Militants demand wage hike following oil price increases

A militant labor group demanded yesterday a P125-across-the-board wage increase citing the increase of petroleum prices by Caltex Philippines Inc. and with other oil companies expected to follow suit.

The Kilusang Mayo Uno (KMU) threatened to launch a welgang bayan or general strike nationwide if their demand is not met.

"Workers need an urgent wage hike to cope with the latest oil price hike. We demand the government to consider the legislation of the P125 across-the-board minimum wage hike as soon as possible," KMU leader Sammy Malunes said. "If these price hikes continue, a nationwide people’s strike is inevitable."

Yesterday, a few dozen members of the KMU and youth group Anakbayan held a protest rally in front of Caltex’s main Makati office condemning the latest price increase.

"The greediness of these oil companies is exceptionally evil. Their atrocious price maneuverings should be immediately stopped," Malunes said.

Citing "competitive and global conditions," Caltex raised last Tuesday its prices anew by 39 centavos per liter for gasoline and diesel and 49 centavos for kerosene.

Caltex, a local subsidiary of Chevron Texaco Co., cited other factors such as supply, demand, competition and market forces. It added that it will adjust prices accordingly if market conditions permit.

"Caltex will more accurately reflect these conditions by adjusting prices up or down in smaller amounts, more frequently, if necessary, with the frequency dictated by changes in market and competitive conditions. This will help cushion consumers from sudden big swings in prices," Caltex spokeswoman Marian Catedral said.

Caltex now sells its gasoline at P18.41 per liter for Vortex Gold, P17.86 for Vortex Silver, P14.54 for diesel, and P14.28 for kerosene.

Petron also hiked its prices yesterday, with Shell, the last of the so-called "Big Three," also expected to follow suit.

Smaller players Eastern Petroleum Corp. and TotalFinaElf Philippines Corp. earlier announced plans to raise their prices by 35 centavos and 39 centavos per liter, respectively. There were no words yet from the others.

TotalFinaElf cited depreciation of the peso against the dollar as reason behind their price hike.

Last Tuesday’s price hike was the second in less than one month, with the previous adjustments implemented last Aug. 11.

The KMU said the oil companies had no reason to raise their prices. "They have again made a convenient excuse out of the peso depreciation and the increasing prices of crude oil in the world market to justify the increase," Malunes said. "The burden of the latest oil price hike will be mainly felt by the workers and the poorest sector of the country."

Average prices of Dubai crude, the benchmark used by local oil firms in setting their rates, stood at $26.24 as of Monday, compared to $25.24 for the entire month of August.

Analysts expect world crude prices to rise if the United States attacks Iraq over ceasefire violations concluded after the 1991 Gulf War.

A wage increase, Malunes said, would enable people to cope with rising prices.

Labor groups have demanded wage increases in the past citing rising consumer prices but their demands were turned down.

To keep prices down, one jeepney transport group had earlier promised not to petition the government for a fare increase.

Malunes called on the Roman Catholic Church "and other concerned church organizations to reprimand these oil companies for their merciless imposition of price hikes."

He also blamed President Arroyo for the price hikes, saying she "only served her worth to the foreign oil monopoly controlled by Shell, Caltex and Petron."

Party-list Rep. Crispin Beltran (Bayan Muna), meanwhile, called for the repeal of the oil industry deregulation law, which would put oil price adjustments subject to prior government approval.

"The law has been in effect since 1997, and since then oil price increases have been more frequent, prompting increases in the prices of most basic commodities and hikes in rates of social services," he said. "The deregulation of the local oil industry has all the more made the oil cartel more abusive and profit-greedy."

Passed in 1997, the oil deregulation law was meant to promote competition to keep oil prices down.

Despite that, oil prices remained a sensitive political issue, forcing the government to appeal to oil companies in the past to keep their prices down as long as they could. – With a report from Mayen Jaymalin