KMU seeks abolition of wage boards

MANILA, Philippines - The Kilusang Mayo Uno (KMU) yesterday sought the abolition of the country’s wage boards, saying they do not cater to the needs of workers.

In a statement, KMU secretary general Roger Soluta said there exists enough grounds to adjust the salaries of workers but the Regional Tripartite Wages and Productivity Boards (RTWPBs) continue to be blind to them.

“The country’s regional wage boards are again proving to be instruments of capitalists and the government for pressing down wages. For failing to give workers a significant wage increase, the country’s wage boards should be abolished,” he said.

The labor group made the call after Labor Secretary Rosalinda Baldoz reiterated the Department of Labor and Employment’s (DOLE) position that the proposed P125 across-the-board daily wage hike “is not feasible.”

“While the DOLE shares the view that there should be high and rising living standards for workers and their families, the DOLE cannot support the proposed across-the-board P125 daily wage increase because it will weigh down heavily on the economy through higher prices, loss of jobs, and slower overall economic growth,” Baldoz said.

But according to Soluta, the rising costs of basic commodities and services in the country have long weakened the purchasing power of the peso, so a salary increase is justifiable.

“Filipino workers have not received a significant wage hike for more than nine years under the Arroyo regime and more than one year now under the Aquino administration,” he said.

KMU cited a March 2012 study released by independent think-tank Ibon Foundation showing that while wages increased by 45 percent in the period 2001-2011, prices of basic goods have increased by 62 percent.

“Workers need a substantial wage hike to cope with increases in public transportation fares, prices of basic goods and services, price of LPG, and electricity rates. There will really be social unrest unless the government heeds workers’ demand for a substantial wage hike,” he added.

Soluta said the KMU’s call for wage increase nationwide should be discussed in Congress where it has a chance of being approved.