Bu-lat-lat (boo-lat-lat) verb: to search, probe, investigate, inquire; to unearth facts

Volume 2, Number 6              March 17 - 23,  2002                   Quezon City, Philippines







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To Provide for Family of Six as of February 2002:
Monthly Minimum Wage in Metro Manila Short by P9,600
 

Poverty exists not as a result of personal indolence but as an offshoot of structural infirmities perpetuated by the powers-that-be. Even the most conventional economic planners admit that development has a price. The question, however, is why do poor people always have to pay for it? Bulatlat.com quantifies the reality of poverty and deprivation through its latest computations of cost of living in Metro Manila.

BY DANILO ARAÑA ARAO
Bulatlat.com
 

President Gloria Macapagal-Arroyo’s recent moves to endear herself to the poor miserably fail to mask the reality of poverty and deprivation in the country. A day of doling out packs of rice and other goodies among urban poor communities in Metro Manila cannot compensate for the year-long hunger pangs experienced by millions of residents. Beyond the land titles allegedly distributed to the homeless – a ritual the president does whenever rumors of a coup allegedly plotted by the Estrada camp percolate - is the bigger picture of low wages and high cost of living.

What use is a piece of land for those without a future to look forward to? Selling this new property – if indeed land titles that were distributed are real - may temporarily solve current financial woes, but what happens thereafter when the “gloria” (glory; pun intended) runs out?

Indeed, Bulatlat.com computations show that as of February 2002, a family of six in Metro Manila needs P525.61 ($10.32, based on an exchange rate of P50.92 per US dollar) to fulfill food and nonfood needs in one day. It may be recalled that a P15-increase ($0.29) effective that month only resulted in a P280 ($5.50) daily minimum wage rate for workers in Metro Manila – an amount which can fulfill only 50 percent of the daily basic requirements. (See Table) But even the labor admitted has admitted that most companies in Metro Manila and the rest of the country violate the minimum wage rate set by regional wage boards.

Computed on a monthly basis, this means that a minimum wage earner needs P9,608.30 ($188.69) more to fulfill his or her family’s needs. Even if both parents work, their daily earnings will not match the high cost of living pegged at P15,768.30 ($309.67) as of February 2002.

Cash-strapped parents must look for other sources of income and/or credit lest their children are forced to help augment the monthly family income by dropping out of school in order to work.

The disparity between wages and cost of living did not quantitatively change through the years. Computations made by Bulatlat.com show that it has even doubled since January 2000 or in just two years. (See Table)

Compared to January 2000 figures, the disparity between wages and cost of living ranged from P520.40 or $10.22 (Jan 2001) to P973.10 or $19.11 (Jan 2002).

EDSA Dos (a.k.a. People Power 2) in January 2001 may have seen the downfall of a discredited Estrada administration, but the Macapagal-Arroyo administration hardly made a dent in increasing the wages of Filipino workers. In the context of cost of living, the regime has also miserably failed to nip in the bud continued increases in the prices of basic goods and services.

This situation may explain why the President does not trumpet the P15-increase ($0.29) in the minimum wage of Metro Manila workers last November 2001, and another P15 ($0.29) hike last February 2002. As an urban poor leader put it succinctly, P15 ($0.29) can even hardly buy a kilo of rice. Bulatlat.com

 

Wages vs. Cost of Living in Metro Manila
Jan-Dec 2000, 2001 and Jan-Feb 2002 (in Philippine peso)

 

On a Daily Basis

On a Monthly Basis a/

Minimum
Wage Rate

Cost
of Living b/

Wage
Disparity

Minimum
Wage Rate

Cost
of Living b/

Wage
Disparity

Jan 2000

223.50

464.00

(240.50)

4,917.00

13,920.00

(9,003.00)

Feb

223.50

465.57

(242.07)

4,917.00

13,967.10

(9,050.10)

Mar

223.50

466.51

(243.01)

4,917.00

13,995.30

(9,078.30)

Apr

223.50

467.45

(243.95)

4,917.00

14,023.50

(9,106.50)

May

223.50

471.85

(248.35)

4,917.00

14,155.50

(9,238.50)

June

223.50

472.17

(248.67)

4,917.00

14,165.10

(9,248.10)

July

223.50

475.63

(252.13)

4,917.00

14,268.90

(9,351.90)

Aug

223.50

478.46

(254.96)

4,917.00

14,353.80

(9,436.80)

Sept

223.50

482.86

(259.36)

4,917.00

14,485.80

(9,568.80)

Oct

223.50

485.69

(262.19)

4,917.00

14,570.70

(9,653.70)

Nov

250.00

495.12

(245.12)

5,500.00

14,853.60

(9,353.60)

Dec

250.00

496.06

(246.06)

5,500.00

14,881.80

(9,381.80)

Jan 2001

250.00

500.78

(250.78)

5,500.00

15,023.40

(9,523.40)

Feb

250.00

502.35

(252.35)

5,500.00

15,070.50

(9,570.50)

Mar

250.00

502.66

(252.66)

5,500.00

15,079.80

(9,579.80)

Apr

250.00

505.17

(255.17)

5,500.00

15,155.10

(9,655.10)

May

250.00

505.81

(255.81)

5,500.00

15,174.30

(9,674.30)

June

250.00

510.84

(260.84)

5,500.00

15,325.20

(9,825.20)

July

250.00

514.92

(264.92)

5,500.00

15,447.60

(9,947.60)

Aug

250.00

514.61

(264.61)

5,500.00

15,438.30

(9,938.30)

Sept

250.00

515.24

(265.24)

5,500.00

15,457.20

(9,957.20)

Oct

250.00

515.24

(265.24)

5,500.00

15,457.20

(9,957.20)

Nov

265.00

518.07

(253.07)

5,830.00

15,542.10

(9,712.10)

Dec

265.00

520.58

(255.58)

5,830.00

15,617.40

(9,787.40)

Jan 2002

265.00

526.87

(261.87)

5,830.00

15,806.10

(9,976.10)

Feb

280.00

525.61

(245.61)

6,160.00

15,768.30

(9,608.30)

Bulatlat.com computation based on DOLE and NSO data
a/ Monthly Minimum Wage Rate assumes 22 working days per month
while Monthly Cost of Living assumes 30 days per month
b/ Cost of Living figures refer to food and nonfood needs of a family of six


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