Fix wages nationwide, labor groups tell Duterte

As the P25 minimum wage increase for Metro Manila workers took effect on Thursday, labor group Federation of Free Workers (FFW) and affiliates belonging to a coalition called Nagkaisa urged President Duterte to form a presidential commission that would study the creation of a national wage fixing mechanism.

In a statement, FFW said the P25 wage increase, approved by the Regional Tripartite Wage and Productivity Board, was “latest proof of how wages fixed under the mechanism deepens inequality rather than eradicate chronic poverty.”

Failure

It said the group and other Nagkaisa affiliates believed “the meager increase simply fits into the 1989 template” created by Republic Act No. 6727, which bases wage increases on employers’ capacity to pay rather than on workers’ standard of living.

FFW said during the presidential election campaign, Duterte recognized that setting wages by regions was a failure.

“He himself announced the need to overhaul the system,” said Sonny Matula, FFW president.

“But until today, no executive action has been done so far to walk his pledge,” Matula added.

Another labor group, Associated Labor Unions-Trade Union Congress of the Philippines (ALU-TUCP), said workers were unable to feel the impact of the P25 wage increase because of inflation.

Purchasing power

Alan Tanjusay, ALU-TUCP spokesperson, said the purchasing power of P25 nowadays was just P17.50.

“It has no impact,” Tanjusay said.

The government, he added, should step in and fill the gap by giving workers a monthly food voucher worth at least P500.

Tanjusay said Duterte had “neither said yes nor no to our proposal.”

“So we remain hopeful,” he added. - By: Tina G. Santos - Reporter / @santostinaINQ

New Metro Manila minimum wage set at P500 to P537

Wage Order No. 22 will take effect 15 days after publication in a newspaper, but labor groups say the increase won't help workers struggling with rising inflation

SEEKING WORK. Hundreds troop to the Quezon City Hall for a job fair on May 1, 2018. File photo by Darren Langit/Rappler 

MANILA, Philippines (UPDATED) – The Department of Labor and Employment (DOLE) on Monday, November 5, confirmed the P25 across-the-board wage hike for minimum wage earners in Metro Manila.

New minimum wage rates for agricultural workers, firms in the manufacturing sector with at most 10 workers, and firms in the retail as well as service sectors with at most 15 workers will earn at least P500 daily, from the previous P475.

Non-agricultural workers, meanwhile, will soon have a daily minimum wage of P537 from P512.

Under Wage Order No. 22, the P10 cost of living allowance (COLA) will also become part of the basic pay. Previously, the minimum basic pay ranged from P465 to P502, with an additional P10 COLA.

National Wages and Productivity Commission Executive Director Criselda Sy explained that the integration of COLA in the basic pay means bigger computations for overtime pay and 13th month pay.

The new wage order will be effective 15 days from publication in a newspaper. Sy said a copy of the order will be sent to their office on Monday afternoon.

The order was signed by DOLE, the Department of Trade and Industry, National Economic and Development Authority, and an employers' group representative. Labor group representatives signed the order, but with reservations.

The wage order can still be appealed within 10 days upon publication. But Sy said there were no appeals that had been successfully granted in the past.

Higher inflation?

Asked whether the regional board could have approved a higher increase, Sy explained that doing so might lead to "secondary inflationary effects."

"It could be a potential source of secondary inflationary effects. Inflation is at 6.7% and it could be higher if we implement a higher wage hike," she said.

The Bangko Sentral ng Pilipinas said on Monday that the P25 wage hike had already been taken into consideration in its latest inflation forecasts – 5.2% for 2018, 4.3% for 2019, and 3.2% for 2020.

Sy also warned that the minimum wage policy "may be overburdened" with a higher rate, and may also lead to layoffs, if employers are unable to accommodate the additional cost.

Labor Secretary Silvestre Bello III noted that the decision to implement the P25 wage hike was reached to "balance" the interests of both workers and employers. The Associated Labor Unions-Trade Union Congress of the Philippines (ALU-TUCP) had called for a P100 hike, down from the initial P334, during discussions.

"In deciding [the] minimum wage adjustment, the board needs to balance the needs of workers and their families, with the capacity of enterprises to pay the additional labor cost, without impairing businesses, especially [their] capacity to continuously generate jobs," Bello said.

Based on Republic Act No. 6727 or the Wage Rationalization Act, each region in the Philippines has a unique minimum wage set by the Regional Tripartite Wages and Productivity Boards. The factors taken into consideration include the poverty threshold, employment rate, and cost of living specific to the region.

'Overworked, underpaid workers'

Labor groups slammed the "measly" P25 increase, saying it is "not a relief" for workers.

ALU-TUCP said inflation would continue to "prolong" the plight of workers, and warned of further strikes.

"By not giving a substantial wage increase, we are looking at disgruntled, dissatisfied workers, with or without unions, demanding higher wages, directly confronting employers and business owners, creating tension within the enterprise level thereby disturbing and breaking the fragile industrial peace," ALU-TUCP spokesperson Alan Tanjusay said.

Meanwhile, Partido Manggagawa said the hike is "30% short" of making up for the P35.84 "erosion" in wages, according to its own estimate.

