Jobs creation should be prioritised over wage hikes in the Philippines
The Philippines government should focus on creating jobs instead of wage hikes to help lift citizens out of poverty, urged a business group.
Increasing wages of workers might force micro, small, and medium enterprises to raise the prices of goods and services that they offer and would only benefit those working in the formal labour sector, which makes up some 10% of the 50 million-strong labour force, said Sergio Ortiz-Luis, President of the Employers’ Confederation of the Philippines (ECOP), according to Manila Standard.
Instead, the government should opt for “inclusive” solutions to economic problems, which covers a wide range of other measures, he added.
Santiago Dasmariñas Jr, President of The Confederation for Unity, Recognition and Advancement of Government Employees (COURAGE), had earlier asked the government to set the minimum wages of state workers at P33,000 (US$583) per month to offset rising prices.
In response, the Department of Budget and Management said that the request to increase the minimum wage of government workers to P33,000 will not be acted upon now as an upcoming salary hike will be scheduled for next year.