Business backs pay hike Workers seek P50 to P150 increase

[nostalgia]

MANILA, Philippines—Two business groups Tuesday expressed support for President Gloria Macapagal-Arroyo’s order to the regional tripartite wage boards to convene and determine by how much to increase the minimum wages of workers in the private sector to help them cope with the rising costs of food and fuel.
Alberto A. Lim, Makati Business Club executive director, said a wage hike was “something we may support” considering that inflation was rising.
“A wage hike would be justified and it’s time,” Lim said, but he suggested that it may be better to let the markets stabilize first.
“It’s panic time and some of the demands may be emotional,” he said.
Sergio Ortiz-Luis Jr., president of the Employers’ Confederation of the Philippines (Ecop), said the group would comply with whatever the boards decide. A wage board is composed of representatives of employers, workers and the government.
Although amenable to the wage boards convening this early, the Federation of Philippine Industries (FPI) said raising wages at this time would be bad policy because prices may dip sooner or later.
“It will be difficult to set wages based on forecast,” FPI president Jesus Arranza said. “If prices stabilize to previous levels, you cannot take back the increase in workers’ pay.”
Non-wage benefits
The FPI president said it may be better for companies to consider giving out temporary non-wage benefits like rice and transport subsidies.
“Companies should think about it because workers really need some help,” he said. “Meantime, the economic managers may have to study the situation and see how long it may prevail.”
Arranza acknowledged that the prices of some basic goods were rising. “However, we believe that the uptrend in prices is temporary,” he said.
TUCP seeks P80 increase in Metro
A moderate labor group Tuesday filed a petition asking the National Capital Region (NCR) Regional Tripartite Wages and Productivity Board to increase the minimum wages in Metro Manila by P80.
The counterpart of the Trade Union Congress of the Philippines (TUCP) in Cebu filed a P150-wage increase in the wage board in Central Visayas, while a petition for a P50-wage increase was filed in Western Visayas.
Meeting in Malacañang
The TUCP-proposed wage hike was discussed at a meeting between the TUCP and Federation of Free Workers (FFW) and employers in Malacañang Tuesday. The meeting was presided over by Ms Arroyo.
At the meeting, Ecop and the Department of Labor and Employment agreed in principle with the TUCP and FFW on the need to adjust wages due to the “extraordinary circumstances” brought about by the skyrocketing fuel and rice prices.
Luis-Ortiz said Ms Arroyo would certify as urgent a bill in Congress seeking an income tax exemption for minimum wage earners.
The TUCP said the P80 increase was needed by all employees and workers in Metro Manila.
Not only for minimum earners
“The increase should be felt not only by workers receiving the minimum wage but also those getting higher than the minimum wage, all of whom are equally disadvantaged by the price-wage development,” TUCP president Democrito Mendoza said in an interview.
The TUCP president said that of the P80 proposed wage hike, P46 was necessitated by the price increases while the P34 was due to Metro Manila’s economic development.
The existing minimum wage in the metropolis is P362 a day, the highest among the regions. The National Wages and Productivity Commission (NWPC) placed the living wage last month for a family of six in Metro Manila at P858 a day.
Legislated wage increase
A group of agriculture workers said it preferred a wage increase through legislation.
Instead of coursing the wage hike through the various regional wage boards, the government should support the P125-across-the-board wage increase being pushed by certain lawmakers in Congress, said the Unyon ng Manggagawa sa Agrikultura (UMA).
“The regional wage boards are forever white elephants to workers and chiefly serve the best interests of capital. The passage of the P125-wage hike bill is very material, very urgent and the most politically, legally and morally correct way of addressing the pressing need of the working class of this country,” UMA national chair Rene Galang said in a statement.
Escudero bats for P125-wage hike
Sen. Francis Escudero called on Ms Arroyo to endorse the legislated wage hike.
Escudero said it was clear that the current minimum wage was not enough to cope with the surge in the prices of basic commodities and services, especially in the past few months.
The regional wage boards have proven to be “useless” in setting the minimum pay scale as “they have to wait [for] instructions from the President before acting on workers’ need for higher pay,” the senator said.
Congress better arena
The Partido ng Manggagawa, through its chair Renato Magtubo, also supported a wage increase through Congress.
“We prefer a legislated wage hike not because Congress is pro-labor. Congress is simply a better arena of struggle since the traditional politicians are vulnerable to popular pressure, unlike the wage boards whose tripartite composition is so designed that the unholy alliance between the representatives of employers and government will always outvote their labor counterparts,” Magtubo said.
Rafael Mariano, chair of the farmers group Kilusang Magbubukid ng Pilipinas, said the P125-wage hike bill, if passed, would “somehow” alleviate the suffering of workers and farmers due to the skyrocketing prices of basic commodities like rice.
“It is very sad and ironic that we farmers and farm workers are the ones feeding the nation but we could not even afford the product of our own labor. For example, the farmgate price of a kilogram of palay (unhusked rice) is from P15 to P17 now, but the price of a kilo of rice is P30 at the minimum,” he said in a statement.
Peso lost P2
Mariano said farm workers only get P50 to P150 for a whole day’s work, much lower than the minimum wage in Metro Manila and the living wage that the NWPC said a family of six would need to survive in the metropolis.
UMA’s Galang said the real value of workers’ wages had seriously been eroded. He cited the study by Ibon Foundation that found that the purchasing power of the peso in Metro Manila had fallen to 70 centavos from 72 centavos between April 2006 and April 2007.
“This means that a worker lost P2 of actual buying power for every P100 he or she earned. This is despite the fact that workers’ productivity increased from P9,265 to P9,560 per month from April 2006 to April 2007,” Galang said.
New wage commission
The Partido ng Manggagawa said it would propose to Congress the enactment of a law setting up a new National Wage Commission, which would determine by how much wages should be increased nationwide using the cost of living as basis.
“The regional boards are governed by 10-point criteria in fixing wages; among these is the capacity to pay of the capitalists that it always considers paramount. Instead, the National Wage Commission will have a sole criterion—to set and adjust wages so that the amount is commensurate with the daily cost of living,” Magtubo said.

