High prices a concern of nearly one-half of Filipinos, poll says

NEARLY ONE-HALF of Filipinos expressed concerns about rising prices, a Pulse Asia survey released on Tuesday said.

Laborers work on a new building in Manila in this photo taken in January 2014. Forty-six percent of Filipinos are concerned about rising prices while 44% said they also consider raising workers’ salaries as important, a Pulse Asia survey said. -- AFP

Forty-six percent of Filipinos said inflation was their utmost worry, 44% expressed concerns about increasing workers’ salaries, while 40% placed importance on fighting graft and corruption.

The poll was participated in by 1,200 Filipinos and conducted March 1 to 7, more than a week before a P15 wage hike was approved by the National Capital Region’s Regional Tripartite Wages and Productivity Board (RTWPB).

The survey was also conducted more than a week before the Senate proceedings on allegations that Vice-President Jejomar C. Binay received P651 million from an anomalous deal between the Boy Scouts of the Philippines and real estate giant Alpha Land Corp.

“A second set of urgent national concerns include poverty reduction (37%) and job creation (34%) while a third cluster is comprised of criminality (22%), peace (22%), and rule of law (19%),” said a statement that was accompanied by survey results.

Meanwhile, public approval on government measures to control inflation rose five points to 29% in March from the previous rating of 24% in November. Similarly, public approval on increasing workers’ pay went up one point from 32% in November to 33% in March.

Public approval on government measures in addressing poverty and job creation remain unchanged during the two comparative periods.

Public approval on fighting graft and corruption went down by three points to 42% in March from 45% in November. Ratings on the government’s anti-criminality campaign also slid by two points to 45% from 47%.

For his part, Communications Secretary Herminio B. Coloma said that the latest performance ratings “do not significantly differ” from the previous survey conducted, but promised to act on the areas where government action is perceived to be lacking.

“In the next 15 months, the administration will intensify efforts at job creation while maintaining fiscal discipline in order to rein in inflation. Good governance is imperative in achieving inclusive growth,” Mr. Coloma said in an issued statement.

Meanwhile, the Trade Union Congress of the Philippines (TUCP) said that the government should have focused on core issues raised in the survey instead of spending its time, energy and political capital on other least priorities of the Filipino people.

“These concerns were not satisfactorily addressed by the Aquino administration. Poverty remains widespread and the situation is worsening. Salary and wages are stagnant and cannot sustain a family. Quality jobs are rare and dwindling,” TUCP Spokesman Alan A. Tanjusay said.

“There is no real inclusive growth because wages are low and quality employment are simply not there.” -- Alden M. Monzon / BusinessWorld

Gov’t justifies P15 wage hike for MM workers

MANILA, Philippines - Malacañang justified yesterday the P15 increase in the minimum wage rate for workers in Metro Manila, saying all factors were considered before a decision was made.

Various labor groups strongly criticized the increase as being too meager.

“While it is ideal to give the highest wage possible, it may have an adverse impact on the economy if employers cannot pay the increase. It may lead to the closure of businesses or laying off workers, which we do not want,” deputy presidential spokesperson Abigail Valte said.

“The policy is to grant regular, moderate and predictable adjustments that takes into account the needs of the workers but maintains the stability of business environments,” she added.

The increase will bring the daily minimum wage rate from P477.03 to P492.57.

Labor Secretary Rosalinda Baldoz said the pay increase, the 19th since the Wage Rationalization Act became law on June 9, 1989, would directly benefit 587,000 minimum wage earners.

“Traditionally, if you look at the positions of labor groups vis-à-vis employers groups when it comes to a wage hike, they’ve never been on the same plane or at least on the same level. The job of the wage board is to determine what can be given that will also not be detrimental to employers,” Valte said.

The Trade Union Congress of the Philippines (TUCP), the country’s largest labor group and one of those hitting the increase, said the government-approved wage hike was revolting.

“Rather than closing the gap between rich and poor, government officials in the wage board have further widened the gaping inequality amongst Filipinos – between a few elite and a famished majority who live to survive by the day,” TUCP spokesman Alan Tanjusay said. - By Aurea Calica (The Philippine Star)

P15-a-day wage hike OK’d in Metro Manila

A P15 a day increase in the wages of private sector minimum wage workers and employees in the National Capital Region has been approved by the Regional Wage Board of the Department of Labor and Employment (DOLE) last Monday.

