In a move that has sparked both hope and concern, President Marcos recently directed regional wage boards to review minimum wage rates across the country. This Labor Day directive aims to address the impact of inflation on workers’ purchasing power. At the same time, the Senate has proposed a legislated wage increase.
President Marcos’ order does not immediately raise wages but instead calls for a thorough review of pay rates in each region. The goal is to ensure fairness and predictability for all stakeholders. By urging the National Wages and Productivity Commission (NWPC) and the Regional Tripartite Wage and Productivity Boards (RTWPB) to assess minimum wage rates, the President acknowledges the challenges faced by Filipino workers. These workers, he rightly points out, are the “beacons of hope” and essential contributors to our nation’s progress.
Meanwhile, the Senate has taken a more direct approach. A bill proposing a P100 daily minimum wage increase has passed its third and final reading. It is awaiting the version to be passed by the House of Representatives so the legislative process can progress. Advocates argue that this measure would alleviate the burden of rising prices and reduce poverty incidence. However, business groups express reservations. They fear that a legislated wage hike could lead to higher inflation and adversely affect small businesses. The last time the national wage was raised through legislation was in 1989, under President Cory Aquino’s administration.
As we weigh these options, it’s essential to recognize the delicate balance required. On one hand, workers deserve fair compensation that reflects the cost of living. On the other hand, businesses must remain competitive and sustainable.
- Whether the government comes up with a legislated wage increase or otherwise, here are some key factors that we should consider:
- Inflation and Cost of Living: The rising cost of goods and services affects everyone, especially low-wage earners. A wage increase can help workers cope with these challenges.
- Business Viability: Micro, Small and medium-sized enterprises (MSMEs) form the backbone of our economy. A sudden, legislated wage hike could strain their resources, potentially leading to layoffs or business closures.
- Productivity and Skills Development: Rather than focusing solely on wage increases, we should also invest in skills development and productivity enhancement. A skilled workforce contributes to economic growth.
- Regional Disparities: Wage rates should account for regional differences in living costs. What works in Metro Manila may not be suitable for rural areas.
President Marcos’ call for a review and the Senate’s proposal both aim to improve the lives of Filipino workers. As the process moves forward, there should be constructive dialogue among the concerned sectors, considering the needs of workers, businesses, and the overall economy. Finding common ground will be crucial in achieving sustainable progress. Surely, a “win-win” solution is just around the corner. I hope our national leaders can find it sooner.
