Workers at a shoe factory in Barangay Concepcion in Marikina City perform different tasks in making footwear products on September 27, 2023.  Maria Tan, ABS-CBN News

MANILA — The Department of Labor and Employment has given its input to the House but is leaving it to lawmakers to decide on whether to legislate a wage hike.

In a news forum, Labor Secretary Bienvenido Laguesma emphasized he would neither support nor criticize the P200 wage hike proposed at the House since the department's mandate is only to execute the law.

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“Gusto kong bigyan ng diin — sa nakalipas na panahon — kapag nagbibigay ng technical inputs, binibigyan ng kahulugan. Gusto kong bigyan ng diin na hindi trabaho ng DOLE 'yun (pagbibigay ng reaction) at kung mayroong mga nuances o mga circumstances, consequences, aalalay kami,” he said.

(In the past, when we give our technical input, it is given meaning. I want to emphasize that it isn't DOLE's job to give our reaction to these proposals and if there are nuances, or circumstances, consequences, we will be there to assist.)

He said DOLE presents scenarios to lawmakers who seek its input, including how wage increases could affect inflation or the Gross Domestic Product.

“Sama-sama tinitingnan yun kaya mayroong ginagawa na yung mga miyembro ng regional tripartite, pinagtutuunan ng pansin yun,” he said. 

(Those are studied together. The regional tripartite boards focus on that)

MORE, QUALITY JOBS NEEDED

At the end of the day, the official said, DOLE aims to have more and quality jobs available to all Filipinos.

"Yan ang magiging daan o susi para ang ating mga manggagawa —  mabibigyan ng pagkakataon ang mga new entrants to the labor force,” he said.

(That is the way, or the key, for our workers — for the new entrants to our labor force to get opportunities.

Laguesma said the Philippines' labor market has a seasonal characteristic, especially for jobs in services and in tourism. 

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This is why, he said, the government continues to bank on foreign investments to reduce the cost of doing business in the country and maintain quality jobs.

The House Committee on Labor and Employment has approved a measure that mandates “all employers in the private sector… regardless of capitalization and number of employees, to pay their workers an across-the-board wage increase of P200 a day.”

House Speaker Martin Romualdez has indicated the House may push for the increase.

WAGE HIKE SEEN AS 'INFLATIONARY'

But President Ferdinand Marcos, Jr. said the measure needs further study over concerns that a wage increase would lead to job cuts to maintain businesses' profit margins.

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Employers as well as economic managers have said the cost of the wage increase would also just be passed on to the consumer, which would contribute to inflation.

Think tank Ibon Foundation said in 2024 amid discussions on a legislated wage hike that giving workers more money would mean they would spend more.

That, it said, would benefit the micro, small and medium businesses that make up a majority of enterprises in the Philippines.

"Employers can afford big wage hikes. Instead of protecting profits, the government should be doing everything it can to raise wages which will be good for workers, their families and the economy," Ibon said then.