KAPATIRAN calls for ₱200 wage hike, urges NCR Wage Board to defer to Congress

PNA photo by Yancy Lim

 

Metro Manila — In a strongly worded statement delivered at the NCR wage consultation today, the labor group Kapatiran ng mga Unyon at Samahang Manggagawa (KAPATIRAN) called on the regional wage board to defer action on wage orders this year and instead support a legislated wage hike through Congress. The Regional Tripartite Wages and Productivity Board–National Capital Region held a “Labor Sector Wage Consultation” this afternoon at the Philippine Trade Training Center in Pasay City.

 

Rey Almendras, KAPATIRAN President, emphasized the worsening economic hardships faced by Filipino workers despite official claims of low inflation and declining unemployment. Citing recent survey data, Almendras highlighted that over a quarter of Filipino families are experiencing hunger, while more than half consider themselves poor—the highest levels seen in decades.

 

“The minimum wage—even with almost yearly increases—remains below the poverty threshold. Workers are starving while government figures paint a rosy picture,” Almendras said. KAPATIRAN pointed to the erosion of real wages, noting that the current ₱645 nominal daily wage in Metro Manila has a real value of only ₱519—₱126 short of its 2018 equivalent. The group argues that, when combining wage recovery with a just share in productivity gains, workers are entitled to no less than a ₱200 daily wage increase.

 

This, Almendras noted, is not just a demand but a constitutional right. “The Constitution mandates a living wage and a just share in the fruits of production. But workers haven’t felt either,” he said. “Despite rising productivity, the real wage hasn’t kept up.”

 

KAPATIRAN also expressed frustration over past wage orders issued by the NCR Wage Board, which fell far short of workers' demands—granting only ₱40 and ₱35 increases in 2023 and 2024 respectively. Kapatiran filed a P100 wage petition in December 2022.  “We’ve lost hope in the regional wage board. They’ve been blind and deaf to workers’ pleas. It’s time for a new path,” Almendras declared.

 

The group is now joining a broader coalition of labor organizations pushing for a national, legislated wage hike in Congress, citing the stronger prospects brought by the recent election of pro-worker legislators. In closing, Almendras issued a direct appeal to the NCR Wage Board: “Please refrain from issuing a wage order this year. Let Congress do its job. With workers’ actions inside and outside Congress, we hope to finally win our demand.” 

PRESS RELEASE

Contact Rey Almendras

President, Kapatiran

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

STATEMENT ON THE CONSULTATION BY THE NCR WAGE BOARD

STATEMENT ON THE ONGOING CONSULTATION BY THE NCR WAGE BOARD TO REVIEW MATTERS RELATED TO WAGES

Held at the Occupational Safety and Health Center, Quezon City

 

We came here not because we wanted a review of the wage orders issued by the NCR wage board as directed by the president on Labor Day, but to straightly express our collective sentiments regarding the failure of this body to lift millions of minimum wage earners out of poverty over the past 35 years!

 

Our position:

 

1. There is nothing to review about the Php40 wage increase received by NCR workers in July 2023 because everybody knows it is not even half of the value of wages eroded by inflation. In fact, Business World already released a calculation of the real wage of the nominal wage adjusted for inflation this April, where the Php610 minimum wage in NCR, the highest in the country, is now only worth Php502.60.

 

2. Your review, no matter how serious, cannot correct the failures and shortcomings of the regional wage boards over the past 35 years in raising the minimum wage nationwide above the poverty line, and especially not in achieving at least one thousand pesos of the estimated family living wage per day as mandated by our Constitution.

 

3. On the contrary, we collectively believe that what needs to be reviewed are the wage boards in all regions and the law that created them, RA 6727 or the Wage Rationalization Act of 1989. This review should be conducted by the Congress that created this law, with the aim of rectifying the injustice suffered by workers over the past 35 years!

 

4. We have already approached Congress to legislate a Php150 wage increase to help workers recover their take-home pay affected by rising prices of goods and services, and to review the wage setting mechanisms in the country. The Senate has already passed a Php100 wage increase, and public hearings are ongoing in the House Committee on Labor for a Php150 increase. We rather urge the wage board to support our efforts in convincing Congress if you truly wish to help alleviate the difficult lives of workers and their families due to low wages and high prices of goods and services.

