PH labor group files wage hike petitions nationwide after rise in food, oil

THE country’s biggest labor group is filing petitions for a wage increase before various regional wage boards across the country amid the rise in prices of food and services brought about by the implementation of the second tranche of the Tax Reform for Acceleration and Inclusion (TRAIN) Law, which imposed additional excise tax on fuel.

The Trade Union Congress of the Philippines (TUCP) said on Tuesday that based on its computation, it may petition for a minimum of P313 to a maximum of P355 wage increase based on the current prices of commodities and services despite strong opposition from employers and business groups.

TUCP President Raymond Mendoza said the group was monitoring the movement of prices of goods and services following adjustments in the prices of diesel and gasoline effective earlier on Tuesday.

“We will be citing supervening conditions in filing the petitions. We are also going to test once again the capacity of the wage boards to remain relevant with its mandate to raise the minimum wage to an amount that can ably support a family,” Mendoza said.

He said there was a strong clamor from its members and social media netizens for TUCP to push for the abolition of differentiated wage rates and put up a single wage setting body that would periodically adjust the uniform minimum wage rate for all workers across-the-board nationwide using social and economic data in determining the amount.

All 17 wage boards in different regions have adjusted the minimum wage rates from P8.50 to P56 daily wage increases in different periods in 2017, including Metro Manila on November 2018 with P25 daily wage hike.

The TUCP said, however, that despite the adjustments, current minimum wage levels remained inadequate for workers and their families as inflation rate still stood at a high 6.7 percent.

The group also reiterated its call to President Rodrigo Duterte to approve its proposed P500 monthly food voucher subsidy to all minimum wage earners as the pay increases approved by businesses and employers nationwide remained inadequate to cope with extraordinary rise in the prices of goods and services.

Under the proposal submitted to Duterte on April 2017, labor urged government to address continuing inflationary impacts by providing a P500 monthly food voucher, non-transferable subsidy initially to an estimated 4 million minimum wage workers.

Labor Secretary Silvestre Bello 3rd only endorsed P200 to the President in June this year and was still pending approval by the Departments of Budget and Management and of Finance. - WILLIAM B. DEPASUPIL

ALU-TUCP: Economic managers have no real plan to anticipate rise in prices of goods, services

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Workers’ group Associated Labor Unions-Trade Union Congress of the Philippines (ALU-TUCP) said the inflation rate has reached this high because the country’s economic managers have no real plan that would anticipate the rise in the prices of goods and services.

“We see no indication that this growing poverty will cease to grow because there seems to be no strategy specifically designed by economic managers,” said ALU TUCP spokesperson Alan Tanjusay in a statement.

Even if the markets will be flooded with imported rice and vegetables, he said the people have no money to buy these goods.

ALU-TUCP then renewed its call for the enactment of their proposed P500 monthly cash subsidy from government for four-million minimum-wage earners under SSS coverage.
“We call this the Labor Empowerment and Assistance Program (LEAP) and is intended to mitigate the economic miscalculations of TRAIN 1, the knock-on depreciation of the peso in the light of the US increase in its interest rates, and the ongoing increase in international oil prices,” said Tanjusay.

He said there is also need to bridge the gap in the decline of real wages as inflation climbs.

The ALU-TUCP reiterated its call for a substantive wage adjustment by the regional wage boards to compensate workers.

The Nagkaisa Labor Coalition said the soaring inflation needs drastic solutions to ease its impact especially to low-income earners who are not beneficiaries of the tax exemption contained in the Train law.

Among the solutions that the group suggested is the suspension of the implementation of the excise tax in petroleum products to lower its price and subject its reimplementation if needed to Congress.

Nagkaisa said the government should also provide ample support to farmers and fishers for the sustainable production of staple food such as rice, vegetables and fish.
A nationwide crackdown on traders who hoard supply of rice and other basic goods is also in order, said the group.

Nagkaisa said Congress should also review the present minimum-wage fixing mechanism aimed at establishing a new wage policy and mechanism that would provide just wage increase anchored on the constitutional mandate of granting workers a living wage.

It added that other relevant agencies of government should work together to bring to the factories and communities basic goods at subsidized price through “rolling stores” or the like. - By Leslie Ann Aquino

Rising inflation already cut workers’ purchasing power by 30%–labor group

Following the recent hikes in prices of basic commodities last month, workers in Metro Manila now have considerably less consuming power given their current salaries, according to a labor group.

