The Center for Trade Union and Human Rights (CTUHR) expresses concern over the amendment to the proposed P200 minimum wage increase, arguing that all private sector workers should benefit from a wage hike. While the House approved a bill targeting minimum wage earners, CTUHR urges Congress to revert to an earlier version that included all workers and calls on President Ferdinand Marcos Jr. to certify it as urgent.
The Center for Trade Union and Human Rights ( CTUHR ) expressed concern on Tuesday regarding amendments to the proposed P200 across-the-board wage hike, which recently passed on second reading in the House of Representatives. In a statement, the labor and human rights group emphasized that all private sector workers, regardless of their wage level, should receive a pay increase.
CTUHR argued that the wage hike should benefit everyone, as all Filipino workers have experienced a decline in the real value of their wages, particularly amidst the current cost of living crisis. They asserted that workers are guaranteed the right to a living wage.The group contended that implementing an across-the-board wage hike is not unfeasible, especially considering the initial version of House Bill No. 11376, which was previously approved by the House Committee on Labor and Employment, included all private sector workers. CTUHR urged Congress to revert to the Labor Committee version of the bill and support an across-the-board wage increase. They also appealed to President Ferdinand Marcos Jr. to certify as urgent the House Labor Committee version of the bill, mandating a P200 across-the-board wage increase.On Monday evening, the House approved H.B. 11376, now titled the Wage Hike for Minimum Wage Workers Act, on second reading through a voice vote. The bill underwent revisions to specify that the wage increase would only apply to low-income earners, particularly those receiving the minimum wage in the private sector, including contractual and sub-contractual workers in both agricultural and non-agricultural sectors. In addition to limiting the wage hike to minimum wage earners, the bill also exempts barangay microbusiness enterprises from implementing the increase. Businesses regularly employing fewer than 10 workers, as well as those negatively impacted by natural calamities or human-induced disasters, may also apply for exemption. Recognizing concerns from employer groups regarding the potential impact of the wage hike on small businesses, the bill includes provisions allowing small enterprises to access incentives from the Department of Labor and Employment. Meanwhile, businesses that do not qualify for exemptions and fail to comply with the wage hike mandate will face penalties. Those found in violation may be fined between P100,000 and P500,000 or imprisoned for two to four years, or both, at the discretion of the court. If the violator is a corporation, trust, firm, or association, the penalty of imprisonment will be imposed on its responsible officers, including the president, vice president, chief executive officer, general manager, managing director, or partner.Tingog Partylist Rep. Jude Acidre, one of the bill’s principal authors, stated that the proposed wage hike would not significantly drive inflation. He cited the 1989 implementation of a legislative wage increase that amounted to nearly 40 percent of daily wages without triggering excessive inflation. Acidre argued that this increase provided relief to workers and even strengthened the economy. He pointed out that under the current bill, wages would only increase by 25 percent – far lower than the 40 percent adjustment in 1989.However, labor economics expert Leonardo A. Lanzona previously cautioned BusinessMirror that the wage hike could have a considerable impact on the economy, given the country’s labor-intensive industries. Lanzona warned of a domino effect: as businesses increase wages, they may be forced to raise prices for goods and services to offset higher labor costs. He explained that assuming a wage increase, workers would have more money, increasing aggregate demand. But if supply remains constant, businesses, aware of workers’ increased purchasing power, would simply raise their prices. The current national minimum wage varies across regions, with Metro Manila having the highest rate at P645 and the Bangsamoro Autonomous Region in Muslim Mindanao having the lowest at P361.
MINIMUM WAGE WAGE HIKE LABOR RIGHTS CTUHR HOUSE REPRESENTATIVES
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