PHP 50/day minimum wage increase is a drop in the bucket

 

Image from ABS-CBN

Five P10 coins may be the biggest alms that the NCR wage board ever gave workers, but it is still barya (small change). The PHP 50/day minimum wage increase, bringing the new minimum wage to PHP 695, is woefully inadequate in addressing the skyrocketing cost of living in Metro Manila. With a daily living wage of over PHP 1,200 for a family of five, this increase barely makes a dent in the poverty faced by workers.

 

Working poor despite wage hike

 

The new minimum wage of PHP 695 translates to a monthly salary of PHP 15,290 (based on 22 working days). However, this is still below the regional poverty threshold of PHP 15,713 as of 2023. Given the rising cost of living, the poverty threshold is likely even higher now, making workers in Metro Manila even poorer.

 

Call to action

 

The labor movement recognizes that the current wage system perpetuates cheap wages. That's why we're fighting for real change through a legislated wage increase of PHP 200 in the upcoming 20th Congress. We urge all workers to unite and join the fight for a legislated wage hike that will genuinely improve our standard of living. Together, we can demand a fair wage that allows us to live with dignity. 

Season of discontent as unions file notices of strike over CBA deadlocks

 

An increasing number of unions are filing notices of strike over deadlocks with management over negotiations for a collective bargaining agreement (CBA). “This is a season of discontent as workers fight for increases in wages and benefits against companies which are acting like Scrooges. The recent wage orders in different regions do not impact unionized workers who earn more than the minimum wage,” stated Judy Miranda, secretary general of Partido Manggagawa (PM).

 

A case in point is Union Motor Corporation in Otis, Manila, a dealer of Mitsubishi cars. The union filed a notice of strike over deadlock in CBA talks last November 12. Union members also voted overwhelmingly in favor of a strike on November 22. Cyrus Salamon, president of the Union Motor Sales Corporation Employees Association, explained that “Since November 28, we are negotiating with management under the auspices of the National Conciliation and Mediation Board. Management has finally offered a counter proposal, so we are hopeful for an agreement that is acceptable to union members. Still, the notice of strike remains as we continue to fight for our just demands.”

 

Miranda bared that aside from Union Motor, the faculty union of a big university in the Visayas also has a pending notice of strike due to a CBA deadlock. She added that the dispute at the logistic company J&T Express was also on the brink of a strike but was recently averted through a timely agreement. “Last month, the provincial bus company Mark Eve’s Transport was hit by a strike over refusal of management to bargain with the union. The strike ended with management’s recognition of the union and an offer for the CBA. All these disputes reveal seething labor unrest over employers’ refusal to share with their workers the fruits of production,” Miranda elaborated.

 

Salamon clarified that the union is asking for improvements in the salary, rice subsidy, retirement pay and signing bonus. “Our demands are realistic and based upon the company’s financial capability,” he insisted.

 

Miranda said that a union and management of a tobacco factory is also having CBA talks and while talks have not reached a deadlock, the two sides are still far apart in terms of the union proposal and management counterproposal. “Again, economic demands by workers for improved wages and benefits mirror the difficulties faced by workers due to the high cost of living. Capitalists can easily afford these worker demands as labor productivity has increased by more than 50% over the last two decades while real wages have remained stagnant. In other words, the economic pie has become bigger, but the slice received by workers has remained the same,” she expounded.

 

PM and the Nagkaisa labor coalition are pushing for a P150 legislated wage hike as one pathway for workers to recover the lost purchasing power of their salaries. This was one of the main demands in the recent Bonifacio Day mobilizations across the country. 

All workers will benefit from a wage hike—Partido Manggagawa

 

Contrary to the claims of the Employers Confederation of the Philippines (ECOP) that only 10% of “formal workers” will benefit from the P100 wage hike bill pending at the Senate, the group Partido Manggagawa (PM) asserted that all workers, formal and informal, will gain whether directly or indirectly.

