Employers have strongly urged for a freeze in wage rates as they opposed the petition for a P75 daily wage hike by the labor sector stressing local industries have not yet recovered from the damaging effects of the global economic slowdown.

This was the position of both the Employers Confederation of the Philippines (ECOP) and the Federation of Philippine Industries in light of the pending petition by the Trade Union Congress of the Philippines before the Regional Tripartite Wages and Productivity Board for a P75 daily wage hike for the National Capital Region.

“Whenever we talk wages, employers are pictured as monsters. We are not heartless. Let’s just wait for a full economic recovery. ECOP’s general sentiment is no wage hike until full recovery. Hiring more people is better,” said ECOP president Edgardo B. Lacson.

Lacson has cited the reported growth spurts in the US, but stressed there is no additional jobs creation yet.

“We are following the same patterns. Although exports are growing, we are not sure for how long this would last because this is still part of the stimulus package. There is no net jobs creation,” he said.
He also noted of the threat of economic debacle of Greece, which could widen and create another global crisis.

By freezing the wage rate at the current levels, Lacson said, companies would have more opportunities to create and hire more jobs.

“If we raise wages, how can you accommodate new employes. We have to spread the benefit,” he said.

The TUCP and the RTWPB in the NCR had initial meetings on Monday on the TUCP petition.
For the employers to agree to a wage adjustment, Lacson said that two rationale must be present – the erosion of the purchasing power and the productivity element.

“In our case, the productivity element is not present,” he said. Lacson also pointed to the collective bargaining agreements and contracts, which he said could well address the issue of wages.
“Wages should not be made compulsory and mandatory,” he said.