ZAMBOANGA CITY (Mindanao Examiner / 06 Feb) – The Mindanao Business Council thumbed down a proposed law that would provide a nationwide P125 across-the-board salary increase.
In a position paper, the MBC -- an umbrella organization of business chambers in Mindanao -- said that the impending wage-hike bill is untimely and highly politically motivated as national elections are nearing.
Filipinos are to elect their representatives to the Senate, Congress and local positions in May.
The MBC said such proposal, if approved by Senate, would severely affect country's economy.
"While the legislated wage increase is untimely and damaging to the positive economic outlook of the country, it may be otherwise for the Congress which motioned for its approval.”
“This move of the House of Representatives is a bit highly suspicious considering that the May 2007 election is just around the corner. The Congress' timely approval may be seen as a 'face-saving gesture' to court public confidence," the MBC position paper said.
"Things would be much bleaker for us Mindanaoans, who rely heavily on our micro, small and medium enterprises. We would surely lag behind in the aspect of competitiveness and a great deal of investments for Mindanao will be lost," it said.
The MBC said the passage of the House Bill 345, authored by Zamboanga del Norte Rep. Roseller Barinaga, chairperson of the Committee on Labor and Employment, seeks the implementation of the wage hike over a period of three years would render the creation of the regional tripartite wages and productivity board as useless.
The regional wage board, created by Congress, is tasked to fix minimum wages based on objective criteria and standards.
"The Congress' move unabashedly takes away the task of determining theappropriate wage in a particular region, which is already delegated tothe Regional Board.”
“The Boards are more familiar with the existing local labor and economic conditions thus have far more competency in determining the minimum wage in their respective region. Clearly, the economic conditions and standard of living are differentfor each region," the paper said.
The Davao City Chamber of Commerce and Industry said the proposed wage hike is more of a political decision which will not be beneficial to both the business and labor sectors.
“The move of the Congress undermines the right of the management and labor to agree on a reasonable minimum wage.
Similarly, the General Santos City Chamber of Commerce and Industry labeled such move as “grandstanding act by some member of the Congress”.
It said a huge portion of small and medium industries cannot even implement last year's round of wage increases.
Business leaders in Zamboanga Peninsula also expressed the same sentiments saying that many business establishments may force to lay-off its employees and laborers due to high cost of operation.
"With the grim scenario at hand, the Mindanao business community strongly urges the Senate to consider the socio-economic repercussions that the legislated wage increases will bring about.”
“Further, the Mindanao business community, headed by the Mindanao Business Council and its affiliate chambers and industry association call for strengthening of the regional wage board and undertake measures to ensure that these boards become more competent and effective in formulating a just increase for each region," they said.
But the labor sector said the wage hike is long over due and important to cushion the rising cost of basic commodities, among others. Militant labor groups also accused employers of union busting and unfair labor practice. It said many employees were underpaid and worked without overtime payments. (Darwin Wee, with a report from Juan Magtanggol)
1 comment:
Businesses only cares about profit. It is not about money. Love your niche. Money will comes automatically. Employees is the main asset of your company. Employees are making money for you. A happy employee equals big profits. Contrary to belief, the higher wage will boosts economy. There will be more money to go around. More money will be use to buy services, and products. Businesses are likely to succeed. Who is going to buy the services and products if nobody has money. If not spend, money is saved, or invested. That means more capital for shares, stocks, and mutual funds. And, that will boosts the prices of shares, stocks, and mutual funds. Businesses will actually hire more. For less aggressive investor, there are bonds, and time deposits. Savings account alone are high interest in this country. And, Peso is so strong. It gets stronger about 10% every year. Peso might hit 15 Php = 1 USD in 15 years. Your money will be worth so much.
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