Tag Archives: Cost of living

[Press Release] Measly wage hike is demeaning and cruel amid rising prices, pork scam—CTUHR

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Measly wage hike is demeaning and cruel amid rising prices, pork scam—CTUHR

CTUHR logo

The Center for Trade Union and Human Rights criticized the recent wage adjustment saying the it is “demeaning” and “cruel” to workers especially amid rising prices and the P10- billion-peso scam.

On September 6, the Department of Labor and Employment (DOLE) announced the wage adjustment integrating P15 of Cost of Living Allowance (COLA) to basic pay and adding P10 of COLA. The new basic pay is now at P451.00 while the additional COLA will be effective only on January 2014.

Daisy Arago, Executive Director of CTUHR said, “Such measly amount is demeaning and cruel to workers and the poor as rising prices of basic commodities and utilities in the recent months have already depressed the real value of wages.”

The group further explained that the wage adjustment is negligible as wage levels will remain below half of the family living wage estimated at P1,039.

Arago added that the wage adjustment is both very insulting and cunning, “It is the lowest wage adjustment in NCR in the last decade however, the government is trying to present it as good news by saying the it is the first time that the regional wage board made a unanimous decision over wage hikes.”

“We are even more repelled by the Aquino government’s display of insensitivity by giving Filipinos token wage adjustments amid corruption scandals involving billions of pesos from people’s taxes being pocketed by a few,” Arago pointed out.

Arago also berated a recent statement of Malacañang spokesperson, Edwin Lacierda who belittled the 5-million peso controversy thrown at Department of Interior and Local Government (DILG) Secretary Mar Roxas, “It is extremely appalling that Malacañang is taking 5 million pesos as non-issue when the government is only giving workers 10 pesos in a time when most Filipinos are worried of the rising prices of rice which is now at P42 per kilo.”

In the end, the group challenged the government to support the workers demand for a substantial and legislated wage hike. The group said that a substantial wage hike will provide immediate relief to many Filipinos and a legislated increase will benefit all workers across the country.

NEWS RELEASE
7 September 2013

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[Blog] Why Higher Wages Make Economic Sense -politicsforbreakfast.blogspot.com

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Why Higher Wages Make Economic Sense
MAY 15, 2012

Last May 1, the usual arguments of the business sector were unleashed with its central theme: No, business cannot afford wage hike. Beset with high cost and poor business climate, business simply cannot survive added cost of labor. How do we attract investments if we increase wages? Look at China and Vietnam. Didn’t they have a cheap labor policy? Aren’t they getting much more investments than us due to lower minimum wages?

As if the anti-wage-hike position isn’t entrenched enough, an army of economists follows with a recital of the dogma of “labor flexibility”. They say, wage level should be equal to the so-called “marginal productivity of labor” – which is economese for whatever the employer wants to pay them. Labor is supposedly not exempt from the law of supply and demand. Raising minimum wage will only increase unemployment, as it supposedly disallows all voluntary labor wage contracts that pay below the minimum wage. It will also introduce inefficiency in the labor markets, now faced with a “deadweight loss” due to the intervention of the government who will always fail to set prices right.

But why, if they are right, aren’t we attracting investments still? What explains Philippine firms’ low level of competitiveness? Why does unemployment remain high? The response has always been, never mind the workers, that it is not enough. Lower wages a bit more, then we’ll get the investments that would have gone to China. Lax regulations a bit more, and we’ll have more productive factories and viable businesses. Dismantle a little bit more unions, and businesses will be more efficient and will eventually increase their wages in the long-run.

Read full article @ politicsforbreakfast.blogspot.com

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[In the news] Wage increase for private workers, employees in Cordillera approved | Sun.Star

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Wage increase for private workers, employees in Cordillera approved | Sun.Star.

By JM Agreda
May 22, 2012

THE Regional Tripartite Wages and Productivity Board (RTWPB) approved last May 18 a new wage order that provides an P8 increase to basic salaries of private sector employees in the Cordillera, a Labor official said.

The RTWPB’s Wage Order 15, Department of Labor and Employment Regional Director Henry John Jalbuena said, particularly provides the additional P8 to all private workers and employees receiving the minimum wage in the region, regardless of their position, designation, or status and irrespective of the method their wages are paid.

He said the order will take effect 15 days after its publication in a newspaper of general circulation after being forwarded by the board to the National Wages and Productivity Commission, which will arrange for the wage order’s publication.

Jalbuena said the order restores the purchasing power of workers.

He also stressed that the order maintains the Cost of Living Allowance ranging from P22 to P37 granted under Wage Order 14.

Read full article @ www.sunstar.com.ph

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[In the news] Disparity between daily wage and cost of living: “heaven and earth”-MindaNews

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MindaNews » Disparity between daily wage and cost of living: “heaven and earth”.

By Bong S. Sarmiento
April 30, 2012

KORONADAL CITY (MindaNews/29 April) – “Heaven and earth.”

Adelaida Segumpan, Kilusang Mayong Uno (KMU) regional spokesperson said the disparity between the daily minimum wage rate and the estimated cost of living level in the area is now “heaven and earth” and they will push for a substantial wage hike and the abolition of the regional wage board during their Labor Day indignation rally on Tuesday.

