Labor Group Pushed to Raise Minimum Wage by ₱470

On Monday, the Trade Union Congress of the Philippines (TUCP) forwarded a new round of increase in Metro Manila’s minimum wage to the government, as inflation caused by the pandemic continues to surge, exacerbated by the soaring fuel prices. A petition was filed by the labor group to the National Capital Region-Regional Wages and Productivity Board seeking a ₱470 hike.

Should the proposal be approved, it would significantly help to protect workers as the minimum wage in NCR would increase from ₱537 to ₱1,007. The minimum wage in Metro Manila was earlier adjusted in 2018 during which inflation rose to a near-decade high due to the tight rice supply and diminishing peso. In 2019, the TUCP likewise urged for another wage hike, which was rejected.

Inflation later fell outside the government’s 2-4% annual target in 2021, even as mobility restrictions eased, due to strong typhoons and the transmission of the African swine fever that disrupted the food supply. Despite these circumstances, labor groups sacrificed asking for a wage hike out of fears that it would only worsen the welfare and job security of workers. The continued increase of oil prices brought about by the Russia-Ukraine conflict has since laid such fears to rest.

“In 2019, our wage petition was dismissed. In 2020, CoVid 19 took its toll on us. In 2021, we fought to recover, and endured. Today, we make an action for and behalf of the poor workers and their families in Metro Manila – we are waging war against poverty, we are aiming for wage that will save our lives,” expressed TUCP President Raymond Democrito Mendoza.

Other labor groups including the Partido Manggagawa and Kilusang Mayo Uno have also called on Congress for an increase in the minimum wage by ₱100 and ₱750, respectively. The TUCP substantiated their petition by focusing on hunger and malnutrition, noting that “an unhealthy and less productive workforce means a less competitive economy.” Given the current minimum wage level, workers are only able to take home a monthly pay of ₱12,843.48 which is significantly under the poverty threshold of ₱16, 625.00 for a family of five in the NCR, the group furthered.

“Clearly, our minimum wage earners and their families have fallen from the category of low-income to newly poor. This is a sad commentary on the social condition in our country where those who break their backs to sustain and expand the economy are now wallowing in poverty,” added Mendoza.

While a review of the minimum wage is already being conducted by the labor department, it still needs to be balanced between workers and businesses. Should the revised minimum wage be too low, it would unlikely have any significant effect in protecting workers. But, if set too high, it could do more harm than good to businesses, according to Labor Secretary Silvestre Bello III.

Employers Confederation of the Philippines President Sergio Ortiz-Luis also affirmed that large firms may have the ability to provide bigger compensation for their workers, but small businesses — which make up 90% of enterprises in the country — do not necessarily have the same capacity.

“There’s no way those small ones could pay for that,” said Ortiz-Luis. “The government probably has to meet that.” Nonetheless, Mendoza concludes that “this is a race against time for the survival of millions of workers and their families who fell through the cracks and became the newly poor of our society. There (sic) dire conditions should be improved without delay by approving our desired minimum wage increase.”

Source: PhilStar