Citing the result of its wage monitoring, the Associated Labor Unions-Trade Union Congress of the Philippines (ALU-TUCP) said the purchasing power of daily minimum wage in National Capital Region (NCR) fell by 30 percent, from P512 to P360.31 a day.

“In sum, workers lose a total of P3,943.94 a month to inflation. With this amount, a family can buy additional food needed for them to stay healthy in our society and remain productive citizen in nation-building,” ALU-TUCP Spokesman Alan Tanjusay said in a statement.

ALU-TUCP attributed the price surge to the implementation of the Tax Reform for Acceleration and Inclusion (TRAIN) law, which exempted more people from paying income taxes; imposed taxes on sugary drinks; and raised taxes for automobile, petroleum and other products.

The Department of Finance (DOF) said it is still too early to see the impact of TRAIN on inflation “unless merchants took advantage of the law.”

However, in the long run, the Bangko Sentral ng Pilipinas said TRAIN and higher global oil prices will affect the country’s inflation rate. Last week it raised its average inflation-rate projection for the year from 3.4 percent to 4.3 percent because of the said factors.

But, instead of raising its usual wage-hike petition, ALU-TUCP reiterated its call on the government to implement its P500 proposed subsidy for the estimated 4 million minimum-wage earners nationwide “to help them cope with rising cost of living.”

Despite the government’s economic advisers having already expressed their opposition against the subsidy, the proposal will be reviewed by a small working group comprised of four representatives from the Cabinet and four representatives from the ALU-TUCP
next month.

“During a dialogue with labor groups last Wednesday, the President ordered the creation of a small working group,” Tanjusay said.

The representatives from the government in the working group will come from the departments of Finance, Energy, Labor and Employment and the Budget and Management.

Aside from the subsidy, the group will also discuss the possibility of lowering electricity costs during its meeting scheduled on March 15.

Tanjusay said the recent inflation reports should compel the government to fast-track the assessment of their proposal so it could serve as a safety net for workers vulnerable to the impact of TRAIN. - By Samuel P. Medenilla

Labor groups propose P500 monthly subsidy for minimum wage earners

President Rodrigo Duterte appeared receptive to the proposal raised by labor groups to provide a subsidy or voucher for minimum wage earners to help them cope with rising cost of living, according to Associated Labor Unions-Trade Union Congress of the Philippines (ALU-TUCP).

The subsidy proposal was among the issues brought up by labor leaders during their meeting with Duterte in Malacañang last Wednesday that focused on the issues of contractualization and wages.

The ALU-TUCP is proposing to Duterte a P500 monthly cash voucher subsidy for an initial four million minimum wage earners.

Alan Tanjusay, ALU-TUCP spokesperson, said Duterte ordered the creation of a study group to look into the proposed subsidy and concrete steps in bringing down electricity rates.

“During a dialogue with labor groups last Wednesday, the President ordered the creation of a small working group composed of four representatives from his Cabinet and four representatives from the ALU-TUCP to discuss how to operationalize the subsidy and the proposed measures in bringing down the cost of power,” he said.

According to Tanjusay, workers lose P3,900 a month as daily wage buying power fell by 30 percent due to the inflation caused by the usual demand and supply hikes and by the implementation of Tax Reform Acceleration and Inclusion (TRAIN) excise taxes on fuel and sweetened beverages.

In an interview with reporters, TUCP Vice President Luis Manuel Corral said he explained the issue to the President during the dialogue, telling him that it might cost the government P24 billion a year.

“But it would mean a lot to the workers who are essential partners of employers and capitalists in helping and sustaining the country’s economic growth at a competitive level,” Corral said.

“That is P2 billion a month or P24 billion a year. But you’re buying peace. If that is the cost of building a nation, so be it. That’s what we told the President,” he added.

Under the group’s proposal, the subsidy should only be limited to minimum wage earners who are members of good standing of the Social Security System for at least six months.

“Only those in the [minimum] wage bracket. Above that, they can take care of themselves while those below already have the conditional cash transfer. Our target are only the four million minimum wage earners,” Corral said.

The government’s study group is made up of secretaries from the Department of Finance (DOF), Department of Energy (DOE), Department of Labor and Employment (DOLE) and the Department of Budget and Management (DBM).

According to Tanjusay, government officials will meet with ALU-TUCP representatives on March 15.

In a monitoring being conducted by the group, as of Feb. 10, 2018, the purchasing power of daily minimum wage of P512 in Metro Manila region fell to P360.31 a day – a remarkable erosion of P151.69 a day.

