This story
was taken from Bulatlat, the Philippines's alternative weekly
newsmagazine (www.bulatlat.com, www.bulatlat.net, www.bulatlat.org).
Vol. VI, No. 51, Jan. 28-Feb. 3, 2007
Globalization – not Wage
Hike – is the Culprit for Job Losses
Globalization has resulted
in the destruction of domestic and export manufacturing enterprises, since they
cannot compete with cheaper dumped products in the local markets nor in the
global export market against manufacturing powerhouses such as China, and this
is why the country is shedding jobs.
BY IBON FOUNDATION, INC.
Posted by Bulatlat
Independent think-tank IBON Foundation belied claims by the National Economic
Development Authority (NEDA) that the proposed P125 across-the-board wage hike
currently pending in Congress would result in the loss of 1.1 million jobs.
IBON research head Sonny Africa last week said
that since 1995, the year when the Philippines became a member of the World
Trade Organization (WTO) and began liberalization of the economy in earnest,
local establishments have ceased operations or retrenched workers mainly due to
financial reasons (i.e. lack of capital, high production costs) and
reorganization or downsizing of firms.
Only a few firms have reported closing down or
resorting to retrenchment as a result of increases in the minimum wage. (See
Table) From 1995 to 2006, there were nine wage increases in the National Capital
Region.
Table.
Establishments Resorting to Permanent Closure/Retrenchment - Workers Affected
(1995-2005)
Product Demand
178,341
Lack of Market / Slump in Demand
164,123
Uncompetitive Price of Products 10,395
Competition from Imports
3,823
Financial
214,854
High Cost of Production
53,715
Lack of Capital
54,964
Peso Depreciation
9,583
Financial Losses
103,372
Others (Economic crisis)
15,583
Organization
209,810
Reorganization /Downsizing /Redundancy
170,958
Change in Management / Merger
33,789
Lack of Raw Materials
24,976
Minimum Wage Rate Increase
3,044
Others
25,990
Total
660,266
Source: Department of Labor and Employment
Note: Details may not add up due to rounding
Globalization has resulted in the destruction of
domestic and export manufacturing enterprises, since they cannot compete with
cheaper dumped products in the local markets nor in the global export market
against manufacturing powerhouses such as China, and this is why the country is
shedding jobs, Africa said.
Africa also hit the Department of Labor and
Employment (DoLE) for asking Malacañang to veto the wage hike bill.
“It is ironic that the DoLE, which should be
defending workers’ rights, is instead pushing for a rejection of a proposed bill
that will give the workers respite from the sky-rocketing cost of living,” he
said. Posted by Bulatlat © 2007 Bulatlat
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