Maximum sacrifice, minimum wage

The woman looked ancient. Her sunburned skin glistened under the noon sun, white hair carelessly tied in a bun; her back was crooked under the weight of sack of copra.

Her quick steps belied her seeming frailty though. Asked about her destination, she replied she was selling the copra about a kilometer away to supplement the family income.

On her way back, she recounted with a smile that she earned P60 for her trouble. With P20 she bought coffee, another P20 for sugar and the rest she was keeping for incidental expenses.

Tucked away in her hillside farming village near Cota-bato’s border with Maguin-danao, she seemed not too worried about having just that much in her pocket.

It’s difficult to imagine anyone in bustling Metro Manila or another city being so pleased with having an extra P20. That’s basically equivalent to two jeep or tricycle rides, or four small cups of taho, a half pack of cigarettes or eight pieces of pandesal.

The cost of living between rural Philippines and urban Philippines is wide enough that the P426 daily minimum wage in the capital would look like a small fortune to our countryside compatriots.

That’s a good argument for those challenging the wisdom of a P125 across the board wage increase. P125 has a different value for workers and employers based in the city compared to that elsewhere.

According to Malacañang’s computation, that kind of legislated wage increase for the country’s 38 million workers would mean a P42,250 annual hike in workers’ income and a corresponding baseline increase of P1.6 trillion in additional cost for businesses.

A spokesman for Malacañang, Abigail Valte, explains that such a big increase in the cost of doing business could force employers to layoff workers if not simply shut down.

Data from the National Wages and Productivity Commission show that the daily minimum wage in the country, at $9.05 in the capital, is already high compared to other labor-providing countries. Minimum daily wage in China is US$3.75; Cambodia is $2.03; Vietnam is $2.23; Indonesia is $2.67 while Thailand is $5.23.

The Philippines is about at the same level as Malaysia ($9.42) and is lower only compared to Taiwan ($20.13), South Korea ($30.66), Singapore ($21.27) and Japan ($64.11).

Valte says that Mala-cañang—President Benigno Aquino and the economic officials—cannot support a legislated wage hike because they need to balance minimum wage earners welfare with everything else.

She says that Regional Wage Boards are “cognizant of the fact that there are calls to increase minimum wage” and that “ideally, wages should go up.” They are also allowing employers to determine what kind of non-wage benefits they could afford to give workers.

All that taken into consideration, Malacañang’s response to workers’ need for additional wages amid the increasing cost of living displays lackluster concern for the small people.

It is certainly logical to be thinking about the big picture when you’re responsible for the welfare of the entire Philippines, but threatening minimum wage earners of a possible loss of employment smacks of thoughtlessness.

To be threatened with the loss of employment by an administration whose leader proudly told the Filipino people “kayo ang boss ko” shows how highly this government values the contributions of the nameless, faceless millions to the economy.

The fear of losing employment and the family’s sole source of income is a real fear for too many Filipinos for too long already.

When presented with a choice of possibly losing the daily P426—as if workers actually take home as much—people would be inclined to grudgingly drop demands for higher wages. Buti nang merong konti kesa wala.

Like that old lady in that corner of Cotabato who is content with her P20, workers are resilient and will consent to a lot of unfairness if only to ensure continued employment. Workers know they deserve more for their toil but many will grin and bear it because they must bring home something to the family.

There really wasn’t any need for Malacañang to spit the threat of unemployment to make a point. Workers know the ramifications of factories closing more than anyone in the Palace.

Government could have tried to be more thoughtful in rejecting calls for a P125 across-the-board wage hike. –JOHNNA VILLAVIRAY-GIOLAGON, Manila Times

johnnavg@hotmail.com