 

5. Lastly, we came here to say directly that it is likely that you were simply instructed by DOLE Secretary Laguesma to expedite the process to preempt and derail the impending action of Congress to legislate a wage increase, which he and ECOP vehemently oppose. The Secretary, to us, acts as a spokesperson for the capitalists by joining business groups in propagating the “catastrophic” blackmail that a P150 legislated wage hike will lead to company closures, price hikes, and drive away investors – issues that were effectively debunked by labor leaders, economists, and academe in recent public hearings conducted by the Labor Committee of the House of Representatives.

 

Nonetheless, we thank the RWPB-NCR for your invitation, allowing us to express our long-held anger and grievances against a system deliberately designed in a capitalist manner to keep workers in perpetual poverty. We apologize if we have nothing more to say that will please the Board.

23 May 2024

Labor party wants Laguesma out of DOLE

The Partido Manggagawa (PM) is issuing this statement, which calls for the resignation of Labor Secretary Bienvenido Laguesma, primarily because of his obstinate stand against the proposed legislated wage hike.

His strong opposition against this proposal, despite the regional wage boards’ failure to raise wages beyond the poverty threshold and to narrow down the gap between the minimum wage and living wage during the last 35 years, lay bare all the pretensions about the protection of labor rights and the government’s pledge to raise the Filipino families’ standard of living.  

By speaking against legislating wages, Laguesma dropped the workers in favor of employers. His concern about the economy becomes even clearer when he blocks wage growth, which is the workers’ only source of economic life.

We want him out of DOLE for he will never represent the working class. His background speaks more of him dealing with and lawyering for corporate owners aside from being one of the richest and highest paid officials in the Marcos Cabinet.

Partido Manggagawa

09 May 2024

NATIONAL WAGE COALITION DEMANDS A PRO-WAGE HIKE VOTE IN THE HOUSE COMMITTEE ON LABOR AND EMPLOYMENT ON 15 MAY 2024

As the  House of Representatives’ Committee on Labor and Employment drags its feet on the legislated wage hike after already three hearings, the National Wage Coalition, spearheaded by the Bukluran ng Manggagawang Pilipino (BMP), Kilusang Mayo Uno (KMU), Nagkaisa! Labor Coalition (NAGKAISA!), and Trade Union Congress of the Philippines (TUCP), demands the labor committee chaired by Rep. Fidel Nograles, to finally vote for the committee approval of the long-overdue and much-deserved wage increase in its next hearing on Wednesday, 15 May 2024. 

After three exhaustive hearings where economists, academics, think tanks, civil societies, and workers themselves already demolished the fancied threats, myths, and lies of massive price spikes, joblessness, and business closures, the National Wage Coalition calls on the House Committee on Labor to now vote for the approval of the proposed legislated wage hike measures. With a significant majority of the members of the committee as co-authors such as in the ₱150 legislated across-the-board wage recovery increase by the TUCP, the National Wage Coalition trusts that the House of the People will heed the people’s pleas and accept the resounding truth that there is an imperative for Congress to raise workers' wages now after more than three decades of token increases and starvation wages under the regional wage board system.

Instead of the inadequate presidential order to review and reform regional minimum wage rates, the National Wage Coalition demands that President Ferdinand R. Marcos, Jr. immediately certify urgent the legislated wage hike to fast-track its approval in the House of Representatives, considering that it is already passed in the Senate. The President must recognize that decades of insufficient increases from the regional wage boards must be set aside in favor of the legislated wage measures advanced by the united workers of the National Wage Coalition.

To be truly the House of the People, the National Wage Coalition demands Congress to raise the wages of all workers towards their right to a living wage, such as the P750 legislated wage hike by the Makabayan bloc through the legislated wage hike for private sector workers and a fair Salary Standardization Law to increase the minimum wage of public sector workers to ₱33,000. We call on the honorable members of the House of Representatives to co-author legislated wage hike measures and for the House Committee on Labor to immediately approve these measures and send them to the plenary for urgent deliberations and passage. For all the workers of this nation whose honest hard work creates the wealth of our nation, the National Wage Coalition forges ahead in our struggle to demand the end of senseless dribbling because all that needs to be said has been already said. The House of the People only needs to listen and heed the people's demand: DAGDAG SAHOD ISABATAS! ₱150 PATAAS! 

