President Benigno S. Aquino III in his Labor Day address Tuesday said a legislative wage hike, would amount to P1.4 trillion, or almost a fourth of the country’s P8-trillion economy.
In rejecting the proposed P125 legislated wage hike for private workers, Aquino warned that businessmen may raise prices of their products, cut costs through laying off employees to make up for their losses, or forced to shut down business.
The President instead urged the regional wage boards to hasten the approval of salary adjustments for workers in the private sector to help them cope with the cost of living in the country. Aquino likewise announced non-wage benefits for workers, including educational assistance fund.
In the same speech, the President assured that the Department of Labor and Employment (DOLE) will deploy government inspectors to check the compliance of companies to the country’s labor rules on security of tenure and eliminate the abuse in the contractual labor scheme.
The President likewise announced that government workers will get their salary increase this June in time for the school enrollment.
The President said the government has set aside P1.1 billion for Training for Work Scholarship program that seeks to enhance the competitiveness of Filipino workers in tourism, agriculture, business process outsourcing, and electronics industries. He said both the Social Service System and Government Service Insurance System are ready to release fund for education assistance program so poor households can send their children to school.