A local business leader said that any wage increase is expected to hurt especially the small businesses in the region. /CDN File Photo
CEBU CITY, Philippines – An increase in the minimum wage is expected to have an impact especially on small businesses, said Rey Calooy, founder of Filipino Cebu Business Club.
He said this can lead to the layoff of workers, specially those who are employed in businesses that can not afford to grant any wage increases.
“Yes, it may affect small business because it is labor intensive and only has small capital and of course, has smaller profit,” said Calooy, who was reacting to a petition for a P386 wage increase which the Associated Labor Union-Trade Union Congress of the Philippines filed earlier today, May 7.
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Calooy also warned that another round of wage increase might affect the prices of goods.
He urged smaller businesses that cannot afford the additional pay to seek minimum wage exemption through the Barangay Micro Business Enterprises(BMBE) Act. The law applies on businesses whose assets are not more than P3 million./dcb