The Nagkaisa Labor Coalition strongly refutes
the preposterous and misleading argument put forth by certain business groups
that only a minority will benefit from the proposed legislative wage increase
and as a result, raising wages will send 50 million workers begging for ayuda.
The business groups recently claimed that
increasing wages would only benefit a small percentage of the total workforce,
stating that approximately 16 percent or about eight million workers in the
formal sector out of the total 50 million Filipino workers would be eligible
for the wage hike.
This line of argument tries to draw a trade-off
between workers in the formal and informal sector to diffuse employers’ direct
accountability to their workers, hoping that by painting this ‘little-to-no
effect’ and hyperinflation scenario, lawmakers would reconsider passing a
legislated wage measure.
We contend that the miserable state of the 50
million workers or more, which is a bigger agenda than a wage hike, is not for
the workers to solve but for the government and the capitalist class which
failed to address problems of chronic poverty and inequality in the country for
decades.
And certainly, keeping minimum wages at
starvation level perpetuates the problem, thus, telling minimum wage workers to
sacrifice further on behalf of their poorer brothers and sisters in the working
class does not solve anything except the comfort of businesses to keep their
profit margins when wages are kept at bare minimum.
The employers' arguments fail to consider the
broader economic effects and undermine the crucial role of fair wages in
driving sustainable growth. Contrary to their claims, raising wages will have a
significant positive impact on the economy and the majority of Filipino
workers.
It is vital to recognize that the well-being of
workers and economic growth are interconnected. By ensuring fair wages for a
significant portion of the workforce, we can create a positive ripple effect
that stimulates economic activity, increases consumer spending power, and
fosters social progress. The 16 percent of workers who will experience
increased wages will contribute to a healthier economic climate, benefiting
businesses and workers alike.
In addition, the economic benefits of wage
increase can help address the persistent issue of malnutrition in the
Philippines. UNICEF data reveals the severity of malnutrition in the country,
with devastating consequences for the future of Filipino children. Every day,
95 children die from malnutrition, and twenty-seven out of 1,000 Filipino
children do not get past their fifth birthday. Shockingly, one-third of
Filipino children are stunted, meaning they are short for their age. Stunting
after the age of 2 can have permanent, irreversible, and even fatal effects.
Needless to say, malnutrition is the culprit behind the country’s dismal
below-average IQ ranking of the Philippines in the World Population Review 2023
(WPR).
These distressing statistics underscore the urgent need for action. A
significant wage increase plays a crucial role in combating malnutrition by
enabling families to afford nutritious food, access healthcare, and provide a
better quality of life for their children. By addressing the root causes of
malnutrition through improved wages, we can protect the future generation of
Filipinos from the devastating effects of undernutrition.
We maintain that the first key advantage of higher wages is that workers have
more money at their disposal. With increased purchasing power, workers are
empowered to spend on essential goods and services, thereby driving consumer
demand. This heightened consumer spending not only benefits businesses directly
but also stimulates overall economic activity, contributing to a positive
economic cycle.
Secondly, higher wages can foster employee loyalty and motivation. When workers
are fairly compensated for their efforts, they feel valued and are more likely
to be engaged and productive in their roles. This improved productivity can
enhance business efficiency and output, further bolstering economic growth.
Likewise, a workforce with higher wages projects stability and helps attract
investments. Investors are drawn to countries or regions where workers have
decent wages, as it signifies a stable and growing consumer base. Such
countries are viewed as favorable investment destinations due to the potential
for increased sales and profitability. By implementing higher wages, nations
can position themselves as attractive markets for both domestic and foreign
investment, spurring economic development and job creation.
Therefore, it is crucial for policymakers and businesses to recognize that
investing in workers through higher wages yields significant long-term
benefits. The positive effects cascade throughout the economy, generating a
multiplier effect that contributes to overall prosperity.
Nagkaisa Labor Coalition
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