MANILA, Philippines – While hailing as an achievement minimum wage hikes that have been granted in the different regions, President Ferdinand Marcos Jr. in his third State of the Nation Address (SONA) ignored calls for a legislated minimum wage increase, which Congress has been deliberating on over the past year.

Lawmakers have been discussing an across-the-board minimum wage hike, with bills ranging from a P100- to P750-increase. The Senate has approved the P100 version, while counterpart bills remain pending at the House committee level.

The legislated wage increase was also a common demand in Labor Day protests in May.

“With tripartite consensus, minimum wage levels have been increased in various sectors in all regions, including the BARMM [Bangsamoro Autonomous Region in Muslim Mindanao], for workers in private establishments. Makapagdudulot ito ng ginhawa sa mahigit apat na milyong mga kababayan natin at kanilang mga pamilya,” said Marcos.

(This will lead to relief among more than 4 million Filipinos and their families.)

Marcos noted how the employment rate has increased to 95.9%, with a “significant increase in high quality jobs.” He also mentioned that unemployment decreased from 11.7% in May 2023 to 9.9% at present, the lowest in around two decades.

All regions were able to grant increases to their minimum wage earners since Marcos’ last SONA. The Metro Manila wage board granted a P35 increase in the beginning of July, bringing the daily minimum wage up from P610 to P645 for non-agriculture workers. The capital region traditionally has the highest among all minimum wages in the Philippines.

But workers have criticized the present system, saying that the increases may help but have never been enough. IBON Foundation said that the family living wage, or the wage needed to live comfortably for a family of 5, was P1,190 in Metro Manila as of June.

“Bragging about ‘improvement’ in employment figures….rings hollow as nothing has been done to address the deepening problems of contractualization and poverty wages that many are consigned to. Our demand for legislated minimum wage increase of P150 is once again callously ignored as the President called on the regional wage boards to provide more crumbs to the working class!” said labor group Sentro ng mga Nagkakaisa at Progresibong Manggagawa (Sentro).

The Trade Union Congress of the Philippines (TUCP) said that while regional wage boards have been granting increases since 1989, these have been “consistently too little and too late.”

“This is unfortunately due to the too myopic view of our social partners, especially the employers groups, that higher wages are merely higher costs, instead of rightfully recognizing them as a driver of wage-led growth and an investment to raise a healthy competitive future workforce,” said TUCP.

Sentro added that Marcos failed to mention anything about labor rights, more than a year after the International Labor Organization sent recommendations to address trade union killings, red-tagging, and other forms of violations of freedom of association.

In January 2023, Marcos signed Executive Order (EO) 23, which established the Inter-Agency Committee for the Freedom of Association and Right to Organize of Workers.

But even with the EO, the International Trade Union Confederation still included the Philippines in its list of 10 worst countries for workers, citing continued violence against trade union leaders and red-tagging.

TUCP said that since inflation management, wage increases, and job creation remain as Filipinos’ top concerns, the Marcos administration needs to push for “sincere and genuine tripartism and social partnership.” – Rappler.com