Distorting the wage-setting process
The recent decision of the Department of Labor and Employment to unilaterally raise the current daily minimum wage by P85, to be implemented in two tranches of P60 initially this year and then another P25 next year through Wage Order NCR-27, has politicized the wage-setting process and is distorting the tripartite wage process.
The Philippine Department of Labor and Employment (DOLE) recently unilaterally raised the daily minimum wage by P85, with the first tranche of P60 implemented this year and another P25 increase set for next year. The Employers Confederation of the Philippines (ECOP) criticized this decision, arguing that it has politicized the wage-setting process and is distorting the tripartite wage process.
ECOP, a business organization representing employers, claimed that the wage increase was premature given the economic conditions at the time. ECOP's director general, Jose Roland Moya, expressed concerns about the potential consequences, including increased cost pressures, reduced work hours, slower hiring, and even job losses for businesses struggling with higher labor costs.
Moya also warned that a substantial wage increase would compress wage differentials, negatively impacting the competitiveness of enterprises and potentially leading workers in the informal sector to move into the informal economy.
Written by urgent.news from Philippine Star Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
