LABOR GROUPS MARCH TO MALACAÑANG, PRESS FOR WAGE INCREASE, CHIDE GMA’S MEASLY NON-WAGE BENEFITS

April 21, 2004

The Alliance of Progressive Labor (APL) and other labor groups marched to Malacañang this morning under the Broad Alliance for Wage Increase or BAWI to deliver its letter to President Gloria Macapagal Arroyo demanding for the immediate implementation of a wage increase for both public and private sector workers.

BAWI is demanding for an additional P65 daily wage and P3,500 monthly wage increase for private and public workers, respectively.

It was reported that Pres. Gloria Macapagal Arroyo supports the demand for wage increases but would rather leave the decision to increase the minimum wage to the various Regional Tripartite Wages and Productivity Boards (RTWPB) nationwide. It was reported that government is seriously considering the granting of non-wage benefits to the country’s workers in time for May 1.

"While we can appreciate Malacañang's positive response to our proposal for a wage increase, however their proposal for non-wage package is very problematic. At best it is very insufficient; worse it seems that Malacañang is merely looking for good sound bytes," Daniel L. Edralin, APL Chairperson said. "Their package may benefit only a few, if any at all," he added.

Last April 19, BAWI, a coalition comprising of 20 labor organizations representing about half of the ranks of organized labor in the country, held a press conference to call on the President to use her executive powers in granting their demand.

While Congress is in recess, Malacañang can send a clear signal to the Wage Boards to immediately act on the workers' demand for wage increase. "After all, in our experience, the Wage Boards only act when they have the imprimatur of Malacañang," Edralin added.

The minimum wage has been eroded many times with the steep rise in the prices of oil and other goods since the last round of wage adjustment two years ago. In the National Capital Region (NCR), inflation has eaten up 7 percent of the minimum wage since February 2002. And according to the estimates of the National Economic Development Authority (NEDA), the minimum wage is expected to further erode by at least 5 percent before the year ends. This situation prompted the labor groups to unite and demand for a common wage increase before the May elections.

In response to other labor groups’ demands, the APL said that what is important here is the unified stand of the workers for a wage increase.

Unite Our Ranks and Struggle for Wage Increase

We, spanning more than half the ranks of organized labor in the country, have come together to demand what is rightfully owed to the workers: a P65 wage increase.

The P65 wage aims to recover the lost value of wages and to increase workers’ share of the fruits of their labor. This wage increase is the first step towards the struggle for a living wage. We are also demanding P3,500 wage increase for government workers.

It is no secret that prices have risen steadily in the past two years since the last round of wage adjustment was implemented, leading to the erosion of the real value of worker’s measly wages. In the National Capital Region (NCR), inflation has eaten up 7% of the minimum wage since February 2002. And according to the estimates of the National Economic Development Authority (NEDA), this is expected to further erode by at least 5% before the year ends. Ironically, this happened at a time when the country experienced a respectable annual growth of 4 – 4.5%.

Clearly, we, the working people, have been at the loosing end for far too long while foreign and local businesses continued to enjoy huge incentives and perks to keep their financial head above water: tax-free holidays; unhampered repatriation of their profits to foreign establishments; exemption from implementing the minimum wage; etc.

It is this sorry state that is driving ever-increasing numbers of workers to abject destitution and a perpetual hand-to-mouth existence. Of course President Gloria Macapagal Arroyo is fully aware of this situation, however we have yet to see her take any initiative that would remedy the situation.

Now is her chance to do so. With the Congress and Senate in recess, it is well within the powers of Malacañang to immediately address the workers’ demand for wage increase.

Alongside the demand for wage increase, we are also demanding measures that would increase workers’ take-home pay: the suspension of withholding tax or higher tax exemptions and for the government to shoulder SSS, GSIS and PAG-IBIG contributions. We will also continue to press government to implement policies that would ensure full employment.

In this struggle, like any other workers’ struggle, labor unity is the categorical imperative. Workers must unite to strengthen its bargaining leverage against an elitist administration that is deaf and numb to the cries of the majority and against a unified employers sector that already issued its opposition to a wage increase. We therefore call upon all workers to join us in this fight.

In this struggle the real friends and enemies of the working class will no doubt be exposed especially in this election period where promises are a dime-a-dozen and sincerity is hard to find under all the rhetoric and polish of TRAPOs. We are thus challenging all national candidates to state their position on the wage issue.

If government will be indifferent to the demand for wage increase and wage recovery, then labor's May 1 commemoration will be a protest movement that will build up to a protest vote on May 10. And we are prepared to fight a long battle, even beyond May 1 and May 10. If necessary, the struggle will continue and intensify under the newly elected administration and Congress.

--------------------------

List of Organizations Participating in BAWI

Labor Centers
Alliance of Progressive Labor (APL)
Bukluran ng Manggagawang Pilipino (BMP)
Confederation of Independent Unions in the Public Sector (CIU)
Federation of Free Workers (FFW)
KATIPUNAN
Manggagawa para sa Kalayaan ng Bayan (MAKABAYAN)
National Confederation of Labor (NCL)

Other Labor Organizations
Alliance of Concerned Teachers (ACT)
Association of Genuine Labor Organization (AGLO)
Automotive Industry Workers’ Alliance (AIWA)
Bagong Kapisanan ng mga Manggagawa sa PNR
Council of Filipino Nestle Unions (CFNU)
Lapian at Gabay ng Mga Manggagawa (LAGMAN Federation)
League of Independent Bank Organizations (LIBO)
National Association of Trade Unions (NATU)
National Labor Union (NLU)
National Union of Bank Employees (NUBE)
Philippine Cement Workers’ Council (PCWC)
Philippine Metalworkers’ Alliance (PMA)
Postal Employee’s Union of the Philippines (PEUP)