NextGen Day

According to the Employers Confederation of the Philippines (ECOP), the labor sector’s request for a PHP150 per day statutory pay increase will not help the vast majority of the country’s workforce cope with inflation; rather, it will solely benefit workers in the formal sector.

Sergio Ortiz-Luis Jr., president of ECOP, stated in an interview that the planned salary rise mandated by Congress can only apply to private sector workers, who make up only 16% of all Filipino workers.

According to him, 84 percent of the labor force depends on the unorganized sector for their survival, therefore a law requiring a significant pay increase will not assist them.

According to Ortiz-Luis, the executive and other managerial level staff, who are not as financially strapped as rank-and-file workers, will also benefit from the uniform wage raise requested by the Trade Union Congress of the Philippines (TUCP).

The gap between workers in the formal and informal sectors will only get wider as a result of the legislation-mandated pay increase, he continued.

In addition to just benefiting a small percentage of workers, Ortiz-Luis claimed that since 70% of businesses in the formal sector fall under the micro firm category, they could not be able to spend an extra PHP150 per day on each employee.

According to him, the coronavirus disease 2019 (Covid-19) pandemic severely impacted a lot of microbusinesses, and they have only just started down the arduous road of recovery.

The “Wage Recovery Act of 2023,” also known as House Bill 7871, was introduced by TUCP on Wednesday through House Deputy Speaker Raymond Democrito Mendoza.

The labor organization claimed it wants to give private-sector workers nationwide, whose incomes have been significantly eroded by inflation, a statutory across-the-board boost of PHP150.

“Workers no longer have the luxury of waiting for the regional wage boards to take action. “TUCP has been urging the wage boards to address the consistent decline in the real value of wages since late last year,” Mendoza said in a statement.

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