[Manila has one of lowest purchasing power in the world] Global study shows wage hike, price controls urgent

“This recent global research merely confirms what our stomachs have been saying all along: that a significant wage hike and price controls are most urgent.”

This was the labor center Kilusang Mayo Uno’s reaction to a UBS Prices and Earnings Report released last week which reveals that while Manila has one of the cheapest cost of living in the world, it also has the smallest wage levels and purchasing power.

The UBS August 2011 research ranked 73 countries in terms of price levels, wage levels, and domestic purchasing power and showed that Manila has the second lowest price levels, second lowest wage levels, and third lowest purchasing power.

“Widespread poverty and hunger and intense labor migration are just some of the concrete phenomena that the recent UBS research sheds light on. All of these confirm the Filipino workers’ and people’s need for an immediate relief in the form of a significant wage hike and controls on prices of basic goods and services, especially oil,” said Elmer “Bong” Labog, KMU chairperson.

“Having one of the world’s lowest purchasing power is a result of years of denying workers a substantial wage hike and of allowing the prices of basic goods and services to go up unabated, which the Aquino government continues to do. As the Aquino government speaks for big capitalists in pressing down workers’ wages, it allows the oil cartel for example to amass huge profits through overpricing,” he added.

Family Living Wage

KMU, citing the independent research group Ibon Foundation, said the gap between the minimum wage and the family living wage (FLW) has significantly widened over the years.

“The real value of wages continues to plummet as prices of oil, basic goods and services continue to soar,” said Labog.

The daily minimum wage in the National Capital Region (NCR) of P404 is just 2/5 of the estimated average FLW of P988 in the region as of March 2011. It has dropped to 41% of the amount needed for decent living in 2011 from 52% in 2001.

Bankrupt economic model

KMU said the UBS research shows the bankruptcy of the “development” model being pursued by the government.

“Having one of the world’s smallest purchasing power is also a result of the government’s eagerness, one of the worst in the world, in adhering to the pro-market policy of pressing down wages to attract investors because the government has tied its hands from providing employment,” Labog said.

“The UBS research presents the true picture of ‘development’ under the Aquino regime – big foreign and local businesses thrive as workers and the people who create wealth sink deeper into proverty. We have every right to be outraged at a government that does not serve the interests of the workers and people but of profit-hungry big capitalists,” he added.