“What the workers need now is a substantial wage increase in order for us to cope with the skyrocketing prices of petroleum products, basic commodities and services,” Segumpan said.

She described the recently approved P10 to P14 daily wage increase in the region “as a meager amount meant to pacify workers’ wrath against the callousness of the Aquino administration.”

Over the weekend, some 100 militant members stormed the regional office of the Department of Labor and Employment (DOLE) here where they staged a noise barrage in preparation for May

Ryan Lariba, spokesperson of Bagong Alyansang Makabayan, pushed for the granting of a legislated P125 across-the-board daily increase to improve the plight of workers.

Read full article @ www.mindanews.com

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[In the news] Trade Union Congress of the Philippines revives wage hike | Sun.Star

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Trade Union Congress of the Philippines revives wage hike | Sun.Star.

By JM Agreda
March 24, 2012

AFTER several months of waiting for supervening conditions, the Trade Union Congress of the Philippines (TUCP) will be re-filing its petition for an P80 across-the-board wage increase.

TUCP regional coordinator Engineer Rey Lardizabal said the wage increase petition is needed for the labor sector to survive the surging prices of transportation and fuel, basic and prime commodities and cost of living.

Lardizabal said a wage hike is inevitable, citing previous increases in salaries have been overtaken by continuing price hikes.

In a petition by the TUCP, it said wage orders of P10 to P15 for cost of living allowance (Cola) in 2008 and the P12 additional Cola enforced last January 2011 have been overtaken by increases in prices of petroleum products, transportation and basic goods and commodities.

The group is now batting again for a P352 minimum daily wage in the region compared to the prevailing P272 minimum wage enforced in 2011.

The group also said it is time to enable workers to recover from the difficulties brought about by the global financial crisis a few years ago.

TUCP cited workers and their families, despite spectacular gains in the gross national product, production and productivity, have not been granted a single peso in real wage increase since 1989.

For them, increased wages would help sustain the economic recovery of the country as it will help bolster local demand, TUCP said.

The group also compared that from May 2008 to March 2011, the consumer price index in the region rose from 154.5 to 172.8 or the equivalent of a 12-percent increase in consumer prices or equal to a P31.20 excluding new price increases in transportation, fuel and basic commodities.

Discussing their previous petition, consumer prices brought about by unabated fuel and water and electricity rate increases according to the group are also expected to rise by as much as eight percent and more considering the increases in transportation and fuel experienced this year.

This, according to TUCP, is equivalent to an additional P20.80 increase in wages.

Read full article @ http://www.sunstar.com.ph/baguio/local-news/2012/03/24/union-revives-wage-hike-212904

[Press release] P22 COLA is bad not good news – Partido ng Manggagawa

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The Partido ng Manggagawa (PM) criticized the P22 cost of living allowance (COLA) approved by the NRC wage board as “bad news instead of the good news promised by PNoy.” Renato Magtubo, PM national chair said that “Like in the Philippine Airlines dispute, Labor Secretary Rosalinda Baldoz is again the bearer of bad news. Nonetheless PNoy is to squarely blame. Instead of appealing to employers, he should have told the three government representatives in the wage board to push for a wage hike not a COLA. This will set a trend for the rest of the wage boards which will probably also grant a COLA instead of a wage hike”

This morning PM picketed the Department of Labor and Employment in protest at the wage board decision. The group called for the abolition of the regional wage boards and their replacement by a National Wage Commission.

“The government representatives in the wage board heard not PNoy’s call for a wage hike but the employers’ plea for cheap labor. Once more the wage boards have betrayed the workers. The P22 COLA is symbolic of the wage boards’ 22-years of service to the capitalists rather than the workers,” Magtubo insisted.

“The COLA is a misnomer since it is supposed to bridge the gap between the take home pay and the cost of living. But the cost of living in the NCR is already P1,010 as of March for a family of six and yet the minimum wage plus COLA adds up to only P426, which is will not even buy half of the basket of goods and services,” Magtubo explained.

He added that “PNoy should have put teeth to his talk. All PNoy had to do was declare an amount for the wage hike and order the three government representatives in the wage board to push for it. But instead of marching orders to the government representatives in the wage boards, he was content with a futile appeal to the capitalists.”

He explained that in every wage board, the regional director of the Department of Labor and Employment chairs while two more government representatives come from the Department of Trade and Industry and the National Economic Development Authority. Two representatives each from the workers and employers complete the seven-person wage board.

Magtubo argued that the wage boards have outlived their usefulness and should be replaced by a Wage Commission. He stated that “The mandate of the National Wage Commission will be to fix wages based on the single criterion of cost of living. This is different from the wage boards which are bogged down by convoluted and contradictory 10-point criteria in fixing wages. The Wage Commission should raise the minimum wage to the level of the living wage by a mix of mechanisms such as direct wage increases, tax exemptions, price discounts and social security subsidies for workers.”

Press Release
May 10, 2011
Partido ng Manggagawa
Contact Renato Magtubo @ 09178532905

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