Employers Confederation of the Philippines (ECoP) President Rene Y. Soriano slammed the timing and motive of the hasty approval on third reading by the House of Representatives the proposed legislation mandating a P125-across-the-board wage adjustment.

Soriano called the wage hike bill as "ill-timed" and "insensitive" move of the Lower House and was just a "pure and simple political posturing".

In a statement, Soriano warned of an "economic catastrophe" should the P125 across-the-board wage hike bill be signed into law.

"This would send the wrong signal to investors, force enterprises that are barely surviving to close shop, and multinationals to pack up and rechannel their investments to neighboring countries which have lower labor costs," he stressed.

According to Soriano, there is no "economic sense and basis" to move wage levels at this point considering that oil prices have continuously dropped in the last two months, minimum fare of jeepneys rolled back by P0.50, and the peso has remained strong this month.

"All these are clear indicators that the economy has improved and that businesses are on the way to recovery," he stressed.

Donald G. Dee, president of the Philippine Chamber of Commerce and Industry, said called the approval on third reading by the Lower House as a "very irresponsible act on the part of Congress" stressing that wages cannot be legislated.

Dee said that instead of creating jobs, a legislated wage hike would scare off investors making the Congressional move "anti-labor".

Dee noted the move would make the Philippines more uncompetitive compared to China and Indonesia.

The move of the Upper House to pass on third reading the wage hike bill its populist was prompted by the upcoming elections.

Under the wage hike bill approved on third reading by the House of Representatives, the staggered across-the-board pay adjustment to be implemented are as follows: P45 in 2007; P40 in 2008; and another P40 in 2009.

"We have to keep businesses afloat to ultimately benefit workers in terms of job preservation and improvement of wages brought about by a highly productive and competitive enterprise," Soriano added.

Soriano urged lawmakers to "keep their hands off" on the wage issue and leave the matter instead to the various regional tripartite wages and productivity boards which are in the best position to determine and decide wage adjustments taking into account the business peculiarities and the needs of workers."

Contrary to claims made by certain lawmakers that employers posed no objections to the wage hike bill, Soriano pointed out that ECoP furnished all heads of House committees numbering 56 on ECoP’s position paper detailing the dire consequences of a P125 acrossthe-board legislated wage hike on the economy, enterprises, and competitiveness.

With the legislated wage hike issue now hanging in the Senate, Soriano appealed to senators to junk the wage bill which is very counterproductive and disastrous and instead focus on measures that will further boost economic development.(BCM)