Big workers’ groups press for end to contractualization, wage increase

Updated photo Labor Day 2019 Manila

Nagkaisa! Labor Coalition and Kilusang Mayo Uno (KMU)--the largest labor groups in the country, convened on the eve of Labor Day to reiterate calls for an end to contractualization and push for the enactment of a Security of Tenure Law, while calling for increase in wages nationwide.

“We have long and consistently called for a just end to pervasive contractualization of labor, yet the practice of labor-only contracting, job-only contracting and other forms of flexible labor remain prevalent among the working people,” said Elmer Labog, chairperson of KMU.

Congress has nine more session days after the elections. Newly-elected legislators won’t begin their terms until after June 30. “The labor movement will defend workers' rights to the last. With enough political will, President Rodrigo Duterte and his allies in the Senate can still have a Security of Tenure Law enacted during this Congress,” said Atty. Sonny Matula, chairperson of Nagkaisa.

Nagkaisa and KMU were together at the Senate in early February during the last few session days prior to the recess of Congress as they mounted pressure on the Senate to pass the Security of Tenure Bill.

“This will definitely continue the pressure on the Senate, especially its reelectionist senators to openly declare either their support or opposition to the proposed End Endo Law,” Matula said.

Ending contractualization is one of the biggest promises of President Rodrigo Duterte. Many believe it was one of the issues that catapulted him to the presidency among the working people in the public and private sectors.

“Two issuances under President Duterte’s watch—DOLE Department Order 174 in 2017 and Executive Order 51 on Labor Day last year—failed to solve, and perhaps worsened contractualization,” Labog said. Duterte then certified as urgent the SOT Bill. The Senate has not passed a Security of Tenure Bill despite also getting the commitment of Senate President Tito Sotto.

The Filipino workers unity will thrive and translate into votes and campaigns against contractualization and opponents of workers' rights and benefits in the present and next Congress. “Filipino workers are proposing to clamp down on labor-only contractors by having a new law declaring labor-only contracting illegal, irrespective of a manpower agency’s capitalization or investment in equipment, and imposing heftier fines on erring employers and manpower agencies, way beyond the mere P1,000.00 that present laws provide,” Matula said.

“This is unacceptable. We cannot legitimize labor-only contractors, who do nothing but recruit and deploy workers, yet maintain supervision over contractual workers on paper. They connive with principal business owners to deprive workers of security of tenure and other basic labor rights, while avoiding legal and financial obligations,” Labog said.

House Bill 6908 on Security of Tenure was passed early this 17th Congress. Its counterpart measure, Senate Bill 1826 has yet to be passed on second reading. “The passage of the Bill is the necessary first step in changing the law towards prohibiting contractualization. While it may not result in the total ban on contractualization, we find it critical to put a stop to conditions that promote precarious work,” Matula said.

“Failure to enact a law that will end contractualization will be on the hands of the Senate. It will go down as ‘a legacy of failure’ and one of the greatest unfulfilled promises of President Rodrigo Duterte,” Labog said. The groups also said that government as an employer should walk the talk.

The nationwide unity of workers also calls for an increase in wages, especially the fulfillment of a national minimum wage, a stop to all attacks against workers and the full recognition of workers' rights, especially the right to organize.

“A significant wage hike is long overdue. The sharp increase in inflation and cost of living has already eroded the value of existing wages. We call for an immediate wage increase, and a national minimum wage for all workers in the country,” Labog said.

Labor groups Kilos na Manggagawa, Metal Workers Alliance of the Philippines (MWAP) and BPO Industry Employees Network (BIEN) already filed wage hike petitions before the NCR Regional Wage Board last week. TUCP filed a wage hike petition yesterday.

A day before Labor Day, groups call for end to contractualization, wage increase

A day before the observance of Labor Day, groups Nagkaisa Labor Coalition and Kilusang Mayo Uno (KMU) on Tuesday called for an end to contractualization among workers.

"We have long and consistently called for a just end to pervasive contractualization of labor, yet the practice of labor-only contracting, job-only contracting and other forms of flexible labor remain prevalent among the working people," KMU chairperson Elmer Labog said in a statement.

Attorney Sonny Matula, chairperson of Nagkaisa and a senatorial candidate, vowed that the labor movement would "defend workers' rights to the last."

"With enough political will, President Rodrigo Duterte and his allies in the Senate can still have a Security of Tenure Law enacted during this Congress," Matula said.