National Wage Coalition

9 May 2024 

PRESS RELEASE: When the lives of workers improve, the entire economy will also improve – Nagkaisa!

Photo from Manila Bulletin

In the ongoing hearing today regarding the legislated wage hike in the Lower House of Congress, members of the Nagkaisa! Labor Coalition urged lawmakers to prioritize the demands of workers for a P150 or higher wage increase, instead of yielding to the threats of employers that it will destroy the economy.

 

The group reminded lawmakers of the provision in the Constitution stating the "primacy of labor over capital" as a guiding principle in deciding on this contentious issue. They pointed out that for over three decades, employers have persistently opposed it, while the minimum wage of workers remained below the poverty line.

 

The group stated this position while staging a protest in front of the Batasan complex, along with the Trade Union Congress of the Philippines (TUCP), Kilusang Mayo Uno (KMU), Federation of Free Workers (FFW), Sentro ng Nagkakaisa at Progresibong Manggagawa (SENTRO), Kapatiran ng mga Unyon at Samahang Manggagawa (KAPATIRAN), Marikina Workers Alliance, National Federation of Labor (NFL), Partido Manggagawa (PM), TESEF, and Unified Filipino Service Workers (UFSW).

 

But before the protest could even start, the police dispersed them away from the Batasan gate and blocked their return, led by Precinct 6 commander, Col. Castillo. The labor groups condemned the actions of the police, stating that this was the second time they had done so, the first being against the youth just two weeks prior.

 

They called on the leadership of the PNP and Mayor Joy Belmonte to stop the police abuse at the Batasan, as it shows a lack of respect for freedom of expression and freedom of assembly.

 

The group asserted further that their petition for wage increase is not anti-MSME or anti-business because any additional income in the pockets of workers is returned to the economy through consumption in small businesses, compared to the huge profits of businesses that only go towards extravagant expenses of capital owners.

 

NAGKAISA! also mentioned that the economy of workers relies solely on wages, so while most survive in the formal sector and self-reliance in the informal economy, a wage increase has a more positive impact on the entire economy compared to if the majority of workers remain impoverished.

 

They noted that the highest minimum wage of P610 here in NCR has a real value lower than the national poverty line of P13,797 in 2023.

 

Aside from the wage increase in the private sector, NAGKAISA! supports a separate proposal for a wage hike for public sector employees.

 

NAGKAISA! also seeks to reform the wage-setting system in the country through legislation because for the past 35 years under RA6727 and regional wage boards, the majority of workers in the country have remained poor, which goes against the Constitution's mandate for the right to a living wage and a rising standard of living for their families.

February 28, 2024

NAGKAISA! Labor Coalition

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

House must now deliberate on wage hike as Senate passes P100 version—Partido Manggagawa

The group Partido Manggagawa (PM) stated that the Senate approval of the P100 legislated wage hike is a welcome relief. “We will wait for the House of Representatives if they can walk their counterpart bills which are higher than the Senate’s. Huwag sanang ang grasya ay maging bato pa kung aatras ang Kamara. Magagalit ang manggagawa. The battle now shifts to Batasan,” declared Rene Magtubo, PM national chair and a Marikina City councilor.

 

The group also asserted that all workers, formal and informal, will gain whether directly or indirectly from the legislated wage hike, contrary to the claims of the Employers Confederation of the Philippines (ECOP) that only 10% of “formal workers” will benefit.

 

“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?,” Magtubo.

 

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. Wage hikes are good, not bad, for the economy and all workers.” 

Wage Earners and Aleng Nena Share Economic Benefit from Higher Wages – Partido Manggagawa

 

Unlike in business where income is retained by employers either as capital for reinvestment or as profit to sustain lavish lifestyles, workers' wages circulate directly into the local economy, bolstering the income of neighborhood stores as noted in a recent report published in a leading newspaper.

