Editorial

How much is MUCH wage?

Again, workers’ groups are resounding their plea for a reasonable and justifiable wage hike to cope with the economic trending when prices of goods and services are spiraling up. Recent surveys mark on top the need for workers’ wage hike. This is unending especially when a country progresses. 

    

But how much is much to be given? The Trade Union Congress of the Philippines demands a wage hike of P320 a day, but this is only in Metro Manila where cost of living is higher compared to provinces and urban places like Cotabato City. By current law, wage hike recommendation is determined by the Regional Tripartite Wage and Productivity Boards based on economic conditions and intervening factors warranting for an increase which is good for at least a year in effectivity.

       

Looking on present situation, our peso has weakened or devaluated in dollar exchange (P53.23 to S1 as of last week). For the overseas Filipino workers, this is an advantage since they can send more money value back home. But to our homeland, the effect comes negative for this will trigger prices of fuel and goods to rise, including water and electricity which are dependent on fossil products. Prices are already up since the effectivity of the TRAIN Law and the succeeding inflation but which government authorities say should not be put to blame since only a small percentage is levied as excise tax.

       

Let’s look on the present pricing. In Cotabato City, cost of chicken has raised from P120 to P160 a kilo, bangus from P120 to p180, matang-baka from P80 to P120 to P180, and so with galungong or mackerel. Sugar sweetened products are now also priced high, say, a powdered juice to P6-P7 per  pack for a liter drink. Fuel product costs are always a see-saw. We are not that optimist that prices will go down big-time.

       

How much wage is decent for a family of five? Analysts or financial studies indicate that P1,440 a day is decent enough to cover the most basic consumption, not to mention the need for savings to cruise emergency calls. So, this falls short from only P311 daily wage in our region. We can only cross our finger if Congress legislates a nation-wide P750 minimum wage. We also have to consider personnel lay-out, company shut-down, and further inflation if a very high wage hike is a compelling legislation.

       

But wage hikes are applicable only for wage earners. What about the non-wage or self-earners who have no assured salaries to pocket? As this goes, both spouses have to go to work to earn decent income.

       

Indeed, wage adjustment is now the call for coping with economic demands. How can the workers and employers make the balance? This is an open eye question needing further analytical mathematics. So how much is MUCH? Is there a belt to tighten?