"This will definitely continue the pressure on the Senate, especially its reelectionist senators to openly declare either their support or opposition to the proposed End Endo law,” he added.

Duterte during the 2016 presidential campaign promised to abolish "endo" or the practice of contractualization.

In 2018, Duterte inked Executive Order 51 which prohibits the illegal contracting and sub-contracting of workers “by all parties including cooperatives.”

According to Labog, the said EO as well as the Department of Labor and Employment (DOLE) Order 174 in 2017 both failed to solve and instead worsened contractualization in the country.

"This is unacceptable. We cannot legitimize labor-only contractors, who do nothing but recruit and deploy workers, yet maintain supervision over contractual workers on paper," Labog said.

"They connive with principal business owners to deprive workers of security of tenure and other basic labor rights, while avoiding legal and financial obligations,” he added.

Wage increase

Meanwhile, the labor groups also called for an increase in wages, especially the fulfillment of a national minimum wage.

"A significant wage hike is long overdue. The sharp increase in inflation and cost of living has already eroded the value of existing wages. We call for an immediate wage increase and a national minimum wage for all workers in the country," Labog said.

In a separate Balitanghali report by GMA News' Mark Salazar, the Trade Union Congress of the Philippines (TUCP) is calling for an additional P710 on the minimum wage of workers in the National Capital Region.

"Tumaas 'yung labor productivity for the past 12 years ng 59 percent pero wala hong kapalit 'yun na real wage increase," Luis Manuel Corral, TUCP vice president, said.

If the Tripartite Wage Board will allow this increase, the minimum wage in Metro Manila will be P1,247, the report said.

For its part, the DOLE said the wage increase will be a long shot.

"Basically ang criteria ay 'yung needs ng workers, isang set 'yun tapos 'yung isa naman 'yung capacity of the employer to pay. Isang set 'yun and then the needs of the economy," Undersecretary Ana Dione said. — By ANNA FELICIA BAJO, RSJ, GMA News

TUCP claims wage hike needed to meet gov’t nutrition norms

THE Trade Union Congress of the Philippines (TUCP) cited “nutritional deficiency” among workers as the reason for its petition to hike the Metro Manila minimum wage by P710, citing government data for recommended levels of nutrition.

Updated photo Labor Day 2019

The TUCP on Monday filed a petition for a P710 wage increase on top of the P500-537 minimum wage in the National Capital Region (NCR) before the Regional Tripartite Wages and Productivity Board (RTWPB).

TUCP President Raymond C. Mendoza said the “Pinggang Pinoy” model produced by the Department of Science and Technology-Food and Nutrition Research Institute (DOST-FNRI) is their “basis for the claim that minimum-wage earners and their families have subsisted on nutritionally-deficient survival meals.”

“Forcing workers and their families to subsist on nutritionally-deficient meals for a long period will definitely have bigger repercussions on business, bigger costs to the government and the economy if (the problem is) continuously ignored,” he added during a press briefing on Monday.

In TUCP’s Petition dated April 29, the group said “Using DoST’s Pinggang Pinoy model and the March 2019 PSA (Philippine Statistics Authority) Media Service Market Price of Selected Commodities, Ateneo Policy Center calculates a daily food requirement in the amount of P734 for a family of four (4) or P61.17/meal/person. A family of five would then require a daily right food budget of P917.50.”

TUCP also described as inaccurate the PSA’s 2018 Household Final Consumption Expenditure (HFCE) Survey, specifically the “Food and alcoholic beverage” estimates, which indicate that a family of five spends P208.83 or P14 per meal/family member daily.

“Clearly, the amount cannot provide for the recommended nutritional requirements for a family of five,” the TUCP said in its petition.

TUCP also said that the P537 minimum wage has long been overtaken by events even though it was implemented in November. “(B)ased on government figures, the real value of P537 daily minimum wage in NCR is only P457…with government-mandated deductions from minimum wage computed at P47.05 daily, the nominal take-home pay of a minimum wage earner is… P416.53/day with a real value of P354.60,” TUCP said.

When asked if the TUCP will be expanding its petition to other regions, Associated Labor Unions (ALU) Vice President for Education Eva B. Arcos said that TUCP is still looking into petitioning other RTWPBs. She added that other wage hike petitions will be close to the P710 TUCP sought for the NCR.

“Nagpa-plano kami (We are planning)to file a petition in Central Visayas. It’s still in process but it will be close to this figure.” she told reporters Monday, after submitting the TUCP petition for the NCR.

