1 month ago
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CEBU CITY — A Cebu-based labor group has welcomed the House Committee on Labor and Employment's recent approval of a P200 across-the-board wage increase, calling it an "initial victory" for the working class.
Jaime Paglinawan, chairman of Alyansa sa mga Mamumuo sa Sugbo-Kilusang Mayo Uno (AMA Sugbo-KMU), said that the increase is a crucial step in upholding the workers' dignity.
"We welcome all initiatives that aim to raise wages. This is a step toward securing the dignity of workers," he said on Friday, Jan. 31.
The group has long pushed a family living wage of P1,200, which the independent research group IBON Foundation considers the minimum needed for workers to afford basic necessities such as food, rent, and transportation.
It described the P200 wage increase as a much-needed relief for workers struggling with the rising costs of essentials, including electricity, water, and oil.
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The group is now urging the Senate to pass a counterpart bill and ensure it becomes law before the May 2025 elections.
AMA Sugbo-KMU reaffirmed its commitment to continue advocating for the P200 wage increase to be enshrined in law and for the long-term goal of a P1,200 family living wage to become the national minimum wage.
They cited Article XIII, Section 3 of the Philippine Constitution which mandates that workers be provided with a living wage.
The House Committee on Labor and Employment approved a substitute bill on Thursday, Jan. 30, mandating a P200 daily across-the-board wage increase for private sector workers.
The measure, which consolidates House Bills 514, 7568, and 7871, requires all private businesses, regardless of size and industry, to implement the wage hike once enacted.
Chairing the panel, Rizal 2nd District Rep. Juan Fidel Nograles expressed strong support for the measure, which prohibits employers from offsetting the wage increase with previous wage adjustments unless explicitly agreed upon under collective bargaining agreements.
The bill also ensures that existing benefits and allowances cannot be reduced to accommodate the pay raise.
To ensure compliance, the Department of Labor and Employment (DOLE) will be tasked with conducting inspections. Employers found violating the law will face fines ranging from P50,000 to P100,000 or imprisonment for up to four years.
This approval came after Speaker Martin Romualdez met with labor leaders to discuss their concerns and push a legislated wage hike.
Romualdez expressed the House's commitment to advancing the measure and highlighted its broader economic benefits.
"Higher wages mean workers have more disposable income to spend on goods and services, increasing demand across various sectors," he said.
Provisions to help mitigate the impact on micro, small, and medium enterprises (MSMEs), such as wage subsidies and exemptions, are also being considered. Romualdez emphasized the importance of planning and collaboration to ensure that the wage increase benefits both workers and businesses.
TUCP Party-list Rep. Democrito Raymond Mendoza called the committee approval a historic moment, marking the potential first legislated wage hike in over three decades.
He noted that regional minimum wages have often fallen below the poverty line for the past 36 years, leaving workers with wages that cannot provide a decent life for their families.
"Is it our policy to give poverty wages that cannot provide a decent life for our families?" Mendoza said.
Mendoza also expressed gratitude for Romualdez's leadership in advancing the bill, saying, "We are very happy with Speaker Romualdez's commitment to ensuring the measure's approval."
With the bill's approval in the House, Senate President Francis Escudero expressed optimism about working closely with the House to push the measure forward.
He also instructed the Senate's committee secretaries to monitor the House hearings and keep senators updated on the bill's progress.
At a wage hearing in Cebu City last year, several Cebu-based business groups, including the Mandaue Chamber of Commerce and Industry (MCCI), the City of Talisay Chamber of Commerce, Trade, and Industry, and the Philippine Retailers Association (PRA) Cebu Chapter, strongly opposed the proposed wage hike.
They highlighted the ongoing struggles of small businesses, particularly the impact of inflation and rising production costs.
Kelie Ko, former MCCI president, noted that many small and medium enterprises (SMEs) are still recovering from the pandemic. He said inflation and global economic shifts have already driven up production costs, further straining businesses.
Christina Paroan of PRA also expressed concerns about the wage increase's potential inflationary effects, warning that it could worsen business challenges and lead to more closures and job losses.
