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Tuesday, May 21, 2024

Labor mulls over wage hike

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THE Associated Labor Unions-Trade Union Congress of the Philippines said Wednesday it will file a wage-increase petition nationwide if the prices of goods and services triggered by the implementation of the Tax Reform Inclusion and Acceleration law become unreasonably high.

“The situation warrants, we will file the petition for workers to cope with the rising cost of living even if the one year prescribed for the no-wage-increase period set by the wage board is still in effect,” ALU-TUCP spokesman Alan Tanjusay said. 

In other developments:

• Senator Bam Aquino warned that the increase in the price of gasoline due to the TRAIN may have a domino effect on the prices of goods and services in the market.

Aquino, who rejected the TRAIN’s ratification in the Senate, considered “alarming” the spike in the prices of goods due to the imposition of taxes on oil.

The TRAIN mandates the imposition of excise tax of P2.50 per liter of diesel and bunker fuel starting this year, P4.50 in 2019 and P6 in 2020. For gasoline, the excise tax will be increased from P4.35 per liter to P7 this year, P9 in 2019 and P10 in 2020.

• Militant workers welcomed the new year with protests at Mendiola Bridge after the prices of basic commodities were expected to spike as the new tax measure of the government took effect on the first day of the year. 

The protest held by the socialist Bukluran ng Manggagawang Pilipino denounced the TRAIN, saying the excise taxes on petroleum and energy sources would burden consumers, workers and other disadvantaged sectors since it was a pass-on tax.

“Contrary to what officials keep on reiterating that TRAIN is beneficial to the poor, it is all too evident that the capitalists shall simply pass their obligations to their clients”•the lowly paid contractual workers, BMP president Leody de Guzman said in a statement.

Presidential Spokesman Harry Roque Jr. said the proceeds of the tax reform law would benefit everyone.

Those having an annual taxable income of P250,000 and below or at least P21,000 a month are now exempted from personal income tax. Thirteenth-month pay and other bonuses amounting to P90,000 are likewise tax-exempt,” Roque told reporters.

The TUCP also assailed the Department of Finance for failing to provide safety nets to the estimated 30.6 million vulnerable Filipino workers due to the expected high inflation that might be caused by the implementation of TRAIN.

“Millions of the poorest of the poor, the jobless, the underemployed and the workers in the informal economy will be hit by a category 5 tsunami instigated by TRAIN, Tanjusay said.

Based on the Philippine Statistics Authority survey released in 2017 says there are at least 3 million people considered as the poorest of the poor. 

The same survey recorded at least 4 million jobless, 8 million underemployed and around 15.6 million workers in the informal economy. All have no government social protection insurance and benefits such as those accorded by the Social Security System, Employment Compensation Commission, Pag-ibig and PhilHealth.

“Will also affect workers in the informal economy including jeepney, tricycle, taxi, UV express and pedicab drivers and all sorts of vendors,” Tanjusay said.

Roque earlier said the government was prepared to provide a P200 monthly cash voucher or discount voucher dole to the poor affected by the rising inflation brought about by TRAIN, but it is not clear how the dole is to be distributed.

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