CAGAYAN DE ORO, Philippines – Labor groups in Northern Mindanao have sharply criticized the P23 wage increase set to take effect in January 2025, calling it a token gesture that fails to address workers’ pressing needs.
The increase, which applies to both agriculture and non-agriculture sectors, was issued under a new wage order from the Regional Tripartite Wage and Productivity Board (RTWPB).
For workers like Cita Hadman, Northern Mindanao coordinator for the National Federation of Labor Unions-Kilusang Mayo Uno (NAFLU-KMU), the move only showed a systemic indifference to laborers’ struggles.
The order raises the minimum wage by P23 for both non-agriculture and agriculture sectors, effective January 12. An additional P12 increase for the agriculture sector will take effect in July 2025, bringing the sector’s minimum wage to P446, while the non-agriculture sector’s will rise to P461.
“It appears we still need to work hard to secure at least a P150 wage hike, increasing [our minimum wage] to P600 to catch up with the National Capital Region,” Hadman said.
As of November 2024, the living wage for a family of five in Northern Mindanao, based on a report by research group IBON Foundation, stands at P1,229. This results in a 64.4% wage gap compared to the region’s current minimum wage of P438.
Many minimum wage earners in Cagayan de Oro said the increase will be insufficient amid rising prices of basic goods especially in cases of emergencies, like when family members get sick, which strain their finances. As a result, saving money for them is impossible.
The RTWPB-Northern Mindanao’s recent P23 wage hike is the lowest increase implemented since 2018 for the non-agriculture sector. The region saw its highest minimum wage increase in 2022, with a P40 hike for the non-agriculture sector and P47 for agriculture, both given in two tranches.
By comparison, the Davao region has Mindanao’s highest minimum wage, at P481 for the non-agriculture sector and P457 for agriculture. Northern Mindanao follows, with Caraga at P435, Soccsksargen at P430 for the non-agriculture and P410 for the agriculture sectors, Zamboanga Peninsula at P414 and P401, and the Bangsamoro Autonomous Region in Muslim Mindanao trailing behind with wages ranging from P316 to P361.
Jerome Adonis, KMU secretary general, criticized the P23 increase, saying it cannot even buy half a kilo of rice. He called for the abolition of regional wage boards and urged the government to legislate wage increases instead.
“This shows that the RTWPB could not be the mechanism to improve the lives of Filipino workers,” he said.
The Trade Union Congress of the Philippines (TUCP) has called on the House of Representatives to pass House Bill No. 7871, which seeks a P150 across-the-board legislated wage increase, to complement a similar measure passed by the Senate in February.
The KMU, through the Makabayan Coalition in the House, is pushing for a P1,200 across-the-board daily wage nationwide, equivalent to a P750 increase on top of the existing minimum wage, to achieve the P1,218 average living wage for a family of five.
Ruben Vegafria, former regional governor of the Philippine Chamber of Commerce and Industry in Northern Mindanao, earlier said wage increases should not be legislated, citing varying living costs across regions. He warned that higher wages could force businesses to close, resulting in job losses.
However, Adonis argued that regional living costs are not significantly different and that wages should be more aligned with those in Metro Manila.
IBON Foundation said the proposed P150 across-the-board wage hike under House Bill No. 7871 would represent “only 10.6% of profits across all establishments and 11.3% for [micro, small, and medium enterprises].”
“Even a P663 wage hike that allows the current average wage to reach the [family living wage] is only 47% of all establishment profits and still leaves employers with the majority of profits,” the research group said.
Adonis said the struggle for better family living wages is not solely a workers’ concern but an issue affecting all Filipinos due to its ties to the broader economy. – Rappler.com