The Labor Sector’s Expectations for a Wage Hike Announcement on Labor Day
The labor sector in the Philippines is eagerly anticipating an announcement regarding a potential wage hike from President Ferdinand Marcos Jr. on Labor Day, which falls on May 1st. This announcement holds significant importance for workers across the country, as it directly impacts their livelihoods and quality of life.
Leading the push for a legislated wage hike are various labor organizations, including the Federation of Free Workers (FFW), the Trade Union Congress of the Philippines (TUCP), the Nagkaisa Labor Coalition (Nagkaisa), the Partido Manggagawa (PM), Kilusang Mayo Uno (KMU), Bukluran ng Manggagawang Pilipino (BMP), and the Sentro ng mga Nagkakaisa at Progresibong Manggagawa (SENTRO). These organizations have been actively advocating for better wages and improved working conditions for Filipino workers.
It is worth noting that President Marcos missed last year’s celebration of International Workers’ Day due to a meeting with US President Joe Biden. However, he assured the workers that he would prioritize providing them with opportunities to enhance their lives. In his labor day message in 2023, President Marcos stated, “Rest assured that this administration is working conscientiously to provide opportunities that will uplift the living and social conditions of our workers and their families.”
In the previous year, several petitions for wage hikes were pending before the Regional Tripartite Wages and Productivity Boards (RTWPBs) across the country. One notable example is the call from workers in the Calabarzon region for a minimum daily wage of P750. However, the highest minimum wage hike granted during that period was only P50.
FFW President Sonny Matula emphasized the urgency of approving the proposed P150 daily wage hike, which is currently pending before the House of Representatives, in time for the Labor Day celebration. Matula called on the House Committee on Labor to fast-track the approval process, with the hope of obtaining a wage hike announcement from the president on Labor Day.
The House Committee on Labor is scheduled to vote on March 20th regarding the movement of the wage hike proposal to plenary deliberation. It is worth mentioning that the Senate has already approved a P100 legislated wage increase. Despite these developments, the TUCP highlights that wages in the country remain below the poverty threshold set by the Philippine Statistics Authority (PSA) and fall significantly short of the family living wage estimated by the think tank IBON Foundation.
It is important to understand the context surrounding the current situation. The Philippines has not seen a legislated wage hike in nearly 35 years, since the implementation of Republic Act 6727, also known as the “Wage Rationalization Act.” This act established the Regional Wage Boards, with the last wage hike being a mere P25 on top of the existing P64 minimum wage.
Nagkaisa, the largest labor coalition in the country, has urged President Marcos to certify the proposed P150 minimum wage increase for private sector workers as an urgent matter. On the other hand, the FFW believes that now is the time to prioritize the welfare of workers.
However, there is opposition from big businesses who argue against legislated wage proposals. They contend that leaving the determination of wage increases to the RTWPBs is in the best interest of both labor and employers. The Employers Confederation of the Philippines (ECOP) asserts that legislated wage increases would not benefit the majority of the workforce, as the informal sector, which constitutes 84% of the estimated 50 million workers, does not have fixed wages and is not covered by wage hikes.
The Chamber of Commerce of the Philippines, the country’s oldest business group, also opposes the proposed P100 legislated across-the-board increase, deeming it “unfair” due to the potential inflationary impact it may have.
In conclusion, the labor sector in the Philippines eagerly awaits President Marcos’ wage hike announcement on Labor Day. Various labor organizations have been actively advocating for better wages and improved working conditions. While there is opposition from big businesses, the call for a legislated wage increase aims to address the survival needs of workers and reverse the prevailing “cheap labor” policy. The outcome of this announcement will significantly impact the lives of Filipino workers and their families.
Source: The Manila Times
