Vol. 3 No.4 Vol.3 No. 4 A publication of the Substantial Democracy Project Federation of Free Workers PETITION FILED BEFORE NCR WAGE BOARD FFW, LSM push for 77-peso daily across-the-board wage increase The Federation of Free Workers (FFW) along with other labor organizations comprising the Labor Solidarity Movement (LSM) have filed before the Regional Tripartite Wage and Productivity Board (RTWPB) of the National Capital Region a joint petition calling for a Why pesos daily across-the-board wage increase of P77 in Metro Manila. 77 The considerable increases in of FFW-LACC, Mr. Daniel Edralin From January 1991—when the mini- prices and corresponding reduction in of APL and Mr. Democrito Mendoza mum wage was pegged at P118—to the workers’ purchasing power prompted of TUCP as signatories. end of 2001, according to FFW-LSM the the petitioners to ask for a salary hike. Living wage Consumer Price Index (CPI) would have Filing the petition are labor “This (petition for a 77- increased 2.44 times. Thus, multiplying centers Labor Advisory peso hike) is considerably low the minimum wage rate of January 1991 Consultative Council compared to the 125-peso leg- to the number of times the CPI shall have islated wage (LACC), of which FFW increased by the end of 2001, will yield: is a member, increase being P118 (minimum wage rate in 1991) Trade Union espoused by Congress of the the Kilusang X 2.44 (CPI increase from 1991-2001) Philippines Mayo Uno P288 (TUCP) and Al- (KMU),” said Therefore, to keep up with the prices, liance of Pro- FFW President workers need P38 more since the present gressive Labor Ramon Jabar. minimum wage rate is P250: (APL). He explained P288 (amt needed to keep up with Since the last legislated mini- that the in- prices) mum wage was set at P89 nationwide crease being - 250 (current minimum wage) in 1989 through RA 6727, wage in- proposed by FFW and P 38 (increase necessitated by creases have paled in comparison to LSM is not even enough to bring up the general increase in prices. Bro- wages to the level of “living wages” escalating prices) ken down, the amount of P77 repre- mandated by the Constitution. Workers also need to improve their stan- sents P38 necessitated by escalating The petitioners believe the dard of living. Since they have done their prices and another P39 from workers’ economy will suffer should they ask share in economic development, they share of the growth in the region. (see for the full adjustment for living wages rightfully deserve a piece of the regional computation at the right) at this time. “Whether employers are growth, which averaged 3.3 per cent an- The joint petition was filed on amenable (to the 77-peso proposal) nually from P220,972 in 1991 to P279,045 26 July 2001 with Mr. Ramon Jabar remains to be seen,” he continued. 1 Free Workers Emergency Cost of Living are not adverse to the concept of leg- Other regions file their petitions Allowance, non-wage proposals islated wage adjustments but we are Petitions for across-the-board Deliberations of the Regional only emphasizing the urgency of any wage increases have also been filed Wage Boards as in the past, have taken grant, whether it is from the Regional by FFW and LSM in other regions. a long time. Anticipating this, FFW Wage Boards or from Congress.” These include Region 7 in Cebu, in has proposed that a 50-peso Emer- It will take long before any Iloilo and Panay Island; Region 4; gency Cost of Living Allowance legislation on an increase in wages Region 6; Region 3 and Region 2. (ECOLA) be granted by employers could be passed by both houses of Specific rates of pay hikes while awaiting the RTWPB’s wage Congress. We see that a legislated being pushed for vary—with the high- order. Workers, in dire need of meet- wage increase nationwide, no matter est pegged at P90 across-the-board in ing the basic needs of their families what amount it will be, will only come Region 6, and the lowest at around will be able to do so, even if only par- in 2002, the earliest. P60 in Region 2. tially, with the help of the ECOLA. “We need something for the Inefficient Wage Boards The President echoed this sentiment workers to stand on for this year,” they The Wage Rationalization in her State of the Nation Address. affirmed. Act (RA 6727), enacted into law by To entice employers to accede Employers Confederation of Congress in June 1989 created and to it, workers’ groups explained that the Philippines Director-General mandated RTWPBs to determine and it may eventually be credited to any Vicente Leogardo, Jr. adamantly ob- fix minimum wages and adjust salary increase in wages that would be or- jects to a 125-peso legislated wage rates in all regions. Workers have a dered by the RTWPBs or enacted by increase. “It will wipe out the export consensus that their performance over the past 12 years is wanting. in 1999. Based