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P75 wage hike detrimental to businesses – employers


A P75 wage hike proposed by some groups may lead to layoffs and the closure of businesses, the Employers Confederation of the Philippines (ECOP) said on Wednesday. ECOP President Edgardo Lacson told reporters on the sidelines of the 32nd National Conference of Employers that the government’s plan to increase workers’ wages by next month "doesn't make us [employers] too happy." He added that with inflation, a P13.35 or lower wage increase per day in Metro Manila would be reasonable, although it would still trouble employers. A rise of cost in labor and of other production inputs, Lacson warned, might lead to layoffs or closure of businesses. The effects of the political instability in North Africa and the Middle East and the calamity that hit Japan are already being felt in the country, Lacson added. "The uncertainty over oil supply issues has already pushed prices upwards," he said. "These and many other developments in the world, especially credit defaults in Europe, are formidable external challenges which will certainly have an impact on our economy, our respective businesses, and the employment of workers," Lacson said. "The volatile and temporary increases in the prices of fuel, transport and basic goods have prompted the wage authorities to declare a supervening event even as employers have manifested their reservations against such declaration," he said. He clarified however, that employers are willing to give short-term forms of relief to employees through allowances and other benefits. — BC/VS, GMA News

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