Calls of the labor sector: a nationwide wage hike, WFH setup
By Christel Castro
Labor groups continue to clamor for an increase in the minimum wage amid the rising prices of oil and basic goods during the pandemic. The National Economic and Development Authority (NEDA) proposed a four-day work week to alleviate the situation of the workers with the rise in oil prices, while the continuation of the work-from-home (WFH) setup is favored.
Wage increase
On March 17, the Trade Union Congress of the Philippines (TUCP) sent a letter to President Rodrigo Duterte asking him to instruct the Regional Tripartite Wages and Productivity Boards (RTWPB) to prioritize their wage hike petition.
TUCP President Raymond Democrito Mendoza stated that five million minimum wage workers are becoming the “new poor” because of the existing conditions of this pandemic.
“It has been years since the last wage increase, and as prices of basic goods continue to spike, minimum wage earners will no longer be able to cope,” Mendoza stated.
Mendoza declared that Congress approval of a national wage increase will undergo a lengthy process and may raise false expectations.
In January 2020, Duterte signed the Salary Standardization Law (SSL), or Republic Act 11466, which benefited most government workers. The law will take effect in 2020 until 2023. The SSL increased the salary schedules of government workers in four tranches. This covers all government employees, including those in the legislative, judiciary, and local government units.
About 1.4 million workers benefited from the enactment of the SSL, however, the law does not cover those in the private sector.
Meanwhile, Deputy Minority Leader Carlos Zarate of Bayan Muna declared that the long-awaited increase was too small, covering only an additional P16.1 for a family of 5 to spend per day.
Furthermore, a report from IBON Foundation concluded that the Duterte Administration has had the least wage increase among presidents since the overthrow of the dictator Ferdinand Marcos.
Among the six presidents, Duterte’s wage increase had a 22-month gap followed by Joseph Ejercito Estrada with a 15-month gap, Benigno Aquino III and Gloria Macapagal Arroyo with a 14-month gap, Corazon Aquino with a 13-month gap, and Fidel Ramos with a 10-month gap. The cumulative increase of wage hike during Duterte’s term only amounted to a 9.4% increase, followed by B. Aquino and Arroyo with 12% increase, Ramos with 23% increase, Estrada with 26% increase, and C. Aquino with 46% increase.
4-day work week
To address the concern with the rising oil prices and additional costs on food and transportation, NEDA director-general Karl Chua proposed a four-day work week for workers. This will indicate a 10-hour working shift per day from the usual 8-hour daily shift.
Both the TUCP and labor group Partido ng Manggagawa rejected NEDA’s proposal. The groups emphasized that longer working hours will increase the risk of workers to stress and fatigue.
Meanwhile, Partido Reporma presidential candidate Panfilo Lacson supported NEDA’s proposal. Lacson declared that the four-day work week is reasonable as long as daily wage earners are properly compensated for their daily expenses.
“As long as daily wage earners will be compensated for their extended hours of work which should be equivalent to five days, I will support that four-day work week so we can save on fuel. It is a good suggestion and we should support that,” said Lacson.
WFH setup
Senatorial candidate Senator Risa Hontiveros and vice-presidential candidate Senator Francis “Kiko” Pangilinan expressed their support for the continuation of the WFH setup for business process outsourcing (BPO) workers.
The Fiscal Incentives Review Board (FIRB) refused to extend the WFH setup for BPO employees stating that this was only a temporary measure adopted during the pandemic. Information Technology-Business Process Management (IT-BPM) companies can only have 90% of their workers work remotely until March 31. Companies that violate FIRB’s resolution are subject to having their tax breaks revoked.
Meanwhile, Hontiveros emphasized her support for the extension of the WFH setup. She also stated that the FIRB has the option to revise the tax incentive terms.
“Our workers should be given the option to work at home so they save on fare expenses and lessen the stress of commuting. During these times, there must be leniency in implementing policies for the welfare of workers,” Hontiveros stated.
Moreover, Pangilinan echoed the statements of Hontiveros.
“I am against the calls of the FIRB and Socioeconomic Planning Secretary Karl Chua for BPO workers to go back to the office. We must put a stop to policies that were made without the knowledge and without consulting the IT-BPO industry,” he said in Filipino.
Pangilinan affirmed that there is a “new and better way forward” where workers are more empowered, more aware of their well-being, and regarded as the most vital resource of our nation.
