Panayam kay PHILEXPORT President Sergio Ortiz Luis Jr.
Panayam kay PHILEXPORT President Sergio Ortiz Luis Jr.
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00:00 The new Philippines is coming back today. A 100 pesos wage hike for the workers in the private sector. We will discuss this with the Employers' Confederation of the Philippines, OECD President, Serio Ortiz Luis Jr. Sir, good afternoon.
00:17 Good afternoon, sis. Is this a video?
00:20 This is Weng. I'm with him.
00:23 Weng, ah?
00:24 Yes.
00:25 Sir, first of all, what can you say that has been passed in the second reading in the Senate, this 100 pesos legislated wage hike in the private sector?
00:36 Well, maybe it will be transferred to the lower house and eventually it will go to the higher house. We are comfortable because there are no economic managers who are willing to agree on it, even the DOLA, the agency, all the academicians, all the agents.
01:02 Maybe, because the hearing is easy and the people who should be called are not called. Maybe they are the only ones who are convinced with each other.
01:18 Actually, the information is wrong. First of all, our issue is that the numbers are wrong. The number of people who are being benefited is 20 million.
01:36 That's around 5 million. Out of 52 million in the labor market, only 5 million are being benefited. Across the board, it's about 16 percent at the most.
01:56 The 84 percent or 90 percent are the unbenefited. That means they will increase their salary. As Mr. Joey Salceda said, it's only temporary if you increase the salary.
02:16 If you increase the inflation, it will be lost. But the poor are those in the informal sector, 84 percent who cannot be given because there are no employers.
02:28 Who are those? They are the farmers, the official folks, the vendors, the tricycle drivers, jeepney drivers, pedicabs, the street vendors, the temporary workers of construction.
02:53 There are many of them. Even in tourism, you cannot imagine. Why are they not being understood?
03:04 The employers are giving the knock-off minority 10 percent. Every year, the wage board is increasing. Now, they are the weather position.
03:23 They have regular jobs, although minimum wage, they cannot say it's sufficient if all of us are struggling to buy.
03:32 The problem is, if they increase their salary by 100 pesos, as economists said, the inflation will increase by 2 percent.
03:43 It will go down. If we increase it, the temporary workers will be given. How can they not be given? 84 percent of the workers.
03:55 If they are not given, they will not be included in the payment. They don't have a gift. They don't have an employer. How can they depend on the government?
04:11 If you give P47 billion, you give P100 pesos a day, that will be P47 billion a day if it comes from the government.
04:24 Why are they doing that? Nobody is talking because they are not organized. They don't have a voice. We in the business sector are talking for them.
04:43 They are saying they will give and benefit the formal sector. Our enterprises are 90 percent micro, 8 percent small, 1 percent medium, less than 1 percent large.
05:06 They are saying they can do it. Of course, medium and large are giving more than what we are saying.
05:18 The problem is, you cannot give selected. They can only give small micro. 95 percent of the enterprises are from the small sector.
05:39 The workers, 65 percent are from the small and micro. Do you know that the micro during the pandemic, more than half of them closed.
05:53 Others are opening. But sometimes, if they open, what will happen to that wage? They are afraid and they cannot afford it. Because those who are operating now,
06:07 as you can see, they are talking about 30-month bonus. They cannot afford it. Weekly or monthly salary is not affordable. Why would you open the micro in that situation?
06:25 The salary will increase by 20 to 25 percent. That's the previous salary. The minimum wage given by the regional wage board, out of 16, is 10.
06:41 They are studying it well. Because of the representation, the wage board was created by the Congress of the Senate. Now, they are saying it's slow.
06:55 But now, they are starting to open. 15 out of 16 are opening. The only thing that is not opening is the rice. Because a lot is happening in rice, they are delaying it because of the attacks in Korea.
07:09 Anyway, at first, the economists are in a hurry. But they said it's okay. The increase of P70 to P60 is okay. But the P100 is a catastrophe.
07:27 You know what companies are doing. If you increase your salary, you don't care about your income, you can do nothing. You can increase your price if the market can afford it. If not, you will reduce the number of people.
07:46 Yes. So it's clear that from your side, Jaan, in ECOP, you have not agreed on the increase of salary. You said that you will pass it to the consumers.
08:03 The stores might get expensive and they might reduce their salaries and remove them from their jobs. But according to the senators, this is the time to give decent work to the workers and to get back the increase of the price.
08:20 What is your opinion on this?
08:23 We don't have an argument on that. We are just saying that the 10 percent of the wage they are giving every year is only 10 percent.
08:34 How can 90 percent, 84 percent, be considered as living wage? If you give that, it will be difficult for them if the price increases.
08:51 Sir can you explain further on how this wage increase will affect the inflationary chain reaction?
09:00 As I said, the companies will pay the increase in their product. The price will increase. If the price increases, the farmers and the tricycle drivers will not be accepted because of the price.
09:25 They will not be accepted.
09:30 Sir is this wage increase also having an effect on foreign investors in the country?
09:37 Foreign investors, especially when we are going out, President, one thing they're saying is that the policy here in the Philippines is erratic.
09:54 If they don't like to take a chance, they will go to a more established policy like Thailand, Vietnam, Indonesia.
10:06 Here in the Philippines, this is a perfect example of arbitrariness that investors are afraid of.
10:14 Why? We know that the regional wage board was established to pay the salary.
10:24 If not wage hike, what should we focus on now, especially when inflation in the country is slowing down?
10:31 Slowly but surely, the inflation is decreasing. Slowly but surely, we will increase our employment.
10:42 So let's not put a problem that we don't need to address a minority of our workers.
10:50 All right. Do you have a question Nils?
10:54 Thank you very much for your time sir.
10:56 Employers' Confederation of the Philippines or ECO President, Sergio Ortiz Luis Jr.