 

“Minimum wage earners will get the P100 wage hike in full. Other workers in the formal sector will gain a portion of P100 through what is called wage distortion—wages above the minimum will have to be adjusted since the floor was raised. And workers in the informal economy will also benefit since formal workers with more purchasing power will patronize their products and services. It is ordinary wage earners—not rich professionals or capitalists—who buy from street vendors, eat in carinderias, ride jeepneys and tricycles, and purchase farmers’ and fishers’ produce in wet markets. In fact, formal and informal workers live together as one family so how can they not enjoy the wage hike?,” explained Rene Magtubo, PM national chair and a Marikina City councilor.

 

He lambasted Sergio Ortiz-Luis of ECOP “for feigning concern for workers when in truth he just doesn’t want profits reduced through a wage hike.”

 

“Ortiz-Luis is peddling fake news. Let us be evidence-based with the numbers. The latest Labor Force Survey shows that 49.2%, about half, of the total 50.5 million labor force, are 24.8 million workers employed in private firms. Of which, one fifth or 4.1 million are minimum wage earners. Another 13.8 million workers, about a quarter or 27.4% of the labor force, are self-employed with no employees. Majority of them are informal workers like street vendors and tricycle drivers while a minority are middle-class professionals like doctors and lawyers. Therefore, three quarters of the labor force or more than 30 million workers stand to benefit from a wage hike. Ortiz-Luis is being disingenuous as he is actually defending the interests of the one million employers or 2% of the labor force,” Magtubo expounded.

 

He added that “In fact, even employers will in the end take advantage of a wage hike as aggregate demand in the economy will rise. Workers’ wages are entirely consumed to buy their families’ necessities, unlike capitalists who hoard part of their profits as savings or use it to obtain luxuries from abroad. This is what happened for the past two years: the economy prospered, and inflation and unemployment went on a decline after two successive minimum wage hikes in all regions, except Davao Region in 2023. Wage hikes are good, not bad, for the economy and all workers.” 

February 18, 2024

P100 wage hike will be a blessing not catastrophe

 

The labor group Partido Manggagawa (PM) countered employers’ doomsday scenarios for the economy once a legislated wage hike is passed. “A P100 wage hike will be a blessing not a catastrophe for the economy. For the past two years, minimum wages were raised in all regions, except BARMM for this round, and yet inflation and unemployment went on a decline. The economy benefited and did not suffer from salary increases,” argued Rene Magtubo, PM national chair.

 

The group welcomes the proposed P100 increase in minimum wages nationwide which the Senate will deliberate on third reading on Monday. “We would have wanted it to be higher and across-the-board but still an additional P100 in workers’ pockets will be an immediate relief as the cost of living is around P1,200 a day,” Magtubo stated.

 

PM is calling on the House of Representatives Labor Committee to deliberate on the pending wage bills. “As surveys have repeatedly shown, Filipinos want solutions to high prices and low wages, not amendments to the Constitution. Let’s get to work,” Magtubo demanded.

 

He added that “ECOP head Sergio Ortiz-Luis is singing an old tune. They cried the same dire predictions in 2022 and again in 2023 when organized labor demanded wage hikes. Inflation in 2022 was 5.8% but now it is down to 2.8%. Similarly, unemployment has decreased from 5.4% in 2022 to 3.1% as of December last year.”

 

“In Metro Manila, the minimum wage hike in 2022 and 2023 was P33 and P40, respectively, or P73 in total. Firms did not shutter and MSMEs did not go under. Where is the catastrophe? On the contrary, the economy has gained from wage hikes as the increased purchasing power meant greater demand and bigger production for firms in industry and services,” Magtubo explained.

 

He continued that “As theory and studies show, a moderate salary raise need not lead to inflation or retrenchment as employers can just absorb the higher labor costs by reducing their profit. So, we call on Sergio Ortiz-Luis, share the wealth with the workers who created it in the first place.” 