The TUCP Policy Office’s Louisivi J. Oliva said the union expects the RTWPB to rule that there are no supervening conditions to justify a wage hike within a year since the last wage order was been issued. New wage petitions can only be filed after a year since the last petition, except when supervening conditions warrant the filing of a petition sooner.

She said workers are still feeling the weight of high commodity prices beyond food since the implementation of the first package of the Tax Reform for Acceleration and Inclusion (TRAIN) Law last year.

“Sa TRAIN Law, walang pakinabang ang minimum wage earner dahil dati na siyang tax exempt (TRAIN did not make a difference for minimum wage earners, who were already tax-exempt under the old rules). Ang nangyari lang is tumaas lang ang presyo…dahil sa dagdag na excise tax sa fuel, (But prices also rose because of the excise tax on fuel),” she said in a briefing on Monday.

Labor Undersecretary Ciriaco A. Lagunzad III told reporters in a briefing that one of the criteria for minimum wage setting is also the Pinggang Pinoy model of the FNRI. He said, “If you look at the criteria…one of them includes a living wage. One valuable indicator is the study of the FNRI to see if wages are enough to buy food that ensure the minimum calorie requirement.”

However, he added: “The minimum wage is not designed to look only at the food requirement of the worker.”

Last week, labor groups Kilos Na Manggagawa (KnM), Metal Workers’ Alliance of the Philippines (MWAP), and BPO Industry Employees Network (BIEN) filed before the NCR RTWPB a P213 wage hike petition which would bring the NCR minimum daily wage to P750.

Senate President Vicente C. Sotto III backed “in principle” the TUCP wage hike but added that the matter may need to be addressed after the May 13 elections.

“I can understand the timing because of May 1st but it’s also election period. Therefore, it would be wise to address it after the elections,” Mr. Sotto told reporters over the phone Monday.

“In principle, I am supportive.”

Senator Panfilo M. Lacson, meanwhile, cited the need to study the petition carefully and give the wage boards leeway to decide.

“A thorough study must be made in this regard. Wage hikes are always associated with inflation as a consequence of higher prices of goods, especially in the manufacturing sector, not to mention possible loss of jobs since businesses may not be able to cope,” Mr. Lacson said in a separate phone message.

“The regional wage boards should be given enough flexibility since they should be in a better position to decide on the matter. Conditions obtaining in different areas are not the same.” — Gillian M. Cortez, Charmaine A. Tadalan

Labor group seeks P710 pay hike

MANILA, Philippines — The country’s largest labor organization is seeking a P710 across-the-board daily wage increase for workers in the private sector, saying the current daily minimum pay does not afford them and their families to live in dignity.

Just two days before Labor Day when Malacañang traditionally announces benefits for workers, the Trade Union Congress of the Philippines (TUCP) will file on Monday a petition for the pay increase with the regional wage board in Metro Manila.

In a statement, TUCP said ordinary workers in the metropolis should be receiving a minimum of P1,247 salary in order for them and their families to live decent lives.

“The current P537 wage for minimum wage earners in Metro Manila is highly insufficient in light of rising costs of food and services caused by taxes and inadequate government services and social protection assistance to poor Filipinos,” it said.

The group’s spokesperson, Alan Tanjusay, noted that the government considered a family of five “out of poverty” if it was earning a total income of P10,481 a month.

Other factors

But Tanjusay said TUCP would urge the Regional Tripartite Wages and Productivity Board to factor in recent developments, such as increases in prices of food and other basic goods in setting “realistic wages.”

In its petition, TUCP said P25—the last wage increase for workers in Metro Manila that took effect in November last year—was no longer sufficient.

“The P25 increase has long been dissipated by the high costs of basic goods and services, even before it could be felt by minimum wage earners, due to a host of factors, particularly the effect of the Tax Reform for Acceleration and Inclusion [Act] since Jan. 1, 2018,” the labor group said.

Based on government figures, TUCP said, the real value of the current daily minimum wage of P537 in Metro Manila is P457.41.

“The existing minimum wage of P537 in the [metropolis] sorely meets basic human needs for food, water, clothing, education, transport, health, housing, toiletries and electricity,” TUCP said.

It added that the amount could buy workers and their families only nutritionally deficient survival meals.

