“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

Labor group to ECOP: You also need to feel how bad life is for ordinary workers

 

We can try to understand how employers feel about the pending wage hike proposals in Congress. But their permanent opposition to any proposal since time immemorial speaks volumes about their regard for the lives of ordinary workers in our country.

 

We see them constantly opposed to any wage hike proposal at the level of regional wage boards since 1989, and against the legislated wage proposals since 1999.

 

In other words, they will cry wolf against any wage proposal, but neglect to mention how workers suffered a life of poverty. They won’t tell us that GDP and labor productivity more than doubled during the last three decades, but real wages of workers remained flat.

 

In fact, even as they up the hype of apocalyptic death of local industry and el niño of foreign investors, the fact remains that minimum wages all over the country fall under the national poverty threshold of P13,797 per month for a family of five. The same is true when economic managers assure everyone that GDP will remain within the 6% trajectory. That won’t change the fact that after 35 years under the regional wage boards, guided by thousands of pages of Philippine Development Plans, more than 20% of our population remains poor, or close to half, according to the latest SWS survey on self-rated poverty.

 

The problem is that employers don’t feel this way as they always view wage hikes, union rights, and equitable distribution of wealth as anti-business. But we don’t require them to have a change of heart, in the same way workers won’t stop asking for fair share in the social wealth they have been creating for centuries. 

 

Why then is legislative action necessary for wage hikes? Simply put, the regionalization of wages under RA6727 was an epic failure. The highest wage rates, 35 years after, still fall short of meeting the poverty threshold. Moreover, regional wage policies have not succeeded in attracting investments to the country's poorer regions, despite being one of the law's intended objectives. There is also a low level of investment despite this low wage regime incentives.

 

We understand ECOP's emphasis on micro-enterprises as a central argument against wage hikes. However, framing the issue as a choice between inflation, unemployment, and small businesses overlooks the broader benefits of ensuring workers receive fair compensation. We maintain that our call for legislated wage hikes is not intended to harm small businesses; rather, we believe that the positive ripple effects of higher take-home pay extend further than keeping wages at starvation levels.

27 February 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

NCR workers suffered P88 wage cut as of January

Photo from ABS-CBN

 

The labor group Partido Manggagawa (PM) stated that P88 has been eroded from the P570 minimum wage in Metro Manila as a result of the continuous rise in prices. “We call for a new round of wage hikes to recover the lost purchasing power of workers not just in Metro Manila but in the whole country due to the surge in inflation. We call on Congress to legislate a P100 across-the-board salary increase for all workers as relief from the shock of rising prices,” declared Rene Magtubo, PM national chair and a city councilor of Marikina.

 

Inflation in January 2023 reached 8.7%, slightly higher than the 8.1% in December. The December inflation figure was the highest recorded since December 2008, which was in the context of the onset of the global financial crisis. Notably, inflation is higher in areas outside Metro Manila. The consumer price index for January 2023 in Metro Manila was 118.2 while areas outside it was 122.3 according to statistical tables released today by the Philippine Statistics Authority (PSA). PM’s demand for a wage hike is based on a computation by the group using the PSA data.

 

“The P570 minimum wage in NCR is actually just worth P482 by December 2022. P88 has been shaved off the real value of the minimum wage. Meaning, not only has the P33 minimum wage hike in June 2022 been effectively wiped out by runaway inflation, workers’ real wages have pushed back even further,” Magtubo explained.

 

He insisted that “Thus, we reiterate the call we made in May 2022—before the recent round of minimum wage hikes in June 2022 by different regional wage boards—for a P100 wage increase. This should be for all workers, not just those at the minimum salary level, since all have suffered from wage erosion.”

 

The group clarified that the wage hike demand is merely wage recovery. “We are not yet even talking of workers claiming a just share in the fruits of their labor. From 2001 to 2016, real wages stagnated but labor productivity increased by 50% and the GDP doubled,” Magtubo maintained.

 

“Of course, employers will again create horror scenarios of closures and bankruptcy against the workers' demand for a wage hike. They will cry that they are suffering from the economic crisis even though they monopolized the gains of the decade and half-long business boom. Not only does the government owe workers due to unabated inflation but also employers are obligated to share the wealth created by the labor of the working class,” Magtubo expounded. 

February 7, 2023

Partido Manggagawa

P81 have been shaved off the P570 minimum wage in NCR due to December inflation

Photo from Inquirer.net

The labor group Partido Manggagawa (PM) stated that P81 has been eroded from the P570 minimum wage in Metro Manila as a result of the continuous rise in prices. “We call for a new round of wage hikes to recover the lost purchasing power of workers not just in Metro Manila but in the whole country due to the surge in inflation. We call on Congress to legislate a P100 across-the-board salary increase for all workers as relief from the shock of rising prices,” declared Rene Magtubo, PM national chair and a city councilor of Marikina.