February 16, 2024

 

Workers in Cebu demand jeepney franchise extension, P150 wage hike in year-end rally

 

In a year-end action today, a delegation of workers and students rallied at the SSS Building along Osmena Boulevard in Cebu City to demand a one-year extension of individual jeepney franchises extension and the passage of the bill for a P150 wage hike.

 

“At the stroke of midnight today, 148,000 will lose their livelihoods. This is conservatively estimated as one operator and one driver for the 74,000 jeepneys units which have not been consolidated either into cooperatives or corporations, according to the Land Transportation and Franchising and Regulatory Board. This is a significant number, comprising an additional 7% to the 2,090,000 officially unemployed Filipinos as of October 2023,” stated Dennis Derige, Partido Manggagawa (PM)-Cebu spokesperson.

 

Speakers at the rally included the president of the labor union at Lami Foods and a leader of the Guadalupe Women’s Collective. Members of the Cebu chapters of PM and SENTRO joined the picket.

 

Derige explained that “In 14 out of 17 regions, minimum wages were increased by PhP 30 to Php 40 in the second half of this year, bringing them to a high of Php 610 in Metro Manila to a low of PhP 368 in Zamboanga Peninsula. However, the equivalent real wages remain depressed. The PhP 33 hike in Central Visayas raised nominal wage to PhP 468 but the equivalent real wage is only PhP 397. That is, PhP 468 in 2023 can only buy the equivalent of PhP 397 in 2018, or a gap of PhP 71.”

 

He added that “The difference between nominal and real wages is a result of inflation over the years: wage hikes have not kept up with the rise in prices and so workers’ purchasing power has been depleted. The nominal versus real wage gap ranges from PhP 63 in Zamboanga Peninsula to PhP 108 in Central Luzon. Thus the necessity for Congress to plug the gap by enacting the bill for a PhP 150 salary increase.”

 

PM is calling for a just transition for jeepney operators and drivers in the implementation of the modernization program.

 

“The government claimed that 200,000 new jobs were created as a result of investment pledges accruing from the President’s trips abroad. Assuming this is true—the administration still needs to explain how they guessed these figures—it is almost matched by the number of traditional jeepney operators and drivers who will lose their livelihood as a result of the cancellation of their individual franchises. The President does not need a 58% hike in his travel budget to PhP 1.4 billion to generate new jobs, he just needs to extend the individual franchises so that existing livelihoods are preserved,” Derige insisted.

 

Photos and a video of the rally can be accessed here: https://www.facebook.com/partidomanggagawa/posts/pfbid0T7NQBtzk5mcHnHjCwrdawUnmXS7V9vvZgTco5wBqWuPPcznf2djmJS1trumeNfm9l and https://www.facebook.com/partidomanggagawa/videos/1567012827390462 

Press Release

December 31, 2023

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

P40 wage hike mirrors the state of poverty workers will continue to suffer under Marcos

The P40 increase in the NCR minimum wage ordered by the Regional Tripartite Wages and Productivity Board (RTWPB) mirrors the state of poverty workers endured exactly one year after and will continue to suffer under the Marcos Jr. administration. This wage growth, to say the least, neither can bring the poverty rate down to 9% by the end of his term nor lift the country up the upper middle-income status by next year as prophesied by his economic managers during his first State of the Nation Address (SONA).

 

Today’s real value of the adjusted P610 in daily minimum wage is only about P516.51 or even lower than the current nominal wage rate of P570. Also, the Department of Labor and Employment (DOLE) computation of P18,000 new monthly minimum wage for NCR workers was incorrect because it simply multiplied P610 by 30 days when in truth, private sector workers work only for 5 to 6 days per week or 22-26 days per month. That translates to a monthly take home pay of less than P13,420 for those in 5-day workweek and P15,860 for those in 6-day workweek after the mandatory deductions for social security.

