Both the government and business groups stress that any wage hike should be determined not by Congress but by the Regional Tripartite Wages and Productivity Boards (RTWPBs). In addition, the MBC said that collective bargaining agreements (CBAs) are the most universal and effective form of negotiating wage increases. It dismissed a legislated wage increase as a one-size-fits-all option that will result in some regions becoming uncompetitive and may result in disinvestments in areas that are most starved for investments.
Given the stand of the government and business groups, workers should not expect any wage increase anytime soon. Given the rule that RTWPBs can only grant wage increases once a year, this means that workers will have to wait until July or August 2007 for the boards decision.
Wages from 1999 to 2006
The workers demand for a P125 ($2.55) nationwide, across-the-board increase in the minimum wage of private sector workers as well as the call for a P3,000 ($61.20) increase in the monthly salary of government employees whose bill remains pending in the House of Representatives started in August 1999. Data from the Department of Labor and Employment (DOLE) show that in 1999, the daily minimum wage rates ranged from P140 or $2.73 (ARMM) to P223.50 or $4.36 (NCR).
Analyzing the wage increases granted by the RTWPBs from 1999 to 2006, the NCR-based workers were provided the highest cumulative wage increase of P126.50 ($2.58), of which P50 ($1.02) was in the emergency cost of living allowance (ECOLA) and not in the basic pay. In the case of workers in other regions, the RTWPB-granted cumulative wage increase ranged from P30 or $0.61 (Mimaropa) to P102.50 or $2.09 (Central Luzon). This simply means that through the years, RTWPBs have not granted wage hikes that are substantial enough to provide relief to workers.
It is therefore not surprising that wages have remained law through the years. In the non-agricultural sector, the daily minimum wage rate currently ranges from P200 or $4.08 (Autonomous Region in Muslim Mindanao or ARMM) to P350 or $7.14 (National Capital Region). This situation explains the organized labors continuous demand for a P125 ($2.55) wage hike despite the minuscule wage increases that have been granted by RTWPBs since 1999.