By Michael Lim Ubac, Ronnel Domingo
Philippine Daily Inquirer
First Posted 00:51:00 04/16/2008


I dont think yung increase namin sa company namin is enough to compensate sa laki ng tinaas ng bilihin natin. But with their suggestion to exempt minimum wage earner sa tax, I guess okay to. Kasi sa liit na lang ng kita nila, magkano na lang ang iniuuwi nila sa family nila. I was once a minimum wage earner nung first time ko magkatrabaho, and I must say, kulang ang sahod ko to even support myself. Sana nga magpush through to.

[mbeige]

I think we all wish it were much higher, but I agree sana this also pushes through. Here in the US the minimum wage has also increased but like the situation there it's still not enough.

[nostalgia]

I think we all wish it were much higher, but I agree sana this also pushes through. Here in the US the minimum wage has also increased but like the situation there it's still not enough.

I see, right now, our company gave us increase which is only cause higher tax for us and less netpay

[valvura]

the gov't should increase tax exemptions to lessen tax burden...i-adjust din nila ang taxable income bracketing, obsolete na yun e...also let there be an across-the-board increase for ALL income earners, kasi kung minimum wage earners lang, i-shoulder na naman yan ng higher income earners e pare-pareho lang naman tayo naghihirap...how about diverting CDF or pork barrels ng congress & the OP to subsidize the increasing costs of important commodities?...

[tidus1203]

This is bad for everyone, this is what we call in economics as "INFLATIONARY SPIRAL". The laborers might think that they got what they want but eventually higher wages will also equate to even higher prices in the end. Remember wages are part of company's expenses and if the company can;t cut cost elsewhere or they can't bear the expenses they have no recourse but to do 2 things, its either they lay off some workers (or outsource) to cut cost and to keep their prices the same to remain competitive among consumers or kung wala na talaga raise the price of their goods and pass the cost to the consumer which are the laborers So in the end wa-effect din yan.... Ang solusyon, tighter money and find ways to increase supply of the commodities in question. Cutting taxes, and tarrifs are good ways to increase supply thus relieving price pressures.

[uls]

yes spiralling inflation...

pag tinaas ang sahod, ipapasa ng mga employers sa consumers ang cost...

mas magiging mahal ang bilihin...

tumaas nga ang sahod, mas tumaas naman ang bilihin...

wala rin...

[Gumusut_Amige]

^^^ imo, tama sana na maintain ang sahod pero ang problema... ilang beses na bang tumaas ang bilihin na di tumataas ang sahod? dapat talaga forfeit muna yung pork barrel lahat ng tongressman at senador para pang abono pansamantala

[vito corleone]

This is bad for everyone, this is what we call in economics as "INFLATIONARY SPIRAL". The laborers might think that they got what they want but eventually higher wages will also equate to even higher prices in the end. Remember wages are part of company's expenses and if the company can;t cut cost elsewhere or they can't bear the expenses they have no recourse but to do 2 things, its either they lay off some workers (or outsource) to cut cost and to keep their prices the same to remain competitive among consumers or kung wala na talaga raise the price of their goods and pass the cost to the consumer which are the laborers So in the end wa-effect din yan.... Ang solusyon, tighter money and find ways to increase supply of the commodities in question. Cutting taxes, and tarrifs are good ways to increase supply thus relieving price pressures.

i agree, bro. . .but i doubt that the present administration will opt to the ideal way of alleviating the present crisis. . .with darth pandak's present level of popularity (or unpopularity), they will resort to the pragmatic and a more popular alternative with the hope of silencing the masses for now. . .but in her mind, "bahala na kayong mag-suffer ng consequences in the future!". . .