Other basic needs

“That not discounting other basic needs, the race to cope with increasing cost of living but reiterating the need to give meaning and substance to the country’s policy of inclusive development and shared prosperity, TUCP is simply considering government-prescribed daily nutritional needs of a family of five in its petition for wage increase,” the group said.

A token wage adjustment will just demean and further insult workers, according to TUCP.

“The worker is a critical partner in building the wealth of our nation. The country enjoyed a 6.7 percent GDP (gross domestic product) growth rate in 2017 and 6.2 percent in 2018.

“[Metro Manila] has been the consistent biggest contributor to the GDP, breaching 38 percent beginning 2016. Workers deserve better. They deserve justice now,” the group said. —Tina G. Santos

Warrior Workers: Meet the groups that fight for labor rights

File photo

With the ever changing landscape of work in the Philippines, there are always new battles to be fought to secure fair labor rights.

Fighting for this cause is a difficult and often thankless job, but there are some groups that are more than happy to take on the challenge.

One of them is the Associated Labor Unions-Trade Union Congress of the Philippines (ALU-TUCP), the country’s largest labor federation.

ALU-TUCP, which was founded on April 1954, aimed to bring togetherunion organizations from almost all industries, including banking and finance, agriculture, textile and garment, transport, hotels and restaurants, wood and paper, communication, service, electricity, electronics, chemicals, metal, food, construction, among others.

“The essence of what we are fighting for is that workers should be included in the progress of the company, and of our country’s economy. You can only do that by providing security of tenure, a decent salary, and most of all, social protection and benefits,” said Alan Tanjusay, spokesman of ALU-TUCP.

Tanjusay said the group has about 1.2 million members and is composed of 27 labor federations.

Kilusang Mayo Uno (KMU) is another group that is pushing for jobs for Filipino workers, fair pay, and labor rights.

Its launching activity on May 1, 1980 at the Araneta Center in Cubao was attended by about 50,000 people and was said to be the biggest assembly of workers during martial law.

Currently, the group has about 1.3 million members and has 11 federations and two mass organizations under its wing, according to KMU Executive Chairman Lito Ustarez.

“Tunay, palaban, at makabayang unyonismo – ‘yun pa rin ang prinsipyong kanyang dala-dala (Genuine, militant, and patriotic trade unionism – until now, that is the principle that the group holds on to),” he said.

Both groups shared that they have earned flak for the work that they do. Ustarez admitted that it was getting more difficult for them to bring attention to the causes they are fighting for. But even with all these challenges, they agree that only one thing pushes them to continue fighting: Their principles.

“They should be grateful to these labor organizations, because if not for them, workers would not have minimum wage, overtime pay, insurance. All the things that workers receive – their pay, benefits, among others – are all because of the huge and important help given by labor organizations,” Tanjusay said.

Both groups shared that they have been preparing activities for the upcoming Labor Day.

Tanjusay said they will be conducting more seminars to teach essential skills to unions and workers to better themselves.

“If you want a business or a company to thrive, you should equip the workers with necessary skills. Not only should they know and memorize their skill sets, they should work on improving them,” he said.

Meanwhile, Ustarez said KMU will be having an open house exhibit on April 28 to 30 to showcase the effigy that they will be burning on Labor Day.

Tanjusay and Ustarez also urged everyone to join the Labor Day rally to celebrate the workers’ huge contribution to the country’s progress and to push for labor rights.

“We salute and give thanks to all Filipino workers who continue to work and give sacrifices every day,” Tanjusay said. “Continue being excellent, industrious, tenacious, and continue to support your families with dignity through good and honest work.” - By Minka Klaudia Tiangco

TUCP seeks standard emergency protocol for the workplace

The Trade Union Congress of the Philippines (TUCP) said that it is high time to set mandatory workplace emergency protocol standards for workers to ensure their safety during emergency situations.

TUCP President Raymond Mendoza (TUCP Party-List / MANILA BULLETIN)

“Because there are no specific mandatory guidelines regarding such life and death scenario, there is a very urgent need to create a regulation or mandatory policy standards protocols now that protects the workers’ health and safety and guides employees and employers on what to do when emergency disasters and calamities occur during working hours,” said TUCP President Raymond Mendoza.

Mendoza said some companies adopt their own evacuation protocols and hire safety officers and safety evacuation plans voluntarily, but many “enterprises do not have or are not even aware of such employees evacuation procedures.”

