The Philippine Exporters Foundation (Philexport) has warned that any minimum wage hike would result in
massive job losses and lost investments.
PHILEXPORT President Sergio Ortiz-Luis Jr. said that another round of pay hike would undermine the viability of
most enterprises in the country particularly the micro, small and medium enterprises (MSMEs).
“An upward adjustment in the minimum wage would adversely impact on their ability to sustain
their operations and preserve jobs of their workers,” he said.
Ortiz-Luis said a new wage adjustment will exacerbate the unemployment rate that increases poverty incidence in the
“High wages also discourage foreign direct investments (FDIs) and labor-intensive industries such as certain handicrafts and furniture operations.”
Further increase in the cost of doing business such as minimum wage will not help attract local and investors, said Ortiz-Luis.
“Any wage increase could cripple the economy and make the country even more uncompetitive vis-a-vis its Asian neighbours.”
Instead of an across-the-board pay hike, Philexport has expressed its support to the implementation of the productivity-based wage adjustment by the Department of Labor and Employment (DOLE).
Philexport also pushed for the approval of the amendments to the Productivity Incentives Act that would help ensure the workers could share the benefits of a profitable business even as they keep their jobs.