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| (Photo courtesy of Bukluran ng Manggagawang Pilipino) |
The wage increase is in the form of cost of living allowance (COLA) will be integrated to an existing P22 stipend into workers' paychecks. It will be given in two stages, a P20 increase will be implemented 15 days after the new wage order is published in a national broadsheet, while the remaining P10 will be paid out six months after the initial increase. This decision of staggered increase will amount up to P1,440 lost for a minimum earner employee.
The TUCP faction headed by Democrito T. Mendoza, in a statement, said the decision to integrate the P22 COLA that was ordered in last year’s wage increase would be “beneficial to workers in the computation of overtime pay, holiday pay, premium pay, night shift pay, 13th month pay, retirement pay, etc.”.
“However, we have mixed feelings with the increase of P30 in two tranches. We will challenge this and file an appeal at the appropriate time,” it added.
The TUCP faction headed by former Senator Ernesto F. Herrera, meanwhile, similarly welcomed the order “if only to provide temporary relief” but described the adjustment as a “pittance”.
The militant Bukluran ng Manggawang Pilipino called the increase an insult and reiterated calls to scrap Republic Act 6727 that mandates wage-setting at the regional level.
Let's Raise the Minimum Wage
In a column from Tempo, a certain businessman support an increase in wages for Filipino workers and his position counters the popular consensus among employers that a wage hike may have an impact on the capital of most businesses. He points out four factors to support his position:
1. Labor is only a small portion of the total operating cost of businesses so the impact of higher wages on operations will not be significant.
2. Many companies are already paying their workers higher than the statutory minimum wage.
3. Labor should not be blamed for rising business costs or for low productivity.
4. Raising wages benefit not only the employees but also businesses and the economy.
I agree to his point of view. The Philippine wage rates is only rank fourth in Asia. How can a family of 4 live decently on a daily wage of $10.50 or equivalent to $254 a month when the cost of living is almost $9 a day?
You might want to read:
The Colossal Gap Between the Rich and the Poor
The Effect of the Growing Population in the Philippine Economy
