'MAKE IT YOUR LEGACY': Marcos urged not to veto P200 wage hike

The Trade Union Congress of the Philippines (TUCP), the country's largest labor federation, on Thursday strongly urged President Marcos Jr. not to veto the P200 legislated increase in the daily minimum wage for private sector workers, which is now in its final phase toward becoming law.

House Deputy Speaker Democrito Mendoza of the TUCP Partylist issued the plea amid fears that Marcos may veto the Congress-approved measure, given his earlier remarks that the proposal requires thorough review due to its potential impact on small businesses, possibly leading to economic collapse.

Mendoza, however, appealed to Marcos to make the long-overdue wage hike part of his legacy, noting that this would be the first legislated minimum wage increase in nearly four decades.

"You know, the previous administration raised the salaries of the policemen and, of course, the AFP (Armed Forces of the Philippines). This time, this would be the legacy of President Marcos, BBM, that he raised the salaries of all 5 million minimum wage earners," said Mendoza, one of the proponents of the measure.

The last legislated wage increase was 36 years ago through the enactment of the Wage Rationalization Act of 1989.

Subsequent efforts to implement another wage hike have consistently failed, mainly due to concerns about economic repercussions.

Mendoza emphasized that the President cannot claim ignorance of the fact that the current minimum wage falls below the poverty threshold. Studies peg the living wage at P1,200 per day. While the House proposal still falls short of this, lawmakers say it is a crucial starting point.

"It has already passed both Houses. We're just waiting for the President's go-signal. So, Mr. President, if ever it reaches your table, do what is right for your legacy. Raising the minimum wage is also raising hopes and dreams of the Filipino workers," Mendoza said. 

The proposed legislated wage hike is now up for bicameral conference committee deliberations after the House of Representatives gave its final approval Wednesday to House Bill 11376, the counterpart of Senate Bill 2534.

The bicam panel will reconcile the differing versions — the House proposes a P200 hike, while the Senate version proposes P100.

The reconciled measure must be ratified by both chambers before the enrolled bill is transmitted to Malacañang for the President’s signature.

Gabriela Rep. Arlene Brosas, also a proponent and one of the lawmakers sitting in the bicam, said the House is open to compromise as long as the final amount is reasonable.

"Once we agree to any amount, it will be quick; we can move forward, and the bill can go to the President's table. Remember, this is historic," Brosas told reporters in an ambush. "Ultimately, all we want is for the workers to benefit. In short, we will cooperate with the senators because this is something workers really need, whether it's a P200 or P100."

In contrast, Sergio Ortiz-Luis Jr., president of the Employers Confederation of the Philippines (ECOP), criticized the move by Congress in a separate interview on Thursday.

He argued that minimum wage earners represent only 10 percent of the country’s 52 million-strong labor force, leaving out a significant segment — including farmers, fisherfolk, market vendors, public utility drivers, and those in the informal sector.

ECOP and other employer groups have consistently opposed a legislated wage hike, arguing that it would disproportionately hurt micro, small, and medium enterprises (MSMEs), which could result in layoffs or business closures

Ortiz-Luis said 90 percent of the informal sector comprises micro enterprises, 8 percent are small businesses, 1 percent are medium-sized, and less than 1 percent are large firms.

The current daily minimum wage for private workers in the National Capital Region is P645, following a P35 increase approved in July last year.

If the proposed P200 wage hike is approved, the minimum wage would rise to P845.

Albay Rep. Joey Salceda and Marikina Rep. Stella Quimbo — both economists — previously opposed the legislated hike, warning that any increase could trigger inflation, ultimately eroding its intended benefits.

Labor groups, however, insist that the current minimum wage is no longer sufficient in light of soaring prices of basic necessities such as food, housing, and transportation.