CEBU CITY—The Cebu Chamber of Commerce and Industry (CCCI) released an official statement Tuesday, June 10, opposing any and all wage increases after the House of Representatives recently passed a bill on the P200 legislated wage hike.
The CCCI instead emphasized the urgent need for the government to address longstanding bureaucratic challenges that hinder business growth particularly on the predictability of the cost of doing business.
“We strongly advocate for improvements in government systems such as digital transformation in government and the public sector and utilize technology and digital solutions to modernize and enhance the delivery of public services, streamline internal operations, and improve overall governance,” the statement said.
CCCI membership consists of 60 percent of the micro, small, and medium enterprises (MSMEs) that will be significantly impacted by the proposed P200 daily wage increase.
It said while the Chamber supports the goal of uplifting workers’ quality of life, the abrupt increase without corresponding government support mechanisms could severely strain the financial viability of many MSMEs.
They noted that some small businesses will be forced to cut jobs, downsize their operations, among others, which will eventually lead to massive closures and increased unemployment.
“There is a need for a balanced approach, hence CCCI recommends a six-point program to support and uphold fair labor practices,” the Chamber said.
CCCI called on the government to accelerate the digital transformation of government services related to business registration, permitting, and simplified tax assessment, among other recommendations. It also sought government support for access to financing should the proposed legislation become a law.
The Chamber likewise urged the state to provide aggressive upskilling programs to affected workers, opening up better opportunities, and support continued collaboration in designing and developing measures aimed at strengthening MSMEs to cushion the wage hike’s adverse impact.
There is a need to create a multi-sectoral mechanism to rationalize global and local developments including geopolitical risks, tariffs, market downtime in some sectors (real estate and tourism) and global competitiveness, according to the organization.
CCCI stood firm in its commitment to support workers and uphold fair labor practices. However, the Chamber believed wage policies must be complemented with reforms that enable businesses to remain viable and competitive.
“We call on our legislators and government agencies to take urgent action in modernizing bureaucratic systems and simplifying tax processes to ensure that businesses, especially MSMEs, will continue to thrive and contribute to local and national economic growth and development,” CCCI said.
