Labor group rejects ‘installment’ wage hike

By opting for installment payments, we risk trivializing the dire needs of our workers and undermining the intended purpose of wage recovery, thereby perpetuating the financial hardships faced by families below the poverty threshold,” FFW Vice President Jun Mendoza Ramirez was quoted as saying in the statement.

Ramirez stressed that if a wage hike pushes through, it should be applied uniformly across all sectors to prevent labor disputes which may be caused by a wage distortion.

“It is imperative for Congress to legislate this wage increase across the board to forestall any disputes over wage distortion. If necessary, a clear and simple legal formula must be established within the four cornersof the law to address any wage distortion issues, thus preventing further disputes,” he said.

Previously, Employers Confederation of the Philippines President Sergio Ortiz-Luis Jr. said that the proposed pay hike would result in the closure of many micro, small, and medium enterprises.

Other members of the House of Representatives have also warned against the possible negative effects of a wage increase of such magnitude to small businesses.

But labor groups, including FFW, repeatedly pointed out that a wage hike will help increase consumers’ purchasing power which may eventually help spur the country’s economy.