‘Wage hike battle far from over’

MANILA, Philippines — The fight for the enactment of the proposed P200 legislated wage hike bill is far from over, organized labor groups said.

Militant labor group Kilusang Mayo Uno (KMU) yesterday called on workers nationwide to continue rallying for the bill’s passage as the House of Representatives holds its final session today.

“We call on workers to make noise, amplify the demand and thunder in the streets during the final days of Congress’ session,” KMU said in Filipino.

“Let us keep watch over Congress and collectively assert our right to a meaningful wage increase,” it added.

The Trade Union Congress of the Philippines (TUCP) reiterated its appeal to President Marcos to certify as urgent the proposed legislated wage hike bill.

“This is a national emergency demanding that the President certify as urgent this P200 legislated daily minimum wage hike so we can pass it right now – not months from now. With both chambers of Congress ready to act, with no opposition from our labor department and with public clamor at an all-time high, there is no better time than now. Mr. President, our people cannot wait any longer,” TUCP president Raymond Mendoza said.

The House committee on labor and employment recently approved a consolidated bill mandating a P200 across-the-board daily wage hike for private sector workers, following petitions from labor groups for a P150 daily wage increase.

Several progressive and labor groups yesterday criticized business groups for rejecting the wage hike, despite benefiting from generous tax cuts under the Corporate Recovery and Tax Incentives for Enterprises (CREATE) law.

Major business groups, such as the Federation of Filipino-Chinese Chambers of Commerce and Industry and the Philippine Chamber of Commerce and Industry, have raised concern about the negative impact of a legislated P200 daily wage across-the-board increase on costs and competitiveness, especially among micro and small enterprises that make up over 90 percent of businesses nationwide.

Business groups want wage-setting to be out of the hands of politicians and instead left to the tripartite wages and productivity boards, as provided by law, to prevent job losses and business closures.

President Marcos has said the legislated wage hike is “under study,” noting that a wage increase must not fuel inflation and must also consider the concerns of the entrepreneurs who create jobs.

Former Bayan Muna congressman Ferdinand Gaite countered this statement, saying that the tax savings from the CREATE law should allow businesses to support the wage hike without jeopardizing their financial stability.

“It’s the height of corporate greed when these business groups, who have enjoyed massive tax cuts under CREATE, are now blocking modest wage increases for workers. They have saved billions in tax payments but are unwilling to share even a small portion of their profits with their workers,” Gaite said.

The Makabayan bloc in the House of Representatives echoed Gaite’s statement, saying the business groups’ arguments against the wage hike are “recycled anti-worker rhetoric.”

“These business groups are recycling the same old arguments against wage increases, but the facts tell a different story. Previous wage hikes did not cause massive layoffs or business closures. The big corporations can afford to increase the salaries of workers. In fact, this is just a small fraction compared to their huge profits,” Gabriela Women’s Party Rep. Arlene Brosas said.

She said the combined net income of the top 1,000 corporations in the country saw a 7.2-percent increase in revenues, reaching P17.8 trillion in 2023, demonstrating their capacity to implement wage increases. — Jose Rodel Clapano