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This undated photo shows an individual counting Philippine peso bills.
The Philippine STAR / Walter Bollozos
MANILA, Philippines — With Congress nearing adjournment, Sen. Joel Villanueva appealed to the House to adopt the Senate’s version of the minimum wage hike bill, which pegs the increase at P100.
If the House concurs during its final plenary session on Wednesday, June 11, a bicameral conference committee would no longer be necessary to reconcile conflicting provisions
In a letter dated Tuesday, June 10, Villanueva said he has “strong reservations” against the House’s proposed P200 daily minimum wage hike.
He argued that the P200 is high enough to potentially trigger “adverse economic and social impacts, including [an] increase in unemployment and [an] increase in the prices of consumer goods.”
Villanueva warned that businesses might incur losses and that the proposed hike could place “downward pressure” on GDP growth over time, further deepening regional inequalities.
As the Senate Committee on Labor and Employment Chairperson, he appealed to Rep. Juan Fidel Felipe Nograles (Rizal, 4th District), who chairs the House counterpart of the committee.
“Both Houses of Congress share the same intention to improve [the] quality of life of our workers and guarantee their fundamental right to fair wage. This is aligned with the Constitutional mandate to ensure a living wage for every Filipino family,” the letter read.
Nograles, however, rejected the appeal to avoid bicam talks.
He said in a letter to Villanueva that the House immediately gave its list of members who will attend the bicam, but the Senate only informed its designation of conferees on June 10.
"This delay has constrained the already limited time left for the bicameral conference committee to meet, reconcile both versions, and have the report ratified by both chambers," the letter read.
"If we fail to deliver today, there is a very real danger that our workers will be left with nothing - despite months of effort and public expectation," it added. Nograles instead urged the Senate to recognize the bicameral conference process, instead of "bamboozling" the House into accepting its version.
"We cannot and should not be forced into a corner where our only option is to rubber-stamp a version that does not reflect the result of honest dialogue," he added.
The House of Representatives on June 3 approved House Bill 11376 on third and final reading, with 172 lawmakers voting in favor and one abstaining. The measure seeks to raise the daily minimum wage of private sector workers by P200.
To cushion the impact on employers, the bill includes provisions for incentive programs and financial assistance aimed at helping businesses absorb the additional labor costs.
Several business groups and employer associations have opposed the proposed legislated wage hike which, if enacted, would mark the first of its kind in 36 years.
But according to an analysis by economic think tank IBON Foundation, businesses across different scales can afford the increase without eliminating profits.
The group estimated that only 11.8% of total business profits would be needed to cover the wage hike, leaving companies with a substantial portion of earnings intact.
IBON also noted that labor productivity has risen by 88% since 1989, even as the average real minimum wage has declined by 23% over the same period.
The minimum wage in Metro Manila currently stands at P645 per day, while rates in other regions are significantly lower. This remains far below the estimated family living wage, which is pegged at over P1,200 per day.
The 19th Congress has only three session days left before it adjourns sine die.
