Wage hike in installments
By J.Lo
“Such method would considerably weaken potential economic stimulus that one-time increase could achieve,” Federation of Free Workers (FFW) Women’s
Network vice president Arta Maines said stressing need for one-time significant wage increase to effectively stimulate local economy FFW has rejected proposal by some legislators and business sector for installment-based legislated wage increase.
FFW is pushing for P150 legislated wage increase for all workers, as it noted critical to boost purchasing power of workforce and delivering immediate uplift to economic activities.
Some legislators are proposing gradual increase of P100 over three years for National Capital Region (NCR), Calabarzon and Central Luzon , P40 in first year, P40 in second and P20 in third year.
A P35-P35-P30 increment is being eyed for other regions.
“This is lower than some of t wage orders promulgated by the RTWPBs which unions earlier criticized as insufficient,” Maines said, referring to Regional Tripartite Wages and Productivity Boards.
She said the installment-based increase diminishes the immediate impact that a signifi[1]cant wage boost could have on the economy.
“It’s crucial, now more than ever, for our workers to receive this adjustment to handle rising living costs and to kickstart economic activities from grassroots,” Maines pointed out.
She said substantial wage hike implemented on May 1 would convey strong message of support for country’s workforce and aid in swift recovery of local economies.
She added studies have shown positive correlation between worker morale, effort and wage satisfaction.
Maines cited as effective precedent P25 wage increase in 1989.
“Despite substantial wage hikes and political unrest following coup attempts, feared massive job losses did not materialize…instead, GDP ,gross domestic product growth soared to 5.8 percent from that period until Asian financial crisis in 1997,” she said.
Maines noted proposed P150 wage increase represents 24.59 percent of current P610 daily wage in NCR, compared to 39.1 percent legislated increase in 1989.
In Bangsamoro Autonomous Region in Muslim Mindanao, daily wage is P341, increase would constitute 43.99 percent.
Employers and other business groups are against legislated wage hike, preferring to leave wage setting to Regional Tripartite Wages and Productivity Boards as mandated by law.
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