MANILA — The Regional Wages Tripartite Wages and Productivity Board in the National Capital Region (RTWPB-NCR) approved last June 27 a P35 increase in the daily minimum wage of workers in the private sector after consultations with labor and management and a public hearing.

This means that starting July 17, the new daily minimum wage for non-agriculture workers in the private sector will be P645 and P608 for those working in agriculture, service, or retail establishments with 15 workers or less and in manufacturing regularly employing less than 10 workers.

The effectivity date is the same date as RTWPB-NCR’s 2023 wage order, which means it has been exactly one year since the last wage increase.

According to Wage Order No. NCR-25, the board heard three petitions on wage increases:

— The P597 proposal from the Unity for Wage Increase Now (UWIN)

— The P750 from healthcare workers including the St. Lukes Medical Center Employees' Association (SLMCEA), The Medical City Employees' Association (TMCEA), St. Luke's Medical Center Global City Employees' Union Independent (SLMC(GC)EUI), and the Manila Doctors Hospital Employees' Association (MDHEA)

— And a petition for a P750 daily minimum wage from the Pasig Labor Alliance for Democracy and Development (PALAD)

Evaluation of existing socio-economic conditions in the region found that the Consumer Price Index (CPI) — the change in average retail prices of goods —  in the NCR increased to 121.8 in May 2024 from 118.1 in May 2023. This means the average inflation rate during the monitoring period was  at 4.42% — higher than the government’s targeted range of 2 to 4% for 2024.

The order also stated that the poverty threshold — the minimum income for a family to meet its basic needs — is currently at P452, based on data from the Philippine Statistics Authority (PSA).

Penalties for non-compliance with the wage increase include a fine of P25,000 to P100,000, imprisonment of 2 to 4 years, or both according to Section 12 of Republic Act No. 8188.

The employer will also be “ordered to pay an amount equivalent to double the unpaid benefits owing to the employees: provided, that payment of indemnity shall not absolve the employer from the criminal liability imposable under this Act.

'MEASLY WAGE HIKE'

But progressive labor groups complained that the wage hike was too little.

“Nananatiling napakalaki pa rin ng agwat ng P645 minimum wage sa family living wage na P1,200 kada araw. Pampapogi lang sa [State of the Nation Address] ni Marcos ang kakarampot na wage hike na ito,” said Bayan Secretary General Renato Reyes.

(The P645 minimum wage is still too far from the family living wage of P1,200 a day. This measly wage hike is just so Marcos will have something good to say in his SONA)

Labor activists and organizers have been pushing for a living wage where workers can meet their families' needs and also live a decent life.

Because of the disappointment over such a “measly” wage increase, labor groups are now bent on pursuing a legislated wage hike.

According to the Federation of Free Workers (FFW) and the NAGKAISA Labor Coalition, there is also a need to ensure that wages will not only be adjusted in the NCR but also in other regions.

“Hindi po kasali diyan ang Region 10 at ang ibang mga rehiyon sa Pilipinas, kaya dapat lamang na ang P150 legislated wage recovery nationwide ay ipasa na,"  said union president Joel Tongco of the Macalajar Labor Union-FFW based at the Port Area of Cagayan de Oro City.

(The order does not cover Region 10 and other regions of the Philippines. That's why we need to pass the bill for the P150 legislated wage recovery increase.)

He added: "This wage order displays once again how insensitive the wage boards are to the plight of workers. They overbear the ‘capacity to pay’ of employers when it is only one of the factors to consider. What about the capacity of workers to purchase basic necessities?”

Wages vary per region in the Philippines, supposedly because of a lower cost of living outside urban centers and to encourage investment and job creation in areas where wages are lower.

But workers contend that prices do not differ too much across the Phillipines. 

Both groups claim that a family of five members will need at least P13,797 per month to meet minimum basic food and non-food needs in the first semester of 2023, also quoting PSA data.

"The P35 wage hike in Metro Manila is not only inadequate but also seems like a tactic to distract workers from their escalating push for a P150 daily wage increase through legislation," stated FFW President Sonny Matula.

"This highly insufficient increase, however, will only strengthen our resolve to pursue a legislated wage hike."

Partido Lakas ng Masa (PLM) President Ka Leody de Guzman also called the NCR wage increase an insult to workers and called for the abolition of regional wage boards.

“Napatunayang muli ang katuwiran sa matagal nang sinasabi ng kilusang unyon na dapat buwagin ang mga regional wage boards at ang Wage Rationalization Act (RA6727) na lumikha nito,” de Guzman said in a statement.

(This again proves that unions' calls to abolish regional wage boards and the Wage Rationalization Act are correct.)

Partido Manggagawa also challenged President Ferdinand Marcos Jr. to address the “unreliability” of the regional wage boards in setting a just minimum wage for workers.

“We reiterate that as a mechanism and authority on wage matters, the regional wage board has become obsolete and therefore has lost credibility...  If the President does not address this in his third SONA, it will even become clearer that the entire government is against the interests of the working class,” said Partido Manggagawa Chairperson Renato Magtubo.

Gabriela party-list Rep. Arlene Brosas also condemned the meager increase and slammed the Marcos administration for allegedly not prioritizing the plight of workers.

Brosas also reiterated Gabriela’s commitment to push for the passage of House Bill 7568 or the P750 across-the-board wage hike bill.

"Hampaslupa ang tingin ng gobyerno sa mga manggagawa… (The government does not see workers as deserving dignity) The P750 ATB wage hike bill is a step towards ensuring that Filipino families can live decently and with dignity, but it's clear that this is not the priority of the Marcos Jr. administration," she said.