Employers Confederation of the Philippines Slams House Approval of Wage Hike Bill

Strategic Insights -

The Employers Confederation of the Philippines (ECOP) has strongly criticized the House of Representatives for rushing the approval of a proposed law mandating a P125 (US$2.53) across-the-board wage adjustment. ECOP president Rene Y. Soriano has labeled the move as "ill-timed" and "insensitive," warning that it could lead to an "economic catastrophe." The ECOP president argues that the proposed wage hike has no economic sense, given the recent decline in oil prices, reduction in jeepney fares, and the strengthening of the peso. Soriano urges lawmakers to leave the wage issue to regional tripartite wages and productivity boards, which are better equipped to determine wage adjustments considering local business conditions and worker needs.

Key Takeaways:

  • The Employers Confederation of the Philippines (ECOP) has expressed strong opposition to the proposed P125 (US$2.53) across-the-board wage adjustment, labeling it "ill-timed" and "insensitive."
  • ECOP president Rene Y. Soriano has warned that the wage hike could lead to an "economic catastrophe," causing investors to pull out and businesses to close down.
  • The ECOP has criticized the House of Representatives for rushing the approval of the wage hike bill, claiming that there is no economic basis for the increase given the current economic conditions.
  • Soriano has urged lawmakers to leave the wage issue to regional tripartite wages and productivity boards, which are better equipped to determine wage adjustments considering local business conditions and worker needs.
  • The proposed wage hike bill would implement a staggered across-the-board pay adjustment of P45 in 2007, P40 in 2008, and another P40 in 2009.
  • ECOP has claimed that the wage hike is "pure and simple political posturing," with no genuine intention of improving workers' wages.
  • Soriano has highlighted the positive economic developments in the country, including the drop in oil prices, reduction in jeepney fares, and the strengthening of the peso.

Statistics:

  • P125 (US$2.53) across-the-board wage adjustment proposed in the wage hike bill (Source: ECOP)
  • P45 wage increase in 2007 (Source: Proposed wage hike bill)
  • P40 wage increase in 2008 (Source: Proposed wage hike bill)
  • P40 wage increase in 2009 (Source: Proposed wage hike bill)
  • 56 heads of House committees furnished with ECOP's position paper detailing the dire consequences of a P125 across-the-board legislated wage hike (Source: ECOP)

Sources:

  • Asia Pulse, Dec 26
  • PNA, 26-12 1853