“Most of the victims in workplace disasters are the rank-and-file employees (cashiers, casino employees, salesladies, security guards ) who were made to hang on to their work and remain in their stations waiting for specific orders from managers, supervisors and company owners amid the quickly evolving mishap,” said Mendoza.
“A split second-time delay in reaction to such dangerous situation further exposes workers to workplace death and injury,” he added.

The labor group said that it received reports from workers, through social media, seeking help and advice after their employers reportedly refused to evacuate them during the earthquake last Monday.

“Though Republic Act 11058 or ‘An Act Strengthening Compliance With Occupational Safety and Health Standards And Providing Penalties Thereof’ mandates employers and contractors to provide a safe and healthy workplace and that it gives employees the right to refuse to work in an unsafe workplace, there’s still an imperative to create a specific implementing rules and regulations of the law that governs this emergency scenario such as earthquakes,” the group said. - By Analou De Vera

It’s ‘abuse’ to prevent workers’ evacuation during earthquake – labor group

TUCP says it received complaints from call center workers who were not allowed to evacuate and were told to continue working after a magnitude 6.1 earthquake hit Luzon on Monday

EVACUATE. Shoppers seen rushing outside as they evacuate the Robinson Place Manila mall following an earthquake that hit Luzon on April 22, 2019. Photo by Inoue Jaena/Rappler 

MANILA, Philippines – Labor group Trade Union Congress of the Philippines (TUCP) hit employers who refused to let workers evacuate from buildings when a magnitude 6.1 earthquake rocked Luzon on Monday, April 22, and then made them resume work right after, without waiting for the structural integrity of the buildings to be checked.

TUCP president Raymond Mendoza said the group received several reports from employees about managers, supervisors, and employers who did not practice safety precautions as workers were made to remain indoors during the earthquake.

He said some employees were also ordered to keep working “despite of the dangers and hazards on the workplace caused by the quake.”

“This company practice or policy is a form of abuse and it must be condemned because it imperils the lives of their employees and jeopardizes the safety and health of workers,” Mendoza said on Tuesday, April 23.

TUCP did not name the companies where workers were supposedly prevented from evacuating. However, TUCP spokesperson Alan Tanjusay said they received complaints from workers in call centers and the business process outsourcing industry.

After the strong earthquake in Luzon was felt at 5:11 pm on Monday, evacuations of government offices, private offices, schools, and buildings were conducted as a precautionary measure.

In the event of an earthquake, the Philippine Institute of Volcanology and Seismology (Phivolcs) recommends that people find a safe exit and move to an open area that's far away from trees, power lines, posts, and concrete structures.

Safety first always

Mendoza reminded employers and business owners that it is their responsibility to put safety first and ensure their employees are kept safe and secure during workplace disasters, earthquakes, and fires, among others.

Employers, he said, should check on buildings and workplaces for possible damage caused by tremors during the earthquake to prevent future accidents from occurring.
“It is possible that the damage may not be immediately obvious, but it already impacted the integrity of the workplace structure and may cause irreparable damage upon aftershocks and future earthquakes,” Mendoza said.

The group reminded employees that under Republic Act 11058 or An Act Strengthening Compliance with Occupational Safety and Health Standards, workers have the right to refuse work if the workplace is unsafe.

The law says workers may do so, without threat from their employer.

“If workers were forced to work despite of the notice of unsafe workplace, employers, contractors and business-owners are administratively liable,” Mendoza said.

Under RA 11058, employers, contractors, sub-contractors, or work supervisors who violate this law, will have to pay a fine of P100,000 for every day that a violation is not remedied, counting from the day the employer is notified or the compliance order is issued by the Department of Labor and Employment.

Past noon on Tuesday, April 23, a stronger earthquake – with a magnitude of 6.5 – struck parts of the Visayas. – Rappler.com

Cebu Pacific cabin crew establish new union

Interaksyon file photo

CEBU Pacific Air Inc. is gearing up for upcoming negotiations with its new cabin crew union, Juan Wing Regular Cabin Crews of the Philippines, after the union was formally established last week.

“In the coming weeks, we will be meeting with representatives of the Juan Wing cabin crew union. We intend to engage in healthy dialogue and ensure a positive and productive relationship,” Cebu Pacific COO Michael Ivan S. Shau told BusinessWorld on Sunday.

Last week, the ballot counting from the April 1 to 5 elections for the establishment of a union for cabin crew showed 1,124 out of 1,135 votes cast chose “Yes to union.” Both the elections and counting were overseen by the Department of Labor and Employment (DoLE).

