WILL ordinary workers find deliverance from high prices of just about everything with the approval by the House of Representatives of a bill raising the daily minimum wage by P200?
No doubt, our workers would be very glad if the bill passes muster in the Senate, where a bill seeking a P150 minimum wage hike was approved in February last year, and President Marcos Jr. signs the bill into law.
For one thing, workers have found an ally in Speaker Martin Romualdez who has stated the House bill is “a critical step toward achieving inclusive growth and addressing the immediate challenges faced by Filipino families.”
He underscored the economic benefits of a wage increase, such as boosting household spending, stimulating local economies, and driving long-term growth.
He also pointed out that in the Philippines, where consumer spending accounts for a substantial portion of the gross domestic product, “a wage hike can act as an economic catalyst.”
But the proposed P200 minimum wage hike faces an uphill climb.
The Employers Confederation of the Philippines opposes the legislated minimum wage hike. According to ECOP President Sergio Ortiz-Luis Jr., “This will just make investors hesitate more with the uncertainty it creates. And we are already lagging behind our neighbors in terms of investments.”
He warned a P200 wage hike would be a major contributor to inflation.
The Philippine Chamber of Commerce and Industry, the country’s biggest business group, has also expressed its opposition to the P200 legislated wage hike: “A blanket national minimum wage does not take into account the differences in the cost of living across regions as well as the unique needs of businesses based on specific industry, location, and type of labor they need…It could also lead to business inefficiency and stagnation” .
But workers’ groups, including the Trade Union Congress of the Philippines, Federation of Free Workers, and Sentro ng mga Nagkakaisa at Progresibong Manggagawa are banking on Romualdez’s positive response to their calls for the legislature to prioritize and accelerate the immediate passage of the proposed legislated daily wage hike.
But how about the executive branch?
President Marcos Jr., while acknowledging that workers are struggling with high prices, pointed to the Regional Wage Boards as the body responsible for wage increases. “It is their job to determine what the minimum wage should be,” he emphasized.
When asked in a recent media forum if the Department of Labor and Employment supported the call of workers’ groups for a legislated P200 wake hike, Secretary Bienvenido Laguesma replied their job is to provide inputs in the debate, and let lawmakers discuss and approve the proposed measure. Then DOLE will implement whatever the law says.
So what lies ahead for the proposed P200 legislated wage hike?
We can only hope that it passes the legislative mill, and gives our workers the means to cope with hard times.