P125

Mula kay Joy:

The approval of the across-the-board, nationwide P125 wage increase bill at the House of Representatives on December 2006 is welcome news for Filipino workers who have been struggling with low income amid the rising costs of commodities.

However, lawmakers and militant groups should not rest on their laurels. They should remain vigilant so that such measure should eventually pass the Senate and the Chief Executive. After all, there is a compelling reason to guard the passage of the wage increase bill.

Already, employers' confederations and local chambers of commerce expressed disagreement over the bill. They said they cannot afford the costs of labor and increasing it will lead to several company shutdowns.

One also questions the sincerity of the Lower House in approving the bill. Fresh from the controversy over the failed charter change move and a few months before the national elections, one cannot help but think that it is all about gaining the approval of the public.

In the end, the future of the bill depends on the President. We do not know whose interests the President will serve this time. It can be recalled that American Lance Corporal Daniel Smith was convicted before the lower courts for raping a Filipina in 2005. He was detained at the Makati City Jail but was transferred under the custody of the United States Embassy. No less than President Gloria Macapagal-Arroyo confessed that she ordered the move so as not to further strain the country's relationship with the US.

Now, we will guard how Arroyo will decide on the wage increase bill. She has always been a strong adherent of neo-liberal policies, further opening up our economy to trade especially with the US.

The government attracts foreign investments through cheap labor and incentives. Multinational and transnational corporations (MNCs and TNCs), usually from the developed countries, take advantage and transfer their operations to developing countries like the Philippines. Value chain analysis shows that the more you step up the production chain, the more profit you amass. Workers from the developing countries, especially the subcontracted and home-based workers, get the least profit while the MNCs and TNCs at the top of the chain get the most.

Lower wages for workers mean more profits for these big companies as well as for the elite local ones. That is why the wage increase bill runs counter to their interests. That is why they have every reason to pressure the government to disapprove the bill or else, they will threaten to close shop and move to other countries offering a more favorable business climate.

The P125 wage increase is long overdue. It is in fact a conservative estimate considering that the value of the peso has decreased over the years while the cost of living has increased. According to the National Wages and Productivity Commission (NWPC), the daily minimum wage at a national average is P283.67 since mid-2005, with ARMM being the lowest at P170. In comparison, the daily living wage for a family of six is a national average of P674.93 as of October 2006.

Clearly, the proposed increase is not enough to cover the family's cost of living. Nevertheless, it is still a victory for workers. Workers are the lifeblood of the economy. They should enjoy their right to work and the benefits due them.