Wage hike is not just a question of competitiveness, but also it is a matter of cost of living and much more. Honest and good business people do not just stop at considering only one factor to justify wage hike because raising the compensation of their employees is also a matter of cost of living which is very much directly related to the inflation level of basic commodities.
When inflation rate gets above normal level (normal inflation rate level is about 2% to 3%), the delicate relationship of the costs of goods, wages, and services get thrown out of balance.
The economic balance scale is a multi-arm multi-factor weighing device.
On the employee side of the economic balance scale: How many workers could and would continue to endure for long working at their best when their compensations are not able to meet their cost of living?
On the employer side of the balance scale: When an inflation is caused by a government's poor economic management, why are the employers always the ones made to shoulder for the adjustments in the workers' compensations? How many of the employers are able to sustain their operations without laying off workers or increasing the cost of their products and services?
On the consumer side of the balance scale: How many low income families are able to cope with the high cost of basic commodities without resorting to illegal means of earning something just to survive?
On the government side of the balance scale: Where should the point of balance justly lie, and where should it fairly be placed? Who should be responsible for setting the balance back to normal? Who should be held liable for upsetting the balance?
