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
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