Aquino to employers: Don't fret over wage hike

The business sector should not fret over the impending wage hike in Metro Manila and other regions, President Benigno Aquino III said Thursday, citing the rosy economic activities that his administration has achieved since Day 1. During the 32nd National Conference of the Employers Confederation of the Philippines at Marriott Hotel in Pasay City, Aquino recognized the concerns of employers over his May 1 announcement urging wage boards to hasten the resolution of wage hike petitions. "Even as we create an environment conducive to business growth, I know that some of you have concerns about possible increases in wages after I urged wage boards to expedite rulings on the petitions of the labor unions," the President said. "What you have to understand is that our job is to balance these sometimes-competing concerns," he pointed out. Aquino said that what the government has offered to labor is not "necessarily harmful" to employers' interest. He even added that he has no intention of asking Congress to legislate an across-the-board increase in wages. The Bangko Sentral ng Pilipinas, however, believes that certain wage adjustments via regional wage boards can be absorbed by the economy, according to him. "Just imagine: In a few years, our population will undoubtedly continue to grow. Can you imagine if that growth in population were coupled with an enhanced purchasing power? Can you imagine if more Filipinos had jobs that could afford them more than just their basic needs?" the President said. Incentives plan Aquino also told employers that he will revive a measure that he had pushed when he was still in the legislature — the Profit Sharing Incentives Plan or the Productivity Incentives Plan. "We are advocating and we are asking: Can we not come up with an incentive for our workers wherein, if there is an opportunity to go from the traditional confrontational relationships between management and labor, should we not encourage going back to the fundamentals?" he said. For Aquino, the term “the fundamentals" means "labor and management working together" for the success of the company or firm. "When we assist the labor component of our various firms, we are in effect laying the groundwork for the increase in our market, which undoubtedly benefits everybody else," he said. "If we cease the paradigm of looking at them as mere input costs, and see them as partners toward progress, where we should be will be attained tomorrow and not some time in the next millennia," Aquino continued. Increased confidence in economy The President cited as "proof of an increased confidence in our economy" the upgraded outlook of the Japan Credit Ratings Agency on Philippine debt from stable to positive, and the expected improved credit ratings of the Philippines "not too long in the future." Aquino also cited the historic success being experienced by the capital market. Several days ago, "the Philippine Stock Exchange index was at 4,326.76, just 23 points shy of the high last November... I think this is not bad considering the recent surge and continuing surge in world oil prices," he said. "All this is a sign that the corporate sector is expected to do very well this year. In fact, all these successes have already translated to direct investments," he said. The President pointed out that the Atlantic, Gulf & Pacific has $10 billion worth of potential contracts with the Philippines in the next seven years. Some investments include a coal-fired power plant in the Visayas developed by the Panay Energy Development Corp., the $1-billion investment of Coca-Cola Co., and General Electric’s commitment to create 5,000 jobs in three to five years. Aquino said steps to liberalize Philippine aviation pave the way to the expansion of foreign airlines in the Philippines, such as JetStar and All Nippon Airways, and the upcoming operations of AirAsia. "This, in turn, has made the tourism sector more optimistic. We have 23 new hotels scheduled, I understand, to open just in Visayas, for example, adding at least a thousand two hundred rooms our visitors can enjoy during their stay here. And I can assure you that there will be more in the coming months," he said. — MRT/VS, GMA News