Employers cool to wage hike spurred by politics during election season

Published by rudy Date posted on October 21, 2009

WARY of a scenario in which wage hikes could be spurred by politics due to the election season, employers emphasized this early that current conditions are still not ripe for a new round of increase in the workers’ minimum pay.

Sergio Ortiz-Luis, president of the Employers Confederation of the Philippines (Ecop), said petitions for wage hikes could start pouring in again in the different regional tripartite wage boards, with experts harping recovery in the global economy next year.

Oritz-Luis said while Ecop is always supportive of the process and decisions of the wage boards, there is now the possibility that the system could be politicized because 2010 is an election year.

“We don’t want a decision that is political in nature,” Ortiz-Luis told the BusinessMirror.

The tripartite wage boards, he noted, also have representatives from the government “so it can be politicized.”

He said the good of the entire country and labor force should be the primary consideration since wage hikes result in price increases as well.

Right now, Ortiz-Luis said only about 16 percent of the country’s entire labor force is covered by the wage boards.

“If there is an ensuing increase in prices, will the rest of the workers still manage?” he said.

At this time, he said the conditions that would justify the grant of wage hikes are still not there.

The country, he said, has yet to recover from the crisis and a big number of workers who lost their jobs due to the crisis remain unemployed.

“Our concentration should still be on the creation and retention of jobs,” he said.

Before granting wage hikes, he said the employment situation should first normalize, meaning the lost jobs were already recovered, manufacturing output is positive, and exports are also up.

In Metro Manila the last wage order was issued in early 2008 mandating a P15 increase in the minimum wage and additional P5 daily cost-of-living allowance.

If wage hikes are not properly handled, Ortiz-Luis said the problem in the informal sector will just worsen. –Max V. de Leon / Reporter, Businessmirror

July 2025

Nutrition Month
“Give us much more than P50 increase
for proper nutrition!”

Invoke Article 33 of the ILO Constitution
against the military junta in Myanmar
to carry out the 2021 ILO Commission of Inquiry recommendations
against serious violations of
Forced Labour and Freedom of Association protocols.

Accept National Unity Government (NUG)
of Myanmar.  Reject Military!

#WearMask #WashHands #Distancing #TakePicturesVideosturesVideos

Time to support & empower survivors. Time to spark a global conversation. Time for #GenerationEquality to #orangetheworld!

July


3 July – International Day of Cooperatives
3 Ju
ly – International Plastic Bag Free Day
 
5 July –
World Youth Skills Day 
7 July – Global Forgiveness Day
11 July – World Population Day 
17 July – World Day for
International Justice
28 July – World Nature Conservation Day
30 July – World Day against Trafficking in Persons 


Monthly Observances:

Schools Safety Month

Nutrition Month
National Disaster Consciousness Month

Weekly Observances:

Week 2: Cultural Communities Week
Micro, Small, and Medium Enterprise
Development Week
Week 3: National Science and
Technology Week
National Disability Prevention and
Rehabilitation Week
July 1-7:
National Culture Consciousness Week
July 13-19:
Philippines Business Week
Week ending last Saturday of July:
Arbor Week

 

Daily Observances:

First Saturday of July:
International Cooperative Day
in the Philippines

Categories

Lorem ipsum dolor sit amet, consectetur adipiscing elit. Ut elit tellus, luctus nec ullamcorper mattis, pulvinar dapibus leo.