TUCP rejects wage hike moratorium

MANILA, Philippines - Organized labor yesterday rejected the proposal of the business community to defer any wage increase this year due to lingering effects of the global economic slowdown.

Trade Union Congress of the Philippines (TUCP), the country’s largest labor group, said instead of a wage hike moratorium, employers should just pay the right taxes to help improve the country’s economy.

“A wage hike moratorium is simply unconscionable given there were no wage increases for the past two years for all workers nationwide,” TUCP official Raffy Mapalo said.

TUCP issued the statement in reaction to the proposal of the Employers Confederation of the Philippines (ECOP) for the Aquino government to postpone any salary increase and just focus its effort on job generation.

Mapalo said that it is very obvious that employers and businessmen are the only group that would enjoy the gains of the improving economy in the country.

“This is simple greed,” said Mapalo, adding that the recent increase in the minimum wage rates in various regions is very minimal and even provides too many exemptions for business establishments.

“Now, if only employers and businesses would pay income taxes at the same percentage as the 20 percent being withheld from the income of salaried workers, then there will be more budget to fund government’s development programs,” Mapalo added.

Labor Secretary Rosalinda Baldoz said four wage boards have already granted salary increases this year, while four more are still undertaking public hearings and deliberations.