DEPARTMENT of Labor and Employment (DOLE) Secretary Bienvenido Laguesma has admitted that the P100-wage increase proposed by the Senate could not be sustained by Micro and Small and Medium Enterprises (MSMEs), but added that he would respect the decision of Congress on the issue.
Laguesma said they have provided inputs to the Senate over the proposed P100-legislated hike in the daily salary of minimum wage earners in the country, adding that they are not awaiting the final decision of Congress on the proposed bill.
However, Laguesma expressed reservation over the proposed wage increase, saying there is a need for DOLE to look at how to preserve employment, since the department wants to continue creating additional jobs to sustain the employment level.
“We have provided technical inputs. We hope it will help in their deliberations,” Laguesma said in a press briefing.
He said the department is not against the proposed measure, because it is the department that will implement the wage increase once enacted into law.
“At the end of the day whenever a law is passed, it is our obligation to implement it,” Laguesma said.
The DOLE will still have to wait for the actions that the House of Representatives will take on the bill since they will base their next steps on the final version of the bill that Congress will pass, he added.
Meanwhile, labor group Partido Manggagawa (PM) slammed Laguesma for speculating that the P100-legislated wage hike will have an adverse impact on the economy, especially on small and medium enterprises.
“Labor Secretary Laguesma is singing the same old song with employers about economic difficulties once workers are granted a substantial wage hike. But they are singing out of tune as their doomsday scenario is refuted by economic indicators. Inflation and unemployment subsided since regional wages were increased in the latter half of 2023,” Rene Magtubo, PM national chairman said.
PM welcomed the plenary deliberations in the Senate on the proposed P100-wage hike bill.