Upcoming hike in prices of milk and flour products distress workers

Labor center Kilusang Mayo Uno (KMU) said Pres. Gloria Macapagal-Arroyo’s claim of a steady economic growth immediately backfired. “Not even 24 hours passed after Arroyo declared the increase in GDP, local retailers of milk and flour-based products announced to hike the prices of their goods. This is a cause of alarm for us. This will result to instant increase in prices of other basic commodities. Whatever is gained by workers from the P12 wage increase in the National Capital Region (NCR) will be easily wiped out by continuing price hikes,” said KMU Secretary General Wilson Baldonaza.

The second quarter Gross Domestic Product (GDP) of 7.5 percent, a record-high in 20 years, only affirms the persistent dismal state of our economy. Arroyo can stay in her make-believe world but spruced up economic statistics will not convince workers that there is genuine economic and long-lasting development happening in the country. We certainly cannot feel any significant improvement. The daily lives of workers can attest to the economic inequality and steadily growing gap between rich and poor.”

“We will not be appeased by rosy figures from the NEDA and NSCB. We are more concerned with the increasing cost of basic goods and services. As far as workers are concerned, there is no trickle down effect of the so-called economic development imagined by the government. The country’s productive sectors are constantly deteriorating.”

KMU cited a study by the IBON Databank saying that the manufacturing sector growth slowed to 3.7% in the second quarter of 2007 from 4.2% last year. Agriculture sector growth also slowed to 3.9% from 6.7% last year.

He added that the current Daily Cost of Living for a family of six in NCR is pegged at a staggering P768 while the current wage level is only at P362.

“This bubble economic growth will burst hard before Arroyo’s face. The economy continues to be afloat because of the remittances sent by Overseas Filipino Workers (OFWs). There is no genuine development wherein workers are provided with secure jobs with steady income and social security.”