Not just wage hikes

Next week, on July 11 to be exact, the minimum wage of Metro Manila workers will be increased by P25 per day to P350 (P300 as basic pay and P50 as cost of living allowance) for the non-agricultural working sector. It’s no surprise that that have been no widespread howls of protest so far.

The moderately positioned Trade Union Congress of the Philippines has expressed its firm view that only a P75 increase would cover any recent increases in the cost of basic commodities as well as any effect of the continued rise in crude oil and oil product prices.

As to be expected, the more militant labor groups that have been calling for a P125 across the board wage hike have severely criticized the decision of the Metro Manila wages and productivity board as useless. And they have threatened to stage massive protests.

Moderate or progressive, labor leaders‚ rhetoric arising from the wage board’s decision does not seem to be eliciting any strong reactions from the estimated 800,000 affected minimum wage earners within the metropolis.

Perhaps there is a grain of truth to what the radicals are saying that only a few of those receiving minimum daily rates will benefit from the recently approved wage hike. Current labor statutes, after all, have a long list of exemptions ranging from the size of the company to the level of capitalization.

Or perhaps there is a more glaring truth, one that indicates that many tired workers would rather look for other jobs that give them better wages rather than go out in the streets and join the rallies shouting slogans that would fall only on the deaf ears of those in Congress, the labor department and even Malacañang.

Getting our act together

It cannot be argued that our workers, not only those earning a minimum wage, deserve a better life. Yet even without the threat and challenge of globalization, the current magna carta of labor has been criticized as extremely outdated.

Not only the government, but also labor leaders and rally organizers could better serve their constituents by recognizing the new realities of the Philippine labor market as well as the changing human resource market all over the world.

It has been observed that existing Philippine labor laws and adjudication processes are too biased for the good of our laborers. This has come to a point where laborers‚ initiative and productivity are stifled, adversely affecting the competitiveness and ultimately the health of their respective companies and industries.

There is a glaring lack of a uniform system that matches and rewards local labor skills. Worse, with the millions of Filipinos that are sent abroad for blue-collar jobs, there is an increasing gap between local remuneration and wages as against what other Asian countries give.

Redirecting the debate

Isn’t it time to redirect the debate, from one that quarrels about how much the workers‚ take-home pay should be to one that seeks fundamental solutions that would address changes in today’s world of work and allow our workers to better improve their lives?

The answer may be in other forms of assistance to our workers. Definitely, there is a need to align labor skills learning and accreditation levels to world standards. Our local companies may not be able to provide wages competitive to those given by other countries, but with a ladderized skills training structure, this would increase the chances of our workers to seek jobs abroad.

The Philippines should throw away any illusions that it can compete against the manufacturing savvy of countries like China, Thailand or even Korea at this point in time. In the first place, just because China pays dirt cheap labor rates to its people does not mean we should do the same with our countrymen.

Let’s face it. We see a wide variety of Chinese products from pencils to television sets to food products peddled in our markets at rock bottom prices. As China lords over the manufacturing sector with its ability to churn out products through cheap but efficient labor, the Philippines, with its omnipresent restive labor groups, will never get back that chance to grab that lead it held in the previous century.

It is difficult to imagine how local businesses can compete with current wage levels, not to mention the persistent and disruptive demands for wage increases. This would only mean higher prices for manufactured products, making it even less competitive in the world market.

Still too many jobless

In fact, economic and labor experts are tracing the rather critical unemployment rates to the dismal performance of the country’s manufacturing sector. It has been observed that many enterprises have either gone bankrupt and closed shop or down-size operations, effectively scrapping out thousands of job openings.

The Philippines must also reckon with the fact that it has over four million jobless souls in the labor market. A minimum wage earner must be naïve not to realize that when he takes to the streets, those who have been without a job will without scruples step in to take over the vacated position.

Unlike professionals like nuclear physicists, neurosurgeons, operating room nurses or other highly skilled workers, there are thousands of others able and willing to take over the job of an unwilling and restive laborer.

A sad implication of the disparity between job seekers and availability of jobs is that it opens up opportunities or avenues for abuse by employers in terms of compensation, labor practices and other labor concerns. That’s another labor issue that could have been avoided.

Perhaps, the country should seriously consider the option of going back to the agriculture sector where we have a better chance at flexing our competitiveness considering our vast natural resources. At this stage, prioritization is an all important key.

Concentrating on agricultural development to offset the dismal contribution of the manufacturing sector could be a good strategy for absorbing more unemployed Filipinos. Of course, how our agricultural sector’s development should be approached, though, is another story altogether.

Philippine Poker Tour at Tagaytay

The Philippine Poker Tour, a proponent of non-wager poker tournament play, has just announced the launching of the biggest Hold’em Philippine Championship to date with minimum guaranteed prizes of up to P3 million. The tournament is being conducted in partnership with Philippine Amusement and Gaming Corp. (PAGCOR), the country’s gaming authority.

The first leg will be played at Casino Filipino Tagaytay on 29th July 2006 hosted by its amiable senior branch manager Alexander I. Betita. Dubbed as Tagaytay Challenge, the winner of the leg/satellite will get a guaranteed seat to the grand finals scheduled on 16th and 17th December 2006 at Casino Filipino Pavilion at UN Avenue, Manila. The other leg/satellite competition shall be held in other Casino Filipino sites such as Angeles City and Cebu City.

For more details, visit the PPT official website www.PhilippinePokerTour.com <http://www.philippinepokertour.com/>, or call the Secretariat (c/o Cindy) at 817-9092 or 812-0153.

Should you wish to share any insights, write me at Link Edge, 4th Floor, 156 Valero Street, Salcedo Village, 1227 Makati City. Or e-mail me at [email protected] or at [email protected]. If you wish to view the previous columns, you may visit my website at http://bizlinks.linkedge.biz <http://bizlinks.linkedge.biz/>.