Real wage vs nominal wage in April 2024

 As of April 2024

Wage clustering is better than regionalization but one national minimum wage is best

 

According to Partido Manggagawa (PM), the proposal of Representative Joel R. Chua (3rd District of Manila) to replace the current wage regionalization scheme with a wage clustering system is welcome in the sense that it founded on a recognition of the failures of the existing wage fixing system and thus opens a window for a discussion of a better mechanism. “Wage clustering is better than regionalization but one national minimum wage is best,” Rene Magtubo, PM national chair, explained.

 

He added that “We agree, as Rep. Chua asserts, that wage regionalization has led a huge gap between wages of regions that are not substantiated by differences in cost of living, and also has led to complexity in implementation as the DOLE has to monitor almost 50 minimum wages across the country.”

 

For this reason, PM is pushing for a national minimum wage as a floor. Differences between actual wages should be based on seniority, skills and productivity, according to the group.

 

“Also, while we insist that a replacement to the wage regionalization mechanism is also overdue, let us not lose sight of the immediate demand for a P150 across-the-board legislated wage recovery,” Magtubo emphasized.

 

PM is advocating for an “Apat na Dapat” in regard to the wage issue at the moment:

 

1. Php 150 across the board wage increase to recover wage loss due to inflation (immediate);

 

2. Non-wage benefits to enhance take home pay (for example: suspension of Philhealth contributions, reduction in withholding taxes for fixed income earners, social security subsidies, etc.);

 

3. Review and amend RA 6727 with the end in view of having uniform wage rates and satisfying the constitutional mandate of granting workers a living wage;

 

4. Enhance wage and benefits setting through collective bargaining negotiations by implementing the recommendations of the International Labour Organization’s High-Level Tripartite Mission so that workers can exercise freedom of association without harassment and intimidations, and unwarranted regulations. 

 

MEDIA ADVISORY: Anti-mining rally at Batasan tomorrow

ALYANSA TIGIL MINA (ATM)

invites you to a

 

CREATIVE ACTION

 

Pagkaswapang ng Minahan, Wakasan!

Pagkamkam ng Kapangyarihan, Pigilan!

Unahin Tao at Kalikasan, ChaCha Ibasura!

 

Wednesday, March 13, 2024

9:00 AM – Assembly at Kasayahan St. cor Batasan Road

9:30 AM – March to South Gate of Batasang Pambansa

 

Important Note: The Program is targeted to be at South Gate of Batasang Pambansa. But, in case of dispersal, the contingent will proceed to the North Gate and hold the program there.

Various groups led by Alyansa Tigil Mina will march to the Batasang Pambansa to demand a stop to destructive mining operations and a rejection of proposals to change the 1987 Constitution. 

Specifically, the groups will denounce the machinations of House Speaker Martin Romualdez to amend the charter and serve his vested interests as they charge him of amassing wealth through his and his family’s mining companies.

 

Media coverage is requested.

 

Contact person:

Andrew Palangdao – +63 920 9845702

It takes decades for pro-women laws to get Congress’ nod compared to only 2 weeks for RBH 7

Haste doesn’t just make waste; it also bears a dubious agenda. This is according to women leaders in the labor movement who are celebrating International Women’s Day today.

 

Partido Manggagawa (PM) Secretary General Judy Ann Miranda, said they were referring to the Resolution of Both Houses No. 7 (RBH 7) that was swiftly approved by the House of Representatives’ Committee of the Whole with only six days of marathon hearing.

 

In an earlier statement, Miranda said the lightning approval of RBH 7 “is equivalent to a political hack which is unthinkable for a huge political body known for being laggard and protracted in its lawmaking process, especially when it comes to women and other social development agenda.”

 

Miranda cited as an example the lengthy years of enacting the reproductive health bill, which took 14 years, and now the proposed divorce law, as well as the right to safe and affordable abortion even for special cases, may even take longer.  The same is true, she added, when it comes to the proposed wage hike as the last act of Congress in legislating the wage hike was in 1989.

