Labor group welcomes House committee’s approval of P200 wage hike

Local

A CEBU-BASED labor group welcomed the recent approval of a P200 wage increase across the board by the House Committee on Labor and Employment, describing it as an "initial victory" for the working class.

Jaime Paglinawan, chairman of Alyansa sa mga Mamumuo sa Sugbo-Kilusang Mayo Uno (AMA Sugbo-KMU), emphasized that the wage increase is a much-needed step toward securing the dignity of workers.

“We welcome all initiatives that aim to raise wages. This is a step toward securing the dignity of workers,” he said on Friday, January 31.

The group has long advocated for a family living wage of P1,200, which, according to the IBON Foundation, represents the minimum amount necessary for workers to cover essential living costs like food, rent, and transportation.

The labor group hailed the P200 wage increase as a much-needed relief for workers grappling with the rising costs of basic commodities, including electricity, water, and oil.

“This P200 wage increase is a much-needed relief for workers struggling with rising prices,” Paglinawan added.

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 pointed to the Philippine Constitution’s Article XIII, Section 3, which mandates that workers be provided with a living wage.

The House Committee on Labor and Employment approved a substitute bill on Thursday, January 30, \ mandating a P200 daily across-the-board wage increase for private sector workers.

The bill, which consolidates House Bills No. 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 for 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 Speaker 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, voiced strong opposition to the proposed wage increase.

They underscored the ongoing difficulties small businesses face, particularly the adverse effects of inflation and rising production costs.

Kelie Ko, former president of MCCI, shared that many small and medium enterprises (SMEs) are still grappling with the economic impact of the pandemic. He pointed out that inflation and global economic changes have already increased production costs, putting additional strain on businesses.

Christina Paroan from PRA also raised concerns about the possible inflationary effects of a wage hike. She warned that such an increase could exacerbate the challenges faced by businesses, potentially resulting in more closures and job losses.(MyTVCebu)