[tidus1203]

Yes politics is always all about bandages and short term solutions.... In the end, we are going to have to live on higher prices and suffer inflationary spiral. This could really weaken our currency and it will not be good for overall economic growth.

[badsekktor]

the ordinary masa wouldnt understand......

ang alam nila eh taon-taon, nakikita nila na may bagong mamahaling sasakyan, bagong bahay, bagong factory etc ang kanilang mga amo pero yun sweldo nila eh ilan taon na hindi tumataas.....

i just hope na magawan ng paraan ang problema ngayon dahil kung hindi eh malamang magkagulo na dito. at kapag nagkagulo lahat tayo apektado.....

[tidus1203]

^^I have to admit although my comments are that of an overall macroeconomic view of things, the masses only cares about how to put food on their tables today and tomorrow rather than 1 year from now and a wage hike seems to be the only option for them....

Pero as I said government should tackle the PRICE rather than the increase in WAGES. Its more constructive that way....

[badsekktor]

I agree that the government should tackle the price rather than the wages. more tax incentives like what US is doing, especially for minimum wage workers. The tax table also needs to be changed. Masyadong obsolete na yun tax scheme natin para sa income tax.

The government should also try to study about subsidizing basic commodities. This government should cut its kickback first and try to do something about this crisis. Lumalaki na ang dami ng nahihirapan, pati middle class nahahatak pababa... baka magkagulo kagaya sa haiti. lahat tayo apektado kung magkaroon ng massive civil disobedience.....

kapag nagkagulo, putol-putol ang trabaho...putol-putol ang income....tataas ang crime rate..... maraming property masisira at masama para sa bansa natin yan....

ang tanong eh sino ngayon ang magsasakripisyo? ang gobyerno ba o ang business sector? hmmm.....................

[uls]

BSP cautions on inflationary effect of wage hikes

http://www.abs-cbnnews.com/storypage...StoryId=115390

[tidus1203]

The BSP is all talk, but no action! If they are serious they should start RAISING the interest rates, but they are actually in the phase of LOWERING interest rates. And last I remember money supply increased at a gargantuan 17% per annum. Talk about inflation, they are a culprit of it or at least one of the culprits!!!

[badsekktor]

its really ironic..... governance and government is about public service but the one doing real public service and sacrificing for this country is the business sector and the working class..... maybe its time for our government to do some sacrifice for the benefit of our country...........

[nostalgia]

tumataas na ang crime rate actually dahil talagang ang hirap na ng buhay ngayon. syempre ang iba iniisip na lang survival di lang ng sarili nila kundi ng pamilya nila. at pag tumataas ang sahod ng mga empleyado, sigurado tataas din ang tax nila. (kagaya sa akin, net decrease ang nangyari after ng increase)

here's the tax table found in COA website:

Not over 10,000 income = 5% tax
Over P10,000 but not over P30,000 = P2,500+15% of the excess over P30,000
Over P70,000 but not over P140,000 = P8,500+20% of the excess over P70,000
Over P140,000 but not over P250,000 = P22,500+25% of the excess over P140,000
Over P250,000 but not over P500,000 = P50,000+30% of the excess over P250,000
Over 500,000 = P125,000+34% of the excess over P500,000

Source: http://www.coa.gov.ph/tsolmp/TSOIntr...%20Started.htm

[vito corleone]

The government should also try to study about subsidizing basic commodities. . .

pero ang balak nila is taasan ang price ng nfa rice so as not to burden the government daw. . .

:swear:. . .

[nostalgia]

pero ang balak nila is taasan ang price ng nfa rice so as not to burden the government daw. . .

:swear:. . .

eh di lalong di makakain ang mga mahihirap talaga. grabe naman ang gobyerno natin. :mad:

[tidus1203]

Because GMA is so damn obsessed with her BALANCED BUDGET. Postpone na nila yan sa 2010 agenda tamang tama pagalis nya sa pwesto balanced budget na tayo and help subsidize rice for the meantime.

[nostalgia]

tama yan sir tidus..