Metro Manila’s minimum wage to increase, says wage board

By: Nathaniel R. Melican
Philippine Daily Inquirer

7:49 pm | Wednesday, April 18th, 2012

Source: http://newsinfo.inquirer.net/178861/metro-manila%E2%80%99s-minimum-wage-to-increase-says-wage-board

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MANILA, Philippines—A wage increase for minimum wage earners in Metro Manila could be implemented soon, after wage setters recognized on Wednesday the need to update salaries because of inflation and other economic factors.

“There is a recognition here that we need to increase the minimum wage, but we have yet to settle on an amount,” Alan Macaraya, chairman of the Regional Tripartite Wages and Productivity Board (RTWPB) for the National Capital Region, said.

The consensus was arrived at after the wage board heard comments from various sectors regarding the Trade Union Congress of the Philippines’ (TUCP) P90 minimum wage hike petition for Metro Manila at a wage consultation held at the Taguig City University on Wednesday.

But while the general opinion at the consultation was in favor of a wage hike, Macaraya said they would hold more consultations in the coming weeks to affirm this trend.

“We need to verify this in other consultations. We will be holding another one on April 27 in Manila and on May 4 in Valenzuela,” he said.

Vicente Leogardo Jr., a representative of employers at the wage board, said that inflation would be one of the leading factors in setting the wage increase, noting that prices of basic commodities and fuel have gone up significantly since the last wage hike was applied on May 26, 2011.

“At least, we’re getting some kind of message that there’s really a need to increase wages because of the impact of inflation. Workers primarily demanded a wage hike because they say that their purchasing power has already eroded,” he said.

Leogardo said employers would not oppose a wage hike but would like to raise several concerns in deciding how much the minimum wage would increase the minimum wage.

“It should depend primarily upon inflation, and how much more they can give to their employees,” he said.

Another issue that was brought up during the consultation was the Philippines’ comparatively high minimum wages.

“If you look at it globally, our minimum wage in Metro Manila is higher than the entry level in China, Vietnam, Indonesia and Thailand. If we continue to increase minimum wages, we might not be able to compete with other countries in our region (in attracting investors),” Leogardo said.

Both Macaraya and Leogardo said these issues would be considered in the formal deliberation of the TUCP’s petition.

“We have to do a happy balance of the amount that would sustain our workers properly, the capacity of the employer to pay, the consumer price index, the inflation rate, and other factors,” Macaraya said.

He stressed that the RTWPB has not started to discuss TUCP’s petition as one year has not elapsed since the board added a P22-cost of living allowance to the minimum wage in Metro Manila on May 26, 2011, bringing the minimum wage up to P426 for industrial workers and P389 for agricultural workers.

Under current laws, regional wage boards are prohibited from tackling a wage hike petition within a year of the previous wage increase, except if a supervening event, such as uncontrollable increases in the prices of goods, is found. The wage board earlier said there was no supervening event meriting a wage hike.

However, the board is not prohibited from doing consultations and studies on a possible wage hike.

Macaraya said the opinions they gathered from the consultations would be helpful in hastening the deliberation of the TUCP’s wage hike petition by late May.

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The obscurity of Social Justice and Human Rights is apparent in the Philippines 

– and yes! It is certainly obvious to every Filipino’s point of view (may be rich or poor, young or old). However, I am not saying that the Philippines was only the one who’s experiencing this type of problem, but also other countries around this sphere.

            Before anything else, let me discuss first, what does Social Justice and Human Rights means? Social Justice in a simple point view is equivalent to social fairness where people are deserved to be given humane equality welfare especially to those impoverish individuals. While Human Rights means the freedom of thought and expression, the right to live and liberty, and equality before the law. 

                  With no doubt, this article would let everyone think about the economic labor wages and the right of the workers to receive a higher demand of reward and thus, the government itself could bring a big help to the needy ones – by increasing the income salary of the workers to P90 (the minimum wage hike petition). Through this, many laborers, especially the blue and pink-collar workers will be benefited cause of the increase and poverty rate might decline. Thinking of how hard and stressful their work was, just to give good service to their customers especially in contributing their share in the task of nation building. As what stated in the “Textbook on the Philippine Constitution” by Hector S. de Leon, the right to a living wage – it is where the worker has a right to receive a fair and just compensation for his work. In addition, just enough to support himself and his family, make some savings and be able to afford any financial crisis or unexpected contingencies that he will be experiencing in the near future. (Art. XIII, Sec. 3.).

(unemployment rate in the Philippines)

              However, when you take a look on the latter part, is P90 enough in paying the working hours and hard work of the employees? Generally, those individuals who works in lower positions. I think, it isn't enough to pay their labor. Why I say so. As an experienced individual, I worked as a full-time crew at Jollibee - Central, Hong Kong and thus, earning $18 per hour (that gives you a $216 salary per day) is not enough to satisfy your daily expenditures especially providing financial expenses to your family (paying house rents, monthly stocks esp. food, paying water and electricity bills,  financial crisis and so on). 

                 After reading this article, it suddenly came to my mind thinking this one disadvantage – is it only the Metro Manila has the right or the privilege to have an increase on the minimum wage? I think the answer, as for my own perspective, NO! What about the other places or cities in the Philippines, don’t they deserve an increase? Even though, increasing the minimum wage might not be able to compete with other countries in attracting investors, the government should be careful on the other hand to weigh things down and think thoroughly before commending such increase, especially by giving concerns to other cities or places in the Philippines.

"The demand for equal rights in every vocation of life is just and fair; but, after all, the most vital right is the right to love and be loved."
- Emma Goldman