Joey Concepcion, big capitalist and presidential adviser
The labor group Partido
Manggagawa (PM) slammed employers for seeking exemption from the recently announced
minimum wage hikes as it shouted out to them: “Wag kayong kuripot!” The group
called on workers to express outrage as the most vulnerable workers will be
left with nothing if the employers get their wish.
Sergio Ortiz-Luis Jr., president
of the Employers Confederation of the Philippines, Frank Carbon, vice president
in the Visayas of the Philippine Chamber of Commerce and Industry, and Joey
Concepcion, Presidential Adviser for Entrepreneurship, all declared that
employers will be hit by the pay increases. Last Friday, the Western Visayas
regional wage board hiked the minimum wage by P55 to P110. Likewise, the NCR
wage board announced a P33 increase, thus raising the minimum wage in Metro
Manila to P570. PM had earlier called for a P100 legislated wage hike.
“Pera na magiging bato pa.
This is what will happen if the employers’ demand for exemption or deferment is
granted. The wage hikes are not even enough to recover the value lost to
inflation for the past three years. Deferring the pay increase and exempting employers
will be rubbing salt on the wound,” declared Rene Magtubo, PM national chair.
He added that “Doomsday scenarios
of firms going bankrupt, laying off workers and inflation running amok are just
the usual disinformation and scare tactics of employers in their class war
against a wage increase and a profit decrease. Studies have shown that the
employment and inflation effects of wage increases in developing countries are marginal.
Employers are being disingenuous in saying that salary hikes will just induce
price increases but they are silent on the fact that wages have already been
eroded by inflation. Workers are the victims of inflation and wage hikes are
not its cause.”
The group insisted that the
pandemic-induced economic crisis is not an argument against a wage hike. “On
the contrary, it is a reason to provide money to consumers through a pay
increase. Boosting the purchasing power of consumers—especially lowly paid
workers who spend most of their take-home pay compared to high income
earners—will pump prime the economy and lead to the revival of MSMEs.”
PM pointed out that a MSME
with 10 workers, will only incur an additional P330 in daily wage costs or
P8,580 in monthly labor expenses which translates to a mere 0.3% of its P3
million asset size. “This will definitely not bankrupt an MSME. But a lack of
market because of low consumption will kill an MSME. A wage hike will create a
virtuous cycle in the economy. Capitalists simply do not want to share the
profit they have accumulated through the decade and a half of sustained
economic growth,” Magtubo expounded.
May 18, 2022
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