DOLE secretary Tolentino announced an P85.00 salary increase for MM, or a historic 12.22% (P85/695). The BSP head is worried about its impact on inflation that it is trying very hard to control (now currently at 7%). A certain employers sector is worried too about the accompanying productivity that the said increase would produce. Without an accompanying productivity its bound to produce additional woes to all ready bad situation: inability to meet GDP growth target, loss of jobs (23%),
rising prices (expect more of that), downgrading of PHL by Fitch.
Before our concern was providing jobs but wages that are in the near P20k will be difficult to sustain. Employers will cut back and resort to mechanization and automation Surely, AI is here to assist in this difficult situation. Employers can manage, but what about the workers. Every solution produces its own problems (11 laws of systems principles) and this post expects this to be managed well.
