in the current 17th Congress his proposal for a P125 across-the-board (ATB) wage increase for workers in the private sector.
Only recently, on October 19, the National Economic and Development Authority (Neda) released a statement saying that the agency, together with the Department of Finance, the Department of Budget and Management, and the Department of Trade and Industry, is opposing the proposed wage increase.
Socioeconomic Planning Secretary Ernesto M. Pernia said the hike could have “adverse impacts” on economic growth, employment and inflation. The government agencies mentioned above further explained that a wage increase will affect the cost of doing business in the country. Therefore, this might affect the important decisions that companies make about production, employment and pricing.
When the Neda conducted a simulation study to analyze the effects of a P125 ATB salary increase in all regions, the economic agency found out that an increase could result in “upward pressures on prices” between 2017 and 2018. Inflation could increase from a baseline of 2.1 percent to 9.7 percent in 2017.
The Neda study also shows that the wage hike could displace around 500,000 workers in 2017, a figure that would pull the year’s unemployment rate to 7.3 percent. GDP growth in 2017 would be affected, as well, according to the Neda, reducing it to 5.5 percent, from a baseline of 6.5 percent.
To help the public-sector workers, economic managers have suggested the improvement of infrastructure in the regions so that the investment climate becomes better, too. Ultimately, it will still be the fresh infusion of investment into the regions that will spell success and development for both workers and businesses.
To gain investments from other countries is one of the aims of President Duterte’s state visit to China last week. As I wrote in my last column, the President and his delegation hoped to strengthen trade relations between the two countries, as the businessmen negotiated for huge investments and loans from China-based institutions and companies. Many people are hoping that the new businesses, when they come, will further stabilize local economy and, eventually, benefit the government, businesses and the workers who need more earning opportunities.
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Results of the PCSO Anniversary Race held at the Metro Manila Turf Club Inc. in Malvar, Batangas, on October 16, are as follows: Kanlaon (V.R. Dilema) finished first, followed by Dinalupihan (J.T. Zarate) in second place, Cats Dream (J.A. Guce) in third and Low Profile (M.A. Alvarez) finished fourth. Congratulations to all the winners!