[Philippines] Economic cluster opposes national minimum wage proposals

Members of the Philippines government’s economic cluster have reiterated their opposition to proposals seeking a national minimum wage this week, stating this would only worsen inequality among the regions, GMA News Online reports.

According to Jeanne Guinto - the Department of Finance (DOF) Legislative Liaison Specialist - the agency supports maintaining the current system of regional wages because needs vary between areas.

“On aligning the minimum wage of those in the province with that in the city, we really think that it will not be an effective measure,” Ms Guinto said before the House Committee on Labor and Employment.

“The cost of living in the province is different from that of the city, so they may have different needs in terms of allocating their income for their basic necessities and other expenses,” she added.

On March 17 the committee deliberated on House Resolution 1676, which considers the possibility of establishing national minimum wages, as proposed by labour groups during the COVID-19 pandemic.

Ms Guinto referenced the inflationary impact of the measure, with the country currently battling higher costs due to the successive hikes in the pump prices of both global and domestic petroleum products.

“We post an objection to the proposed measures as these may cause high inflation on top of the ongoing fuel crisis that will impact both in business side and in households,” she said.

Domestic prices have been climbing for 11 weeks straight so far; gasoline was up by P7.10 per litre and diesel by P13.15 per litre on Tuesday alone. The Department of Energy (DOE) has maintained that the ongoing conflict between Russia and Ukraine has hit global prices, which in turn impacted domestic prices. The National Economic and Development Authority (NEDA) echoed DOF sentiments, it also cited the “significant differences” in the economic conditions across the regions.

“We share the objective of raising living standards for workers and their families, but we are unable to support proposals to have a uniform minimum wage across regions,” Director Reynaldo Cancio said in the same hearing.

“This will erode the ability of other regions to attract industries and enterprises, and worsen the inequality across regions. There are significant differences in the economic conditions across the regions,” he said.

According to Mr Cancio, the price gap of basic goods varies across regions and could be as high as 40 per cent for rice, 35 per cent for chicken and pork, 50 per cent for electricity, and 70 per cent for water.

Labour groups have reportedly been urging the government to increase the daily minimum wage in the National Capital Region (NCR) to P750 and Labor Secretary Silvestre Bello III acknowledged that the prevailing wages may no longer be enough.

Bello has since ordered the Regional Tripartite Wages and Productivity Boards to expedite their review of the minimum wage. Its recommendations are expected before the end of April.

On March 17, the House Committee on Energy said it will reconvene to discuss the matter after 30 days when more information is readily available.

Source: GMA News Online

(Links and quotes via original reporting)

Members of the Philippines government’s economic cluster have reiterated their opposition to proposals seeking a national minimum wage this week, stating this would only worsen inequality among the regions, GMA News Online reports.

According to Jeanne Guinto - the Department of Finance (DOF) Legislative Liaison Specialist - the agency supports maintaining the current system of regional wages because needs vary between areas.

“On aligning the minimum wage of those in the province with that in the city, we really think that it will not be an effective measure,” Ms Guinto said before the House Committee on Labor and Employment.

“The cost of living in the province is different from that of the city, so they may have different needs in terms of allocating their income for their basic necessities and other expenses,” she added.

On March 17 the committee deliberated on House Resolution 1676, which considers the possibility of establishing national minimum wages, as proposed by labour groups during the COVID-19 pandemic.

Ms Guinto referenced the inflationary impact of the measure, with the country currently battling higher costs due to the successive hikes in the pump prices of both global and domestic petroleum products.

“We post an objection to the proposed measures as these may cause high inflation on top of the ongoing fuel crisis that will impact both in business side and in households,” she said.

Domestic prices have been climbing for 11 weeks straight so far; gasoline was up by P7.10 per litre and diesel by P13.15 per litre on Tuesday alone. The Department of Energy (DOE) has maintained that the ongoing conflict between Russia and Ukraine has hit global prices, which in turn impacted domestic prices. The National Economic and Development Authority (NEDA) echoed DOF sentiments, it also cited the “significant differences” in the economic conditions across the regions.

“We share the objective of raising living standards for workers and their families, but we are unable to support proposals to have a uniform minimum wage across regions,” Director Reynaldo Cancio said in the same hearing.

“This will erode the ability of other regions to attract industries and enterprises, and worsen the inequality across regions. There are significant differences in the economic conditions across the regions,” he said.

According to Mr Cancio, the price gap of basic goods varies across regions and could be as high as 40 per cent for rice, 35 per cent for chicken and pork, 50 per cent for electricity, and 70 per cent for water.

Labour groups have reportedly been urging the government to increase the daily minimum wage in the National Capital Region (NCR) to P750 and Labor Secretary Silvestre Bello III acknowledged that the prevailing wages may no longer be enough.

Bello has since ordered the Regional Tripartite Wages and Productivity Boards to expedite their review of the minimum wage. Its recommendations are expected before the end of April.

On March 17, the House Committee on Energy said it will reconvene to discuss the matter after 30 days when more information is readily available.

Source: GMA News Online

(Links and quotes via original reporting)