"P25 is just alms, not relief to overworked yet underpaid Filipino workers. P25 cannot compensate for the [almost] 7% runaway inflation in Metro Manila and real wage stagnation, despite 50% productivity growth from 2001 to 2016," Partido Manggagawa president Rene Magtubo said. – Aika Rey Rappler.com

Metro workers seek P100 wage increase

The Associated Labor Unions-Trade Union Congress of the Philippines (ALU-TUCP) on Friday appealed for President Rodrigo Duterte’s intervention as it pushed its demand for a P100-daily wage increase for workers in the National Capital Region (NCR).

Men work in a construction site in Barangay Pag-asa in Quezon City. PHOTO BY RUY MARTINEZ

The group sought the President’s help a day after the Regional Tripartite Wages and Productivity Board-National Capital Region (RTWPB-NCR) approved a P25- increase for minimum wage workers in the NCR.

The group said a P100 wage hike would raise the P512 daily minimum wage to P612, an amount that would enable workers and their families to cope with rising prices.

“In behalf of all poorly paid 4 million Metro Manila minimum wage workers and their families in Metro Manila who are suffering due to expensive cost of living brought by the astonishing inflation in the past 10 months, we are appealing to President Duterte’s kind-hearted ‘malasakit’ to please spare a portion of your presidential powers in favor of the working class by raising the recent ‘unofficial’ and measly P25 daily wage increase to at least P100 a day,” ALU-TUCP spokesman Alan Tanjusay said.

“Mr. President, workers and their families have been longing to taste the fruits of your ‘Tunay na Pagbabago’ (genuine change) for all Filipinos. Now is the time to make businesses’ profits and the country’s economic wealth to truly trickle down to troubled workers who also help built the country and businesses to thrive but were left behind by flawed policies and greedy businessmen,” he added.

The ALU-TUCP originally sought a P334 a day wage increase but settled for P100. The Employers Confederation of the Philippines (ECOP) made a counter offer of P25.

The labor representatives in the seven-man tripartite wage board were outvoted by employers and government representatives in the last minute bargaining. - By WILLIAM DEPASUPIL, TMT

Duterte urged to stand up for workers

Labor groups on Friday appealed to President Duterte to stand up for workers in the wake of reports that a measly P25 daily salary increase has been approved for minimum wage earners in Metro Manila.

President Rodrigo Roa Duterte (REY BANIQUET/PRESIDENTIAL PHOTO / MANILA BULLETIN)

Instead of the paltry adjustment, the Associated Labor Unions-Trade Union Congress of the Philippines (ALU-TUCP) urged President Duterte to use his presidential powers by raising daily wage hike to at least P100 a day.

Labor groups had earlier called for a P335 daily minimum wage increase for private workers in Metro Manila to help them cope with rising inflation rate. Employers, however, reportedly opposed the huge wage adjustment proposal, warning that it might hit businesses and scare away investors.

“In behalf of all poorly paid four million Metro Manila minimum wage workers and their families in Metro Manila who are suffering due to expensive cost of living brought about by the astonishing inflation in the past 10 months, we are appealing to President Duterte’s kind-hearted ‘malasakit’ to please spare a portion of your presidential powers in favor of the working class by raising the ‘unofficial’ and measly P25 daily wage increase to at least P100 a day,” ALU-TUCP spokesperson Alan Tanjusay said in a statement.

Should the President authorize a P100 daily wage increase, the current daily minimum wage of P512 will increase to P612 a day, Tanjusay said. This would enable workers and their families to at least temporarily tide things over and get by through the hardship brought about by the rising inflation.

“Mr. President, workers and their families have been longing to taste the fruits of your ‘TunaynaPagbabago’ (genuine change) for all Filipinos. Now is the time to make businesses’s profits and the country’s economic wealth truly trickle down to troubled workers who also help build the country’s economy and businesses to thrive but are left behind by flawed policies and greedy businessmen,” he said.

“Mr. President, you have demonstrated in several instances your proven political will as shown in many instances whereby you intervened and took matters into your hands and make policies right and institutions work for the interest of the Filipino people. This time, at the most period of your presidency, we urge you to stand up for workers and their families and don’t let us down at a time when we needed you the most,” Tanjusay added.

The decision of the Regional Tripartite Wages and Productivity Board-National Capital Region on the salary increase for minimum wage earners in Metro Manila will be known next week.
The Department of Labor and Employment said the decision of the wage board will be announced in a press briefing Monday, November 5.

On Thursday, Malacañang assured that the interests of the labor sector and employers would be taken into consideration in any decision on the petition seeking to increase minimum wage hike in Metro Manila.

Presidential spokesman Salvador Panelo gave the assurance while dismissing as unofficial the reported P25 wage hike.

“As of October 31, the reported P25 wage hike for minimum wage workers has yet to be approved by the National Wage and Productivity Commission (NWPC). Therefore, the figure being disseminated is not official,” Panelo said.

“The Palace assures everyone that the interests and well-being of both sides – management and labor – as well as the overall impact to our domestic economy, would be considered by the government in attending to this matter,” Panelo added.

Reports had earlier circulated that the Regional Tripartite Wages and Productivity Board-National Capital Region has approved the P25 minimum wage hike for private workers in Metro Manila.

Labor groups slammed the small amount reportedly approved by the wage board. By Leslie Ann Aquino (With a report from Genalyn D. Kabiling)