LABOR WATCH
Amid
High Living Costs and Growing Poverty:
Workers’ Demand for Decent Wages Becomes More
Urgent
As
more families are pushed to poverty, the fight for decent wages becomes a
life-and-death struggle for the workers.
BY JENNIFER DEL
ROSARIO-MALONZO
IBON Features
Posted by
Bulatlat
In the five years of President Gloria
Macapagal-Arroyo in power, the basic wages of workers have scarcely moved,
with only a few pesos given as cost-of-living allowances augmenting the
minimum wages.
The Filipino people are asked to “share”
the burden of the country’s crisis by enduring paltry wages in the face of
higher living costs, and paying more taxes. But as more families are
pushed to poverty, the fight for decent wages becomes a life-and-death
struggle for the workers.
Ensuring wages are adequate for the needs
of workers and their families would significantly uplift the lives of
millions of Filipinos. But workers’ wages have remained low over the
years. The highest daily minimum wage in the country is only P325,
received by industry workers in the National Capital Region (NCR).
The Arroyo government continues to
disregard the workers’ demand for a P125 across-the-board wage hike. In
Metro Manila, for instance, although there were four wage orders from 2000
to 2005, only the last wage order increased the basic pay of workers and
just by a meager P25. The wage increments were mostly in the form of cost
of living allowances that not all employers are compelled to fully
implement.
Workers in other regions are worse off,
with minimum wages in Region IX in Mindanao,
for example, as low as P196 for non-agricultural workers and P151 for
non-plantation agricultural workers. In the Visayas, the lowest minimum
wage is P160 for farm workers and P205 for non-agricultural workers.
Farm workers’ wages are typically 30
percent lower than what industry workers receive. The highest minimum wage
for agricultural workers is set at P252 for farm workers in the CALABARZON
(Region IV-A). But in reality, farm workers receive much lower than the
set minimum wage, especially with labor contract schemes such as
pakyawan.
Diminishing value of wages
Not only are workers’ wages measly, these
are also eroded by rising prices of goods and services. The national
inflation rate is pegged at 7.6 percent as of March 2006.
Last year, IBON monitored 19 oil price
hikes, raising oil prices by P7.07 per liter. Oil prices increased by
almost 30 percent in 2005 compared to prices in 2004. Prices of petroleum
products have already increased by about 400% since the government
implemented oil deregulation in 1996. From January to the first week of
April 2006, there were already five rounds of oil price hikes.
Electricity and water rate hikes have also
been substantial, with Meralco raising its charges by 24 percent in
November 2005 compared to the same period in 2004. The implementation of
the reformed value-added tax (VAT) before 2005 ended and the additional 2
percent in the Expanded Value-Added Tax (E-VAT) effective February this
year added to the people’s burden.
Real wages
The unabated increase in the prices of
commodities has resulted in the diminishing purchasing power of the peso
and, consequently, the value of workers’ income. The purchasing power of
the peso represents the value of the peso in terms of goods and services
that it can buy. The Filipino consumers’ buying power has shrunk to only
73 centavos as of March 2006.
Thus, the real value of the P325 highest
minimum wage is only P233.48, which means workers in the NCR lose over 28
percent of their earnings to inflation. In Region VI, IX and ARMM, the
real wages of workers are lower by 24.6 percent, 24.9 percent and 30.1
percent, respectively, than their nominal wages, which are already among
the lowest minimum wages in the country.
Insufficient wages for decent living
The rapid increase in prices of
commodities and services has also accelerated the rise in the cost of
living. IBON estimates that a family of six in the Philippines needs at
least P546.80 to live decently. In the NCR, the daily cost of living has
already reached P666.45. The minimum wage does not even fulfill half of
the daily cost of living.
Thus, with rising cost of living and low
wages in the country, more and more Filipino families are falling into the
mire of poverty. IBON estimates that almost 83 percent or 8 out of 10
families are poor.
Keeping wages low is a policy of the
government as it uses cheap labor to attract foreign investors into the
country. This is illustrated by subcontracting schemes, which are more
profitable as they depress wages, practiced by transnational corporations
in the country.
Adherence to neoliberal policies imposed
by multilateral creditors and trade blocs subject wages and other labor
arrangements to the so-called market forces. This ultimately means wages
are kept low and workers are all the more exploited and oppressed as
capitalists are allowed to decide how much to give workers.
Thus, it is unsurprising that the Arroyo
government and its allies in Congress continue to hinder the passage of
House Bill 345 that provides for a P125 wage hike, while business groups
such as the Employers Confederation of the Philippines (ECOP) and
Philippine Chamber of Commerce and Industry (PCCI) push for the wage issue
to be addressed by the regional wage boards. These are precisely to avoid
a legislated wage increase and to undermine the workers’ struggle for a
national minimum wage that fulfills their needs.
Struggle for just wages
The fight for decent wages is just and
urgent as the people are buffeted by escalating prices of basic
necessities that are the result of the government’s implementation of
anti-people policies of liberalization, deregulation and privatization.
While the problems of workers go beyond
low wages, as unemployment and underemployment reach unprecedented levels,
a substantial wage hike will relieve the burden of poor families who
suffer the economic crisis. IBON Features / Posted by Bulatlat
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