 

To illustrate further, because the regional wage boards do not order another wage hike within a year after the last wage order, the total for one year from this P40 increase in daily wage at 5-day workweek would only amount to P10,560 (P40 x 22 days x 12 months). Again, this annual take from the P40 wage hike is even lower than the 2021 monthly poverty rate of P12,030 in NCR which by the way is far lower than the SWS ‘self-rated’ poverty of 40% of total families in the region.

 

Accordingly, the P40 wage hike didn’t even meet half of the P100 wage recovery petition of the Kapatiran ng mga Unyon at Samahang Manggagawa (Kapatiran) on the sole basis of soaring inflation. In short, this amount of increase can neither be considered as a sensible measure to address poverty and inequality as this, in any way, does not move wages closer to the social objective of providing our workers a living wage as well as fair share from their growing productivity as provided under the 1987 Constitution.

 

Malacañang and Congress, therefore, must share the duty of rectifying the mistake of relegating wage determination to the regional wage boards which places workers’ cost-of-living last among the many criteria they consider in determining wage orders.  This failure of RTWPBs to go beyond poverty wages now brings us to demand Congress to expedite the passage of the P150 across-the-board wage hike now pending before the two Houses. In addition, our policymakers should now consider repealing RA 6727 which created the RTWPBs and replacing it with a new national mechanism that is more responsive to the social objective of raising the workers standard of living.  

 

Another way for the government to ensure improvements in the living standard of workers is to allow them full freedom in exercising their rights to unionize and negotiate better benefits and working conditions with their employers. These rights, the government fully knows, are grossly undermined by existing security policies such as demonization and red-tagging of union activities by the NTF-ELCAC and on the economic side, the normalization of ‘endo’ and other labor contractualization schemes.

 

Absent fundamental reforms on these policy areas, the next five years under Marcos will just add another half-decade of misery for the Filipino workers.

30 June 2023

Make the happy bills happen now—labor group on legislated wage hike

Photo from Vera Files

The labor group Partido Manggagawa (PM) welcomed the announcement of Senate President Juan Miguel Zubiri that they will facilitate the passage of a legislated across-the-board P150 salary hike but also called on the House of Representatives to fast-track its counterpart bill.

 

“A P150 across-the-board wage hike is indeed a happy bill since it will uplift workers' lives and not just because it is a pet advocacy of legislators. Make the happy bills happen now!,” stated Rene Magtubo, PM national chair and a Marikina city councilor.

 

“We could not agree more with Senator Zubiri that private sector minimum wages have been eroded by inflation and are less than half the Constitutionally-mandated living wage. Thus, the imperative for immediate relief for workers through a legislated wage hike which Congress has the power to enact. Workers are suffering from starvation wages. Instead of a living wage, workers are paid a libing wage,” Magtubo explained.

 

Using the latest consumer price index data from the Philippine Statistics Authority, the group calculates that P88 has been eroded from the P570 minimum wages of Metro Manila workers as of the January inflation of 8.7%. Inflation in areas outside of the National Capital Region is even higher. However, the cost of living for a family of five is estimated by PM to be around P1,300 per day.

 

“The labor movement must link up arms to win war, that is to fight for a wage increase for wage recovery. The working class needs champions in and out of Congress but only unity and action of workers can defeat the resistance of employers to a wage hike,” Magtubo asserted.

 

PM also asked Senator Zubiri to consider the long-standing demand for the abolition of the regional wage boards which discriminate against workers outside Metro Manila. “Instead, we demand a National Wage Commission with the power to adjust wages on the basis of price increases and productivity growth. Even before the recent inflation, wages have stagnated amidst a decade and half of 50% rise in labor productivity. This means that employers have monopolized economic growth and workers have been left behind,” Magtubo elaborated.

 

He added that “Further, we are proposing a policy package called Apat na Dapat. First, wage hikes. Second, abolition of regressive taxes like VAT and application of progressive taxation such as a wealth tax on oligarchs and billionaires. Third, social security subsidies for informal workers. Fourth, discounts on basic commodities. These will protect and improve the wages and incomes of workers in the formal and informal economy.” 

