MANILA — The House Committee on Labor and Employment started on Wednesday its deliberations on bills seeking hikes to the daily wage for workers in the private sector, more than a week after the Senate approved on final reading the proposal for a P100 increase for minimum wage earners.
 
At least 77 members of the House have shown support for and co-authored the proposed P150 across-the-board increase in daily wages, according to the bill’s proponent, Cavite 1st Dsitrict Rep. Ramon "Jolo" Revilla III.

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“In 2020, the average monthly salary of a worker [was] P15,200.00 and was ranked as among the lowest in 110 countries... Malaysia has an average monthly salary of P41,300.00, Thailand has P30,700 and Vietnam has P20,000,” he told the panel.

The minimum wage varies across regions, with workers in the Bangamoro Autonomous Region in Muslim Mindanao being paid the least. Agricultural workers are also paid less than minimum wage earners in other industries.

Revilla said rising prices have severely affected the living conditions of many Filipinos, especially minimum wage earners.
 
“Dahil dito, nararapat lamang na siguruhin ng pamahalaan na naisusulong ang mga napapanahong polisiya at programa pagdating sa umento sa sahod,” Revilla added.

(That's why it is only right that the government ensures timely policies and programs when it comes to wage increases.)
 
Three lawmakers from the Makabayan bloc at the House of Represenatives, meanwhile, are calling for a P750 daily wage. They said that much is needed to provide for the basic needs of a Filipino family.

Gabriela Women's Party Rep. Arlene Brosas urged the President to certify the wage hike bills as urgent, and called for the abolition of regional wage boards.

Groups like the Makabayan bloc have been calling for a national minimum wage, arguing that prices do not differ too much across regions.

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“In fact, regional wage boards have created too many fragmented wage levels even within their jurisdictions — allowing companies in specific industries to peg lower minimum wages,” she said.
 
“P750 is not just a random number, as it represents the average gap between existing regional minimum wage rates and the P1,200 family living wage needed to attend to food and non-food needs of Filipino families amid sky-high prices,” Brosas added.
 
Nineteen business groups and foreign chambers of commerce expressed strong opposition to proposals for a legislated wage increase, saying it will hurt micro, small and medium enterprises, and worsen the plight of informal sector workers due to higher inflation.

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The National Economic and Development Authority and the Congressional Policy and Budget Research Department of the lower house also warned of the possible negative economic impact should the proposed measures be enacted.
 
“NEDA estimates show that the proposed measures may result in lower GDP growth, higher unemployment, and faster inflation. The poorest of the poor, who likely operate in the informal economy and who will not benefit from any wage hike, will be most vulnerable to any increase in commodity prices, which may result from a wage hike,” NEDA’s Desiree Narvaez said.
 
“Unmitigated wage increases could foster an inflationary spiral—a vicious cycle of wage increases hell-bent on catching up with inflation… such would have disastrous results,” CPRBD’s Manuel Aquino added.
 
The Confederation of Wearable Exporters of the Philippines told the panel that the proposed wage hike could trigger retrenchment of more workers in their industry.
 
“My investor said it’s like putting a nail in our coffin. (03:40) You’re looking at 70-80% that could probably lose their jobs. Our biggest concern now is our competitiveness,” CONWEP’s Maritess Agoncillo said.
 
Instead of another round of mandatory salary increases, the group asked the government to provide monthly financial assistance of P1,000 to minimum wage earners for 2 years to help cushion the impact of rising prices of basic and prime commodities.

Some business groups also urged the government to bring down the cost of putting food on the table.
 

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LABOR GROUPS 

Labor groups disputed claims that wage hikes will lead to retrenchments, higher inflation and slower economic growth.
 
"Madagdagan lang ng P150 karamihan maaangat na ng konti sa poverty line," Allan Montaño of the Federation of Free Workers said.

(An increase of just P150 would lift most workers out of the poverty line.)

He argued that the money would still go back to the economy when spent. More spending money would also spur demand and would lead to more people putting up small businesses, he said.

"Instead of more unemployment, madadagdagan pa ang employment," he said.

Meanwhile, Kilusang Mayo Uno secretary-general Jerome Adonis said that price increases should not be used as a scare tactic against wage increases.
 
"Kami ay nanghihingi ng dagdag na sahod para mabawasan ‘yung profit, ‘yung kita. Kaya hindi dapat ipasa sa produkto, para walang inflationary." 

(We are asking for a wag increase, that can be taken from profit. The labor cost should not be passed on to the product so there will be no inflationary effect.)
 
Dr. Gerardo Sicat of the UP School of Economics urged caution in legislating a wage increase, and take into consideration the impact of additional labor cost to the country’s position in the global trading system.
 
The House panel will continue its deliberations on the bills next week.

Aside from legislated wage hikes and those ordered by regional wage boards, workers can raise wages through collective bargaining through unions and workers' associations.