“In sum, workers’ lose a total of P3,943.94 a month to inflation,” Tanjusay said. “With this amount, a family can buy additional food needed for them to stay healthy in our society and remain productive citizen in nation-building. But it looks like there is no immediate relief in sight coming from the Duterte government to extend government assistance to those who are immersed in poverty and no safety nets for those who are about to fall into poverty.” - By: Tina G. Santos - Reporter / @santostinaINQ

Farmer, labor groups air fears on tax-reform implementation

In Photo: A family shops at a Makati supermarket over the weekend. Consumers are starting to worry about the possible effect of the Tax Reform for Acceleration and Inclusion law on the prices of fuel and, consequently, basic commodities.

Aside from fishermen, farmers, especially those with small landholdings, will pay the price of the tax-reform measure introduced by the Duterte administration.

The “burdensome” tax measure will severely affect rice farmers and threaten the country’s rice production and food security.

“TRAIN [Tax Reform for Acceleration and Inclusion] will definitely wreck our livelihood and drive us into a state of hunger,” according to the group Kilusang Magbubukid ng Pilipinas (KMP).

“The overall rice production and consumption will be affected by TRAIN. TRAIN will cause worsening hunger among the poorest of the poor. Whatever minimal gain that low to middle employees will get from TRAIN will be easily offset and swept by rising prices of commodities, services and public utilities,” said Danilo Ramos, KMP chairman.

For one, KMP said the new excise tax on oil products will result to a minimum 20-percent additional cost in the use of fuel-run farm equipment.

This means farmers will have to shell out more money out of their pockets for the added cost on production brought about by TRAIN.

In 2017 prices of diesel average at P33 per liter. Now, diesel prices have gone up to at least P40 per liter. Meanwhile, cost of fuel prices are higher in the provinces.

In a sample case study by KMP, a rice farmer in Bulacan province tilling 1 hectare of rice land will have to shell out additional P294 per hectare per cropping for the use of mechanized hand tractor to pull and harrow rice lands during land preparation. This does not include added cost for the use of water pump for irrigation, use of dryer, payment for rice milling, transportation of rice produce and other daily expenses.

According to government data, the country has 4 million hectares of rice-harvested lands. This minimum sample computation would translate to a P1.176-billion additional cost for land preparation alone.

Other farm inputs, such as seedlings, fertilizer and pesticides are also expected to increase. Food prices and commodities will increase, too, under TRAIN.

“This situation will have a domino effect on rice prices. Rice marketers and retailers are also expected to pass on added cost to consumers, resulting in hike in rice prices. We see prices of commercial rice increasing up to as much as P58 to P60 per kilo at the minimum in the coming months,” Ramos said. The current average price of commercial rice per kilo in retailers is P50 to P55 per kilo. National Food Authority (NFA) rice price averages at P38 to P40 with reported increase in some areas.

The National Economic and Development Authority has already rejected the NFA’s proposal to increase the buying price of rice from local farmers by P5 per kilo from P17 to P22. The NFA is also poised to import 250,000 metric tons of rice this year.

“These factors will affect severely the livelihood and economic state of rice farmers, and TRAIN will make it worse,” Ramos said.

The Associated Labor Unions-Trade Union Congress of the Philippines (ALU-TUCP), for its part, said the government has failed to put in place safety nets for the poor and adequate protection mechanism against profiteering activities in the light of the tax-reform measure’s implementation.

“We are greatly concerned over the government’s inadequate response to provide social safety nets to millions of poor Filipinos, who are about to fall into deeper poverty due to inflation brought about by the implementation of TRAIN’s excise tax on fuel and sweetened beverages,” ALU-TUCP Spokesman Alan Tanjusay said.

The group is looking for the mechanics and the implementing rules and regulations of the TRAIN and plan a dole out of P200 a month to the poor and for those economically affected by an anticipated spike in inflation.

“This TRAIN is a strategic project of the Duterte administration, yet it looks like the implementing rules are not ready and the government institution that would actualize the social safety net program for the poor is unprepared. Is TRAIN a big joke being played on poor Filipinos? Tanjusay said.

The ALU-TUCP also criticized the Trade Secretary Ramon M. Lopez on his statement on profiteering in light of TRAIN’s implementation.

“Stores and local markets have already irresponsibly increased the prices of basic and prime commodities, even before their old inventories are used up. The government must step in [and] impose the consumer-protection laws and regulations, but we don’t see them, we don’t feel the government is protecting us from profiteers and profiteering,’’ Tanjusay added.