 

Photos of women’s rallies yesterday that includes demands against charter change and for public services can be accessed at PM FB: https://www.facebook.com/partidomanggagawa/ 

08 March 2024

The biggest hack is amending the Constitution via RBH 6 and 7 – Partido Manggagawa

Filipinos may have kept guard protecting their Facebook accounts from possible hacking, a day after Meta confirmed there was a global outage in its system. What we failed to prevent, however, was the biggest political hack when the House of Representatives’ Committee of the Whole passed Resolution of Both Houses No. 7 (RBH7) Wednesday.

 

Partido Manggagawa (PM) Secretary General Judy Ann Miranda, said the haste in approving RBH 7 at the House of Representatives, “Is equivalent to a political hack which is unthinkable for a huge political body known for being laggard and protracted in its lawmaking process, especially when it comes to important social development agenda.”

 

Miranda cited as an example the lengthy years of enacting the reproductive health bill, which took 14 years, and now on the proposed divorce law, and right to safe and affordable abortion even for special cases. 

 

“Kapag para sa kababaihan, history book ang trato sa amin ng mga mambabatas. Pero kapag charter change para sa dayuhan, para silang Facebook, Twitter, o Tiktok sa pabilisang gumalaw,” lamented Miranda, as PM joined protest actions in the Senate with the World March of Women, and in Manila with In Defense of Human Rights and Dignity (iDefend) Movement, which is all part of the celebration of the International Women’s Day.

 

The same is true, she added, when it comes to the proposed wage hike legislation, with the last legislated wage hike enacted by Congress was in 1989. “When it comes to another agenda like charter change, which is an alien concern to most Filipinos, our lawmakers get fast and furious.”

 

Like RBH 6 now pending before the Senate, RBH 7 proposes to amend several economic provisions in the 1987 Constitution, particularly on areas covering public services, education, advertising, and land ownership, among others.

 

Once approved separately by both houses through a ¾ vote, the “unless otherwise provided by law” shall be added to all the sections under several articles of the Constitution that Congress so decides to be amended, particularly Article XII (Section 11), Article XIV (paragraph 2 of Section 4), and Article XVI (paragraph 2 of Section 11).

 

But Mirada emphasized, “changing those sections and articles of the Constitution won’t alter the age-old problems of poverty and discrimination confronting women today, which are more of an outcome of society’s capitalistic structure where social wealth is appropriated among the tiny few while governance is run under a dynastic political rule.” 

07 March 2024

PM Stands with Senator Risa Hontiveros Against Vilification by Quiboloy Camp

 

Photo from Daily Tribune

Partido Manggagawa stands with Senator Risa Hontiveros against the malicious attacks orchestrated by the Quiboloy camp, as the Committee on Women and Children resumed its public hearing yesterday on the latter’s alleged criminal offenses.

 

The group asserts that the arrest of Quiboloy is a fitting commemoration of women's month. Tomorrow women members of Partido Manggagawa are joining two mass actions; at the Senate in the morning and at Mehan Garden in the afternoon.

 

Senator Risa hoped that the man at the center of the controversy finally submits under the jurisdiction of the Senate for investigation, in aid of legislation. Quibuloy failed to show up again, prompting the committee to finally issue a warrant of arrest against the self-appointed son of god.

 

But in a bid to defend himself in absentia, Quibuloy sent his followers to the Senate yesterday to demand Senator Risa's resignation instead. His followers claim to seek justice for what they perceive as unjust treatment of their leader by both the US and Philippine governments. Yet, Quibuloy himself conveniently avoids facing the same demands for justice within his own kingdom. In retaliation, he stoops to vilifying the individual who dares to subject him to public scrutiny. 

 

Here he crossed the line long held and defended by the women’s movement.

 

Targeting a champion of women's and children's rights like Senator Risa Hontiveros is an affront to all women. It is deeply concerning to witness a cult leader, who shirks accountability for his crimes by hiding in the shadows, manipulating his female followers to shield him from scrutiny, and tarnishing the reputation of a prominent female leader. This behavior exposes him for what he truly is: an incorrigible male supremacist.

 

Senator Risa may stand as the lone woman in the Senate on this contentious issue of justice, but she stands fortified by the unwavering support from grassroots women across the nation. United in solidarity, this battle is already won, with or without Quibuloy's human body landing in jail. 

