No just reason to block granting of P125 wage increase

Filipino workers need urgent economic relief with rising cost of utilities, goods and services

Member unions of militant labor center Kilusang Mayo Uno (KMU) today trooped to the office of the Employers Confederation of the Philippines (ECOP) in Makati to slam the business groups' collective opposition to the P125 across-the-board legislated wage hike approved by Congress. The P125 across-the-board wage hike is expected to will benefit around 12.4 million workers in the private sector. "The business sector is very much afraid that if implanted, the P125 wage hike will give precedent to the labor sector's future demands for wage hikes both in national and company-based levels," said KMU Executive Vice President Lito Ustarez.

"While the workers' long-overdue demand for substantial wage increase victoriously passed the Lower House and its counterpart bill now gaining positive grounds in the Senate, business groups and the Department of Labor and Employers (DoLE) are chorusing chaotic forecasts once the wage hike is granted. The argument 'wage hikes will lead to massive unemployment' is nothing but an archaic defense to protect their profit margins. ECOP must stop misrepresenting Small and Medium Enterprises (SMEs). The government, through DoLE, already exempted most SMEs from paying minimum wages through the Barangay Micro-Business Enterprises (BMBE) law. We all know that the most rabid, hardline oppositors to the P125 wage hike demand are big business owners," Ustarez stressed.

"How can DoLE, business owners and employers expect workers to live through the almost daily increasing costs of living? At the turn of the new year, workers and consumers faced another triple whammy of power, water and oil price hikes. The Energy Regulatory Commission (ERC) approved Meralco's power rate hike petition with additional 29 centavo per kwh increase in generation charges. Water utility giants Maynilad and Manila Waters also increased their rates by almost 50 centavos per cubic meter. LPG dealers hiked their market prices while oil companies are poised for another wave of price adjustments in the coming weeks. Vital services of the Philippine General Hospital including operating room charges are also scheduled to increase starting next month. Now tell us, how can workers and their families live with only P300 daily minimum wages?, Ustarez asked.

The group also hit the government's double standards on price hikes and wage hikes. "Malacanang is perpetually allowing private businesses particularly utility, telecom and oil companies to increase their rates while maintaining hostile stance on any wage adjustment for suffering workers."

Tax breaks and wage hikes needed

Ustarez further said they are likely to welcome the permanent tax break proposal posed by the Department of Finance provided that it will not replace a legislated wage hike. "Tax breaks will give significant economic relief if implemented alongside a substantial wage adjustment. Tax reprieves alone are not enough to help workers overcome severe economic hardships and the high cost of living now estimated at nearly P800 for a family of six in the National Capital Region."

Meanwhile, the group also lashed at the National Economic Development Authority (NEDA) Romulo Neri for claiming that the P125 across-the-board wage hike will slowdown the economic growth, particularly Gross Domestic Product (GDP) targets by 3.7 percent.

"NEDA advocates only superficial economic growth and not genuine economic advancement of Filipinos," Ustarez concluded.