Consumers Domain
Workers' lament
"Give me the truth, just between me and you...
Give me the low down as quick as you can..."
--from "Low Down" by The Rolling Stones
This column is now yielding its space to the statement of the Partido ng Manggagawa (PM) in response to the government's shameful Labor Day gift for the workers. This government indeed has a wonderful talent of creating beautiful packaging for its apparent shortcomings.
* * * * *
Partido ng Manggagawa:
Wages, Lies and Half-Truths
In answering the criticism of militant workers that government gave a mere pittance last May 1, Labor Secretary Pat Sto. Tomas is being a barefaced sophist or a wanton liar. Either way she cannot fool the workers through petty manipulation of data to support her claim that Php 40 billion in benefits are not crumbs thrown to workers.
Workers may not have college diplomas tucked in their pockets like Sto. Tomas but they know enough of practical arithmetic to understand that they are being shortchanged by capitalists or by their apologists in government.
First, the government in fact gave only half of Php 40 billion since the wage increase for public sector workers in still a promise. It is to be implemented next year once an amendment to the Salary Standardization Law is passed. Imagine an Indian giver being angry with the birthday celebrant for naturally not being happy since only a promise and not the gift itself was given.
What the government gave in non-wage benefits last May 1--Php 20 billion--effectively means just Php 3.65 per worker per day (20 billion / 15 million private sector workers / 365 days). Not even enough to buy a pack of noodles for lunch!
Granting we compute using the supposed package of Php 40 billion (which includes the Php 20 billion in public sector wage increases next year), it still amounts to alms--Php 6.85 per worker per day. Just enough for a measly can of sardines!
A pack of noodles or a can of sardines--this is what Sto. Tomas is saying is the generous gift that government gave the workers on their birthday! Out of the Php 5.4 trillion of goods and services made by the Filipino workers (1995 GDP), the government gave back to the working class less than one centavo of every peso of wealth created by their sweat.
Sto. Tomas' trick of divide-and-rule among the militants and moderates in the labor movement does not even work. The TUCP is not happy with the coins the government offered and is insisting on an across-the-board wage hike.
Pity Sto. Tomas for she has eyes but does not see--or does not want to see. If the galloping oil price hikes and the R-Vat are not supervening events to initiate an immediate wage increase, then we do not know what is.
Again Sto. Tomas is engaging in sophism and manipulation when she says that government already gave Php 238 in wage increases since 1987. Truth is that salaries have increased only Php 236 since 1989. She should compare it with the price hikes since 1989 and tell us what is the actual worth of Php 236 in today's peso. But of course she would not do that for her lies will be exposed.
From 1989 to March 2006, prices have risen by 342% while wages have increased only 265%. The workers are worse off now than when the wage boards were formed. The Php 325 of today buys less the Php 89 of 1989. Thus the wage boards and the capitalist class still owe the workers. In fact even if wages were raised to Php 393 it will just offset inflation. That is simply wage recovery not even wage increase since real wages remain stagnant at the level of 1989 despite all the productivity gains of labor in that period.
She criticizes militant workers for marching in the streets with dignity instead of begging the wage boards for alms. In the comfort of her air-conditioned office, we challenge her to answer our 4-point demands (Apat na Dapat ng Manggagawa):
First, exempt all workers earning below the daily cost of living of Php 746 from paying withholding taxes. If the capitalists cannot give their workers a living wage then the least that government can do is not further diminish their starvation wages. Exempting minimum wage earners from withholding taxes is mere token for most of them in fact do not already pay taxes because of their low wages. Government admits as much since they will only forego Php 1 billion in tax revenues or what literally amounts to coins--a mere 40 centavos per worker per day (1 billion / 8 minimum wage earners / 312 working days).
Workers bear the brunt of the tax system that is flagrantly regressive. For every peso of income taxes, 92 centavos are paid by salaried employees while only 8 centavos are paid by the self-employed and professionals. Congress must pass the House Bill 2985 filed by Rep. Renato Magtubo of PM providing for tax breaks for workers earning below Php 219,000 a year. Estimates by private groups and concurred in by the National Tax Institute reveal that some P250 billion in corporate and other similar taxes were lost. Those owe the most in taxes pay proportionately the least. The working class is carrying the bear that should be bore by the middle class and the capitalist class.
Second, subsidize the social security contributions (SSS/GSIS and PhilHealth) of all workers earning below the cost of living. If government says workers are already hard up and thus the penalties of delinquent SSS/GSIS members will be condoned, then the same argument holds for subsidizing their contributions. The capitalists and government must share in the subsidies for workers.
Third, provide price discounts for basic goods bought by workers. If the PS Marts are not just mere showcase, then such outlets must be installed in all factories and workers communities so that the whole working class benefits.
Last, grant a legislated across-the-board wage increase. We support the Php 125 wage increase bill pending in Congress. We want the wage boards abolished for their track record shows they give mere pittance in wage hikes, are snail-paced in acting on wage increases and moreover grant a thousand and one loopholes for capitalists to evade it (exemptions for distressed companies, for SME's, for enterprises employing 10 workers and below, etc).
(Send your comments and reactions to: for text messages to 0919-348-6337; for e-mails to ianseruelo@yahoo.com; and for blogs to http://consumersdomain.blogspot.com.)