P75 across-the-board wage hike sought in Metro Manila

MANILA, Philippines - The Trade Union Congress of the Philippines (TUCP) yesterday filed a petition at the National Capital Region (NCR) wage board for a P75 across-the-board wage increase for workers in Metro Manila.

The petition, filed by TUCP party-list Rep. Raymond Mendoza before the NCR Regional Tripartite Wages and Productivity Board, seeks to increase by P75 the current P382 minimum wage of workers in the metropolis, which he said was last increased in June 2008.

He said the TUCP has also sought the integration of the Cost of Living Allowance (COLA) into the basic wage.

“Wage increase for private sector employees in the NCR is urgent in the midst of skyrocketing prices of basic goods and services,” Mendoza said.

“Power and water utilities and oil firms are also planning to increase their charges and that would further erode the purchasing power of a worker’s salary,” he added.

The National Statistical Coordination Board (NSCB) previously said that incomes must rise faster than inflation to hold poverty in check, Mendoza said.

He said consumer prices in Metro Manila rose by five percent from June 2008 to January 2010, and are expected to increase by nine percent from January to December 2010.

“If wages would remain stagnant, then more workers will slide into poverty and those who are in the middle class will become the newly poor,” Mendoza stressed.

“According to the Monetary Board and the NEDA (National Economic and Development Authority), the country was not as badly hit by the international financial crisis,” the congressman noted.

He said latest NSCB statistics showed that 2009 GDP (gross domestic product) still grew by 1.8 percent while GNP (gross national product) rose by three percent.

“Although 2009 figures are lower than previous years, the Philippine economy showed resiliency in the face of economic turmoil,” Mendoza said.

“The economists of NEDA are saying that the global recession has ended. I believe that the economy can afford a new round of wage hikes and I appeal to our private sector partners to be more considerate this time,” Mendoza said.

“Regional figures support the P75 increase appeal of TUCP. NCR Gross Regional Domestic Product (GRDP) in constant prices increased from P221 million in 1991 to P468 million in 2008, averaging an amazing yearly 6.6 percent growth,” Mendoza said, adding that workers have largely contributed to the growth of the regional economy and therefore deserve to have a modest share of the fruits of economic development.

Of the P75 minimum wage increase, P19 reflects the actual increase in prices from June 2008 to January 2010, P35 reflects the projected rise in consumer price index (CPI) from January to December 2010, and P21 indicates the 21 years that there have been no increases in the real wage. TUCP calls this “equity supplement” to workers who have created new wealth but have not shared in the benefits.

“The quality of life of workers must improve as the economy grows. That is the real meaning of equitable development,” said Mendoza.

TUCP party-list is also pushing for the amendment of Republic Act 6727, which created the regional wage boards and the system of regional determination and fixing of minimum wages.

“Regional wage boards must really be pro-active in favor of workers so that our working people will not be left behind,” Mendoza said.

The TUCP is likewise pushing for the provision of emergency allowance for workers during economic crises and calamities as well as unemployment insurance for retrenched workers.

Mendoza said unemployment insurance can help unemployed workers get by while they are looking for a new job.