In a press conference, Alex Avila, the Regional Tripartite Wages and Productivity Board-National Capital Region (RTWPB-NCR) chairperson, announced the release of Wage Order No. NCR-19 last Monday that will “will account for around 587,000 employees in NCR.” Avila is also the director of DOLE-NCR.

“Upon effectivity of this Wage Order, all private sector minimum wage workers and employees in the National Capital Region shall receive an increase in the existing Basic Wage in the amount of P15 per day,” said Avila.

12.5% Of Workers

The latest wage order will take effect next month (April) and will cover around 12.5 percent of the total workers in Metro Manila. Avila said that the remaining 4.1 million workers in Metro Manila will not be affected by new wage order since they are already paid above the prescribed rate.

P481 AND P444 MINIMUM WAGE

“The new minimum wage in National Capital Region has now been raised to P481 for workers in the non-agriculture sector and P444 for workers in the agriculture sector,” Avila said.

‘MEAGER AND INSULTING’

But a national labor group has described the P15 a day wage increase as “too meager compared with the amount needed daily by a workers’ family to live decently.”

The Kilusang Mayo Uno (KMU) said the “P15 increase in workers’ daily wage is not even enough to cover for the increase in fares in the country’s train systems. It’s not enough to cover for the rising prices of basic commodities, especially food items, and rising payments for basic services.”

“If Aquino thinks this wage hike will weaken workers’ protests calling for his resignation, then he is sorely mistaken. This meager wage hike is insulting to workers and does not address the government’s and big capitalists’ attacks against the minimum wage,” Elmer “Bong” Labog, KMU chairperson said.

‘P1,086 A DAY’

Ibon Foundation had reported the Family Living Wage (FLW) in the country, or the amount needed daily by an average Filipino family to live decently, stood at P1,086 last August 2014.

NATIONAL MINIMUM WAGE

KMU, with workers’ groups from the private and public sectors under the umbrella of All Workers’ Unity, is calling for the implementation of a National Minimum Wage in the amount of P16,000. KMU said P16,000 is only half of the FLW computed monthly.

P136 A DAY INCREASE

On the other hand, Trade Union Congress of the Philippines (TUCP), which had asked for a P136 increase in the daily minimum wage, said the P15 wage increase is “unacceptable” and “revolting.”

MALACAÑANG DEFENDS INCREASE

Malacanang has defended the P15 wage increase saying that the wage board has been finding a balance between the labor groups and the employers, noting that it is important to keep jobs rather than to increase the wages too high and leave some people unemployed, Deputy Presidential spokesperson Abigail Valte said.

‘NEVER ON SAME PLANE’

“Traditionally, if you look at the positions of labor groups vis-à-vis employers groups when it comes to a wage hike, they’ve never been on the same plane or at least on the same level,” Valte said.

“The job of the wage boards is to determine what can be given that will also not be detrimental to employers meaning, if you give too high an increase, the employers will not be able to absorb it, so they have to check what amount can be a good compromise between the requests of the labor groups as well as the employers,” she said.

“That brings the total wage in NCR to P481. Some will call it ‘not enough’ or ‘not sufficient’ but it is still something to be given, something in addition to what they’re already getting,” she said.

NO WAGE HIKE LAST YEAR

No new wage hike was approved for Metro Manila last year. The last wage adjustment in Metro Manila took effect on 4 Oct., 2013, which raised its minimum wage rates by P10 and integrated P15 of the P30 cost of living allowance in the basic wage in the region.

FACTORS CONSIDERED

In issuing a new minimum wage in the NCR, Director Avila said the RTWPB took into thorough consideration several factors, including the erosion in the minimum wage, inflation rate, possible impact of the minimum wage adjustment on prices of goods and services, as well as on employment; movements in the consumer price index, the current economic condition in the region, employers’ ability to pay, and the results of its continuing studies, sectoral consultations, and public hearings.

“The decision of the RTWPB-NCR to adjust the minimum wage was consistent with the government’s policy of granting regular, moderate, and predictable minimum wage adjustments, taking into consideration the needs of workers and their families, as well as the need to maintain stability in the business environment within the framework of the two-tiered wage system reform which Secretary Baldoz has initiated in 2012 and which we accelerate to implement,” said Avila.

He expressed confidence that like in the past year, employers will be able to bear the cost of the increase without hampering their viability for growth and expansion and, therefore, their ability to sustain employment creation.

