Labor group hits Arroyo government for refusing to give substantial wage increase before May 1

Insensitivity to workers' plight

Labor group Kilusang Mayo Uno today denounced recent government announcement that no wage hike will be given to workers before May First.

“This is already expected. Actually, President Gloria Arroyo is just staging a show in asking the regional wage boards to increase wages because she cannot dismiss anymore the crisis she has brought to the people,” said Prestoline Suyat, KMU spokesperson.

“The people have more reason to flock the streets this coming May One or Labor Day. It is pay off time for the regime who has continuously kept the nation in despair and scarcity.”

Suyat also slammmed Arroyo's instruction for all regional wage boards to set meetings on May 1.

“Wage boards are only instruments to give meager, insignificant adjustment to workers. The NCR wage board, for example, only gave a P12 increase on the average yearly, many of which are just cost of living allowances.

“She must not evade our demand for a P125 across-the-board wage hike. This is the only substantial increase that could temporarily alleviate the dire condition of the workers and the people,”

Suyat said.

The labor leader also challenged the economists and businessmen sided with the government who spread lies that wage increase will cause inflation and is bad for the economy.

“Cost of goods are already rising even if workers do not receive wage increases. For this year, for example, the price of rice increased by 44%, fish 14.3%, pork by 23%, chicken and vegetables by 20%, fruits by 25%, and frying oil by 56% since April 2007 according to the Department of Trade and Industry itself.”

According to studies by IBON, wages have only increased by 18.6% since Arroyo assumed office (2001-2006), compared to the 37.9% increase in prices of basic goods. Because of this, an average family lost P20,400 in real terms of wages, and P1,300 – P21,400 for the poorest families.

While workers' purchasing power continue to lag behind cost of goods, income of big companies in the Philippines have considerably risen.

“Income of top 1000 corporations in the country have risen by 327 percent. While manufacturing companies only spend 6.8 percent in labor cost. It is only for this reason that they can easily give P125 wage adjustments and deduct these from their enormous profits instead of increasing the prices of their products.. ”

Suyat also called on “All congressmen who still have their conscience, do something to legislate the P125 wage hike immediately. They should address the urgent and legitimate demands of their constituents.”

More than a hundred thousand people led by KMU will conduct programs and demonstrations in different parts of the country on May One.