Danilo Arao: Gov’t Data Prove Necessity of Substantial Wage Hike

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PUBLISHED ON April 28, 2008 AT 10:41 AM

It should be stressed, however, that it was only in Wage Order (WO) No. 13 on August 28, 2007 that the P50 ($1.19) cost of living allowance (COLA) was integrated to the basic pay. Aside from the COLA’s integration, WO 13 only provided a P12-increase ($0.29) in the basic pay, increasing the minimum wage to P362 ($8.64), the highest in the country.

Metro Manila-based private sector workers are therefore enjoying a cumulative wage hike in the basic pay which is greater than what organized labor has been demanding since 1999 for only about eight months as of this writing.

The situation proves to be worse in other regions. Comparing the August 1999 and April 2008 minimum wage levels (non-agriculture), the RTWPBs provided a cumulative increase ranging from P37 or $0.88 (MIMAROPA) to P111.50 or $2.66 (Central Luzon). (See Table 1)

Analyzing the current data on family living wage (FLW), it becomes apparent that wages are not enough to provide for the needs of a family.

In a study by the National Wages and Productivity Commission (NWPC) titled “Development of Methodology for Estimating the Living Wage (2001),” living wage refers to “the amount of family income needed to provide for the family’s food and non-food expenditures with sufficient allowance for savings/investments for social security so as to enable the family to live and maintain a decent standard of human existence beyond mere subsistence level, taking into account all of the family’s physiological, social and other needs.” The current assumption is that a family has an average of six members and that two of its members (usually the parents) are earning.

The FLW show that it is practically impossible for two members earning only the minimum wage to provide for their family’s needs. The difference between the minimum wage and the family living wage, on a monthly basis, ranges from P6,638 or $158.39 (Eastern Visayas) to P20,826 or $496.92 (Autonomous Region in Muslim Mindanao or ARMM).

Incidentally, ARMM still holds the distinction of having the lowest minimum wage rate nationwide and the highest family living wage. Not surprisingly, ARMM is in a situation where all six family members have to work and earn the minimum wage to provide for the entire family’s needs.

No amount of government rhetoric can deny the kind of deprivation and injustice the workers are experiencing. That they need a substantial wage hike is already obvious, using government data no less.

The question at this point is if the government can muster enough political will to do what is right, at least this time. Bulatlat / (pinoypress.net)

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Danilo Arao: Gov’t Data Prove Necessity of Substantial Wage Hike

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