Laborers reject pay hike delays

THE COUNTRY’S biggest pro-labor coalition on Thursday objected to the Philippine Chamber of Commerce and Industry’s (PCCI) opposition to the proposed P150 legislated wage hike and its call to delay state-imposed salary increases.

“This is the right time for a wage increase,” Jose “Sonny” G. Matula, president of the Federation of Free Workers and chairman of the Nagkaisa Labor Coalition, said in a statement in Filipino.

The PCCI had argued against Senate Bill No. 2002, the Across-the-Board Wage Increase Act of 2023, and suggested that the government delay another wage hike until the country’s inflation reaches the 2% to 4% target range to assist businesses in managing the increase in labor expenses. As of September, the inflation rate soared to 6.1%.

But Mr. Matula said a wage hike will support the workers who bear the brunt of the high inflation rate. 

“Failing to act on a nationwide wage increase disregards the essential needs of our workforce as they grapple with the high inflation rate amid the ongoing economic recovery from the COVID-19 pandemic,” he said.

Mr. Matula added that national legislation for a wage hike is needed as not all of the Regional Tripartite Wage and Productivity Boards (RTWPBs) have issued their own orders. “These disparities perpetuate wage discrimination and hinder economic inclusivity,” he said.

As of September, Metro Manila has the highest daily minimum wage in the country at P610 with a 6.1% inflation rate, while the lowest is in the Bangsamoro Region at P341 with a 6.4% inflation rate.

Inflation-adjusted wages were lower by around P62.82 to P105.01 (15% to 22.8%) from the current daily minimum wages set by RTWPBs, according to the data from the Department of Labor and Employment’s National Wages and Productivity Commission and Philippine Statistics Authority.

The Senate bill, introduced by Senator Juan Miguel F. Zubiri on Mar. 14, has been undergoing committee review since Oct. 5. — John Victor D. Ordoñez