Workers had the lowest wage increases under the Arroyo administration and this has compounded their problems in the country’s dismal labor market, according to independent think-tank IBON Foundation.

Workers had the lowest wage increases under the Arroyo administration and this has compounded their problems in the country’s dismal labor market, according to independent think-tank IBON Foundation.

IBON research head Sonny Africa said that the legislated minimum wage in the National Capital Region (NCR) increased by only P50 under Arroyo, from P250 in 2001 to P300 in 2006. This is in contrast to the equivalent period of 1995-2000, wherein NCR wages increased by P105, and 1989 to 1994, when wages increased by P56. Arroyo’s government also had the lowest average increase per year. (See Table)

While the Arroyo government did grant a total P50 emergency costof-living allowance (ECOLA) during the period, it did not represent an increase in the basic wage and thus is not included in the computation of benefits such as the 13th month pay. Also, not all employers pay the ECOLA, said Africa.

“The low wage movements under Arroyo are symptomatic of how the Filipino workers’ situation has deteriorated under her watch,” he said. He pointed out thatworkers face an unprecedented lack of jobs. In 2006, 11.6 million Filipinos, a third of the labor force, were jobless or still seeking more work because they weren’t earning enough. The lack of jobs forces 3,200 Filipinos a day to go abroad to work just to enable their families to survive, he added.

The prevailing legislated daily minimum wage of P350 in the NCR is also less than half of the amount needed by a family of six to meet its food and non-food needs, pegged at P715 by the National Wages and Productivity Commission. Thus, even if two members of the family work and earn the minimum wage, it still would not be enough for them to live decently.

Africa added that a big part of the problem was caused by thecollapse of domestic industry, sector lost 18,000 jobs last year, while creating 110,000 positions for household help.

“Workers cannot expect any improvement in their situation from the coming elections, as apart from a few progressive partylist groups the overwhelming number of candidates at best make empty promises to do something about the plight of workers,” he said. “But once they are in power, most will end up defending the interests of foreign capitalists, domestic big business and other local elites rather than the interests of the Filipino
working people.”

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