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 Industrys 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)
