Gov’t justifies P15 wage hike for Metro Manila workers

MANILA, Philippines - Malacañang justified yesterday the P15 increase in the minimum wage rate for workers in Metro Manila, saying all factors were considered before a decision was made.

Various labor groups strongly criticized the increase as being too meager.

“While it is ideal to give the highest wage possible, it may have an adverse impact on the economy if employers cannot pay the increase. It may lead to the closure of businesses or laying off workers, which we do not want,” deputy presidential spokesperson Abigail Valte said. 

“The policy is to grant regular, moderate and predictable adjustments that takes into account the needs of the workers but maintains the stability of business environments,” she added.

The increase will bring the daily minimum wage rate from  P477.03 to P492.57.

Labor Secretary Rosalinda Baldoz said the pay increase, the 19th since the Wage Rationalization Act became law on June 9, 1989, would directly benefit 587,000 minimum wage earners.

“Traditionally, if you look at the positions of labor groups vis-à-vis employers groups when it comes to a wage hike, they’ve never been on the same plane or at least on the same level. The job of the wage board is to determine what can be given that will also not be detrimental to employers,” Valte said.

The Trade Union Congress of the Philippines (TUCP), the country’s largest labor group and one of those hitting the increase, said the government-approved wage hike was revolting.

“Rather than closing the gap between rich and poor, government officials in the wage board have further widened the gaping inequality amongst Filipinos – between a few elite and a famished majority who live to survive by the day,” TUCP spokesman Alan Tanjusay said.