CCCI opposes any wage increase, calls on gov’t to address bureaucratic challenges

CEBU CITY -- The Cebu Chamber of Commerce and Industry (CCCI), in its official statement today, June10, opposed to any and all wage increase and emphasized the urgent need for 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 60 percent of the micro, small, and medium enterprises (MSMEs) that will be significantly impacted with the P200 daily wage increase. The statement said that 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 i.e. forced to cut jobs, downsize operations which will eventually lead to massive closures and increased unemployment.

“There is a need for a balanced approach, hence CCCI recommends six-point program to support and uphold fair labor practices,” CCCI said.

CCCI calls on government to accelerate the digital transformation of government services related to business registration, permitting. and simplified tax assessment; gradual implementation of the policy one legislated and provide government assistance programs such as wage subsidies, tax incentives, or access to financing for small businesses impacted by the wage adjustment.

For government to provide aggressive upskilling programs from TESDA and Government educational institutions to affected workers for other opportunities and continued collaboration in designing and developing programs to strengthen and support MSMEs to prepare for its adverse effect.

Finally, 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.

CCCI stands firm in its commitment to support workers and uphold fair labor practices. However, the Chamber believes that such 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,” the statement reads.