Minimum wage earners are poor according to PSA “fact reveal”

 

Photo from Rappler

The latest poverty statistics released by the Philippine Statistics Authority (PSA) last week show that families with a minimum wage earner as a breadwinner live below the poverty line. “PSA’s ‘fact reveal’ exposes the sad truth that minimum wage earners are working poor as their families survive below the poverty threshold which is unrealistically low. Thus, the urgency of a PhP 150 legislated across-the-board wage hike for all workers,” stated PM national chair and a Marikina city councilor.

 

“The minimum wage is highest in Metro Manila, where the wage board has already granted an adjustment last month. Yet the monthly income of a minimum wage earner in NCR is just PhP 14,190 (P645 x 22 working days). This falls below the PhP 15,713 poverty threshold in Metro Manila, according to the PSA,” Magtubo explained.

 

He added that the same working poor scenario exists for minimum wage earners in highly industrialized areas like Calabarzon, Central Luzon and Cebu. “The ‘minimum wage-poverty threshold gap’ is worse for workers in Calabarzon, Central Luzon and Cebu where no salary adjustment has been granted yet by the inutile wage boards. In Calabarzon the monthly minimum wage is PhP 11,440 but the poverty threshold is PhP 15,457. In Central Luzon the wage is PhP 11,000 but the threshold is PhP 16,046. Finally, in Cebu the monthly minimum wage is PhP 10,296 while the poverty threshold is PhP 14,397. The minimum wage-poverty threshold deficit ranges from PhP 4,000 to 5,000 in a month for these industrialized areas where minimum wages are higher than the rest of the country, except Metro Manila,” Magtubo elaborated.

 

He called for a legislated across-the-board wage hike of P150 to recover the lost purchasing power of workers nationwide. PM is calling on Congress to act on the demand for a salary increase.

 

Magtubo added that “It is a scandal that the minimum wage—which is a floor supposed to protect workers and their families—fails to rise above the poverty threshold. And this holds not just for Metro Manila but for all regions. We are a nation of working poor. Sa kabila ng sipag at tyaga ng mga manggagawa, nanatiling mahirap ang kanilang mga pamilya.”

 

“Further, we can question the accuracy of the poverty threshold estimates. Suffice it to say that even Sec. Balisacan found it difficult to defend the P64 food poverty threshold and stated that it needs revision. This admission from officials is good to hear but action from government is what the working poor need,” Magtubo averred.

August 19, 2024

“Gutom Na Pilipino” (GNP) persists despite economic growth

Photo from UCA News

“The phenomenon of Filipinos going hungry persists despite 30 years of economic growth. Sa mga komunidad, madami ang gutom na Pilipino o GNP. This is the GNP that we see is increasing,” according to Judy Miranda, secretary general of the group Partido Manggagawa (PM). This was PM ‘s reaction to the statement yesterday of Finance Undersecretary Domini Velasquez that poverty will be reduced to single digits by 2028.

 

Miranda asserted that “The government is able to brag about a low poverty incidence because it uses a depressed poverty threshold. Even Economic Planning Secretary Arsenio Balisacan finds it difficult to defend the low poverty line that he promises a review of the unrealistic basket of goods used.”

 

“We ask Undersecretary Velasquez, what are the planned government interventions so that poverty is reduced to below 10% by the end of President Bongbong Marcos, Jr.’s administration? If this forecast is merely based on continued economic growth, this prediction is misguided as it assumes that everyone benefits from a rise in gross national product. GNP increases just means more gutom na Pilipino. Trickle-down economics is a scam. Di na magpapabudol ang manggagawa sa trickle-down.” Miranda explained.

 

She added that “Workers have certainly not benefited from the robust economic growth or GNP increases. Data provided by former Finance Undersecretary Karl Chua already revealed that the economy doubled from 2001 to 2016 and labor productivity increased by half yet real wages remained flat. Meaning, the size of the economic pie expanded but the slice taken by workers stayed the same. The capital-labor share of incomes is skewed against the working class.”

 

PM avers that Filipinos will not feel the predicted poverty reduction unless that are asset redistribution programs, targeted income transfers, and expansion of public services. “We reiterate our demand for a P150 legislated across-the-board salary increase, maternity benefits for informal women equivalent to 44 days of minimum wage, and provision of public laundromats in poor communities. These are concrete examples of actions that can reduce poverty, especially for women,” Miranda concluded.

August 18, 2024

Minimum wage earner families are food poor—Partido Manggagawa

Photo from Panay News

The P64 food poverty threshold means that families with a minimum wage earner as breadwinner are food poor. This is the reaction of the labor group Partido Manggagawa (PM) to NEDA Secretary Arsenio Balisacan’s statement on the latest poverty threshold estimates. Tomorrow, the Philippine Statistics Authority (PSA) is set to hold a presscon to announce the results of the poverty survey for the full year of 2023.

 

“Basing on the publicly available PSA data, the first semester 2023 poverty threshold for Metro Manila is P18,704, of which P13,061 is the allocation for food. The minimum wage for Metro Manila, which was increased last month, is just P645 per day or P16,770 for one month. Thus, the income of a family of five with a minimum wage earner as breadwinner falls well below the poverty line and is food poor,” explained Rene Magtubo, PM national chair and a Marikina city councilor.

 

He called for a legislated across-the-board wage hike of P150 to recover the lost purchasing power of workers nationwide. PM is calling on Congress to act on the demand for a salary increase.

