Gov’t sees more minimum wage earners owning homes

MANILA, Philippines - More minimum wage earners nationwide could buy and own a house and lot with an array of non-wage benefits the government is offering to workers as a Labor Day gift.

Labor Secretary Rosalinda Baldoz said labor groups should try to consider and not immediately belittle the package of benefits that the government is preparing for workers nationwide.

“It would also be good for them to first study the non-wage package because it includes a very affordable housing program for minimum wage earners,” Baldoz said in reaction to criticism from various labor groups.

Baldoz noted that through the housing program, minimum wage earners could secure a housing loan from Pag-Ibig Fund ranging from P400,000 to P750,000 that they could pay for a very low monthly amortization of only P2,000.

The labor chief said Pag-Ibig agreed to provide a housing loan with an interest rate of only 4.5 percent to give minimum wage earners the chance to own their own house and lot.

“Based on a study, house rent accounts for 40 percent of the expenses of minimum wage earners so we packaged a very affordable loan that would enable them to own their own homes. So we hope labor groups would not dismiss outright the non-wage benefits we are offering,” Baldoz pointed out.

Aside from the housing loan, Baldoz said the government has also extended tax exemption and educational loans for minimum wage earners.

Baldoz said the government is also looking into the possibility of adjusting the benefits of Social Security System (SSS) members.

“When you combine all these non-wage benefits that we have rolled out, they provide much help for our minimum wage earners,” Baldoz said.

Contrary to the claim of labor groups, Baldoz said the Department of Labor and Employment has not ruled out the possibility of granting salary increase for all workers this year.

“We are not talking about minimum wage earners, workers could have salary adjustments through collective bargaining agreements,” she pointed out.

But the militant Kilusang Mayo Uno (KMU) and other labor groups branded the government’s offer of non-wage benefits as a mere “cheap trick.”

“The non-wage benefits being bragged about by the government are welcome but are not enough to give workers immediate relief. The granting of these benefits is a desperate attempt of the Aquino government to pacify workers’ outrage over its policy of cutting and freezing wages,” KMU chair Elmer Labog said in a statement.         

“The government cannot fool workers with these non-wage benefits that we have in fact been deprived of for so long. These are actually basic benefits that are mandated by law and should really be given to workers,” Labog added.

KMU insisted that workers nationwide need a substantial wage hike to serve as immediate relief from the rising prices of basic goods and services.

Various labor groups are planning to stage a massive Labor Day protest action to push for the immediate granting of significant salary increase for workers nationwide.

Meanwhile, Labor Undersecretary Danilo Cruz said seafarers worldwide, including about half a million Filipino seamen, would soon enjoy decent working conditions when the new Maritime Labor Convention (MLC) 2006 is enforced in August.

Cruz noted that the Philippine Overseas Employment Administration (POEA) has already required all manning agencies deploying Filipino seafarers to foreign vessels to submit an undertaking of compliance to meet MLC 2006.

MLC, which the Philippines ratified last year, provides comprehensive rights and protection at work for the world’s more than 1.2 million seafarers.

In a resolution, the POEA said Filipino seafarers should have access to efficient and well-regulated recruitment and placement system.