Wage hike a “no-brainer” amidst continued oil price surge

“An increase in wages amidst continued oil price surge should be already automatic. The recent miniscule PhP 12 increase in wages in the National Capital Region (NCR), which was the highest so far among the regions, was vaporized into thin air by the rising cost of oil even before it reached the pockets of workers. Workers and drivers both need an increase in their income since the prices of basic goods like sugar and milk have increased.”

This was the statement today by the Kilusang Mayo Uno (KMU) Labor Center as the sentiments for an immediate and substantial wage hike snowballs because of the pressure brought by continued increase in prices of crude on basic goods. The National Wages and Productivity Commission (NWPC) recently mulled the need for a wage hike because of the “extraordinary circumstances.”

“Times are indeed extraordinary for ordinary Filipinos. Despite the much-touted increase of the Philippine Peso versus the US Dollar, prices of crude continue to increase. Amidst the drone of a supposed growing economy, the sharp cry of hungry Filipino families stands out,” said Elmer “Ka Bong” Labog, National Chairperson of the KMU.

“The recent Social Weather Station (SWS) survey showed that in September 2007, 1 out of 5 or 3.8 million families experienced having nothing to eat. Massive poverty among the workers is further underscored by the Bureau of Labor and Employment Statistics (BLES) report that in 2006, 22.9% of the 33 million employed Filipino or 7.6 million workers in 2006 were overemployed or had to work more than 48 hours a week because their wages were so low and needed extra income. Even without a fare hike, workers deserve and demand a substantial wage hike now. What more when the price of transport fares increase to a minimum of Php 9?” stated Labog.

“The demand of transport groups for a fare hike at the moment is justified since the price of diesel have broken the PhP 35/liter level. Like the workers, those in the transport sector - drivers and small operators - suffer the brunt of the continued increase in prices of basic commodities. During the first quarter of this year, Ibon Research Foundation noted that oil companies owed consumers P4.40 per liter due to overpricing. Our families are going hungry while the oil cartels fatten their pockets,” stressed Labog.

According to the Independent Philippine Petroluem Companied Association (IPCA), despite the steady supply of oil in the world, crude prices continue to increase because of the oil speculators in the New York Mercantile Exchange (NYMEX) and ICE Futures of London pushing world crude price higher. “The oil companies are making a killing in profit, not only from direct selling, but also from the stock market,” opined Labog.

According to the labor leader, workers and transport groups are preparing for collective action for their demand for a PhP 125 wage hike for workers and fare increase for the transport sector and are laying out plans of action against the continued rise in crude prices.