 

The P13,061 poverty food threshold for Metro Manila in the first semester of 2023 implies that a person needs more than P87 per day to be considered not poor. This is above the P64 mentioned by Sec. Balisacan which refers to the national average for the full year of 2023. Magtubo declared that “The P64 food poverty threshold is well above NCR’s food poverty threshold since the cost of living is higher in the capital. But despite the higher minimum wage in Metro Manila that is still not enough to sustain a family. Therefore, workers deserve a wage hike.”

 

He added that “It is a scandal that the minimum wage—which is a floor supposed to protect workers and their families—fails to rise above the poverty threshold. And this holds not just for Metro Manila but for all regions. We are a nation of working poor. Sa kabila ng sipag at tyaga ng mga manggagawa, nanatiling mahirap ang kanilang mga pamilya.”

 

“Further, we can question the accuracy of the poverty threshold estimates. Suffice it to say that even Sec. Balisacan found it difficult to defend the P64 food poverty threshold and stated that it needs revision. This admission from officials is good to hear but action from government is what the working poor need,” Magtubo averred.

August 14, 2024

Economic managers moonlighting as employers’ spokespersons—labor group

 

The labor group Partido Manggagawa (PM) slammed National Economic and Development Authority (NEDA) Secretary Arsenio Balisacan and Finance Secretary Benjamin Diokno for “moonlighting as employers’ spokespersons” with their doomsday predictions about a P150 legislated wage hike is approved by Congress.

 

“Employers Confederation of the Philippines President Sergio R. Ortiz-Luis, Jr. also warned of job losses, price hikes and economic slowdown if wages are raised. Government’s economic managers and employers’ representatives are both painting the same apocalyptic scenarios without any substantiation,” stated Rene Magtubo, PM spokesperson and Marikina City councilor.

 

He added that “Our own economic modelling shows that salary increases will have an insignificant impact on both employment and inflation contrary to Balisacan and Diokno’s claims. Empirical studies for other countries also show similar results.”

 

PM cited that Indonesia, which is similarly situated as the Philippines as a middle-income country with a large informal economy, raised wages by some 50% in 2011 and 2012 without negative effects on prices, employment and GDP. In comparison, a P150 wage hike redounds to just a 25% boost in the minimum wage in Metro Manila.

 

“Raising wages improves living standards and has a secondary effect of increasing worker motivation and morale and thus labor productivity. Further, salary hikes in the formal sector also increases incomes in the informal economy through the so-called lighthouse effect. That is, the rise in formal sector wages signal to the rest of economic actors what a socially acceptable income should be. Finally, Balisacan’s own NEDA admits that GDP growth in the Philippines is primarily driven by household consumption and thus increasing the purchasing power of workers will have a positive effect on the economy,” Magtubo explained.

 

He furthered that “Balisacan and Diokno conveniently forget that government’s own data confirm that from 2001 to 2016, real wages were stagnant but labor productivity grew by 50% while GDP doubled. In other words, the economic pie expanded but the slice given to workers remained the same and employers monopolized all the growth. Why are they silent on this?”

 

PM contended that the P150 legislated wage hike seeks mainly to recover the lost value of workers’ wages and not yet to partake of the increased labor productivity. “Even a P150 will not raise workers’ wages to the level of a living wage, which today stands at around P1,300 per day and increasing due to unabated inflation,” Magtubo insisted.

Press Release

August 17, 2023

NEDA rep in NCR wage board asked to inhibit on P100 petition

  

The workers group Kapatiran ng mga Unyon at Samahang Manggagawa (Kapatiran) called on the representative of the National Economic and Development Authority (NEDA) in the National Capital Region (NCR) to inhibit from the deliberations on the P100 wage hike petition.

 

Last December 5, 2022, Kapatiran filed for a P100 increase in the NCR minimum wage which is currently pegged at P570. Today, two Kapatiran leaders submitted a formal letter to the NCR wage board to follow up on its petition.

 

“NEDA Director General Arsenio Balisacan has already pre-judged the wage hike petition by his declaration that a salary increase is detrimental to the economy. The NEDA NCR Director who is vice chair of the NCR regional wage board cannot be expected to be impartial on the P100 wage hike petition given the very public opposition by his or her boss,” explained Rey Almendras, president of both Kapatiran and the Philip Morris Fortune Tobacco Labor Union.

 

“Aside from the NEDA rep inhibiting himself or herself, we also call on the NCR wage hike to immediately hold hearings on the wage petition in light of runaway inflation. NEDA is noisy about a wage hike hurting the ‘economy’ but is silent on the harm inflation is inflicting on workers and their families. The Bangko Sentral itself has predicted that inflation for February will breach 9%. The P570 minimum is only worth P482 as of January 2023. Today, it is worth even less. Balisacan should remember that NEDA in 2018 admitted that the cost of living was already P42,000 in a month,” Almendras elaborated.

 

Balisacan insisted the other day that a government mandated salary hike is harmful to the economy and argued that wages should only rise through voluntary action by employers as labor productivity increases.

 

Almendras countered that Balisacan’s argument is fake news. “From 2001 to 2016, real wages stagnated while labor productivity increased by 50% and the economy grew by 100%. This information comes from the Department of Finance. Facts do not stand up to the myth peddled by Balisacan. In truth, a wage hike will harm employers but not the economy,” he insisted.

 

“Capitalists are profit-maximizing actors. They will not automatically adjust wages in line with productivity. Instead capitalists will always seek to accelerate their returns unless forced by trade unionism and collective bargaining or state mandated wage orders to share part of their profit to workers who created the wealth in the first place. Even a neutral entity like the International Labour Organization understands this elementary truth,” Almendras declared.

Rey Almendras

Kapatiran ng mga Unyon at Samahang Manggagawa

March 3, 2023