MANILA, Philippines - The Employers Confederation of the Philippines (ECOP) said increasing wages of workers do not solve their problems.
During the public hearing conducted by the National Capital Region (NCR)-Regional Tripartite Wages and Productivity Board, employers said wage hikes in the past years have not solved workers’ woes.
ECOP acting president Rene Y. Soriano said employers support the government's thrust of job generation, coupled with "holistic" solutions. These solutions should address high inflation, competitiveness, poverty, high cost of doing business and unemployment.
"Will wage increase create jobs? The resounding answer is no," he said.
Soriano noted the formal sector is shrinking, while workers in the informal sector are increasing.
Antonio H. Abad Jr., ECOP governor, said the government should consider other solutions, such as widening the scope of tax credits and imposing a cap on food prices, rent and fares for public transportation.
"Raising the minimum wage will only contribute to inflation because of its ripple effects," he said.