Board-approved wage hikes too small, backers of pay-increase measure say
A MEMBER of the opposition said on Thursday that wage hikes passed by regional boards are inadequate due to high inflation, and called on Congress to legislate more significant pay increases.
“This augmentation cannot make up for the decreasing value of wages due to continued increase in commodity prices,” Party-list Representative Arlene D. Brosas told a forum.
Wage erosion due to inflation is estimated in the regions at 28%, Ms. Brosas said.
The National Capital Region Tripartite Wages and Productivity Board in June approved a P40 increase in the daily minimum wage for Metro Manila.
Cagayan Valley received a P30 wage increase, Ilocos region P35, Central Luzon P40, and central Mindanao P35. The Western Visayas received a P30 increase, while hikes in the Southern Tagalog region ranged from P35 to P50.
Federation of Free Workers Vice-President Julius C. Cainglet noted that less than half of regional wage boards have approved wage increases since the start of the year.
“Under their own charter, when there is (an extraordinary) event, wage boards may increase wages twice in a year,” Mr. Cainglet said, noting that January and February inflation of 8.7% and 8.6% respectively, were not deemed sufficient to trigger a second wage review.
Domingo Mole, chairman of Bukluran ng Manggagawang Pilipino-Southern Tagalog (BMP-ST), said increases approved by the regional wage boards have kept wages below the poverty threshold.
According to the Philippine Statistics Authority, the 2021 poverty threshold as expressed in the monthly amount needed for households to not be classified as poor, is P11,957 per month. A person would need at least P2,391 monthly to meet basic needs in 2021, it added.
Eli Guzman, who also represents BMP-ST, rejected claims by business groups that legislated wage increases will cause companies to close down.
He cited the 2023 Investment Climate Statement on the Philippines by the US State Department, which concluded that companies in the Philippines close down due to poor infrastructure, high power costs, slow broadband connections, regulatory inconsistencies, weak bureaucracy, traffic, and corruption.
Kilusang Mayo Uno secretary general Jerome Adonis said higher wages will strengthen purchasing power and ultimately benefit the economy.
“With higher wages, (workers) will have the capacity to purchase basic commodities they need daily, and this will move the economy,” Mr. Adonis said.
The labor organizations reiterated their support for a bill proposing a P750 wage increase for all private-sector workers. It remains pending at the House labor committee.
The Senate labor committee approved “in principle” a bill calling for a P150 wage increase, Senate President Juan Miguel F. Zubiri said in May. — Beatriz Marie D. Cruz
