ALU-TUCP urges Duterte to raise workers’ pay

MANILA, Philippines — The Associated Labor Unions-Trade Union Congress of the Philippines (ALU-TUCP) called on President Duterte anew yesterday to increase the minimum salary of workers, following the increase in fares.

In a statement, ALU-TUCP spokesman Alan Tanjusay said the government should provide safety nets for families with the impending increases in the prices of prime commodities and services that would further erode the purchasing power of their daily minimum wages.

Tanjusay noted that based on validation they conducted on the monitoring of the Bangko Sentral ng Pilipinas (BSP) and the National Wages and Productivity Commission (NWPC) on the impact of prices of goods and cost of services to the current different wages nationwide, there was a “downward pattern of the standard daily minimum wage.”

The total average daily nominal minimum wage of workers in private non-agricultural sector in all 17 regions in October 2017 was P327 a day.

However, the purchasing power of daily average pay of P327 fell to P212.45, an erosion of P114.55.

Six months later in April 2017, ALU-TUCP observed that the total average nominal wage for workers in the same sector in all regions was raised to P330.47 a day.

However, the purchasing power of the daily average pay of P330.47 sank to P208.38, an erosion of P122.09 despite of the increase in wage rate.

But according to the National Economic and Development Authority (NEDA) in April 2018, the amount needed by a family of five to live decent life is P42,000 a month or P1,400 a day.

“The current wage rates obviously continue to be inadequate for a living wage. Due to supervening conditions, President Duterte must take jurisdiction over the wage boards and, as the Chief Executive, determine and adjust the wage rates,” he added.

Tanjusay has underscored the need for the government to help in improving the salary of workers by having social safety net program.

“By virtue of the extraordinary rise of inflation, Mr. Duterte must make decisions to help lift the lives of workers from poverty. We see no other hope. There is no other choice but for the President to take jurisdiction over the matter,” he said. 

The biggest and the fastest erosion of the purchasing power of daily minimum wage occurred in Metro Manila comprising 17 cities and municipalities. 

In October 2017, the buying power of P512 daily minimum wage was P362.89. Six months later, the purchasing power of P512 to buy goods and pay for services was only P352.13, an erosion of P10.76 over the period of six months.    

In Eastern Visayas in October last year, the nominal daily minimum wage was P366 for workers in the non-agricultural sector but the purchasing power of P366 was P237.97 a day. In April 2018, the purchasing power of P366 plummeted to P231.06 a day.

In Davao region, the nominal daily minimum wage was P340 but its buying power was only P211.31 a day. Six months later in April 2018, the purchasing power of P340 sank to P207.44 a day.