Tanjusay said millions of Filipinos will fall further below deeper poverty if government safety nets are not ready and its institutions are ill-prepared to protect those affected by rising inflation caused by TRAIN excise tax. - By Jonathan L. Mayuga



Image Credits: Nonie Reyes

Labor union eyes wage hike petition amid TRAIN effects on prices

The Associated Labor Unions-Trade Union Congress of the Philippines says it would seek a nationwide wage increase if the tax reform law triggers 'exorbitant' inflation

Rappler photo

MANILA, Philippines – If prices of goods and services become "exorbitant" because of the tax reform law, a labor union would file another petition for a wage hike despite the one-year ban.

"We will indeed file a petition for wage increase if there is an extraordinary increase in prices of basic commodities such as rice, fish, vegetables and if there is an excessive surge in the cost of services such as transport fare, tuition fees, electricity and water rates," said ALU-TUCP spokesperson Alan Tanjusay on Wednesday, January 3.

Wage increase orders had been issued in several regions in 2017. This included the P21 increase for Metro Manila minimum wage earners, which labor groups slammed as "measly."

Under the Revised Rules of the National Wages and Productivity Commission (NWPC), no wage petition will be entertained for one year upon the effectivity of a wage order.

"If the situation warrants, we will file the petition for workers to cope with [the] rising cost of living even if the one year prescribed for no-wage-increase period set by the wage board is still in effect," Tanjusay said.

ALU-TUCP, which also holds a seat in the House of Representatives, would file petitions in all regional wage boards or through emergency legislation.

Social protection

ALU-TUCP earlier called on the government to implement better social protection policies in order to shield the poor from inflationary effects of the Tax Reform for Acceleration and Inclusion (TRAIN) law.

Figures from the Philippine Statistics Authority (PSA) as of December 2017 show that there are about 2.4 million unemployed persons. There are also an estimated 15.6 million informal sector workers.

Informal sector workers – composed mostly of independent small-scale distributors like sidewalk vendors, jeepney drivers, and small store owners – are the most vulnerable to price hikes because they have no access to social safety nets.

Since they do not have an employer and the financial means, they are unable to register for the Social Security System (SSS), PhilHealth, and Home Development Mutual Fund (Pag-IBIG Fund).

Presidential Spokesperson Harry Roque earlier said the government will be providing a P200 monthly cash voucher to the poorest of the poor.

The Department of Finance (DOF) allocated P1 billion to the Department of Social Welfare and Development (DSWD) for this subsidy. But no implementation guidelines have been released to date. – Rappler.com

15.6-M informal sector workers will suffer from TRAIN law – ALU-TUCP

Over 15.6 million workers in the informal sector will suffer once the Tax Reform for Acceleration and Inclusion (TRAIN) is finally passed into law, according to the Associated Labor Unions-Trade Union Congress of the Philippines (ALU-TUCP).

This is higher than the existing estimates of the Philippine Statistics Authority (PSA), which pegs the number of local informal sector operators at 10.5 million.

ALU-TUCP spokesman Alan Tanjusay said workers in the informal sector will be worse off with the implementation of the TRAIN since they will be made to pay more taxes without getting additional income.

Workers in the informal economy include independent, self-employed, small-scale producers, and distributors of goods and services, who are not covered by labor laws and have no social protection.

“Underground economy workers will be impacted by the rise in prices of commodities and in increase in the cost of services caused specifically by the TRAIN’s excise tax on fuel, sweetened beverages, and coal,” Tanjusay said.

Unlike workers in the informal economy, Tanjusay noted, employees with taxable income would benefit from TRAIN through its adjusted income tax exemptions.“TRAIN widened the base of those exempt from income tax – from minimum wage earners to mid-level wage earners – exempting those employees getting P250,000 a year or P21,000 a month. It also raised taxable bonuses from P82,000 to P90,000,” Tanjusay said.

But none of these benefits affects informal economy workers, he said. Instead, they will all suffer from high prices of goods and services.

ALU-TUCP called on President Duterte to postpone the implementation of TRAIN until the government can provide the necessary protection to workers in the informal sector.

“The TRAIN has no policy or program for them. We urge government to improve its social safety-net protection to underground economy workers to save them further from falling deep into extreme poverty. This is the only way we can protect them,” Tanjusay said. - By Samuel Medenilla

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