Wage Hike, Subcontracting Ban Opposed
September 16, 2011 at 17:05
MANILA, Philippines — Trade and Industry Secretary Gregory L. Domingo has opposed two labor moves: The proposed P125 wage hike and ban on labor contracting, saying this would nip in the bud the resurgence of some domestic industries in light of the improving competitiveness in the country.
Domingo said this after meeting with officials of the Employers Confederation of the Philippines (ECoP) in which they discussed four concerns of the employers – the pending bills in Congress on security of tenure, the P125 wage hike, profit sharing, and ban on labor contracting.
On the proposed P125 wage hike, Domingo said this would only discourage companies from expanding because they cannot be competitive anymore.
“It does not make sense. This would make us uncompetitive,” he said.
Domingo said he preferred that the issue of wage hike be left with the Regional Tripartite Wage and Productivity Boards to decide.
He said the wage hike would only pose a big threat to industries that are making a comeback like the garments sector because the country is becoming competitive again versus other countries.
“This is a bad time to do this,” he said.
On labor contracting, Domingo said it would be difficult to ban labor contracting because of the different nature of jobs.
“Jobs have different nature like anything, there are temporary and permanent requirements,” he said.
He cited the construction sector wherein once the project is completed, that is also the end of the job. In the tourism sector, he added, there are tourist facilities that open only during the summer months but they close after and reopen only in November.
“There is no shotgun approach, not blanket ban, but an environment that should allow labor contracting,” he said.
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By: Bernie Cahiles-Magkilat
Source: Manila Bulletin, Aug. 8, 2011
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