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Manila Bulletin devider Philippines devider Iloilo Business Club says wage hike may derail W. Visayas' economic recovery

Iloilo Business Club says wage hike may derail W. Visayas' economic recovery

Published May 17, 2022 11:47 am

ILOILO CITY -- The Iloilo Business Club (IBC) has expressed opposition to the recent approval of salary increase in Western Visayas region, saying it ‘might derail the economic recovery’ of the region.

“This will ultimately hurt all of us, from the employers to the employees and the public,” said IBC in a statement.

On May Friday (May 13), the Regional Tripartite Wages and Productivity Board (RTWPB-6) under the Department of Labor and Employment (DOLE-6) approved the P55 to P110 increase in daily salary of workers.

Dock workers in Iloilo City take a rest. (TARA YAP/MANILA BULLETIN)

“This meant an increase by 13.92% to 35%, which is not only very ill-timed, but it blatantly disregards the economic realities being faced by the business community in the province and city of Iloilo, especially since our local businesses are just starting to recover from the effects of the pandemic,” emphasized IBC.

Currently, the daily salary in the non-agriculture sector is P395 for companies with more than 10 workers, and P310 for companies with less than 10 workers. In the agriculture sector, the current daily salary is P310.

The group also noted the negative impact of salary hike to the micro, small and medium enterprises (MSMEs) in Iloilo City and the province, which has 42 towns and a component city.

“They will be severely hit,” the group stressed.

“By imposing the P110 increase on private establishments with ten (10) and less workers, they may be forced to suspend operations, lay off their workers or even shut down their doors because it would be too much for them,” the group added.

While the wage hike is yet to be implemented, IBC is calling on RTWPB-6 to take a second look.

“The RTWPB-6 should reconsider the impact their decision would bring on the local economy here in Region 6,” IBC added.

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