MINIMUM WAGE HIKE NATIONWIDE– Not the solution
The Associated Labor Union (ALU) has been demanding for a P800 across-the-board increase in the daily pay of all minimum wage earners nationwide. ALU claims that “The wages should now be a uniform rate because the poverty in Luzon is the same poverty felt by workers in the Visayas and Mindanao. The prices of commodities are the same in every region so the salary should also be uniform, Almost at the same time, the Makabayan bloc in the House of Representatives has filed a bill mandating a uniform P750 minimum wage nationwide thru House Bill 7787. Anakpawis Representative Ariel Casilao said that based on the Family Living Wage, a Filipino family of six needs P1,160 per day to live (CNN, May 28, 2018).
The reaction of the employer’s group was fast and simple; “Raising minimum wages on a national level to cushion the im- pact of rising prices on ordinary Filipinos – as proposed by militant lawmakers and labor groups – would be “impossible” and would do more harm than good if allowed, …” Donald Dee, president of the Employers Confederation of the Philippines (ECOP), said. “...the inflation in every region is different” He further stated “…the infrastructure development in every region is different as well so how can it be national? If there is no proper infrastructure development in these areas, they will find it hard to find jobs, So having national wages, it’s impossible (The Philippine Star, May 29, 2018).”
At the end of the day, the government mandate will still have to be implemented by all corporations operating in the country, and subsequently managed by Compensation and Benefits experts ( also called Total Rewards Managers by more advanced companies). Managing the triangle of stakes, where LABOR wants nothing less than the best pay and working conditions, OWNERS and STOCKHOLDERS want the best ROI for their investments, and the CONSUMING PUBLIC who demand highest quality at the lowest cost shall be the challenge of Total Rewards Practitioners. Thus, If you want to learn how to balance the concerns of these stakeholders, attend the TOTAL REWARDS CONGRESS on July 26 and 27 at the Crowne Plaza, Ortigas.
By Freddi Marquez, DPM, CTRF (Freddi is the SVP for HR of St. Luke’s Medical Center, Advisory Board of Asean Total Rewards Institute ATRI , President Emeritus of the Compensation Management Society of the Philippines CMSP, Past President of PMAP, and Governor of ECOP)