 

This is according to Partido Manggagawa (PM) which, together with the Nagkaisa! Labor Coalition, continues to press for the passage of the P100 and higher wage hike bills in both Houses of Congress despite permanent opposition from the Employers Confederation of the Philippines (ECOP).

 

Today the Senate is poised to pass the P100 increase in minimum wage on third and final reading, while the Lower House has yet to act on the pending P150 and P750 wage hike for workers in the private sector, as well as the P33,000 entry level monthly salary for public sector workers.

 

The more than P8-B sales generated by neighborhood sari-sari stores in 2023, as reported by analytics group Packworks, “reinforces our claim that a uniform increase in national minimum wage would neither kill micro enterprises nor lead to massive unemployment,” said PM Chair Renato Magtubo.

 

This report, he added, also disproves ECOP’s ‘catastrophe’ scenario for small businesses once minimum wages are increased by P100, or higher. “To the contrary, Packworks’ analytic research pointed to escalating sales transactions between neighborhoods from 2022-2023, coinciding with slight adjustments in minimum wages ordered by the regional wage boards during that time,” Magtubo said.

 

The report also found no correlation between inflation and the sales trend in sari-sari stores, belying further ECOP’s sensational ‘wage hike = high inflation’ economic blackmail. Inflation slid down to 2.8% in January 2024 from 8.7% in January 2023 based on official statistics reported by the Philippine Statistics Authority (PSA).

 

Considering this positive trend, Magtubo anticipates further boost in sales transactions for Aleng Nenas from significant wage increases, citing an earlier study showing that 94% of consumers rely heavily on neighborhood stores for their retail needs. With approximately 1.3 million sari-sari stores nationwide, 75% of which are owned by women, these establishments play a crucial role in sustaining local economies.

 

Drawing from his experience as a former union president, Magtubo underscores the symbiotic relationship between workers and sari-sari stores. He notes, "Workers often rely on 'utang-bayad-utang-bayad' transactions with their Aleng Nenas. Thus, their capacity to pay and buy more directly impacts on the viability and sustainability of neighborhood stores."

 

In effect, elaborates Magtubo, “Absent regular support from the government, it is more evident that the transfer of income from wages of formal labor is what sustains the sari-sari stores, and consequently, Aleng Nena’s self-employment in the informal economy.”

 

Magtubo concludes by affirming the labor movement's stance that legislated wage hikes of P100 or higher are not only justified but also beneficial to the national economy. He calls for an end to fear-mongering tactics employed by the Employers Confederation of the Philippines (ECOP).

19 February 2024

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

Labor group slams Laguesma’s doomsday scenario

The labor group Partido Manggagawa (PM) slammed DOLE Secretary Bienvenido Laguesma for speculating that the P100 legislated wage hike will have an adverse impact on the economy, especially on small and medium enterprises.

 

“Labor Secretary Laguesma is singing the same old song with employers about economic difficulties once workers are granted a substantial wage hike. But they are singing out of tune as their doomsday scenario is refuted by economic indicators. Inflation and unemployment subsided since regional wages were increased in the latter half of 2023,” stated Rene Magtubo, PM national chair and Marikina city councilor.

 

PM welcomed the plenary deliberations in the Senate on the proposed P100 legislated wage hike bill. PM and other groups in Nagkaisa are returning to the Senate on Tuesday for a bigger action to demand the passage of the proposed nationwide salary increase and also call for the scrapping of the charter change proposal.

 

According to latest figures from the Philippine Statistics Authority, headline inflation as of January 2024 is at a very low 2.8%, much reduced from the 4.7% in July 2023, when the NCR wage board ordered a P40 minimum wage hike. Inflation for year 2022 was 5.8%. Meanwhile unemployment is at 3.1% as of December 2023, down from 4.8% in July 2023. In 2022, annual unemployment was at 5.4%.

 

After the NCR wage board issued an order, other regional boards successively granted minimum wage increases in the succeeding months of 2023 and up to January this year.

 

“Workers in all regions got minimum wage hikes in 2022. Further, all regional wage boards, except the one in BARMM, issued wage orders in 2023. In all that time, inflation and unemployment went on a secular decline in opposition to the dire predictions of employers and the DOLE,” Magtubo explained.

