House leader calls on colleagues to heed experts’ support for a wage hike

House Deputy Speaker and Trade Union Congress of the Philippines (TUCP) party-list representative Raymond Democrito Mendoza on Tuesday called on the House of Representatives to support the passage of the P150 daily minimum wage hike for private sector workers, saying a wage increase is urgently needed and backed by economists.

Mendoza made the call after the House labor and employment panel conducted two hearings on bills proposing daily minimum wage hikes ranging from P150 to P750.

Mendoza said that during the second hearing experts and stakeholders from the academe, civil society, and the informal sector as well as economists voiced their support of the P150 wage hike bill.

Minimum wage earners speak

Among them, he said, was Margarita Refaldo of the Association of Minimum Wage Earners, who had asked that those who do honest hard work and contribute to the growth of the economy be compensated appropriately.

"Hindi naman po kami humihingi ng malaki at hindi naman kami hihingi ng sobra," Refaldo said. "Ang hinihingi lang po namin bilang mga manggagawa na siyang nagtataas ng ekonomiya ng ating bansa ay...sweldo na masasabi natin na [papayagang] magkaroon ng maayos at disenteng pamumuhay ang mga simpleng workers."

(We are not asking for much, or for more than we should have. What we are asking is for us workers, who are vital in stirring economic growth, to have a living wage that will allow workers to lead decent lives.)

Another resource person, Flora Asiddao Santos of the Metro Manila Vendors Alliance (MMVA), said what they are demanding is a just wage.

“Kami ay naniniwala na ang hinihingi ng uring manggagawa sa pormal ay makatarungan. Kung mataas ang kita nila, tataas ang kanilang purchasing power, at tataas rin ang aming kita,” she said, citing their own experience of a surge in sales during holiday season when workers receive their Christmas bonus and 13th month pay.

(We are of the belief that what the laborers are calling for is just. If they earn more, their purchasing power will increase, and our livelihood will thrive as well.)

House of the People

Mendoza said the House of Representatives, as the "House of the People," should "walk the talk of inclusive growth and development."

"Through weekly marathon hearings, let us speak truth to power and end the big lie peddled by employers and economic managers that a legislated wage hike only spells doom,” he said.

“The House of the People should stand in solidarity with Filipino workers and their families because our society and our fast-growing economy will benefit from higher wages boosting consumer demand, pump-priming the local economy, and paving the way for equity and prosperity,” he added.

Mendoza also quoted economist and Social Weather Stations president Mahar Mangahas as saying that “the minimum wage system is not working because the real wages are stagnant and not increasing.”

Further, Mendoza noted the findings of Dr. Benjamin Velasco of the UP School of Labor and Industrial Relations (SOLAIR), which showed that wage increases have no impact on employment because the wage increases have very little impact on inflation, given that inflation stems from cost-related factors and supply imbalances such as energy costs.

Mendoza also quoted economist Dr. Rene Ofreneo, also of UP-SOLAIR, as saying that the proposed legislated wage hike of P150 is doable and imperative given the billions in profits of big businesses.

Poverty wages

Mendoza then said that the Ateneo Policy Center also presented a position paper which revealed that it would require a daily budget of around P693.30 to be able to afford the main ingredients required to make the cheapest plate from the Food and Nutrition Research Institute's (FNRI) Pinggang Pinoy list—a cost higher than the highest daily minimum wage in the country: P610 in the National Capital Region.

Economist Emmanuel Leyco, for his part, also said that there is no record of businesses closing down as a result of a wage hike.

“I, therefore, urge all my colleagues in the House of Representatives to heed our people’s clarion call: Enough is enough! End poverty wages and cheap labor!,” Mendoza said.

“Together, let us make history. The Filipino demands and deserves a raise,” he added.

The Senate has approved a bill granting a P100 daily minimum wage hike for the private sector on third and final reading. — BM, GMA Integrated News