Labor group slams capitalists over stance on P100 wage hike

Militant labor group AMA Sugbo-KMU has slammed the business leaders in the Visayas for their opposition in the proposed P100 legislated increase in the daily minimum wage of private sector employees.

“The workers are miserable. Their conditions are miserable. These capitalists are trying their best to maintain this dire situation by opposing the P100 wage increase that is already passed on the Senate level,” said Jaime Paglinawan of the AMA Sugbo-KMU in a statement.

He noted that it has been 34 years since former President Corazon Aquino signed the Republic Act 6727 or the Wage Rationalization Act but the law has been ineffective in giving the workers a livable wage.

Moreover, Paglinawan said that it can’t catch up with price hikes on basic commodities like water, electricity, and transport fares that swallow the workers’ purchasing power.The Wage Rationalization Act institutionalized the Regional Tripartite Wages and Productivity Board (RTWPB) that determines the minimum wage in every region.

For the past 34 years since its implementation, Paglinawan said there have been only 27 wage hikes in Western Visayas (P440–P480), 24 wage hikes in Central Visayas (P415–468), and 23 wage hikes in Eastern Visayas (P375–405).

“The RTWPB failed to enforce what was mandated in the 1987 Constitution: that the workers should be given a living wage,” he said.

Citing a study conducted by IBON Foundation, Paglinawan said that Central Visayas’ living wage for a day is P1,266; the Eastern Visayas is at P872; and the Western Visayas is at P1,001.

The living wage was calculated based on the daily needs of a family of five. According to the study, a living wage should be enough for a family of five to eat three times a day, send their children to school, pay for their bills and transportation fares, and afford rest and recreation.

According to Paglinawan, the data shows that all establishments have already recovered from the COVID-19 pandemic. Businesses in the Philippines have increased their profits to 28%, or P2.5 trillion. Whereas the Top 1000 corporations increased in profits to 104%, or P1.8 trillion.

“Their profits are even enough to drive for a P100 across-the-board wage increase for their workers,” he added.

Paglinawan said that it is also not true that the Philippines has the highest wage in Southeast Asia. The monthly mid-range minimum wage in the Philippines is only P13,890, which is lower than Malaysia at P15,823 and Thailand at P16,309. This is even lower than Brunei and Singapore, which don’t have any statutory minimum wage.

“You can’t make inflation a reason for the mass dismissal of workers or for these companies to close if there should be a wage increase. The wage increase cannot be a reason for the huge corporations to shift their operations to other countries due to lower wages,” Paglinawan said.

The AMA Sugbo-KMU demands that President Ferdinand Marcos, Jr. must certify an urgent bill for a national minimum wage that will be based on the family living wage. –