The Associated Labor Union — Trade Union Congress of the Philippines (ALU-TUCP), with which Juan Wing is affiliated, said that the newly-formed union is preparing to discuss issues like security of tenure, improved benefits, and fair wages for cabin crew.

“The union will negotiate for better wages and benefits, better working conditions, and better terms under the existing labor policies and regulations to improve… (the) working climate that would benefit the interests of both the union members and the management,” said TUCP President Raymond C. Mendoza in a statement on Sunday.

Mr. Shau said that the airline’s desire to provide all Cebu Pacific employees better labor rights has always been a top concern.

The JG Summit Holdings, Inc. unit said it practices are in line with the group’s engagement policy with its workers.

“(C)ebu Pacific believes that there is no differentiation between unionized and non-unionized employee groups when it comes to listening to and providing for the needs of our employees. In fact, JG Summit has a track record of maintaining open, transparent and mutually beneficial relationships with all 27 unions existing across the conglomerate,” he said. — Gillian M. Cortez

Government urged to reevaluate standards for meeting basic needs

HARD STATS According to the Philippine Statistics Authority, “no less than P10,481 on the average” is needed by a family of five to meet both their monthly basic food and nonfood needs. Residents of this slum area in Binondo, Manila, may find that hard to believe. —RICHARD REYES

A monthly budget of P7,337 that the Philippine Statistics Authority (PSA) said was enough to feed a family of five translates to less than P50 for three meals a day for every family member, lower than the Bureau of Jail Management and Penology’s P60 daily budget for food for every inmate, according to a senatorial candidate.

“If that is the standard of the PSA, life may even be better for prisoners or inmates. At least they don’t have to worry about paying for electricity, water and rent,” Ding Generoso said on Thursday in a statement.

Generoso, former spokesperson of a consultative committee created by President Duterte to draft a proposed federal Constitution, recalled that the Food and Nutrition Research Institute had determined that in 2015, a Filipino would need at least P88 a day to meet calorie and nutrition requirements.

On Wednesday, the PSA said the poverty threshold was set at “no less than P10,481 on average,” the amount needed by a family of five to meet both their monthly basic food and nonfood needs.

This means that each member, on average, is allocated a budget of just P70 a day.

Labor groups on Thursday urged the PSA to reevaluate the poverty threshold, lamenting that the amount did not reflect the current expenses of families.

Sonny Matula, chair of Nagkaisa labor coalition, said the monthly budget that the PSA construed as enough for a family to meet its needs was just a little higher than the P60 subsistence daily allowance of prisoners.

Asked if the amount set by the PSA was enough for a family of five to survive, presidential spokesperson Salvador Panelo said: “It might depend on the lifestyle of the family. If you ask the poor, they might say that they will be content to eat rice with salt.”

Wage increase

The Trade Union Congress of the Philippines (TUCP) said that if the PSA maintained this computation, workers might find it difficult to press the government and the private sector for a just wage.

TUCP president Raymond Mendoza said employers could justify their stand against a significant wage increase by citing the current minimum wage as already above government standard.

“This very low standard erases the need for wage boards to provide significant wage increases. It gives us the impression that ‘everything is okay’ and there’s no need for wage increases because minimum wages are higher than the minimum threshold,” Mendoza said.

At present, the highest daily minimum wage in the country is P537, which is enjoyed by workers in Metro Manila.

Partido Manggagawa (PM) said a family of five, especially those in Metro Manila, would need a budget of at least P39,000 a month. Of this amount, 44 percent is allocated for food.

PM chair Rene Magtubo pointed out that PSA’s computation did not seem to take into account realities consumers were facing.

“Out of the P7,337 food budget of PSA, we guess that P2,000 is allotted for rice. Such a budget can only buy 60 kilos of P32 NFA (National Food Authority) rice—which is hard to find in the market—for one month or two kilos per day to be shared by five people,” Magtubo said.

The party-list ACT Teachers said the government was using meager statistics on poverty threshold to justify denying its workers salary increases.

“The Duterte administration, through the PSA’s too conservative numbers, aims to present diminishing statistics on the income gap, poverty gap and severity of poverty, and thus silence the deafening demand of the people for living salaries and wages,” said ACT Teachers Rep. Antonio Tinio.

Even the P10,510 received by the lowest-paid government employee is not enough to keep families afloat, Tinio said.

