MANILA (UCAN): Filipino labour groups slammed the Philippine government for what they called a “meager” rise in the daily minimum wage in face of staggering inflation.
The Nagkaisa [United] coalition, the country’s leading labour group, issued a statement on July 3 saying the Labour Department’s increase of the daily wage from 570 pesos [$78.5] to 610 pesos [$84] in the non-agriculture private sector, was inadequate.
“While we recognise this development, the sentiment of disappointment is palpable among many of our workers. The increment falls significantly short of the more than 100 pesos [$13.7] … that our labour force had been anticipating,” the group said.
It claimed the increase failed to reflect the escalating cost of living.
“The 40-peso wage increase is a start … but we remain steadfast and committed to advocating for a genuine living wage for all Filipino workers,” it added.
While we recognise this development, the sentiment of disappointment is palpable among many of our workers. The increment falls significantly short of the more than 100 pesos [$13.7] … that our labour force had been anticipating
Nagkaisa coalition
Another labour group, Kilusang Mayo Uno, [KMU or May First Movement] marched on Manila and vowed to continue their fight until the authorities accepted their proposal for a daily minimum wage of 1,100 pesos [$151.5].
“The 40 peso increase is a pittance. It’s too far from the living wage required by law for workers to have a comfortable life. They [labour authorities] gave an increase for the sake of having one but it’s not a living wage or salary,” KMU Metro Manila chairperson, Jose Nicolas, said.
Nicolas said it was an insult to workers who have waited for years to get an extra 40 pesos, adding, “It’s insulting, really… It’s too small given the prices of commodities. The price of gasoline goes up almost every week!”
Last year, the government increased the wage by 33 pesos [$4.5] to make the daily minimum wage 570 pesos [$78.5]. Workers and labour groups then said that was nothing compared to soaring inflation.
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Workers have accepted the latest wage rise half-heartedly.
“An increase is still an increase. Forty pesos is better than nothing at all. It can still cover my transportation cost to work and save that amount to buy a few kilos of rice,” Romulo Gomez, a school janitor in Quezon City, said. A father of two, he rides a bicycle to work and says his current daily wage of 570 pesos barely covers rent and food expenses.
During his election campaign, he promised to sell rice at 20 pesos [$2.7] per kilo. He said the minimum wage would be increased to improve the conditions of workers. Now, we have a wage rise of 40 pesos [$5.5]. We have been duped
Alexander Carvajal
Gomez said the wage increase is not significant, but it can still pay for the education of his two children.
Alexander Carvajal, a computer technician, blasted the administration of Philippines president, Ferdinand Marcos, Jr., for making what he called false promises to improve labour conditions and tackle inflation.
“During his election campaign, he promised to sell rice at 20 pesos [$2.7] per kilo. He said the minimum wage would be increased to improve the conditions of workers. Now, we have a wage rise of 40 pesos [$5.5]. We have been duped,” Carvajal said.
He said that he could make extra by doing part-time jobs during weekends, but that stopped when the Covid-19 pandemic struck.
“I do not even have enough money for when someone in the family gets sick. When my wife had an appendectomy two years ago, I borrowed cash from loan sharks,” he lamented.
The stingy increase is a way below the 170 peso [$23.4] increase urgently needed by workers to recover the real value of wages
Bishop Alminaza
Bishop Gerardo Alminaza of San Carlos, chairperson of the Church-People Workers Solidarity Movement, also called the wage rise “insufficient.”
In a statement, Bishop Alminaza said, “The stingy increase is a way below the 170 peso [$23.4] increase urgently needed by workers to recover the real value of wages.”
Officials from the Labour Department did not respond to when contacted for comments.
However, economist Michael Ricafort said the wage hike could result in ‘second-round effects’ on inflation.
“Corporations will just increase the prices of goods and services to mitigate production costs. They could just spread their wage increase cost [by raising] the prices of goods. So, this adds to the inflation that you will not even notice,” Ricafort, chief economist of Rizal Banking Corp., observed.
Inflation in the Philippines reached a 14-year high of 8.7 per cent in January, according to the Philippine Statistics Authority.
The rate had eased to 6.1 pe rcent in May but was still higher than the pre-pandemic level of about 2.3 per cent.
About 18.1 per cent or almost 20 million Filipinos lived in poverty in 2021, the World Bank reported last November.
