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Think Tanks Refute Malacañang’s Arguments Against Wage Hikes

Saturday, April 30, 2011

Think Tanks Refute Malacañang’s Arguments Against Wage Hikes

 “Since July 2010, skyrocketing commodity prices coupled with stagnant wages have eroded workers’ wages in lightning speed, which is unmatched by the previous administration,” said EILER executive director Anna Leah Escresa.

As Malacañang thumbs down the demand of government employees in the country for a substantial wage increase, research groups have taken turns debunking government claims that salary and wage hikes are impossible to implement given the current economic conditions.

Current Wage Provides Only 41 Percent of What Families Need 

The IBON Foundation said the value of the daily minimum wage in Metro Manila has dropped and is only able to provide for about 41 percent of the amount needed for a family to live decently. This is less than the figure 10 years ago, in 2001, wherein the minimum wage was about 52 percent of the cost to live decently.

According to the IBON Foundation, the daily minimum wage of P404 (US$9.39) is just 2/5 of the estimated average family living wage (FLW) of P988 (US$23) in the National Capital Region (NCR) as of March 2011. The family living wage is defined as the minimum amount needed for a family of six members to meet their daily food and non-food needs plus a 10 percent allocation for savings. The latest living wage estimates are based on the 2008 family living wage computation of the National Wages and Productivity Commission of the Department of Labor and Employment (DOLE).

According to IBON data, the daily minimum wage of P265 (US$6) in 2001 was half of the amount a family needed to live decently, which was then pegged at P509 (US$12).

(Photo by Ina Alleco R. Silverio / bulatlat.com)
As the DOLE and the wage boards deliberate on whether to give a wage hike next month, the research group urged government to raise wages to a decent level and approximate the wage increase to the estimated family living wage.

Nonstop Price Hikes
Adding to the urgency of a wage increase, a labor research group said, is the fact that the combined wage increases in the past decade had been totally eroded within only eight months by nonstop price hikes under the Aquino administration..... MORE


URL: http://bulatlat.com/main/2011/04/23/independent-think-tanks-refute-malacanangs-arguments-against-p6000-and-p125-salary-wage-hikes/


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