Employers' top SONA wish: Scrap legislated wage hikes
With the next State of the Nation Address (SONA) fast approaching, the country’s leading group of employers is urging President Ferdinand Marcos Jr. to use the platform to declare his opposition to legislated wage hikes, maintaining that wage-setting should be left to regional wage boards.
The Employers Confederation of the Philippines (ECOP) said this is the sentiment shared among business establishments, citing concerns regarding wage increases that are enacted nationwide.
“We want to hear the President repeat that he has already convened the regional wage boards and that wages are already being raised so that efforts to refile legislated wage hike bills will stop,” said ECOP President Sergio Ortiz-Luis Jr. The 2025 SONA will be delivered by the President to mark the opening of the 20th Congress on July 28.
“They know nothing will come out of it because I think these attempts will just be vetoed by the President,” he added.
With the incoming new slate of lawmakers, several bills have already been filed to raise workers’ wages.
This comes after the 19th Congress failed to approve the measures to increase the minimum wage hike by ₱100 to ₱200.
Ortiz-Luis asserted that regional wage boards have been performing their duty in assessing the minimum daily wage of workers.
Last June 18, the ₱50 wage hike for private-sector workers in Metro Manila officially took effect. The wage boards of other regions are expected to also review their respective minimum wages.
Exporters’ priority measures
Ortiz-Luis, also the president of the Philippine Exporters Confederation Inc. (Philexport), wants the incoming Congress to instead shift its attention to key measures that aim to foster economic growth and improve the country’s competitiveness.
One of the priority measures is the Magna Carta for Micro, Small, and Medium Enterprises (MSMEs), which shall mandate the government to promote the sector’s development through assistance programs.
Specifically, this seeks to extend the mandatory allocation of MSME loans by banks and remove the regulatory cover on Small Business Corp. (SBCorp) to allow the state-run agency to grant more loans to MSMEs.
Another key bill is the proposed Customs Amnesty Act, which aims to help raise additional government revenues through voluntary disclosure without imposing new taxes.
This measure shall also clear the Bureau of Customs (BOC) of its pending liquidation accounts and prevent harassment of importers using these transactions.
The industry group is also pushing for the International Maritime Trade Competitiveness Act to cut high shipping costs to and from the Philippines.
It said that charges should remain reasonable and based on international best practices.
To further strengthen trade, Philexport is calling for the passage of the PhilPorts Act, which shall decouple the regulatory and developmental functions of the Philippine Ports Authority (PPA).
The group wants the PPA to only focus on port development, with the Maritime Industry Authority (MARINA) taking over its regulatory functions.
In the same manner, Philexport is also proposing the transfer of the development and commercial functions of the Civil Aviation Authority of the Philippines (CAAP) to a new entity, while the former retains its regulatory function of implementing policies on civil aviation.
It is also advocating for the proposed National Quality Infrastructure Act, which shall institutionalize the development of an infrastructure system that will strengthen the country’s export competitiveness and increase exporters’ participation in the global value chain.
Lastly, the group threw its support behind the Konektadong Pinoy Bill, noting the bill’s significance in expanding internet access across the country.