 

Inflation in December 2022 reached 8.1%, slightly higher than the 8.0% in November. The December inflation figure was the highest recorded since December 2008, which was in the context of the onset of the global financial crisis. Notably, inflation is higher in areas outside Metro Manila. The consumer price index for December 2022 in Metro Manila was 116.6 while areas outside it was 120.1 according to statistical tables released today by the Philippine Statistics Authority (PSA). PM’s demand for a wage hike is based on a computation by the group using the PSA data.

 

“The P570 minimum wage in NCR is actually just worth P489 by December 2022. P81 has been shaved off the real value of the minimum wage. Meaning, not only has the P33 minimum wage hike in June 2022 been effectively wiped out by runaway inflation, workers’ real wages have pushed back even further,” Magtubo explained.

 

He insisted that “Thus, we reiterate the call we made in May 2022—before the recent round of minimum wage hikes in June 2022 by different regional wage boards—for a P100 wage increase. This should be for all workers, not just those at the minimum salary level, since all have suffered from wage erosion.”

 

The group clarified that the wage hike demand is merely wage recovery. “We are not yet even talking of workers claiming a just share in the fruits of their labor. From 2001 to 2016, real wages stagnated but labor productivity increased by 50% and the GDP doubled,” Magtubo maintained.

 

“Of course, employers will again create horror scenarios of closures and bankruptcy against the workers' demand for a wage hike. They will cry that they are suffering from the economic crisis even though they monopolized the gains of the decade and half-long business boom. Not only does the government owe workers due to unabated inflation but also employers are obligated to share the wealth created by the labor of the working class,” Magtubo expounded.

January 5, 2023

Partido Manggagawa

Fight against inequality is continuation of Bonifacio’s struggle—Partido Manggagawa

The labor group Partido Manggagawa (PM) called on workers to fight inequality as the continuation of the struggle of Andres Bonifacio. On the occasion of this year’s commemoration of Bonifacio Day, thousands of workers from different labor groups are coming together to a big rally at Mendiola.

Members of PM are joining the major mobilizations in the cities of Manila, Cebu, Bacolod and Davao. Chapters of PM and groups Aguila, National Federation of Labor, Pwersa and Kilos Maralita from Metro Manila, Calabarzon and Central Luzon are gathering at Blumentritt along Espana at 9 am. The groups will then link up with the Nagkaisa labor coalition march from Welcome Rotonda to Mendiola where they will hold a program up to noon.

Yesterday PM unveiled what it called “Panalo ang Pinas” and “Laban ng Pinoys” medals to express its message of fighting social inequality amidst economic growth. Scores of PM members trooped to Liwasang Bonifacio yesterday wearing symbolic medals that parodied the issues facing workers such as rampant contractualization and low wages, and the people such as government corruption and rice importation.

“For the last decade, the economy has doubled but real wages have remained stagnant. This means workers have not shared in the wealth that labor has produced and instead capitalists have monopolized it. If Bonifacio were alive today, he will be leading a new revolution against worsening inequality,” stated Judy Ann Miranda, PM Secretary General.

She added that “Endo and regional wages are among the key instruments by which government in collaboration with capitalists have kept workers from partaking in the fruits of their labor. Thus the campaign of workers to end endo and abolish regional wages are major struggles of the labor movement at present.”

PM is also condemning the repression of labor strikes that are breaking out as contractual workers demand regularization. The group also denounced the government for the slow action in resolving the killing of union organizer Dennis Sequena last June. The group reiterated its demand that the government allow the International Labor Organization to conduct a High Level Mission to probe the killings of labor activists and the suppression of freedom of association and collective bargaining. ###

Photos of the activity yesterday can be accessed at https://www.facebook.com/partidomanggagawa/posts/10157637737124323?__xts__[0]=68.ARAn6-GMxwARR7qpY1oScEC3ekZbxGpX5IrLSegz0XHYB2CyraT4YSP0hKOdWPClp--TcQdtTe9raovNypx2qx7grv30G_34JfRBD7g1ITPn3sid-1Of2C9XtjX4j7NPaka9Q1sNY0K2IevrDpR52FOSp_KSmyXD6vyUAmc8sj5Ln9VNgKBwAPrfJTsUlaZQxNQXj0iRfmLveuLuSldbgAnCbdxLPZtAGI3p7zuxbNAootVv7Xh2haUKlXTcX61sB8NHDZyMll5x_PjUMnczvMSsTKUyNy40AG4rhJ6RD36eZFwD_qIgTEhDHEK1GWrK-qRaoeappLTVtV7fK7Wq&__tn__=-R   

November 30, 2019

Wealth of PH 1% can feed entire nation – Partido Manggagawa

PRESS RELEASE

23 January 2015

 

Their number can hardly fill up a bus but the combined wealth of the country’s richest families can easily feed the entire nation.

 

This reality, the Partido Manggagawa (PM) said, can help explain the unreturned query of Glyzelle Palomar to Pope Francis on why only few people come to their help.

