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Good news and bad news in just one announcement. The
Regional Tripartite Wages and Productivity Board said, yes, there
would be a salary adjustment in the minimum wage of Metro Manila
workers; but it would be only P20, not high enough to be a decent,
living wage.
The Trade Union Congress of the
Philippines filed a petition for an increase of P80 daily in Metro
Manila, and, of course, is extremely disappointed. The P12 wage
increase last granted by the wage boards in August 1997 was already
too small. It has been overtaken by extraordinary price increases in
the prices of petroleum products, transport fares, and of basic
goods and services.
An increase of only P20 daily
would simply not be enough, what with an inflation rate of over 8
percent and the latest surge in food and oil prices. Just the other
day, oil firms yet again raised the prices of gas, diesel and
kerosene. The Land Transportation and Franchising Regulatory Board
just approved increases in the minimum fares of jeepneys and buses
which will take effect tomorrow.
As Bayan Muna party-list
Congressman Teddy Casiño pointed out, statistics from the
Department of Trade and Industry indicate that the prices of rice
increased by 44 percent, fish by 14.3 percent, pork by 23 percent,
chicken and vegetables by 20 percent, fruits by 25 percent and
cooking oil by 56 percent since April 2007. A study by IBON
Foundation on the other hand said that wages have only increased by
18.6 percent since President Arroyo assumed office in 2001 as
compared to the 37.5 percent increase in the prices of basic goods.
For its part, the TUCP
computation for its P80 petition is more detailed and is as follows
(quoting from the actual petition itself):
Between August 2007 (the last
increase of P12 granted by the wage boards for NCR) and March 2008,
the Consumer Price Index in NCR rose from 146.0 to 146.8 or the
equivalent of 3 percent (149.8 / 146.0=1.03 times or 3 percent).
This 3 percent increase in consumer prices does not yet include
increases in the prices of bread, canned goods and other basic
necessities.
Due to the continuing increases
in deregulated oil prices, automatic adjustments in rates of
utilities (electricity, water) and the resulting general increases
in prices, consumer prices between April and December 2008 are
expected to rise further by another 10 percent, which, if added to
the 3 percent increase in consumer prices would be 11 percent times.
[1.03 times (CPI increase from August 2007 to March 2008)+.10 times
(CPI projected increase up to December 2008)=1.13 times or 11
percent].
An 11 percent increase in the
current daily minimum wage of P362 in NCR would amount to P407.62
daily, a difference of P46. But workers work not only to keep their
wages in step with price increases but to improve their standard of
living. Workers have done their share in improving the standards of
living in the country, particularly in Metro Manila. The National
Capital Region has been one of the fastest growing regions in terms
of economic development. Gross Regional Domestic Product in constant
prices increased from P220, 972 million in 1991 to P414, 292 million
in 2006, averaging a yearly 5.5 percent growth.
TUCP asks that 33 percent of this
real increase in the NCR economy be reflected in the minimum wage of
P118 (since 1989), computed as follows: P118 (nominal wage that
gives the highest real wage since 1989) x 0.019 [0.058 (yearly GDP
increase) x 0.33 (percent share in GRDP increase)] x 15 (number of
years from 1991–2006)=P34, share of workers in the economic
development in real terms in the NCR.
Thus, P362 (current minimum
wage)+P46 (increase necessitated by price increases)+P34 (increase
due to region’s economic development)=P442, the new minimum wage
rate TUCP asks for in its petition, or a difference of P80 daily in
NCR.
The P20 wage increase granted by
the wage boards falls way short, if the aim is to protect ordinary
workers from price increases and give them their just share in the
economic development of the region. At a time when inequality and
poverty is rising, when ordinary workers could hardly pay their
bills and cope with the rising cost of living while business leaders
are awarding themselves record pay rises, it is insulting that an
additional P20 a day is all the NCR wage board could manage to give.
Based on inflation alone the increase should have at least been P28
additional daily.
The TUCP believes there must be a
revamp of the wage boards and is asking Congress to include a
representative each from the academe and the Catholic Church to sit
in the wage boards to ensure more fairness, accountability and
credibility in its decisions.
The TUCP is also appealing to
Congress to look into the composition and operation of the wage
boards since the wage board representatives coming from the
government sector, particularly National Economic Development
Authority and the Department of Trade and Industry seem to be always
siding with the employers, shutting out the appeals of organized
labor, no matter how fair or reasonable.
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