One only needs to look at government data to see the basis for a substantial wage hike, and one only needs to do simple mathematical computations to prove the anti-poor character of the proposed 10-percent wage hike for government employees.

BY DANILO ARA�A ARAO

Unlike in the past, the Macapagal-Arroyo administration and a segment of the business sector now support a wage hike for workers. They say that the current problem with rice supply (they are careful not to use the word �crisis�) warrant the provision of relief to the country�s labor force.

President Gloria Macapagal-Arroyo prefers another 10% across-the-board increase in the wages of government employees, similar to what happened in July 2007. Why are cause-oriented groups opposing this? Isn�t their objective to increase the wages of workers?

Analyzing the 1989 Salary Standardization Law�s (SSL) salary scale as of July 2001, the lowest-paid government employee covered by SSL had a basic monthly salary of P5,082 or $121.26 (Salary Grade or SG 1, Step 1). A utility worker or street sweeper who belongs to SG 1-1 got a measly P508.20 ($12.13) monthly when the 10% wage hike was granted last year.

On the surface, there seems to be nothing wrong with getting a little more than P500 ($11.93) monthly as it is better than nothing. However, the injustice in this kind of wage increase becomes apparent as one computes how much a government official who belongs to a higher SG got as additional income.

The highest-paid government employee covered by SSL is Gloria Macapagal-Arroyo who, as the country�s President, belongs to SG 33. She used to get a monthly salary of P57,750 ($1,377.95). A 10-percent increase in 2007 currently means P5,775 ($137.80) more in her monthly salary.

If another 10-percent wage hike were granted to government employees, those belonging to SG 1-1 who currently receives P5,590.20 ($133.38) monthly stand to earn an additional P559.02 ($13.34) while Macapagal-Arroyo who earns P63,525 ($1,515.75) will get an additional P6,352.50 ($151.57) monthly. Where is the justice there?

A 10-percent wage hike is inherently discriminatory against those who are earning less and those who are earning more stand to benefit from it. The administration�s proposal for another 10-percent wage hike therefore creates a situation once more where a wage increase becomes anti-poor.

That cause-oriented groups and progressive labor organizations and unions are demanding an increase in salaries in absolute terms is meant to remove any form of discrimination in the workplace. Unlike a percentage increase, workers, regardless of their position, stand to get equal amounts.

The workers� campaign for a P125 ($2.98) increase in the basic pay of private sector workers was launched on August 25, 1999, immediately followed by the government employees� campaign for a P3,000 ($71.58) increase in their monthly salaries. According to the 2002 book �Manggagawa: Noon at Ngayon (Workers: Then and Now),� the daily cost of living for a family of six was then pegged at around P460 ($10.98).

Nine years later, government would most likely argue that the Regional Tripartite Wages and Productivity Boards (RTWPBs) established in 1989 have provided �substantial� increases, citing the case of Metro Manila-based workers in the private sector whose current salaries are now P164 ($3.91) higher compared to when they started their campaign for a P125 ($2.98) wage hike.

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