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6月21日のまにら新聞から

Trade chief warns wage hike "dangerous

[ 375 words|2018.6.21|英字 (English) ]

Trade Secretary Ramon Lopez warned on Wednesday it will be "dangerous" to increase wages as this could lead to higher prices of goods and retrenchment of workers.

In a press briefing in Malacanang, Lopez said if there will be any wage hike, it should be "minimal."

He said income or wages should go up "naturally."

"That's why I have that comment on wage increases, it's a bit dangerous...but what we're saying, the more sustainable solution for wage increases will be more jobs created and more investments to come in," he said.

The Department of Trade and Industry chief said not all Filipinos are wage earners.

In case there will be wage hike, he said inflation could go up.

"So those who did not benefit from the wage hike will also get affected. That's the difference. But if we are successful in maintaining industrial peace, there's peace and order, rule of law that the President (Rodrigo Duterte) has strengthened, no corruption, good business environment, investment should come in, create more jobs, that's what will drive up wage. We all know this," he explained.

Some quarters, particularly the militant labor groups, have been asking for higher wages, such as P750 across-the-board legislated wage hike, due to higher prices of goods, which they have been blaming on the newly-implemented Tax Reform for Acceleration and Inclusion (TRAIN) law.

Government officials insisted the effect of the new tax measure on inflation was minimal or less than one percent.

Lopez said significant wage increase could also result to retrenchment of workers.

"Jobs will be lost. That should also be considered by the laborers...because if we will force for huge (wage) increase, the employment may be reduced," he said.

Lopez said if there could be any wage adjustment, it should be "minimal."

"But that should not be more than what is necessary because you will really create a strong pressure on inflation," he said.

He added it would be up to the Regional Tripartite Wages and Productivity Board to determine the possible wage hike.

"Whatever will be the inflation in each region, that can be the basis for adjustment. Again, just to give consolation to the affected parties. But if I will be asked, I hope there's none," he added. Celerina Monte/DMS