on the minimum wage of 1991 once more, we compute the “In the medium term and the following: long term, we are for a total review of P118 (minimum wage rate in 1991) the wage determination system in the X (0.033 x 10) (annual regional growth rate) Philippines,” narrates Mr. Oliveros. P 39 (increase due to region’s economic development) “Along that line, we are amenable to Adding the needed wage increment to restore the purchasing power the position that regional wage boards of workers and give them a share of the region’s real economic devel- have to be abolished to put in place opment, we have: an industry bargaining mechanism, an P38 (increase necessitated by escalating prices) enterprise-based mechanism already + 39 (increase due to region’s economic development) in effect, and a national minimum P77 (required daily across-the-board wage increase) wage setting,” he clarifies. The same view is expressed Congress by means of a legislated sector since additional labor costs to by Mr. Jabar. “We are for its aboli- wage increase, in the future. existing forward contracts will cause tion!” He goes on to say that the most Simultaneously, the FFW severe financial losses and closures,” effective way of determining the mini- also proposes non-wage benefits. he claimed, before a House Commit- mum wage is through collective bar- FFW leader and Development Bank tee on Labor and Employment meet- gaining. “Workers must organize into of the Philippines Director Floro ing. He also warned of double-digit unions, where they can bargain for Oliveros says that these include “ad- inflation alleging that labor’s compu- wages and better terms of employ- ditional tax exemptions; improved tations for wage increases were not ment,” he said. benefits derived from the Social Se- productivity based. Composing the Regional curity System, Government Service There are actually four wage Wage Boards are the Regional Direc- Insurance System and Home Devel- related bills pending at the House of tor of the Department of Labor and opment Mutual Fund, including so- Representatives, most prominent of Employment (DOLE) as Chairman; cialized housing; and a moratorium on which is House Bill 2605 legislating Regional Directors of the National increases in the costs of basic utili- a daily across-the-board wage in- Economic and Development Author- ties, fares and basic services.” crease of P125 nationwide filed by ity (NEDA) and Department of Trade On a legislated wage increase Bayan Muna Party List Representa- Industry as Vice Chairs; and two Noting FFW’s apparent si- tives Hon. Crispin Beltran, KMU members each from the labor and em- lence on a legislated wage increase, leader, Hon. Liza Maza and Hon. ployers sectors, who are Presidential leaders of the FFW qualified that “we Satur Ocampo. appointees. 2 Vol. 3 No.4 Wage related Bills pending at the House While FFW and LSM have filed several petitions for an across-the-board wage increase with the different Regional Wage Boards throughout the country, these groups are not adverse to the idea of obtaining the desired increase in workers’ pay through legislation. Below is a list of pending bills at the House of Representatives being discussed at the committee level, seeking to increase workers daily take through wage and non-wage benefits and creating an alternative wage determination system. HB 1377 – “An Act Providing for a wage equivalent to the cost of liv- Ocampo Living Wage to Employees and ing of an average Filipino family, Salient Features: Workers in the Public and Private as determined by the National Sta- · Granting of a P125 daily across-the- Sectors, Establishing the Mechanism tistics Office and the Commission on board wage increase to all employ- and Proper Standards Therefor, Re- Population; ees in the private, agricultural and pealing Republic Act Numbered ·Tasking the National Economic De- non-agricultural sectors; 6727, Appropriating Funds There- velopment Authority and the Depart- · Tasking the Department of Labor for, and for other Purposes” by Hon. ment of Finance to determine the and Employment to monitor compli- Krisel Lagman-Luistro family living wage using the classi- ance of the wage increase by com- Salient Features: fication standard of cities/ munici- panies/ businesses; ·Granting of a living wage equiva- palities; · Imposing fines of P25,000 to lent to the cost of living for a fam- ·Exempting regular public and pri- P100,000 and/ or imprisonment of ily of six pegged at P500.00 a day vate sector wage earners from pay- two to four years for violators, and for full-time employees and work- ing annual withholding income tax; their payment of an amount equiva- ers in the public and private agri- ·Implementing a productivity and in- lent to double the unpaid benefits cultural and non-agricultural sec- centives performance program that owed to employees.