The President’s address contained many technical
reports, but it failed to meaningfully address the pressing concerns of
workers, such as wages, wage reform, jobs, and other labor issues—even as
President Marcos acknowledged that workers and the middle class should not be
forgotten.
The proposed expansion of tax exemptions may benefit
above-minimum wage earners, but it provides no relief to minimum wage workers
and those earning even less, who have long been exempt from income tax.
On the issue of corruption, the President reduced it
to his personal grievance and the sacrifice involved in pursuing charges
against Martin Romualdez. However, his speech fell short of proposing systemic
reforms such as an anti-political dynasty law and electoral reforms.
On lowering electricity prices, removing the systems
loss charge and the VAT on it will have only a minimal impact on consumers’
bills because these account for only a small portion of total electricity
costs. The 12% VAT on generation, transmission, and distribution charges
remains in place. Likewise, the persistence of monopolies in the power sector
and the country’s continued dependence on imported fossil fuels for energy
security remain the fundamental drivers of high electricity prices.
While the government’s endorsement of the US-led Pax
Silica initiative is expected to generate high-quality jobs, the President made
no mention of its potential implications for the country’s electricity and
water security, nor of the risks it poses to the existing jobs of Filipino
workers in the platform economy.
Press Statement
Partido Manggagawa
27 July 2026
