Biz group: Approval of wage hikes ‘very ill-timed’

The Iloilo Business Club (IBC) has expressed objection to the approval of wage hikes for workers in Western Visayas.

The Regional Tripartite Wages and Productivity Board (RTWPB-6) raised the daily minimum wage in the region by P55 to P110.

“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,” the IBC statement read.

The group of businessmen also considered “alarming” the P95 wage increase for agricultural workers.

The salary adjustment, according to the IBC, might derail the economic recovery of the region which will ultimately hurt all, from the employers to the employees and the public.

The group noted that most of the businesses in Iloilo are micro, small and medium enterprises and they will be severely hit by the adjustment.

“By imposing the P110 increase on private establishments with ten 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,” they stressed.

The IBC appealed to the RTWPB-6 to take a second look at the financial realities of the region and to reconsider the impact their decision would bring on the local economy here in the region.

Department of Labor and Employment (DOLE-6) Director Sixto Rodriguez Jr. earlier said that the daily minimum pay for non-agricultural/ industrial/commercial workers is set at P450 from P395 and P420 from P310 for those employed in establishments with 10 workers or less.

Meanwhile, the daily minimum pay for workers in the agricultural sector is set at P410 from P315.

The RTWPB also approved the increase of Kasambahays’ minimum monthly pay from P4,000 to P4,500.