Marcos sees ‘good compromise’ on pending salary increase petitions
The minimum wage in Metro Manila will go up P40, from P570 to P610 a day for non-agricultural workers in the private sector and from P533 to P573 a day for agricultural workers starting July 16.
The regional wage board in the National Capital Region (NCR) also said that the agricultural daily rate would apply to service and retail establishments with 15 or fewer workers and manufacturing establishments with fewer than 10 workers.
Before the wage order was announced, President Ferdinand Marcos Jr. said a wage increase was possible.
During a courtesy visit at the Malacanang Palace of International Labor Organization Director General Gilbert F. Houngbo, Marcos said the government is in negotiations with workers, labor unions, and organizations to discuss a compromise for the possible wage hike.
“But I think our negotiations with workers, with the unions, with the different negotiations, we will be able to come to a good working number, a good compromise,” said Mr. Marcos.
The President said rapid industrialization and the continuous expansion of the economy are hurting the labor force in the country.
“When there is rapid industrialization and rapid expansion of the economy, there is a tendency to leave the labor sector behind and just exploit the labor sector,” Mr. Marcos said.
Labor Secretary Bienvenido Laguesma said they might be able to resolve the issue within the week.
The current minimum wage in the country varies from different regions.
The highest is in the National Capital Region which was P570 per day before the wage hike. The lowest is around P341 in the Bangsamoro region.
The Federation of Free Workers, for its part, welcomed the approved P40 wage increase, calling it a “small victory for our dedicated labor force.”
“While we recognize this development, the sentiment of disappointment is palpable among many of our workers. The increment falls significantly short of the more than P100 wage recovery that our labor force had been anticipating. It also fails to reflect the escalating cost of living in Metro Manila. As such, we stress that the struggle for a fair, living wage is far from over,” the FFW said in a statement.
“The P40 increase is a start, but we have a long journey ahead… Let this serve as a stepping stone towards our ultimate goal—a P150 legislated wage hike nationwide,” it added.
Wage Order NCR-24 covering the latest increase was approved by the Regional Tripartite Wages and Productivity Board in the NCR in response to several petitions filed by various labor groups seeking an increase in the daily minimum wage due to escalating prices of basic goods and commodities.
The new rates, which translate to a 7 percent increase from the prevailing daily minimum wage rates in the region, remain above the regional poverty threshold of P452 per day for a family of five.
The wage order is expected to directly benefit 1.1 million wage earners in Metro Manila.
About 1.5 million full-time wage and salary workers earning above the minimum wage may also indirectly benefit as a result of adjustments made by companies to correct for wage distortion.
Retail and service establishments regularly employing not more than 10 workers and companies affected by natural calamities or human-induced disasters may apply for an exemption from the wage increase.
Barangay Micro Business Enterprises (BMBEs) are not covered by the minimum wage law.
The last wage order for workers in private establishments in the region was issued on May 13, 2022 and became effective on June 4, 2022.
In a separate event earlier, Marcos tasked big businesses to help in the government’s efforts to strengthen micro, small, and medium enterprises (MSMEs) in the country.
Speaking at the launch of the “Kanegosyo Center” of the Cebuana Lhuillier Group in Paranaque City, Marcos said the MSMEs are a huge part of the country’s economy.
Due to the coronavirus pandemic, the global economy has fundamentally changed, the President said.
“And that is why we have to do different things now. And that’s why we were trying the basic concept behind this is that we are trying to create an ecosystem for startups and that is really what we are trying to do. We are trying to help small businesses who have a good idea,” said Marcos.
The President said that 99 percent of businesses in the country fall under the MSMEs category with around 63 percent of the labor force employed by it.