THE HOUSE of Representatives is not bent on railroading the wage hike bills as some lawmakers carefully consider concerns that doing so may result in the closure of small businesses and discourage the entry of foreign investments.
Rizal Rep. Juan Fidel Felipe F. Nograles, who heads the House Committee on Labor and Employment, told Monday’s media briefing that the panel will be discussing the P750 and P150 wage hike proposals on Wednesday but study them carefully.
“Following the directive of the House Speaker, we will not rush this,” said Mr. Nograles. “[We will] analyze and study all sides, especially our investors who provide jobs… and will be affected.”
House Bill (HB) No. 7871, authored by Deputy Speaker and Party-list Rep. Raymond Democrito C. Mendoza, and HB No. 514, filed by Cavite Rep. Ramon B. Revilla III, seek a P150 across-the-board wage increase for all private sector workers. Minority lawmakers filed HB 7568, proposing a P750 wage hike.
A Filipino family of five would need at least P13,797 a month or P460 a day to meet their basic needs, the Philippine Statistics Authority (PSA) had reported.
Last week, the Senate approved a proposed P100 wage hike on third and final reading, but congressmen are looking to pass a higher salary increase. The lower chamber is also studying a wage hike between P350 to P400.
Party-list Rep. France L. Castro, one of the authors of the P750 wage increase bill, also supports the P350 minimum wage hike, saying it meets the living wage.
“We want the salary of our workers to be close to the family living wage,” Ms. Castro told reporters at the sidelines of a House hearing.
The House labor panel will also deliberate on the creation of a proposed national minimum wage rate, which would amend the country’s labor code.
Under the Labor Code, regional wage boards are mandated to study and approve wage hikes.
Pasig Rep. Roman T. Romulo, a lawyer, said a legislated wage hike might be appropriate if the wages remain low under the wage boards.
“We will hear from the wage boards what their direction will be [on hikes,]” Mr. Romulo told reporters at the sidelines of a hearing. “If [wages] do not move [in the wage boards,] I approve that we legislate it,” he said in Filipino.
Party-list Rep. Arlene D. Brosas called on the need for a single wage rate for workers across regions, noting the regional wage-setting system discriminates based on location or sector.
“Regional wage boards have created too many fragmented wage levels even within their jurisdictions – allowing companies in specific industries to peg lower minimum wages,” Ms. Brosas said in a statement.
The country’s largest labor coalition, Nagkaisa, said the proposed legislated wage hikes, once passed, become an economic driver that improves the purchasing power of Filipino workers.
Jose Sonny G. Matula, Nagkaisa chairman and Federation of Free Workers (FFW) president, told BusinessWorld through Viber that increasing workers’ wages can help bolster the economy, reduce poverty and malnutrition, and improve productivity.
Recalling the impact of the last legislated wage increase 35 years ago, Mr. Matula said: “The P25 wage hike or 39.1% increase on top of the P64 min wage in 1989 successfully boosted the economy despite many coup attempts.”
“A well-compensated workforce is also more likely to invest in skills development and education, further enhancing productivity in the long term,” he added as he argued the point of improving worker productivity.
He also traced widespread malnutrition on poor wages. “The real purchasing power of salaries has eroded over time, making it difficult for workers and their families to afford basic necessities,” he said.
Josua T. Mata, SENTRO secretary general and co-convenor of Nagkaisa, added that the 1989 national wage hike never caused any “catastrophic” inflation, contrary to the fear raised by the Employers Confederation of the Philippines (ECoP).
“We are not calling this ‘wage hike,’ we are calling this ‘wage recovery,” Mr. Mata told BusinessWorld about congressional moves to enact a national wage increase.
In a separate interview, Bank of the Philippine Islands chief economist Emilio S. Neri, Jr. said a healthy level of wage adjustment on a regular basis means higher purchasing power for consumers.
This, he said, is a means of “boosting domestic demand, stimulating economic growth in general.”
Both Mr. Matula and Mr. Neri acknowledged that the daily minimum wage in the Philippines remains in the lower range compared to its Southeast Asian neighbors like Indonesia, Thailand, Malaysia, and Singapore. — Beatriz Marie D. Cruz with a report from Chloe Mari A. Hufana
