Cebu Chamber of Commerce and Industry (CCCI), the largest business organization in Cebu announced that if this new wage increase will be implemented, the industry players will "again" expect another economic battle.
CCCI president Francis O. Monera said that not all industries of the business sector could afford such a wage increase.
Although traders are expecting a healthy economic situation, particularly in Cebu, Monera said this could not be intervened immediately by a mere wage hike implementation.
"Growth is different in every sector. What may be growth for us may not be growth for other sector. An across the board wage increase could create disruption in the small and medium enterprise sector," said Monera.
According to Monera, 96 percent Small and Medium Entrepreneurs (SMEs) are still on its way to recovery from the severe financial situation. Most of them are surviving by allowing a thinner profit margin, because of intense competition.
For his part, CCCI vice president for external affairs Teodoro Locson said, there is a need for the people to understand the real definition of minimum wage.
"Minimum wage is supposed to be given to those who have lesser skills but has to be employed. But people misconstrue it, as something to be given that would support a family of 4 or 6. We should start thinking which option could better provide jobs," said Locson.
On the other hand, Cebu's economy in general is expected to be in good shape considering the bulk of investments that entered Cebu starting last year.
Despite the country's political instability, which shook the economy, during the early part of 2006, Cebu's local economy continues to be resilient and managed to fare well, Monera said.
But, he reiterated that these bright prospects should not be taken advantage to by the labor sector, as results of good and brighter economic prospects will not be felt by the traders in the short time.
Earlier, the Employers Confederation of the Philippines (ECOP) announced its strong opposition to the new wage hike proposal.
"An economic pandemonium is in the offing," said ECOP president Rene Y. Soriano in an earlier report. Last month, President Gloria Macapagal-Arroyo announced that she will ask the Congress to grant an average 10 percent increase in the base pay of all government employees effective July 2007. But she was mum on whether it would support a bill that would grant a P125 across-the-board wage hike for private workers passed by the House of Representatives before Congress went on its Christmas break last month. - (NLQ)