Professionals like public school teachers, who currently receive a minimum salary of P20,179, are still forced to take out multiple loans to meet their needs, he said. —REPORTS FROM JEROME ANING, JOVIC YEE, JULIE M. AURELIO AND MELVIN GASCON

Philippine Statistics Authority report aims to stop wage hike — labor groups

The Trade Union Congress of the Philippines (TUCP) expressed concern that the PSA figures were released to lower wage standards and discourage workers from seeking salary hike. File photo

MANILA, Philippines — Organized labor yesterday debunked the Philippine Statistics Authority (PSA) findings that monthly income of a little over P10,000 is sufficient for a family of five, and claimed that the report would discourage wage increases.

The Trade Union Congress of the Philippines (TUCP) expressed concern that the PSA figures were released to lower wage standards and discourage workers from seeking salary hike.

“This very low standard erases the need for wage boards to provide significant wage increases. It gives us the impression that ‘everything is OK’ and there’s no need for wage increases because minimum wages are higher than the minimum threshold,” TUCP president Raymond Mendoza said.

Mendoza said employers and business groups are going to use the PSA data to defend their position against any salary increase and argue that the wage standard is lower than the current minimum wage.

But he said the PSA standard is so low and it would appear that there is no sense of urgency to uplift the condition of Filipino workers.

The PSA said that a salary of P10,481 a month is enough for a family of five to survive.

The militant Kilusang Mayo Uno (KMU) claimed that the PSA is ridiculous and inaccurate.

“The level of fantasy the PSA has reached to come up with this is significantly high. It’s impossible to comprehend how the PSA could have arrived at such a conclusion that P10,000 is sufficient to sustain an ordinary Filipino family with five members,” said Kilusang Mayo Uno (KMU) secretary general Jerome Adonis.

The PSA, Adonis said, did not consider shelter, transportation, utilities, health care and education costs when it came up with its new poverty threshold figure.

“Neither did it consider the continued increases in oil prices, electricity and water rates as effects of the TRAIN law,” Adonis said.

Adonis said P10,000 monthly income is only enough to feed Filipino families once a day and who do not use electricity or pay rent.

He suspects that the PSA findings were released to prevent workers from seeking pay hike.

Labor groups have been actively pushing for a P750 daily minimum wage.

“Workers need and deserve a substantial wage increase because the current P537 minimum is way below the P1,000 estimated Family Living Wage,” Adonis pointed out.

Adonis said workers are getting measly salaries despite their consistent productivity.

Adonis said recent studies showed that labor productivity in Metro Manila grew by 35 percent from P456,059 per worker to P614,297.

However, Adonis said the real value of the mandated minimum wage increased by only 11 percent in real terms at constant 2012 prices.

Adonis said officials of PSA and other government agencies should try to survive on P10,000 for a month – using only that amount to pay for all their basic needs and to cover whatever contingencies and emergencies that may arise.

He said PSA and the National Economic and Development Authority (NEDA) keep adjusting poverty level standards and computations to project an image of the country’s economic progress at the expense of workers and other poor.

Federation of Free Workers (FFW) president Sonny Matula said the P10,000 monthly earnings is just a little higher than a prisoner’s allowance.

“Are we approximating a prisoner’s life with this PSA computation? With the higher cost of commodities, I don’t know how a family of five would survive with P10,841 pesos a month,” Matula said.

He said the PSA data were apparently taken from a world of make believe.

Bagong Alyansang Makabayan (Bayan) activists yesterday described the poverty threshold set by the government as “unrealistic.”

“The latest government data showing poverty incidence going down is not something to be happy about, considering the very low poverty threshold that government set. The P10,481 poverty line is unrealistic,” said Bayan secretary-general Renato Reyes.

“How can five people meet their basic food and non-food needs for a month with this very small amount? This translates to a mere P70 per person per day. Prices of food, transportation and other utilities have gone up significantly the past few years,” he added.

He added it also provides a justification not to increase wages and salaries since people can make do with P10,481 a month.

Marawi civic leader and opposition senatorial bet Samira Gutoc said the PSA report is unbelievable, saying that the agency should come up with better, more credible research in making its reports.

“Let us examine the figures. This translates to P244 a day or P81.33 a meal for a family of five. Broken down further, about P16.26 per person per meal in the family. In contrast, meal allowance of one who works in government is from P150 to P220… This is really disconcerting,” Gutoc said.

