Philippine employers reject proposed $1.75 daily wage hike for Metro Manila workers, offer $0.30 instead
Manila, Metro Manila, Philippines (AHN) – The Employers Confederation of the Philippines rejected the $1.75 (PHP 75) daily wage increase sought by Metro Manila workers, but instead offered a paltry $0.30 (PHP 13.35) hike.
ECOP President Edgardo Lacson said Wednesday at the 32nd National Conference of Employers that the country’s businesses could not afford the $1.75 asked by the Trade Union Congress of the Philippines.
Lacson warned that if the government gives in to workers’ demand to that level of wage adjustment, there could be massive layoffs and business closures.
He said aside from the wage hike, Philippine employers must also contend with the impact of political instability in North Africa and the Middle East, which had resulted in higher oil prices, plus the credit defaults in Europe, which also affected local business. They also have to cope with rising water and electric rates.
Lacson added that even before a wage hike order is issued by the National Wage Board. 400 Japanese companies operating in the provinces of Cavite, Laguna, Batangas, Rizal and Quewzon have started to lay off workers. The firms are exporters of car parts and electronic components sources from Japan and are affected by the parts shortage caused by the March 11 earthquake that hit Japan.
Aside from offering $0.30 daily wage increase, Lacson said employers are willing to give short-term forms of relief to workers through allowances and other non-wage benefits. Lacson said the $0.30 offer was the erosion rate of the peso’s purchasing power in the national capital region.
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