Mark Anthony Ynoc, president of the Mandaue Chamber of Commerce and Industry — from MCCI Facebook page
CEBU CITY, Philippines — A business leader in Cebu has warned of a potential economic disaster if the P200 across-the-board legislated wage increase is implemented.
Mark Anthony Ynoc, president of the Mandaue Chamber of Commerce and Industry, said the amount could result in closure and bankruptcies of businesses.
“The passage of the P200 across-the-board daily wage increase would lead to high inflation, make companies and businesses less competitive, and result in job losses. This shall bring potential economic disasters that will cause company closures and bankruptcies,” he said in a statement.
But Carlos Miguel Onate, legislative officer of the Trade Union Congress of the Philippines (TUCP) said in a separate interview that based on research, the legislated wage hike could not result in business closures and unemployment.
He said that when the TUCP moved for the legislated wage hike of P25, raising the minimum wage of at least 40% from P64 to P89 in 1989, there were no business closures that occurred at that time.
Onate asked employers to consider the P200 legislated wage increase, not as expenses, but as an investment to their workers because a high salary will result in high productivity.
But Ynoc said the government should focus on implementing programs to boost the economy, attract foreign investors, and encourage businesses to implement incentive programs for their workers.
“The government should shift their focus on strengthening the country’s economy through ease of doing business, establishing globally competitive training and education, infrastructure building, and attracting foreign direct investors while encouraging existing businesses to implement incentive programs. This way we may boost the country’s GDP [gross domestic product] growth,” Ynoc said.