7.3 % econ growth for the rich, not for the poor – KMU; ‘We need wage hike, decent jobs, not empty stats’

The much hyped-up economic growth of 7.3 percent stands to directly benefit the rich and not the poor, as it simply translates to higher earnings of foreign corporations since wages of Filipino workers remain frozen for years and joblessness remain at record-high, labor center Kilusang Mayo Uno said today.

“Workers and other poor sectors have no reason to be happy with the recent growth statistics because it is actually the growth of company earnings extracted out of massive layoffs and wage freeze,” said KMU secretary general Roger Soluta.

“Based on the latest data by the government itself, a third of the population (or 30.36 million Filipinos) remains mired in poverty since 2006 while profits of the top 1000 corporations increase by P3.1 trillion every year. Truly, this is economic growth for the rich, not for the poor,” Soluta added.

“That’s why capitalists and their partners in government are so ecstatic. On the contrary, workers never really felt even the slightest tinge of that so-called record growth.

He said wage levels in all regions have remained stuck since 2008, while companies implemented massive job cuts and laid off tens of thousands of workers. Corrected statistics by the Ibon Foundation put jobless Filipinos at 4 million, aside from 28.5 million who are in poor quality of work.

In February 2009, the labor department also implemented new forms of flexible work arrangements, which guaranteed higher profits from slashed wages and benefits.

 “At the same time, it is an artificial and momentary growth since it relied on foreign investor confidence, remittances, election spending and exports. Such growth can never translate to a stronger domestic economy,” he said.

KMU said while government spin masters claim the record growth gives Gloria Arroyo a “glorious ending,” workers and the people are convinced that the regime will be leaving the worst labor record in more than three decades.

Industrial growth?

The labor leader also disputed the claim of National Statistical Coordinating Board Sec. Gen. Romulo Virola that industrial growth in the first quarter helped create additional 1.73 million jobs.

“How can there be additional 1.73 million jobs when the latest Labor Force Survey itself shows that there’s an increase in unemployed by at least 120,000?” Soluta asked.

“In the first place, the industry sector has generally degenerated into an island in the vast sea of the service sector, which employs more than half of the labor force. Any industrial growth at this point can never be sustained since government policies stress the expansion of the service sector, particularly call centers,” he added.

Soluta also noted that the GDP share of the agriculture sector shrank to 2.9 percent, the lowest in the country’s history.

Wage hike badly needed

KMU said the incoming Aquino administration should not wait and see whether economic growth will trickle down to workers, farmers and other poor sectors. It said it will never really trickle down in the first place if wages remain frozen.

“President-apparent Sen. Noynoy Aquino should do the concrete: Push for the P125-nationwide legislated wage increase so that incomes can catch up with economic growth. Beyond sustaining the artificial economic growth, raising wages is the real challenge for the Aquino administration,” Soluta said.

“On Aquino’s Day 1, workers across the nation will resoundingly call for the much needed wage increase. We shall pressure him to heed the workers’ concrete demand over the anti-worker requests of big corporations around him,” he added.