KMU bewares PCCI, MBC, big businesses: do not blackmail workers w/ wage cuts; reports profits of big corporations

Kilusang Mayo Uno slammed the recent pronouncement of the Philippine Chamber of Commerce and Industry claiming that the only option left to avoid retrenchments is to cut workers’ wages, and the members of the Makati Business Club whom they reported to have already implemented wage cuts.

The MBC said that 32 percent of their members would implement wage cuts and job sharing or reduced work hours. DOLE had also announced that 34,000 workers have already seen their wages cut because of reduced working hours.

“Those big businesses should not blackmail us with wage cuts as our only redemption from being laid off. The cruelest thing they can do in this high time of crisis is to take advantage of it to secure more profits,” said Joselito Ustarez, KMU Executive Vice President.

“We challenge those that have already implemented and plan to implement wage cuts to reveal their financial statements for the scrutiny of workers,” Ustarez dared.

“We believe that if there is indeed a need to cut costs to prevent retrenchments, it should come from the big business owners’ end, not from the workers’ wages. “

KMU exposed the profits of some big companies where it has labor unions. The net income of San Miguel Corporation for last year’s first three quarters amounted to P20.9 billion and was 200 percent higher than their net income for the same period of 2007. PLDT also reported for the first three quarters of last year a net income of P27.8 billion, which is 5 percent higher from its same period in 2007. SM Prime Holdings, also for the same period, earned a total of P4.93 billion.

“Big corporations are actually profiteering high amid the crisis and have no basis at all to cut wages or dismiss their workers,” Ustarez said.

“We also condemn DOLE and the Arroyo administration for its tolerance and inaction on this wage cut mythology of the capitalists.” ###