DTI backs wage-hike increase but not P125

The Department of Trade and Industry (DTI) on Wednesday said it supports a wage increase as food prices in the localand international markets continued to rise. Trade Secretary Gregory Domingo said in a statement the department backs the clamor for a wage hike as it "recognizes the plight of workers and the need to increase their take-home pay." He, however, said he is "not in favor" of some groups' petition for a P125 across-the-board increase nationwide. "Giving a P125 per day wage hike across-the-board will make our companies uncompetitive compared to [their] Asian counterparts. It is not wise to give such a high amount at a time when our companies are gaining grounds in our competitiveness," Domingo said. Such an increase will "dampen" the interest of possible investors in the country and imperil the viability of firms operating in the country. "The government is trying to strike a balance and create a win-win solution for both the labor and business sectors," the official said. Domingo said any wage adjustment should be approved by the regional tripartite wages and productivity boards. High wage adjustment "could result in higher unemployment rates if existing or prospective firms decide not to expand," he explained. "The increase should be close to the inflation rate and not so high that it will imperil the operations of firms in the country," he said. — JE/VS, GMA News