 

He added that “We call on the Senate and the House not to be blackmailed by the apocalyptic forecasts of enemies of the working class.”

 

PM has been advocating for “Chicha not chacha” in the face of the trapo-driven people’s initiative and the proposed Resolution of Both Houses 6. The group argues that the pro-worker and social justice provisions of the Constitution must be enforced. PM opposes amending the Constitution to pave the way for more foreign control of the economy and greater trapo domination of politics.

February 10, 2024

Kapatiran hits measly wage hike in Calabarzon, denounces price control on wages

Photo from Agence France Press

 

The Kapatiran ng mga Unyon at Samahang Manggagawa or Kapatiran on Friday said the P35-P50 wage increase for Calabarzon areas under Wage Order No. IVA-20 issued last September 1 failed to meet the principal demands for wage recovery and living wage of the wage petitioners in the region which amount ranges from P100 to P750 per day.

 

The increase, which takes effect on September 24, sets the new minimum wage in the region between P385 to P520 for the non-agricultural sector and from P385 to P479 for the agriculture sector.

 

“Kulang ang umentong ito ito kahit para sa isang kilong bigas sa isang araw at ni hindi makababawi sa nawala na at patuloy pang nawawalang halaga ng sahod ng manggagawa sa rehiyon. Sa kabila ng increase, ang tunay na halaga (real wage value) ng minimum wage ngayon sa Region 4-A ay P428.80 lamang,” said Kapatiran Chair Rey Almendras.

 

Almendras also criticized the numerous wage classifications in the region that make enforcement and compliance very complicated, notwithstanding the blanket exemption available for firms employing not more than 10.

 

“Para na ring bigas na may regular, well-milled, at premium na klasipikasyon ang sistema ng pasweldo sa bansa dahil kahit nasa iisang kalagayan lamang sa buhay ang mga manggagawa sa isang rehiyon ay magkakaiba ang halaga ng kanilang sweldo,” lamented Almendras.

 

Kapatiran argued that the wage hike in Calabarzon, and earlier the P40 in NCR, mirror the structural defects of the prevailing wage system in the country under RA 6727 where the financial health of employers is given more importance than the workers’ capacity to live and their right to a rising standard of living.

 

“Kung mayroon mang hindi makatwiran at mapang-abusong price control na ipinatutupad sa bansa noon pa man, hindi ito ang P41-P45 per kilo na ipinapataw ngayon sa presyo ng bigas kundi sa presyo at tamang pasweldo sa mga manggagawa,” bewailed Almendras, pointing to how the economic managers justifies the price caps on rice today but objecting to wage hikes because it would do more harm on the economy.

 

Kapatiran fears the NCR and Calabarzon wage orders will become the template for other regions, thus, the need to shift to battle for a legislated wage hike and reforms in the wage-setting mechanisms in the country.

 

Pending before Congress are the P150-P750 wage hike bills. Senators, including Senate President Juan Miguel Zubiri, vowed to pass the measure while the House of Representatives has yet to conduct hearings on the pending wage hike bills.

PRESS RELEASE

KAPATIRAN (Kapatiran ng mga Unyon at Samahang Manggagawa)

08 September 2023

Workers push for P100 hike at wage board hearing

 

Representatives of labor groups attended the NCR wage board hearing today while workers, many women, held a festive protest outside the Philippine Trade Training Center in Pasay. The group Kapatiran ng mga Unyon at Samahang Manggagawa filed a petition for a P100 raise in minimum wages on December 6, 2022 but deliberations only started this month.

 

“Like Mayon Volcano, workers are restive over the high prices and low wages. The NCR wage board should grant the demand for a wage hike if it wants to calm the seething social volcano,” asserted Judy Miranda, secretary general of Partido Manggagawa (PM).

 

She added that “As of January 2023, workers have lost P88 in the value of the P570 minimum wage due to inflation. Thus, P100 is necessary to recover the purchasing power of workers’ wages. The NCR wage board and the Department of Labor and Employment has dragged its feet on the wage hike demand for half a year already. We say, P100 dagdag sahod, now na!”