ADVISORY TO COMPANIES

An advisory urging the companies of the exempted workers to adjust their pay rate accordingly to correct possible wage distortion caused by Wage Order No. NCR-19 has already been issued, Avila said. Wage distortion is created when the agreed cash benefits are already less than the prevailing minimum wage in their area.

NO FILING FOR EXCLUSION

In a related development, Labor spokesperson Nicon Fameronag said Wage Order No. NCR-19 also barred companies with a total asset above P3 million to file for exclusion in the implementation of wage orders in Metro Manila.

“Only companies, which are distressed, has less than 10 workers, or have been severely affected by disasters could now file for the one-year exemption from the wage orders,” Fameronag said.  by Samuel P. Medenilla & Chito A. Chavez / Manila Bulletin (With reports from Madel Sabater Namit and PNA)

Good news but… Metro Manila minimum pay up by P15

MANILA, Philippines–The good news is that minimum wage earners in Metro Manila will get a pay increase.

The bad news is that the increase is only P15 a day, not enough for even one (special) tricycle ride in the metropolis.

Close to 600,000 minimum wage earners in Metro Manila will get an additional P15 in their daily pay after the Regional Tripartite Wages and Productivity Board (RTWPB) approved the proposal for an increase, according to the Department of Labor and Employment (DOLE).

The increase brings to P481 from P466 the daily minimum wage rate for workers in the region, DOLE-National Capital Region (NCR) Director Alex Avila said in a briefing. Metro Manila has the highest minimum wage among the 17 regions in the country.

Avila said the P15 increase in the minimum wage would directly benefit 587,000 minimum wage earners who also would continue to be exempted from paying income tax on their wage and on their hazard, holiday and overtime pay, and on their night-shift differential.

‘Unacceptable’

But the Trade Union Congress of the Philippines (TUCP) said the P15 increase was unacceptable.

“Is this how much the Department of Labor and Employment, the Department of Trade and Industry, and the National Economic and Development Authority—the majority members composing the wage board—reward Filipino workers who contributed to improve and sustain the country’s high economic growth under the Aquino administration for so many years?” TUCP spokesman Alan Tanjusay said in a statement.

Tanjusay said the amount was revolting. “Rather than closing the gap between rich and poor, government officials on the board have further widened the gaping inequality among Filipinos—between a few elite and a famished majority,” he added.

Poverty threshold

Citing government data, the TUCP said the real value of the current P466 minimum daily wage was P356.64, or P7,486.08 a month—short of the poverty threshold of P8,778 a month in 2014 for a family of five.

It was the TUCP that filed a petition seeking a P136-across-the-board daily wage increase early this month. In November last year, the Association of Minimum Wage Earners and Advocates filed a petition seeking a P146.80 across-the-board daily wage increase.

“Unfortunately, the RTWPB is not mandated to set across-the-board wage increases. Our mandate is to set minimum wages,” the board said when it took note of the petitions.

According to the RTWPB-NCR resolution granting the P15 increase in the daily basic minimum wage, the P15 cost of living allowance in effect since January 2014 will also continue.

DOLE spokesman Nicon Fameronag said the minimum wage increase was expected to be affirmed by the National Wages and Productivity Commission this week.

Publication

The increase will take effect 15 days after its publication in major dailies.

While the new minimum wage in Metro Manila has been raised to P481 for workers in the nonagriculture sector, workers in the agricultural sector will get a daily pay of just P444.

In issuing the new wage increase, Avila said the RTWPB—composed of representatives of labor and management, and the government—took into consideration several factors. These included the erosion of the minimum wage, inflation rate, possible impact of the wage adjustment on prices and on employment, employers’ ability to pay, and the results of its public hearings.

Avila expressed confidence that like the past year, employers would be able to bear the cost of the increase without hampering their viability for growth and expansion and, therefore, their ability to sustain employment creation.

Exemptions

In the latest minimum wage pay hike, Avila noted the removal from the list of establishments that may apply for a one-year exemption from the wage order.

The delisted firms must have total assets—including those arising from loans but exclusive of the land on which the establishments’ offices, plants and equipment are located—of not more than P3 million.

“Only distressed establishments, retail/service establishments regularly employing not more than 10 workers, and establishments adversely affected by natural calamities may apply for exemption and as determined by the RTWPB-NCR,” he said. - Tina G. Santos INQUIRER.net