MANILA, Philippines– A wage increase of less than P75 is ‘inhuman’, union representatives said Friday.
“TUCP cannot accept the proposed P13. It is unacceptable. Hindi tama, hindi kasya, hindi makatao. [It is not right, it is not enough, and it is inhuman.]” its spokesman Rafael Mapalo said in a press conference at the Trade Union Congress of the Philippines (TUCP) in Quezon City.
The TUCP and the Associated Labor Unions (ALU) issued their response to a proposal by the Employers’ Confederation of the Philippines that it could only give its workers a maximum P13 wage increase from the original demand of P75.
“Malas pa ang 13, sa kanila na lang [13 is even unlucky. They can have it],” Mapalo said.
Based on its computation, the TUCP said P13.35 was not enough to recover the purchasing power the workers lost because of the 4.4% inflation rate that occurred from December 2010 to March 2011.
“The proposed wage increase amount of P13.35 has no basis. Where did they get that figure? Do they know how to compute?” Mapalo asked.
The TUCP and the ALU said that a P16.80 raise in pay was more accurate.
“We all know that inflation is not stagnant, so by calculating the whole year’s probable inflation rate which is by our estimate will reach 10%, P16.80 plus P40 wage increase will be needed to cope with the whole year,” said Flor Kabatingan, TUCP Women’s Department director and former wage board member.
Employers are threatening to shut down their companies and resort to retrenchment if the P75 wage increase will be enforced, but Gerard Sena, national vice president of Associated Labor Unions (ALU), countered that this amount was not backed by any data from the Department of Labor and Employment.
“What burdens companies is the very high cost of power, water, materials and supplies, profits, and etc. not wages.” Sena said.
He [Sena] added that the threat of closure by companies was nothing more than “a clever ploy to avoid employing regular workers and paying decent wages.”
Sena said that these companies would open after a few months under a different name, with the same product or services, and contractual workers.
Another reason why employers’ opposed a wage increase was that only 15% of the 36 million workers would benefit.
But Sena denied this, saying that the petition was across the board.
“All wage and salary earners of the private sector will benefit, from the invisible janitor or messenger to supervisors and manager, including the highly paid CEO.” Sena said.
Employers also raised the point that the Philippines was among the countries whose workers were paid high wages that was why
investors would rather go somewhere else.
Mapalo also dismissed claims that employers were still recovering from the global financial crisis because the National Economic Development Authority (Neda), Department of Trade and Industry (DTI) and Department of Labor and Employment (DoLE) said that the crisis left the country largely untouched.
Lawyer German Pascua, Regional Tripartite Wages and Productivity Board (RTWPB) representatives, said that the RTWPB would have a marathon meeting on Monday, May 9, to discuss the wage increase proposals.
“In my honest opinion, I think P45 is enough.” Pascua said.
“Hopefully we can publish our decision as soon as possible so the wage increase will be effective by May 25.” Pascua added.