06 March 2024

Media Advisory: Pre-International Women's Day 2024 Mass actions today

Media Advisory

Pre-International Women's Day 2024 Events

Women's groups to mobilize for two actions

 

 

What:  Over 300 grassroots women from national organizations under the umbrella of the World March of Women - Pilipinas will march to the Senate building

 

When:  March 7, 2024 (Today), 9:00 AM

 

Where: From Film Center to Senate Building

 

Details:

 

Carrying the theme "Kababaihan: Ayaw sa Charter Change na Maka Dayuhan at Maka-Trapo!," the grassroots feminists will push strongly to stop Cha-Cha initiatives by the traditional politicians

 

Clad in purple shirts, will march, hold a program and perform a "counter-ChaCha dance"

 

Contact Person: Jean Enriquez 09778105326

 

 

 

What: Members of In Defense of Human Rights and Dignity Movement (iDefend) will hold a public action

 

When: March 7, 2024 (Today), 4:00 PM

 

Where: Mehan Garden Bonifacio Revolution Shrine near Manila City Hall

 

Details:

 

Women's groups will highlight the economic crises facing Filipino women today, including the food and fuel inflation, insufficient wages and the continuing violence of the government's war on drugs and war on terror. Participants will express a condemnation of Congress' moves to change the Constitution, instead of focusing on the dire socio-economic situation of the people.

 

As a photo opportunity, participants will mirror the Bonifacio monument in a tableau of women- mothers, workers, urban poor, indigenous, farmers, fisherfolk, students- struggling to survive and thrive in the current challenging socio-political and economic environment.

 

Opportunities will also be available for interviewing of women leaders.

 

Contact Person: Niza Concepcion 09395677987

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

MEDIA ADVISORY: PICKET FOR WAGE HIKE @ BATASAN TOM

MEDIA ADVISORY

Request for coverage

 

NAGKAISA! Labor Coalition

27 February 2024

PICKET FOR WAGE HIKE @ BATASAN

 

Members of the House Committee on Labor and Employment will start deliberating on bills seeking legislated wage hike tomorrow. NAGKAISA leaders will attend the hearing, while coalition members will be with labor groups for a joint action outside the House of Representatives.

 

WHEN: February 28, 2024

TIME: 8:30 AM

WHERE: South Wing Gate of the Batasan Complex

 

Photo ops available

 

----------------

For details/queries you may contact: Ruby Monge @ 09176380247

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

Social movements march against chacha, link up with church groups

Labor organizations and social movements on Thursday participated in the ecumenical gathering “PANAGHOY, PANALANGIN AT PANININDIGAN LABAN SA CHARTER CHANGE” event led by the Koalisyon Laban sa Chacha held at Plaza Roma, directly in front of the Manila Cathedral and the Commission on Elections office.

 

But before converging at Plaza Roma, sectoral and community groups gathered from eight in the morning at the Missionary Charity beside the Delpan Sports Complex in Tondo and marched towards Anda Circle to link up with other contingents.

 

Carrying the banner "Sahod Itaas, Cha-Cha Iatras" were the Federation of Free Workers (FFW), Partido Manggagawa (PM), and Sentro ng Nagkakaisa at Progresibong Manggagawa (SENTRO), all conveners of the NAGKAISA! Labor Coalition. Meanwhile, KALIPUNAN is comprised of groups Alyansa Tigil Mina (ATM), Kilos Maralita (KM), PAKISAMA, PM, SENTRO, and World March of Women.

 

Also joining the march were the Akbayan party, the human rights group In Defense of Human Rights and Dignity Movement or iDefend, Tindig Pilipinas, UPAC and DAMPA.

 

Urban poor residents from Parola and Baseco in Tondo, particularly those from Isla Puting Bato and Slip 0, called on the government to prioritize and fund housing programs for the poor instead of pushing for chacha which offers land ownership to foreign citizens. Women and youth participants also voiced their demands for wider social services and the eradication of violence.

 

In their related statements, the groups asserted that the Constitution is not the reason why many Filipinos remain poor. They argued that the real problem lies in the concentration of wealth in a few hands and the dynastic governance of the country's leaders.

 

They also claimed that charter change was never the people’s urgent concerns such as inflation, wage hike and unemployment, hence there is no reason for lawmakers to prioritize it.

