“There are two things a person should never be angry at, what they can help, and what they cannot.” – POPE JOHN PAUL II.
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Already – as the issue of raising the minimum wage is being seriously talked about and pondered in the Senate – eight buisness groups have immediately made known their disagreement.
They collectively expressed concern that the legislated wage hike may negatively impact the operations and continued existence of micro, small and medium enterprises or MSMEs.
The group wrote to Sen. Jinggoy Estrada, chairman of the Senate committee on labor, employment and human resources, their sentiments that whatever good intentions there was in
the bill, raising wages may appear to be the logical solution.
“However, only a small percentage of the national workforce may be able to benefit,” the business group said.
They explained that only 16 percent or about 8 million in the formal sector out of the 50 million total number of workers will receive the envisioned benefits.
The proposal, authored by SP Juan Miguel Zubiri and SP pro Tempore Loren Legarda, seeks a P150 hike which to this corner appears like a “fast pain relief” comparable to a headache pill.
Why?
Every Juan, Pedro and Jose (and the many Marites-es included) know that the wage hike which shall be borne by Pinoy employers will push them (producers and manufacturers, service providers) to also raise their products and produce to recoup what they shelled out to their employees, retrench or simply close down.
All countries were hurt by the global inflation precipitated by the two-year pandemic and lockdown that caused world-wide economic collapse.
Ninety eight percent of the MSMEs, the business group explained, suffered from the consequences of the global pandemic and are only on their way to complete recovery.
Among the signatories to the letter were the Philippine Chamber of Commerce and Industry president George Barcelon, Employers Confederation of the Philippines chairman Edgardo Lacson, Philippine Exporters Confederation Inc. president Sergio Luis Ortiz Jr, Fderation of Filipino Chinese Chambers of Commerce and Industry president Cecilio Pedro, IT and Business Process Association president Jack Madrid, Philippine Hotel Owners Association president Arthur Lopez, Foreign Buyers Association of the Philippines president Robert Young and United Port Users Confederation of the Phils. Inc. president Nelson Mendoza.
Quite a list, huh?
The senators behind this wage increase should allow the global economic circumstances to settle down before even attempting to placate Pinoys who have been complaining of the weakening purchasing power of the peso, inflation, the lack of employment and livelihood opportunities.
The business group also advised that the prices of goods in our local market are higher than the other ASEAN economies which they see as a direct effect of higher minimum wage in the Philippines.
The unsettled and worsening Russia-Ukraine war that has dragged for more than two years is indirectly yet adversely affecting our economic recovery.
The Middle East situation is also contributing to the world wide “touch and go” economic order because oil produced by Arab and Muslim countries in this region is being used as a leverage.
As the Philippines is entirely dependent on foreign (fossil) fuel, we cannot help but endure what we ought not endure.
Instead of raising the daily minimum wage, the good senators should endeavor to help attract foreign investments by joining hands with economic experts looking to reform the constitution.
Legislating wage hikes is so easy the senators won’t even sweat.
But like the business group hinted, this may look like a palliative cure because inflation never ceases.
In the 60s, if I remembered correctly, the price of rice per ganta (salop) before the measurement shifted to kilo, was a peso and ten centavos.
So, the issue again boils back to the economic problems which sourly points to its root cause – the restrictive economic provisions of the 1987 Constitution that need reconstruction.
Wow, how can our senators not understand that palliative remedies are temporary?
That is why they are palliative. They don’t last long.
Raising the minimum wage will create a backlash that the recipient beneficiaries will themselves feel and suffer from, eventually. (Email feedback to fredlumba@yahoo.com.) GOD BLESS THE PHILIPPINES!