 Press Release

Partido Manggagawa

May 8, 2023

Labor group slams holiday economics

Phioto from Business World

 

The labor group Partido Manggagawa (PM) slammed the holiday economics argument as President Bongbong Marcos issued a proclamation declaring today as a special non-working holiday. “Holiday economics makes no sense to workers. How can workers go on a holiday for P570 per day? The minimum wage is not even enough for basic necessities and is less than half the living wage of P 1,300 per day,” argued Judy Ann Miranda, secretary-general of PM.

 

She added “Government should act on the P100 wage hike demand before it goes on promoting holiday economics. According to the government’s own Ambisyon Natin 2040, the family household income should be P120,000 per month so that it can set aside P10,000 for holiday expenses—divided into P4,000 for ‘relax with family and friends’ and P6,000 for ‘occasional trips around the country.’ Given the government's inaction on the demand for a salary increase, it will take a century before the current P14,820 monthly minimum wage reaches P120,000, if at all.”

 

“In fact, even the few Filipinos who can afford to go on a holiday, cannot do so because of the last-minute announcement yesterday. Holidays are planned in advance. It seems that because BBM—who has been called out as President Ferdinand Magellan Jr. on American TV—travels and takes a vacation on a whim, he thinks others have the same privilege,” Miranda interjected.

 

PM is calling on Filipinos to join the activities today and tomorrow to commemorate the ouster of the Marcos dictatorship. Today, the Iloilo chapter of PM is joining a protest of workers, urban poor and students in Iloilo City. Tomorrow afternoon, martial law victims will assemble at the Bantayog ng mga Bayani in Quezon City.

 

“It is adding insult to injury when the government promotes holiday economics to workers. Workers suffer a salary cut when a non-working holiday is moved to a weekday since the no work, no pay rule applies,” Miranda explained.

 

According to PM’s calculations based on the consumer price index data of the Philippine Statistics Authority, P88 has been eroded from the P570 minimum wage in Metro Manila. Inflation outside Metro Manila is even higher. The group’s own estimate is that P1,300 is needed so that a family of five can provide for its daily cost of living.

 

“Instead of a hollow holiday economics policy, we ask the government for an Apat na Dapat policy package. First, wage hikes. Second, abolition of regressive taxes like VAT and application of progressive taxation such as a wealth tax on oligarchs and billionaires. Third, social security subsidies for informal workers. Fourth, discounts on basic commodities. These will protect and improve the wages and incomes of workers in the formal and informal economy,” Miranda elaborated.

Partido Manggagawa

February 24, 2023

PSA’s P10,481 poverty threshold means malnourished Filipinos

Photo by Philippine Daily Inquirer

The partylist group Partido Manggagawa (PM) lambasted the PSA for its poverty threshold of P10,481 for a family of five. “This threshold implies malnourished Filipinos and a miserable standard of living,” averred Rene Magtubo, PM national chair.

He added that “PSA’s threshold is similar to NEDA’s much maligned P10,000 monthly budget for a family of five announced last year. In contrast, our own cost of living survey found that a family of five in the National Capital Region needs P1,300 daily or P39,000 monthly to live decently as of May 2018.”

“PSA did not provide additional details for its poverty threshold. But its food budget of P7,337 and P3,144 non-food budget contrasts with NEDA’s estimate of P3,834 for food and P6,008 for non-food. Out of the P7,337 food budget of PSA, we guess that P2,000 is allotted for rice. Such a budget can only buy 60 kilos of P32 NFA rice—which is hard to find in the market—for one month or 2 kilos per day to be shared by 5 people. This translates to just two cups (400g) per person per day or around 500 calories, just a fraction of the recommended daily calorie intake of 1,500-2,000. This means malnourished and stunted workers and children,” explained Rene Magtubo, PM national chair.