 

The Koalisyon Laban sa Chacha is a coalition of church, sectors, and community groups launched on February 14 to oppose charter change while simultaneously advocating for the people's demands, deepening democracy, and good governance.

 

Following the mass, the coalition conducted their program including sectoral speeches, during which they called on the Comelec to completely halt the people’s initiative. Part of the action also included commemorating the People Power that began on February 22, 1986.

 

They vowed to continue opposing cha-cha until the people’s initiative and even the convening of ConAss for economic charter change are completely stopped. 

Photos and videos can be accessed at https://www.facebook.com/partidomanggagawa/

NAGKAISA! Labor Coalition

Kalipunan ng mga Kilusang Masa (KALIPUNAN)

February 22, 2024

MEDIA ADVISORY: Social movements march to anti-chacha assembly with church

MEDIA ADVISORY

Request for coverage

 

NAGKAISA! Labor Coalition

Kalipunan ng mga Kilusang Masa (KALIPUNAN)

22 February 2024

 

Social movements march to anti-chacha assembly with church

 

But before joining church groups in Plaza Roma in front of the Manila Cathedral, NAGKAISA!, KALIPUNAN, Akbayan, iDefend, UPAC, and DAMPA will organize a COMMUNITY MARCH from Missionary Charity in Tondo Manila, bringing along with them their sectoral agenda and collective opposition to chacha.

 

WHEN: February 22, 2024

TIME: 8:00 AM

WHERE: Community/sectoral assembly at Missionary Charity (cor. Delpan Sports Complex). And then to Anda Circle to link up with other contingents.

 

Photo ops available

 

----------------

For details/queries you may contact:  Judy Ann Miranda @ 09175570777; Ruby Monge @ 09176380247

MEDIA ADVISORY: Anti-chacha community march by workers, women and poor tomorrow

Request for coverage

NAGKAISA! Labor Coalition

Kalipunan ng mga Kilusang Masa (KALIPUNAN)

21 February 2024

Anti-chacha community march by workers, women and poor tomorrow 

But before joining church groups in Plaza Roma in front of the Manila Cathedral, NAGKAISA!, KALIPUNAN, Akbayan, iDefend, UPAC, and DAMPA will organize a COMMUNITY MARCH from Missionary Charity in Tondo Manila, bringing along with them their sectoral agenda and collective opposition to chacha. 

WHEN: February 22, 2024

TIME: 8:00 AM

WHERE: Community/sectoral assembly at Missionary Charity (cor. Delpan Sports Complex). And then to Anda Circle to link up with other contingents. 

Photo ops available

----------------

For details/queries you may contact:  Judy Ann Miranda @ 09175570777; Ruby Monge @ 09176380247

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.” 

STATEMENT ON SENATE APPROVAL OF P100 WAGE HIKE

 

The Senate approval of the P100 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.

19 February 2024

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

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

 

Nagkaisa! Presses the Lower House to Raise Wages Higher than What the Senate Could

 

With the Senate getting closer to passing on third reading the proposed P100 wage increase, the Nagkaisa! Labor Coalition now calls on the House of Representatives (HOR) to get their own version of the bill moving and raise wages higher than what the Senate could.

 

Pending before the HOR are bills seeking a P150 and P750 across-the-board wage hikes for private sector workers, and P33,000/month entry level for public sector workers. Today, a bill was also filed for a P50,000 salary base for teachers.

 

If the HOR can create a mountain out of a molehill, like what it did for a more complicated process of revising the Constitution, then they can do the same for the wage hike bills and in correcting the defective wage setting mechanism in the country.

 

The P100 wage proposal which passed the second reading in the Senate today falls short of the P150 originally promised and a far cry from what was needed to save minimum wage earners from the poverty wages imposed upon them by all the regional wage boards.  The measure is also for minimum wage earners only.

 

Still, we welcome it as a form of relief, and a good start as well to correcting the problems created by the regional wage setting mechanism. Once legislated, this should be followed by reforming the wage setting mechanism, which both the House and the Senate should initiate, rather than waste their time on charter change. 

NAGKAISA! Labor Coalition

15 February 2024