Push for wage hike bill may be a ‘hard-nosed’ political move — analysts

By Kenneth Christiane L. Basilio and Chloe Mari A. Hufana, Reporters

THE House of Representatives’ sudden push for a P200 across-the-board daily wage increase for private-sector workers reeks of politicking, political analysts said at the weekend, as the campaign period for Philippine midterm elections kick off next week.

The House labor committee approved a consolidated bill last week. Rizal Rep.

Juan Fidel Felipe F. Nograles, who heads the committee, denied the approval constituted politicking.

Speaker Ferdinand Martin G. Romualdez last week ordered the chamber to fast-track the wage hike bill a week before Congress goes on a four-month break for the midterm elections on May 12.

“Given the timing, one can consider this as another case of hard-nosed, if not cynical politicking working for the public good,” Anthony Lawrence A. Borja, an associate political science professor at De La Salle University, said in a Facebook Messenger chat.

“Moreover, it could be meant to project a narrative that despite passing a questionable budget, Congress can still satisfy the public good,” he added, referring to the P6.326-trillion national budget for this year, whose legality has been challenged at the Supreme Court.

Politicians running for reelection could use the bill’s approval to bolster their campaigns, said Arjan P. Aguirre, who teaches political science at the Ateneo de Manila University.

“This can be politicized and used for the campaign,” he said in via Messenger chat. “They want to look like they are prioritizing workers over other issues.”

But lawmakers should take the bill “seriously,” he said, noting that Filipinos struggle to make ends meet amid persistently high prices.

Civil society groups and media organizations should keep an eye on the progress of measures in Congress to help gauge lawmakers’ effectiveness in crafting laws, Mr. Borja said. “We must keep an eye on delays and use such to measure their performance instead of merely relying on what these prospective reelectionists help pass.”

Labor groups and lawmakers are pushing the passage of the proposed P200 wage hike at the House of Representatives this week, ahead of the congressional recess this week.

Trade Union Congress of the Philippines (TUCP) Legislative Officer Carlos Miguel S. Oñate said the bill would reach the House plenary this week, with three more session days left.

“But we’re still calling for it to be certified as urgent to fast-track the process,” he told BusinessWorld in mixed English and Filipino. “Otherwise, the three-session-day rule between the second and third reading will apply.”

Federation of Free Workers (FFW) President Jose Sonny G. Matula said the P200 daily hike should “ideally take effect in June” this year, considering the second reading approval of the bill scheduled this week.

The hike should reach everyone, including contractual and provincial workers, he added.

Mr. Matula said the legislated wage increase could be a “game-changer” by encouraging more workers to stay in the formal sector, boosting productivity and the economy.

On the other hand, week enforcement would let employers go around the proposed law by hiring more contractual workers, he said.

“This is why labor groups aren’t just fighting for the wage hike but also for airtight enforcement so that employers don’t turn wage increases into an illusion,” he added.

Meanwhile, the Employers Confederation of the Philippines (ECoP) opposed the measure, calling it “catastrophic.”

ECoP President Sergio R. Ortiz-Luis, Jr., in a statement at the weekend said only 16% of the 52 million private sector workers would benefit from the wage increase.

This leaves behind 84% of those without employers to suffer, as they will have no earnings growth but will have to cope with the inflation that will likely ensue,” he added.

“It will be a catastrophe. A company paying P600 plus in salary will now have to raise it to P800 plus. Which company can afford it?” he asked.

Mr. Ortiz-Luis said the government should create more jobs instead of raising wages, adding that regional wage board should decide on the increase.

Minimum wages in the country are set by regional wage boards. But slow and meager increases amid rising prices have prompted lawmakers to push the legislated wage hike.

The Senate approved a counterpart bill for a P100 daily wage increase for private-sector workers a year ago.