Minimum wage hike may lead to layoffs, employers warn

ABS-CBN News

Posted at May 29 2018 08:43 AM | Updated as of May 29 2018 08:50 AM

Watch more in iWant or TFC.tv

MANILA - Some companies may be forced to lay off workers should there be an increase in the minimum wage, the head of an employer's group said Tuesday.

Price increases are also possible as businessmen seek to offset the cost of higher wages, Employers Confederation of the Philippines acting president Sergio Ortiz-Luis said.

"Kung hindi magtataas ng presyo, babawasan nila ang tao. Every year ganyan ang nangyayari, kaya parami nang parami ang nasa informal sector," Ortiz-Luis told DZMM.

Left-wing lawmakers on Monday filed a bill seeking a P750 minimum wage across all regions, as they sought to amend a law that gives regional boards the power to set wages in their respective areas.

Watch more in iWant or TFC.tv

A uniform minimum wage needs to be studied since development in the regions is not the same as in the capital, said National Wages and Productivity Commission Executive Director Criselda Sy.

"Sa pagde-determine ng minimum wage, we are guided by three major factors: needs of workers and their families, employers' capacity to pay, and requirement of economic development and competitiveness," she told DZMM.