In PM’s own study, P3,150 monthly are needed to buy daily 2.5 kilos of the cheapest commercial rice at P42. Of the P39,000 monthly budget, 44% is earmarked for food and 56% for non-food items. Utilities like electricity, water and cooking gas make up 8%, house rent 15%, transportation expenses 11% and education needs 13% of the total budget.

“Our cost of living study is in fact an underestimation as it does not provide for leisure and recreation, savings or social security which should comprise 10% as a standard or for a house help which is a necessity if the government insists that both parents must work to sustain the family,” Magtubo averred.

PM is calling for a substantial wage hike and national minimum wage as promised by President Rodrigo Duterte. The group is supporting pending bills calling for a national minimum wage of P750 to P800.

Magtubo insisted that “The focus now is on worsening inflation that has eroded workers nominal wages. But hardly noticed is growing inequality due to the stagnation of real wages while productivity is booming. From 2001 to 2016, labor productivity grew by at least 50 percent, yet the real wages did not grow at all. Workers have been denied their fair share in the fruits of production.” 

Cost of Living Estimate

for a family of 5 living in NCR (May 2018)

Items	Volume/Cost	Daily Cost	Monthly Cost	% share
Food & Beverages			17,446.50	44.33
rice	2.5kg/day x P42 (sinandomeng)	105	3,150
ulam & gulay	3 servings (P82/pax/day x 5 pax)	410	12,300
seasoning	2kg onion (P97/kilo), 1kg garlic (P110/kilo)	10.13	304
fruits	4kg  x P60 (banana)	8	240
cooking oil	2 liters x P106	7.07	212
sugar	2kg x P56.25	3.75	112.5
soy sauce	1 liter P42	1.40	42
vinegar	1 liter P34.50	1.15	34.50
fish sauce	1 liter P53	1.77	53
coffee	2 (100g) x P76.25	5.08	152.50
milk	3 (900g) x P282	28.20	846
Utilities			3,358	8.53
electricity	200kwh (P10.90/kwh)	72.67	2,180
water	20cu.m. (P23.95/cu.m)	15.97	479
LPG	1 cylinder	23.30	699
House rental			6,000	15.25
	1 month rent	200	6,000
Toiletries			1,027.05	2.61
soap	6 bars (135g) x P40.50	8.10	243
shampoo	2 (180ml ) x P101.90	6.79	203.80
sanitary napkins	3 (packs of 8) x P42.75	4.28	128.25
toothpaste	2 (150ml) x P77.50	5.17	155
laundry soap	24 (70g pack) x P5.50	4.40	132
deodorant	2 (40ml) x P82.50	5.50	165
Education			5,170.83	13.14
miscellaneous fees	3 pax x P750 = P2250/schoolyear	6.25	187.50
school allowance	100 x 2 pax & 50 x 1 pax/day x 22 days x 10 months = P55,000/yr	152.78	4583.33
theatre tickets	1 ticket x P200/grading x 4 periods x 3 pax/schoolyear = P2,400	6.67	200
school projects	2 subjects x P100 /grading x 4 periods x 3 pax = P2,400/schoolyear	6.67	200
Health			450	1.14
ascorbic acid	5 (1 tablet ascorbic acid generic) X P3	15	450
Communications			1,500	3.81
phone or cellphone	at least P25/day load x 2	50	1,500
Transpo expenses			4,400	11.18
fare to and from work	2 pax x P100/day x 22days	146.67	4,400
Total		P1,311.77	P39,352.38

NOTES:

1.     Family is composed of a couple with 3 children. Children are all in public schools (2 HS level and 1 elementary), school supplies, work books expenses, internet use for research are not yet included

2.     Basket does not include bill for a house-help

3.     Utilities such as electricity and water vary from time to time depending on consumption

4.     No item for leisure/recreation

5.     Health budget does not include medical expenses

6.     No budget allotted for savings.  NWPC basket provides 10% of the total

April 11, 2019