“If we were to take PSA’s estimates at face value, the meal stipend can almost feed five people: one mouth as opposed to five poor ones. This is why I have a problem with PSA’s assertions. I do not believe five persons can eat on a budget of P244 a day,” Gutoc added. – Mayen Jaymalin (The Philippine Star) With Rhodina Villanueva, Cecille Suerte Felipe

TUCP laments poverty threshold may mislead policy making

The Trade Union Congress of the Philippines (TUCP) expressed dismay over the poverty threshold standard released recently by the Philippine Statistics Authority (PSA).

TUCP President Raymond Mendoza (TUCP Party-List / MANILA BULLETIN)

“If we are going to use this as standard basis for our public and private policy to uplift our people from poverty, it would appear there is no sense of urgency in this poverty threshold standard amount set by the Philippine Statistics Authority,” said TUCP President Raymond Mendoza.

The PSA said that an amount worth P10, 481 is needed per month to meet the basic food and non-food items of a Filipino family of five members.

“In it, there are no prospects of hope for the millions of poor Filipinos. This standard is so low and it wants to keep our status quo as it is,” said Mendoza.

The labor leader lamented that “employers and business groups are also going to use this government standard amount to say there is no need for a significant wage increases particularly for minimum waged earners because minimum wages, as what this standard implies, are above the threshold.”

“This very low standard erases the need for wage boards to provide significant wage increases,” said Mendoza.

“It gives us the impression that ‘everything is okay’ and there’s no need for wage increases because minimum wages are higher than the minimum threshold,” he added. - By Analou De Vera

TUCP bats for ‘affordable’ in-city tenement housing

The labor group Trade Union Congress of the Philippines said on Thursday that it would propose to the government the construction of affordable in-city tenement housing for minimum-waged earners near their working places, which would not only help decongest traffic but provide workers decent houses to live.

“In the light of growing inadequate mass transport problems and worsening traffic congestion, we shall also demand that Pag-IBIG expand its services and benefits to members by initiating development of an affordable in-city tenement housing for lowly-paid workers and develop housing projects for workers in the regions and the countryside, in the export processing zones, Overseas Foreign Workers, and government employees,” TUCP president Raymond Mendoza said.

The in-city housing program for workers will help working people and their families cope with rising cost of living in metropolis and minimize a range of stress-related disorders and diseases caused by travelling and commuting in a problematic mass transport system environment, Mendoza explained.

“We are not closing our doors to an increase in contributions in Pag-IBIG as we have yet to see the proposal from them. We shall wait for their presentations before we make the decision to support it or not,” the TUCP said.

Mendoza said that any increase should redound to lower home loan interest rates, higher maturity savings returns for members, increased efficiency in Pag-IBIG operations, greater accessibility to home loans particularly for minimum wage earners and low income workers.

Mendoza said they are looking at utilizing idle government-owned lands in the National Capital Region to build tenement housing units similar to tenement housing in Taguig and Tondo, Manila to reduce workers’ daily expenses in the face of their meager daily salary.

“We also acknowledge that the dividends that they have been giving out to members have improved in the past several years which is good for the workers and their families because their contributions is considered forced savings and Pag-IBIG should sustain this,” Mendoza said.

“We also understand from their last Chairman’s report that the number of home loan borrowers have increased substantially and it is important to ensure the sustainability of Pag-IBIG.”

The current contribution rate by each member contribution rate is pegged at P100 employee share plus P100 employer counterpart, or a total of P200 per month. By law, the contribution rate is set at 2% of a member’s salary, with a cap of P5,000 Maximum Fund Salary (MFS) of P5,000 per month. This was set way back in 1986. The present value of P200 then is now P12.75.

Contributions of members, including employer’s counterpart contributions are returned to Pag-IBIG members upon reaching membership maturity of 20 years. The average total savings of a member for 20 years is approximately P80,000.00. There are members who voluntarily increase their contributions.

Members are also able to borrow 80% of their total savings with the Fund under Pag-IBIG’s multi-purpose loan program.

Members are able to borrow from the Fund housing loans which they can use to purchase their own homes. The maximum housing loan a member can borrow is up to P6 Million depending on capacity to amortize the loan. They can use the loan to purchase a house and lot, construct a house, a condo unit, or house improvement.

Members are also entitled to Calamity Loans equivalent to 80% of their total savings with the Fund during times of natural disasters and declaration of state of calamities in their areas of residence.

Higher contribution rates will result to higher savings, higher MPL and Calamity loan entitlements and low housing loan interest rates. - by Vito Barcelo