The labor group’s support for a legislated pay increase of P150
The Trade Union Congress of the Philippines (TUCP) is urging the House of Representatives to pass its own proposed P150 wage hike measure, following the Senate’s plenary approval of a P100 legislated wage increase. The TUCP is advocating for the passage of House Bill (HB) 7871, also known as the Wage Recovery Act, which is currently pending in the House Committee on Labor and Employment.
The TUCP argues that despite recent pay hikes approved by the Regional Tripartite Wages and Productivity Boards (RTWPBs) across the country’s regions, wages still fall below the poverty threshold set by the Philippine Statistics Authority (PSA) and the family living wage estimated by the think tank IBON Foundation. The organization criticizes the outmoded exploitative approach of the wage boards, which it believes prioritizes setting low wages to attract investments.
Since the last legislated wage hike in 1989 through Republic Act 6727, which established the regional wage boards, the TUCP highlights that the minimum wage has only seen incremental increases, with the highest recent hike approved by the boards being only P50.
TUCP Vice President Luis Corral emphasizes the urgent need for Congress to reverse its “cheap labor” policy and enact legislation that ensures living wages for workers. He argues that without adequate wages, workers’ health and productivity suffer, leading to malnutrition and growth stunting, particularly among children.
Corral dismisses the argument that wage increases would fuel inflation and discourage investments, attributing these issues instead to other factors such as expensive electricity and soaring food prices.
However, big business, represented by the Employers Confederation of the Philippines (ECOP), strongly opposes legislated wage hikes, arguing that determining wage increases should remain within the purview of the regional boards. ECOP maintains that legislating salary increases would be inflationary and would primarily benefit formal sector workers, neglecting the majority of the workforce in the informal sector.
In summary, the debate over legislated wage increases underscores the tension between labor groups advocating for living wages and business interests concerned about inflation and competitiveness.
News: The labor group’s support for a legislated pay increase of P150
