Labor force: Help encourage more investments

Amid the noise, furor and innuendos brought about by the senseless death of detained Albuera Mayor Espinosa, some more important issues are buried deep down in our list of priorities. 

One of these is the pending petition by the labor unions in Central Visayas for another round of wage increases. 

To recall, petitioners Trade Union Congress of the Philippines (TUCP) and Alliance of Progressive Labor (APL) are seeking for a P161.00 and  P140.00 across-the-board daily wage increases, respectively, in Region 7.   

 The first of a series of wage consultation will happen this coming Wednesday, November 9, 2016 at Sarrosa International Hotel & Residential Suites, Mabolo, Cebu City.

As has been customary, expect the demands from different labor unions and coalitions for rounds of increases in the country’s minimum wage to be always more intense. Since demands will be so unrealistic, as usual, the petitioned amount will not be granted. Thus, similar to what have always happened, these labor unions will again call for the abolition of the country’s Regional Tripartite Wages and Productivity Boards (RTWPBs). 

Most of us, however, are in agreement that all these demands are clothed with so much hyperboles. They (labor unions and their officers) usually do this to stay relevant to their union dues-paying members. These swaggers though had brought about negative consequences especially to the new entrants and unemployed in the labor market.

To recall, in March, 2014, five senators (Senators Juan Edgardo Angara, Paolo Benigno Aquino IV, Teofisto Guingona III, Grace Poe and Aquilino Pimentel III) filed Senate Resolution No. 499 calling for an inquiry on reports of high unemployment rate. This call was triggered by the results of the 4th quarter (of 2013) surveys conducted by the Social Weather Stations (SWS) and the government’s Labor Force Survey (LFS). Notably, the SWS’s report revealed an unemployment rate of 27.5 percent in December 2013 or about 12.1 million jobless Filipinos.  On the other hand, the government’s LFS showed that the youth unemployment rate was at 14.5 percent. 

This simply means that more than half of the total unemployed workforce are young Filipinos with ages ranging from 15 to 24. Moreover, it was also reported that the employment in the agricultural sector showed a frustrating negative 2.6 percent. Only the service and industry sectors registered positive growth. The service sector with a disappointing 1.6 percent and the industry sector with a negligible 1 percent. Recently, nothing has changed much in as far as these statistics are concerned. If there are additions, these are the jobless miners who are now joining the ranks of the unemployed as DENR Sec. Lopez has continued to close down mining operations in the countryside. 

First and foremost, the constant increases in the minimum wages demanded by the labor unions is the main reason the unemployment rate of the young workers rose. Logically, when non-productivity related increases are imposed, the unskilled and inexperienced workers or new graduates will suffer the major blow. With the same amount of pay, companies will definitely go for skilled and experienced ones. Therefore, as the unskilled and inexperienced workers will turn out to be expensive, the possibility they won’t get employed is imminent. Thus, some unskilled or new entrants in the labor market may not be given the opportunity to work and gain experience. These are valuable experiences that are really necessary for them to use as bargaining chips for higher pay demands in the future. Unfortunately too, they will miss the opportunity to earn while learning skills and gaining experience.

Secondly, yes, the service and industry sectors recorded measly increases. Why? We don’t generate much fresh investments. Yes, we do have our own share of foreign direct investments. Notably, however, most of these have been so focused only on business process outsourcing (BPO). That is the only reason why we have this modest growth in the sector.  Unfortunately, however, employment wise, the BPO sector does not contribute that much. This sector employs not only the well-educated but the best among them. Thus, they don’t directly give opportunities to individuals who are among the inadequately educated, the poorest of the poor, so to speak.

Indeed, as we (honest workers) move ahead with our respective journeys, we felt, among others, disrespected and unrecognized. Why? Because we equate such recognition or respect with the size of our pay. To a certain extent, that is accurate. To some, it wouldn’t hold true. The truth is, except for the more professionally managed and growth and people oriented companies, wages always boil down to supply and demand. It simply means, when labor is scarce, the wages are high. When there is oversupply (of labor), wages are low.

Therefore, we should help create more jobs by encouraging foreign investments. How?  By being reasonable in our demands for wage increases.