 

Some 100 members of PM, Kapatiran, Women Workers United, UWIN, and the Organisasyon ng Manggagawa sa EMI-Yazaki picketed the wage hearing. They had a boodle fight featuring kangkong and tokwa which are what measly wages can afford today. Using whistles, they also held a noise barrage to catch the attention of the wage board. “Workers are suffering from starvation wages. Instead of a living wage, workers are paid a libing wage,” Miranda insisted.

 

Similar petitions for a P100 salary increase have been filed in Regions 4-A, 6 and 7. There are also pending bills for a P150 legislated across-the-board wage hike in both houses of Congress.

 

PM also belied the arguments of employers that a wage hike will lead to higher inflation and more unemployment. “These are just horror stories peddled by employers without basis in science. Studies have shown that wage hikes do not result in any significant inflation or unemployment effects. Moreover, wage increases for workers in the formal sector also lead to higher pay for our kababayans in the informal economy, a phenomenon called the lighthouse effect. This disproves the allegation of employers that a wage hike will only benefit 10% of workers and disadvantage the other 90%. We ask that employers moderate their greed so that everybody benefits from a salary increase,” Miranda explained.

 

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,” Miranda maintained.

Press Release

June 21, 2023

Partido Manggagawa 

Photos can be accessed at https://www.facebook.com/partidomanggagawa/posts/pfbid0rEFb8Q445cnu6Cs2kvJpu7AemU5D7vhdib3Wfj61uc9RTT6igtEEcU5NyEfwsJp6l

Nagkaisa debunks business groups’ arguments against legislated wage increase

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.

PRESS RELEASE
Nagkaisa Labor Coalition 

𝐍𝐂𝐑 𝐖𝐀𝐆𝐄 𝐁𝐎𝐀𝐑𝐃 𝐏𝐑𝐄𝐒𝐒𝐄𝐃 𝐀𝐍𝐄𝐖 𝐅𝐎𝐑 𝐏𝟏𝟎𝟎 𝐖𝐀𝐆𝐄 𝐇𝐈𝐊𝐄

Kapatiran leaders submit letter to NCR wage board

Leaders of the Kapatiran ng mga Unyon at Samahang Manggagawa (Kapatiran), trooped today to the office of NCR Regional Wage Board, asking the body to expedite the resolution of their demand for a P100 increase in the minimum wage for workers in the national capital region.

 

In their second follow up letter, Kapatiran asked the wage body to conduct hearings for the wage petition since none has been done since it was filed on December 5 last year.

 

“Kamakailan lamang ay may naihapag nang panukala para sa P750 dagdag-umento sa Kamara at P150 naman sa Senado. Baka naman maunahan pa ng Kongreso ang mga wage board na nauna nang nakatanggap ng wage petitions. Dereliction of duty yan,” said Kapatiran President Rey Almendras.

 

Almendras noted that a legislated wage hike is not in conflict with the P100 wage petition Kapatiran filed with the NCR wage board since the latter is simply for wage recovery due to inflation, while the former aims to narrow the gap between the minimum wage and the living wage provided under the Constitution.

 

“Gusto nga rin namin na mabago na ng Kongreso ang existing wage mechanism ngayon sa ilalim ng RA 6727 dahil ito ang isa sa mga mayor na dahilan kung bakit ang sweldo sa Pilipinas ay nabansot sa poverty o starvation level. Pero dahil bigo din ang pamahalaan na sawatain ang mataas na inflation, ang nawalang halaga ng dating sweldo ay dapat maibalik kaagad sa manggagawa,” explained Almendras.

 

Inflation in February stayed above 8%, making the demand for wage hike not only justified but urgent.

 

After their submission of the letter to the wage board, Kapatiran leaders proceeded at a nearby office of the Federation of Free Workers (FFW) to have an in-depth discussion on the economics of inflation and wages.

Photos of the event can be accessed at https://www.facebook.com/partidomanggagawa/posts/pfbid029uMRpjsbDv6pB5TVBVhpDkHtYS4grqhA2DJJapkLQiHUKgntKURLHJSnJMHwyGbxl

PRESS RELEASE

Kapatiran ng mga Unyon at Samahang Manggagawa

17 March 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