Pass P200 wage hike, Congress urged

A labor group petitioned President Ferdinand Marcos Jr. on Tuesday to order a ceasefire on “chaotic political wrangling” and demand the immediate passage of the long-stalled P200 legislated across-the-board wage hike, which has languished in Congress over the years.

The Trade Union Congress of the Philippines (TUCP), the country’s largest labor federation, said the “escalating political noise,” which has been exacerbated by the coming elections, will not address the dire condition of workers until the proposed wage hike is passed into law before the 19th Congress adjourns in June.

“No amount of political bickering, grandstanding, and finger-pointing will fill empty stomachs, send children to school, and give workers the dignity of a decent life,” the group stressed. “The Filipino working class must not be another casualty in this chaos.”

The proposed P200 legislated wage hike hurdled the second reading in the House of Representatives on 3 February, two days before Congress went on a four-month break for the election campaign.

The approval came after a closed-door meeting between House leaders and major labor groups, addressing the longstanding demand for a legislated wage hike for workers in the private sector.

The proposed “P200 Daily Across-the-Board Wage Increase Act” will legally mandate employers in the private sector, whether agricultural or non-agricultural, to give their workers an additional P200 in their daily wage.

When enacted, employers found to be non-compliant will be fined up to P100,000 and may face jail time for up to four years.

The Senate passed a similar proposal as early as February last year, though the proposed increase was P100 lower than the House’s.

The TUCP said politicians running in the midterm elections should focus on outlining their platforms and providing solutions to the issues affecting marginalized sectors.

“Desperate for action instead of distraction, Filipino working families are calling on our public servants — both sitting and aspiring — to focus on what truly matters to us: a ₱P200 wage hike to survive,” the TUCP asserted.

The group suggested that Marcos rise above current political distractions, certify the P200 legislated wage hike as urgent, and ensure its swift passage before the end of the 19th Congress.

“Instead of the urgent wage hike that workers desperately need, all we see is chaotic political wrangling that defeats optimism and crushes hope, if there’s any left at all,” the federation lamented.

The last wage increase was given over three decades ago with the enactment of the Wage Rationalization Act of 1989 (Republic Act 6727).

Efforts to secure another salary increase have been ongoing for years, but all have fallen short due to various challenges, with the primary opposition coming from the business sector, which argues that an increase would heavily impact their operations.

According to Deputy Speaker and TUCP Rep. Raymond Democrito Mendoza, despite the enactment of the law, which he said augmented the minimum wage by 40 percent, there was no massive inflation, wave of unemployment, and collapse of businesses.

The Employers Confederation of the Philippines (ECOP), the country’s largest trade organization, has consistently rejected the clamor for a wage hike, citing its disadvantage to MSMEs.

The ECOP asserted a wage hike would also hurt farmers, fisherfolk, market vendors and the informal sector, which accounts for 84 percent of the labor force.

Some employer groups have also opposed calls for a legislated wage hike, fearing it could lead to worker layoffs or force small businesses to close.