DAVAO CITY (davaotoday.com) � Businessmen in this city have recommended an increase in the living allowance of employees instead of a wage hike.
In a special meeting held last week, the Davao City Chamber of Commerce and Industry�s board of trustees and council of past presidents, cited �financial difficulties currently being experienced by Davao-based industries� in opposing an increase in the minimum wage.
It also said the �uncompetitiveness in the prices of goods and services,� which, it said, was the result of the previous wage adjustment and the fact that Southern Mindanao has the highest unemployment rate in the country, makes a wage increase �disadvantageous to business,� particularly the small and medium enterprises that comprise 99.6 percent of all businesses in Davao City.
The chamber said a wage increase will result in retrenchment and layoffs, business closures and capital flight.
Labor groups have been demanding a 125-peso across the board salary increase. (davaotoday.com)
