Labor alliance seeks PHP 200 daily wage hike

By Juliane Judilla

The United Labor Alliance, a broad coalition of workers and unions across Panay Island, formally submitted a petition for a PHP 200 daily wage increase before the Regional Tripartite Wage and Productivity Board VI on Oct. 2.

The group argues that the current minimum wage of PHP 513 is no longer sufficient to sustain a decent standard of living, especially amid the soaring costs of basic goods and services.

They added that their call for a wage hike is legitimate and justified, emphasizing that wages must reflect the real value of labor and enable workers to live with dignity while criticizing claims that wage hikes fuel inflation since prices have risen even without increases.

United Labor argued that despite being vital to the economy, workers remain among the most economically vulnerable sectors — a result, they said, of a flawed capitalist system where most of the value created by workers is captured by business owners and capitalists, while workers receive just enough to survive, and they added that the government collects more taxes from individuals (37%) and consumption (32% VAT) than from corporations (16%), underscoring how ordinary citizens carry the heaviest tax burden.

“It is labor power that keeps the economy moving. Without workers, there is no production, no goods to sell, no profits to be made. Yet the very people who produce this wealth are left behind,” the group emphasized.

A study by the research group IBON Foundation supports the feasibility of the proposed PHP 200 wage hike, estimating that it would result in only a modest decline in profits — 11.1% for large companies and 9.1% for medium-sized firms.

For small businesses, United Labor proposes government intervention through subsidies, tax relief, access to low-interest credit, and protections against unfair competition from imported goods and monopolies.

Contrary to fears that a wage hike would slow economic growth, the group cited PSA data showing that Western Visayas’ economic growth had already declined from 6.8% in 2023 to 4.3% in 2024 — even without a wage increase.

The group also underscored that even a PHP 200 increase would still fall short of the Daily Family Living Wage, estimated at PHP 1,200 — the amount needed for a family to live decently, not just survive.

United Labor is calling on the Philippine Congress to legislate a national wage increase and urged President Ferdinand Marcos Jr. to issue an executive order mandating an increase in wages — similar to what was done in 1989.

“We call on all workers across the country to unite and fight for a living wage, the right to unionize, job security, and a fair share in the nation’s wealth,” United Labor declared.