 

PM said Glyzelle was definitely not referring to the country’s 1% as the few good Samaritans but to the few likely neighbors that occasionally come to their aid. 

 

“Now it can be explained to Glyzelle that with just half of their estimated wealth of $74 billion (Php 3.2 trillion) in 2014, the country’s Richest 50[1] can actually provide 17 to 24 million families the basic minimum requirements of daily living for one year,” explained PM spokesman Wilson Fortaleza.

 

There are about 12 million Filipino families who consider themselves poor based on the latest survey by the Social Weather Station (SWS).  Government statistics, however, put the number of families in extreme poverty to only 4.2 million in 2012.[2]

 

The same report points out that in 2012, a Filipino family of five needed Php 7,890 to meet its basic food and non-food requirements every month.  For food alone it needs Php 5,513. 

 

Based on these estimates, a family of five needs at least Php 94,680 in one year to keep themselves above the poverty threshold or Php 66,156 to beat the food threshold. 

 

Fortaleza expounded that assuming the richest 50 gave up only half of their wealth which is equivalent to Php 1.6 trillion out of compassion for the poor, that can easily translate to 17 million families surviving poverty in one year or 24 million families surviving the food threshold. 

 

With an average size of 4.6 members, the Philippines has about 22 million families.

 

The labor group explained further that the combined wealth of the richest 50 is equivalent to five years salary for about 5 million minimum wage earners in the National Capital Region. 

 

But Fortaleza was quick to point out that this kind of scenario will never work out since in reality, it is the super rich that feeds on the hard labor and meagre income of poor Filipinos. 

 

The Forbes’ list of Philippines richest 50 showed families in oligopolistic control of the country’s vital industries such as power, water, telecommunications and transportation, banking and finance, farmlands and real estates, construction, highways, mining, hotels and restaurants, media and entertainment, and even in services like schools and hospitals.

 

Fortaleza pointed out that common issues against the capitalist owners of these industries include labor contractualization; high cost of their products and services; organized fraud with their capture of regulatory agencies; and their control of political power through sponsorship of political parties to actual bribery.

 

PM came up with its own assumptions also to echo Oxfam’s analysis that the richest 1% is gaining control of more than half of the world’s wealth by 2016.  The latter released its report on the eve of the World Economic Forum in Davos, Switzerland where world leaders talk mainly about business and other global concerns.

 

Fortaleza said that similarly, the richest 50 in the Philippines is getting a bigger slice (almost a third) of country’s gross domestic product as their wealth increased by 428%, from $14 billion in 2008 to $74 billion in 2014.   

 

The Philippine GDP, according to the World Bank, was estimated to value $272 billion in 2013. ###

---

[1] www.forbes.com/philippines

[2] NSCB - Despite rise in the number of families, extreme poverty among families remains steady at 1.6 million in 2012—NSCB 

Zero is PNoy’s legacy to workers—labor group

Press Release

May 1, 2014

With two years to go into the administration, the Partido ng Manggagawa (PM) slammed President Benigno Aquino for the lack of a labor legacy. “For the last four Labor Day commemorations, workers have received nothing or zero from PNoy. Just like this Labor Day, workers will get no wage increase, not even non-wage benefits from government,” asserted Renato Magtubo, PM national chair.

“Even the job fairs that the Department of Labor and Employment is holding today are a labor legacy of Gloria Arroyo, not an original gimmick by PNoy. Of over 100,00 vacancies available at the job fairs, most are work formerly occupied by contractual workers who have become endo (end of contract),” Magtubo argued.

PM is participating in the 30,000-strong mobilization organized by the broad labor coalition Nagkaisa which unites more than 40 labor centers, federations and organizations in the country. After assembling all along the length of Espana, Manila, Nagkaisa will march to Mendiola for organized labor’s commemoration of May Day.

Magtubo said that “Without a labor legacy, PNoy’s tuwid na daan is a meaningless journey for workers and the poor. Just to cite yesterday’s dialogue with labor leaders, PNoy did not provide anything concrete except the promise to continue talking. In other words, PNoy made no commitments to the demands for tax breaks, lower electricity rates and the security of tenure bill despite being items on the table for the past two years since Labor Day of 2012.”

PM is lambasting the Aquino administration for the worsening inequality in the country despite consistent economic growth as measured in GDP increase. “While the administration pays lip service to inclusive growth, unemployment and underemployment remains unchanged because of cheap labor policy, regulations allowing rampant contractualization, labor repression, and the preference to foreign investments and public-private partnership,” Magtubo explained.

PM is calling for the establishment of an agro-industrial policy that will strengthen local agriculture and industry as the basis for the robust growth of decent jobs that will provide regular work and living wages. “Workers demand for an agro-industrial policy has fallen on deaf ears since administration finance and economic officials argue dogmatically that the state’s only economic role is to encourage workers and the poor to become micro entrepreneurs. This despite the fact that the failure rate of SME’s is more than 90%,” Magtubo ended.