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Home Editors' Picks Unions wary of employer backlash to wage hikes
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UNIONS WARY OF EMPLOYER BACKLASH TO WAGE HIKES

March 1, 2024 | 12:02 am

PHILIPPINE STAR/BOY SANTOS
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UNIONS said workers need to organize in case employers respond to proposed wage
hikes with staffing reductions and the increased use of casual workers.

In a conference organized by the Trade Union Congress of the Philippines (TUCP)
to discuss House Bill 7871 or the Wage Recovery Act, Joanna Bernice S.
Coronacion, deputy secretary general of the Sentro ng mga Nagkakaisa at
Progresibong Manggagawa (SENTRO) said organizing helps workers practice their
collective bargaining rights via unions. 

Business groups have warned that legislated wage hikes or further increases in
the minimum wage could force companies to reduce staffing levels.

Ms. Coronacion also encouraged workers to know their rights under the Labor Code
to counter practices like the resort to more informal work arrangements should
employers refuse to pay the higher wages.

 “When you look at Scandinavian countries… wage negotiations are at the national
level… We don’t have that right now because of our low union density. As a
result, the gap between rich and the poor is wider,” Mr. Coronacion told
BusinessWorld on the sidelines of the conference. 



Separately, Kilusang Mayo Uno (KMU) general secretary Jerome Adonis said
employers should absorb the cost of higher pay and not pass on the expense in
the form of higher prices, arguing that increased purchasing power in the hands
of workers will drive economic growth. 

The Senate has approved on third and final reading Senate Bill 2534, which
proposes a P100 increase in the daily minimum wage for the private sector. 

Also participating in the conference were the Bukluran ng Manggagawang Pilipino,
Federation of Free Workers, KMU, SENTRO, and the TUCP. The conference was
organized in conjunction with a union march on the House of Representatives to
call for the immediate passage of the legislated wage hike bills. — Chloe Mari
A. Hufana

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