Wage hike petition mulled amid purchasing power ‘deterioration’

THE labor sector sought to file another petition for an increase in the daily minimum wage of private sector workers in Western Visayas amid the alleged deterioration of the region’s purchasing power.

Wennie Sancho, secretary general of the General Alliance of Workers Associations (Gawa), said Monday, September 3, that the “continuous deterioration” of workers’ purchasing power due to high inflation is alarming.

Aside from the continuous increase in the prices of basic goods and services, particularly petroleum products, Sancho said that wrong handling of economic policy on rice and fish adds to the worsening economic situation.

“The root cause of this was the imposition of the tax reform law,” Sancho said.

Organized labor groups in the region will be compelled to file a petition for another round of wage hike if the economic woes become nonstop, he added.

The wage hike is seen to compensate some P155 that private workers lose everyday due to inflation.

Citing the data of the Associated Labor Unions-Trade Union Congress of the Philippines (ALU-TUCP), Gawa reported that the purchasing power of private workers is only valued at P200 while the national minimum wage per day is at P355.

The Philippine Statistics Authority (PSA) earlier reported that the inflation hit a nine-year high of 5.7 percent in July.

The Department of Finance reported Monday, September 3, that the inflation may have settled at 5.9 percent in August.

The Bangko entral ng Pilipinas (BSP) also estimated last month’s inflation to hit 5.9 percent, with a range of 5.5 percent to 6.2 percent.

Wage Order 24 started to take effect last July 12 after the previous one expired in March this year.

It has set the new minimum wage rates, including the cost of living allowance (Cola) at P295 and P365 per day.

Workers in the non-agriculture, industrial and commercial establishments employing more than 10 employees are now expected to receive a minimum wage of P365 per day.

From the previous P323.50, the Regional Tripartite Wages and Productivity Board (RTWPB) in Western Visayas has come up with an increase of P26.50 on basic wage plus a Cola of P15.

All in all, the increase in this classification is P41.50.

Those employing 10 workers and below, the new wage rate is P295 from only P271.50. It is derived from an increase of P18.50 plus a Cola of five pesos, or a total of P23.50.

For agriculture sector, plantation workers may now receive P8.50 increase and Cola of five pesos, making the new wage rate at P295, P13.50 higher than the previous rate of P281.50.

Those in non-plantations, the new wage rate is also P295 from the previous P271.50 due to a basic wage increase of P18.50 and five pesos worth of Cola, or a total of P23.50.

Sancho said that the RTWPB in Western Visayas can accept and deliberate over a new petition even before the effectivity of the existing wage order expires.

“The recent wage increase was negated by the high cost of living; hence, there is a need for an immediate economic relief for the workers amid the worsening economic situation,” Sancho said.