EDITORIAL - Politicized wage-fixing

After institutionalizing thievery in the national budget and promoting lifetime mendicancy fed by political patronage, lawmakers are now reviving an effort to take control of wage-setting.

Speaker Faustino Dy III has reportedly ordered a legislated wage bill fast-tracked for approval. The bill seeks to abolish the tripartite regional wages and productivity boards, leaving wage-fixing entirely at the hands of politicians.

Lawmakers have long aspired to control wage-setting, for which they can claim personal credit. How they came up with their proposed wage increase figures was always unclear, with only their imagination providing the limit.

Every such effort has been met with concern by all business groups, which warned that politicized wage-setting would likely be arbitrary and could lead to job layoffs and even the shutdown of businesses.

Businessmen have stressed the importance of providing their employees with a decent wage, attractive benefits and a proper work environment. Satisfied employees in a good workplace boost productivity.

The needs of workers, however, must be balanced with the financial capabilities of employers. Under the regional boards, wages are already adjusted annually. Business groups have long pointed out that a legislated across-the-board, nationwide wage hike, imposed at the whim of politicians, would be particularly detrimental to micro and small enterprises, which account for more than 90 percent of all businesses in this country.

If lawmakers want to help workers, they should move to create an environment that is genuinely conducive to investments that will create jobs with decent pay.

That environment calls for a level playing field, with no unfair competition and roadblocks posed by the businesses of political dynasties. In too many places in this country, rules on ease of doing business are strictly applied only to the enterprises owned by the clan that controls political power in a particular area. Right-of-way issues are resolved only if the investor is connected to the ruling political clan.

The country is already a regional laggard in attracting foreign direct investments. There is such a shortage of meaningful jobs in the country that millions of Filipinos have found it necessary to find employment overseas, even at the risk of falling victims to scam hub operators and sex traffickers.

Politicized wage-fixing, entrusted to lawmakers who can’t be trusted with handling public funds, can only add to the disincentives to investment. Wage-setting cannot be subject to political whims, in aid of election and self-promotion.