Metro Manila (CNN Philippines, June 29) – Minimum wage increase negotiations with labor groups have been progressing positively and may lead to an increase soon, President Ferdinand Marcos Jr. said Thursday.

“I think our negotiations with workers, with the unions, with the different negotiations, we will be able to come to a good working number, a good compromise,” Marcos said.

The president on Tuesday met with the Department of Labor and Employment, the International Labour Organization, and labor groups to “strike a balance and alleviate the ‘inflationary pressures on workers.”

Inflation in the country dropped to 6.1% in May. Depending on the location, the minimum wage currently sits between ₱372 and ₱470.

Marcos, however, said that rapid industrialization and economic expansion could hurt the labor sector.

“When there is rapid industrialization and rapid expansion of the economy, there is a tendency to leave the labor sector behind and just exploit the labor sector,” Marcos said.

“Our workers, of course, are asking for a [wage] increase, workers in those small businesses. We might drive the businesses out because they [employers] cannot pay because they are too small,” he added, noting that around 96% of enterprises in the Philippines are small businesses.

Meanwhile, Labor Secretary Bienvenido Laguesma said the issues raised during the Palace meeting could be resolved within the week.

No mention of wage hike in Marcos’ first Labor Day speech

Biz groups: Proposed ₱150 wage hike will hurt MSMEs, informal workers more