NextGen Day

On Friday, the Employers’ Confederation of the Philippines (ECOP) expressed relative satisfaction over the processes that led to setting a PHP40 per day wage hike for private sector workers in the National Capital Region (NCR).

In an interview, ECOP president Sergio Ortiz-Luis, Jr. said that while any upward wage adjustment puts an unwanted additional burden on employers, the latest wage order was reached after a thorough review of prevailing economic conditions mandated by the country’s labor laws.

“We understand how the NCR wage board arrived at that figure (PHP40/day). Our representatives saw how the computation was done. Both employer and labor representatives were there (at the wage hearings). It was a scientific way of computing the erosion of purchasing power,” he noted.

The business leader explained that initial computations showed that the equivalent of PHP30 per day was shed from workers’ salaries since the last wage hike was implemented on June 4, 2022.

However, he said, if the latest inflation figures are factored in, the actual erosion in workers’ pay would appear to be closer to PHP37 per day.

“I guess it was just rounded off to PHP40. We have no complaints because the right process was observed. The figures sought by some labor groups were too high, and they wanted a legislated wage hike. This is not the proper way (of wage setting) because it gets muddled with politics,” he added.

Ortiz-Luis said that while wage setting by Regional Tripartite Wages and Productivity Boards (RTWPBs) is “not perfect,” it uses a formula that can be defended and scrutinized.

However, he admitted that some unnamed ECOP members had expressed fears over the impending impact of the latest wage hike on their struggling companies.

“One member called me earlier and said he currently employs over 2,000 workers. He asked me if I knew how much PHP40 per day would translate in a year. He said that his company is not making that much,” ECOP’s president disclosed.

Ortiz-Luis maintained that the ideal way of determining wage adjustments remains through collective bargaining agreements (CBAs) between labor and employer.

Save/Share this story with QR CODE

---

Disclaimer

This article is for informational purposes only and does not constitute endorsement of any specific technologies or methodologies and financial advice or endorsement of any specific products or services.

📩 Need to get in touch?

📩 Feel free to Contact NextGenDay.com for comments, suggestions, reviews, or anything else.

---

We appreciate your reading. 😊Simple Ways To Say Thanks & Support Us:
1.) ❤️GIVE A TIP. Send a small donation thru Paypal😊❤️
Your DONATION will be used to fund and maintain NEXTGENDAY.com
Subscribers in the Philippines can make donations to mobile number 0917 906 3081, thru GCash.
3.) 🛒 BUY or SIGN UP to our AFFILIATE PARTNERS.
4.) 👍 Give this news article a THUMBS UP, and Leave a Comment (at Least Five Words).

---

AFFILIATE PARTNERS

World Class Nutritional Supplements - Buy Highest Quality Products, Purest Most Healthy Ingredients, Direct to your Door! Up to 90% OFF.
Join LiveGood Today - A company created to satisfy the world's most demanding leaders and entrepreneurs, with the best compensation plan today.

---