Mark Anthony Ynoc, president of the Mandaue Chamber of Commerce and Trade — from MCCI Fb web page
CEBU CITY, Philippines — A enterprise chief in Cebu has warned of a possible financial catastrophe if the P200 across-the-board legislated wage improve is applied.
Mark Anthony Ynoc, president of the Mandaue Chamber of Commerce and Trade, mentioned the quantity may lead to closure and bankruptcies of companies.
“The passage of the P200 across-the-board day by day wage improve would result in excessive inflation, make firms and companies much less aggressive, and lead to job losses. This shall convey potential financial disasters that can trigger firm closures and bankruptcies,” he mentioned in a press release.
READ: SSS: Contribution, month-to-month wage credit score hike to yield P51.5B in 2025
However Carlos Miguel Onate, legislative officer of the Commerce Union Congress of the Philippines (TUCP) mentioned in a separate interview that based mostly on analysis, the legislated wage hike couldn’t lead to enterprise closures and unemployment.
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He mentioned that when the TUCP moved for the legislated wage hike of P25, elevating the minimal wage of not less than 40% from P64 to P89 in 1989, there have been no enterprise closures that occurred at the moment.
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Onate requested employers to contemplate the P200 legislated wage improve, not as bills, however as an funding to their staff as a result of a excessive wage will lead to excessive productiveness.
However Ynoc mentioned the federal government ought to concentrate on implementing applications to spice up the economic system, appeal to overseas traders, and encourage companies to implement incentive applications for his or her staff.
“The federal government ought to shift their concentrate on strengthening the nation’s economic system by ease of doing enterprise, establishing globally aggressive coaching and training, infrastructure constructing, and attracting overseas direct traders whereas encouraging present companies to implement incentive applications. This manner we could increase the nation’s GDP [gross domestic product] development,” Ynoc mentioned.
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