Philstar.com reports that on Wednesday, May 2, President Benigno "Noynoy" Aquino III "defended his administration’s refusal to give in to organized labor's demand for a ₱125 legislated wage hike," pointing out that "a ₱125 or roughly $3 increase-as proposed by militant groups-would translate to $13 (₱546) minimum wage as against the current $10 or ₱420 minimum wage."
According to the report, Aquino said "such difference is likely to scare off investors." He added, "Our competitors are our neighboring countries like Cambodia where the minimum wage is $2. Theirs is $2, [and if] ours is $13, but if work is the same why would investors go to us?" He also reiterated that "the Philippines’ advantage over South Korea, Taiwan and Singapore is its cheaper labor rates."
Moreover, according to the Philstar.com report, Aquino likewise "warned that a ₱125 legislated wage hike would only complicate government efforts to provide a million jobs each year to new graduates" and "force more companies to shut down or lay off employees."
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